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Free tax calculator 2012 7. Free tax calculator 2012   Figuring Gross Profit Table of Contents Introduction Items To Check Testing Gross Profit AccuracyExample. Free tax calculator 2012 Additions to Gross Profit Introduction After you have figured the gross receipts from your business (chapter 5) and the cost of goods sold (chapter 6), you are ready to figure your gross profit. Free tax calculator 2012 You must determine gross profit before you can deduct any business expenses. Free tax calculator 2012 These expenses are discussed in chapter 8. Free tax calculator 2012 If you are filing Schedule C-EZ, your gross profit is your gross receipts plus certain other amounts, explained later under Additions to Gross Profit. Free tax calculator 2012 Businesses that sell products. Free tax calculator 2012   If you are filing Schedule C, figure your gross profit by first figuring your net receipts. Free tax calculator 2012 Figure net receipts (line 3) on Schedule C by subtracting any returns and allowances (line 2) from gross receipts (line 1). Free tax calculator 2012 Returns and allowances include cash or credit refunds you make to customers, rebates, and other allowances off the actual sales price. Free tax calculator 2012   Next, subtract the cost of goods sold (line 4) from net receipts (line 3). Free tax calculator 2012 The result is the gross profit from your business. Free tax calculator 2012 Businesses that sell services. Free tax calculator 2012   You do not have to figure the cost of goods sold if the sale of merchandise is not an income-producing factor for your business. Free tax calculator 2012 Your gross profit is the same as your net receipts (gross receipts minus any refunds, rebates, or other allowances). Free tax calculator 2012 Most professions and businesses that sell services rather than products can figure gross profit directly from net receipts in this way. Free tax calculator 2012 Illustration. Free tax calculator 2012   This illustration of the gross profit section of the income statement of a retail business shows how gross profit is figured. Free tax calculator 2012 Income Statement Year Ended December 31, 2013 Gross receipts $400,000 Minus: Returns and allowances 14,940 Net receipts $385,060 Minus: Cost of goods sold 288,140 Gross profit $96,920   The cost of goods sold for this business is figured as follows: Inventory at beginning of year $37,845 Plus: Purchases $285,900   Minus: Items withdrawn for personal use 2,650 283,250 Goods available for sale $321,095 Minus: Inventory at end of year 32,955 Cost of goods sold $288,140 Items To Check Consider the following items before figuring your gross profit. Free tax calculator 2012 Gross receipts. Free tax calculator 2012   At the end of each business day, make sure your records balance with your actual cash and credit receipts for the day. Free tax calculator 2012 You may find it helpful to use cash registers to keep track of receipts. Free tax calculator 2012 You should also use a proper invoicing system and keep a separate bank account for your business. Free tax calculator 2012 Sales tax collected. Free tax calculator 2012   Check to make sure your records show the correct sales tax collected. Free tax calculator 2012   If you collect state and local sales taxes imposed on you as the seller of goods or services from the buyer, you must include the amount collected in gross receipts. Free tax calculator 2012   If you are required to collect state and local taxes imposed on the buyer and turn them over to state or local governments, you generally do not include these amounts in income. Free tax calculator 2012 Inventory at beginning of year. Free tax calculator 2012   Compare this figure with last year's ending inventory. Free tax calculator 2012 The two amounts should usually be the same. Free tax calculator 2012 Purchases. Free tax calculator 2012   If you take any inventory items for your personal use (use them yourself, provide them to your family, or give them as personal gifts, etc. Free tax calculator 2012 ) be sure to remove them from the cost of goods sold. Free tax calculator 2012 For details on how to adjust cost of goods sold, see Merchandise withdrawn from sale in chapter 6. Free tax calculator 2012 Inventory at end of year. Free tax calculator 2012   Check to make sure your procedures for taking inventory are adequate. Free tax calculator 2012 These procedures should ensure all items have been included in inventory and proper pricing techniques have been used. Free tax calculator 2012   Use inventory forms and adding machine tapes as the only evidence for your inventory. Free tax calculator 2012 Inventory forms are available at office supply stores. Free tax calculator 2012 These forms have columns for recording the description, quantity, unit price, and value of each inventory item. Free tax calculator 2012 Each page has space to record who made the physical count, who priced the items, who made the extensions, and who proofread the calculations. Free tax calculator 2012 These forms will help satisfy you that the total inventory is accurate. Free tax calculator 2012 They will also provide you with a permanent record to support its validity. Free tax calculator 2012   Inventories are discussed in chapter 2. Free tax calculator 2012 Testing Gross Profit Accuracy If you are in a retail or wholesale business, you can check the accuracy of your gross profit figure. Free tax calculator 2012 First, divide gross profit by net receipts. Free tax calculator 2012 The resulting percentage measures the average spread between the merchandise cost of goods sold and the selling price. Free tax calculator 2012 Next, compare this percentage to your markup policy. Free tax calculator 2012 Little or no difference between these two percentages shows that your gross profit figure is accurate. Free tax calculator 2012 A large difference between these percentages may show that you did not accurately figure sales, purchases, inventory, or other items of cost. Free tax calculator 2012 You should determine the reason for the difference. Free tax calculator 2012 Example. Free tax calculator 2012   Joe Able operates a retail business. Free tax calculator 2012 On the average, he marks up his merchandise so that he will realize a gross profit of 331/3% on its sales. Free tax calculator 2012 The net receipts (gross receipts minus returns and allowances) shown on his income statement is $300,000. Free tax calculator 2012 His cost of goods sold is $200,000. Free tax calculator 2012 This results in a gross profit of $100,000 ($300,000 − $200,000). Free tax calculator 2012 To test the accuracy of this year's results, Joe divides gross profit ($100,000) by net receipts ($300,000). Free tax calculator 2012 The resulting 331/3% confirms his markup percentage of 331/3%. Free tax calculator 2012 Additions to Gross Profit If your business has income from a source other than its regular business operations, enter the income on line 6 of Schedule C and add it to gross profit. Free tax calculator 2012 The result is gross business income. Free tax calculator 2012 If you use Schedule C-EZ, include the income on line 1 of the schedule. Free tax calculator 2012 Some examples include income from an interest-bearing checking account, income from scrap sales, income from certain fuel tax credits and refunds, and amounts recovered from bad debts. 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Page Last Reviewed or Updated: 28-Mar-2014

The Free Tax Calculator 2012

Free tax calculator 2012 Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. Free tax calculator 2012 Gross monthly rate. Free tax calculator 2012 Your cost. Free tax calculator 2012 Choosing a survivor annuity after retirement. Free tax calculator 2012 Canceling a survivor annuity after retirement. Free tax calculator 2012 Annuity starting date after 1986. Free tax calculator 2012 Annuity starting date before 1987. Free tax calculator 2012 Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. Free tax calculator 2012 Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. Free tax calculator 2012 The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Free tax calculator 2012 If the refund includes only your contributions, none of the refund is taxable. Free tax calculator 2012 If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). Free tax calculator 2012 If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Free tax calculator 2012 See Rollover Rules in Part II for information on how to make a rollover. Free tax calculator 2012 Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. Free tax calculator 2012 Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Free tax calculator 2012 If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Free tax calculator 2012 If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. Free tax calculator 2012 For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Free tax calculator 2012 A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. Free tax calculator 2012 Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. Free tax calculator 2012 OPM will tell you how to make the choice. Free tax calculator 2012 The choice for no withholding remains in effect until you change it. Free tax calculator 2012 These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Free tax calculator 2012 If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. Free tax calculator 2012 You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. Free tax calculator 2012 Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. Free tax calculator 2012 For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Free tax calculator 2012 Form CSA 1099R. Free tax calculator 2012   Form CSA 1099R is mailed to you by OPM each year. Free tax calculator 2012 It will show any tax you had withheld. Free tax calculator 2012 File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Free tax calculator 2012    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Free tax calculator 2012 servicesonline. Free tax calculator 2012 opm. Free tax calculator 2012 gov. Free tax calculator 2012 To log in, you will need your retirement CSA claim number and your personal identification number. Free tax calculator 2012 Choosing no withholding on payments outside the United States. Free tax calculator 2012   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Free tax calculator 2012   To choose no withholding if you are a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Free tax calculator 2012 Otherwise, OPM has to withhold tax. Free tax calculator 2012 For example, OPM must withhold if you provide a U. Free tax calculator 2012 S. Free tax calculator 2012 address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. Free tax calculator 2012 S. Free tax calculator 2012 home address. Free tax calculator 2012   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen, a U. Free tax calculator 2012 S. Free tax calculator 2012 resident alien, or someone who left the United States to avoid tax. Free tax calculator 2012 But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Free tax calculator 2012 For details, see Publication 519, U. Free tax calculator 2012 S. Free tax calculator 2012 Tax Guide for Aliens. Free tax calculator 2012 Withholding certificate. Free tax calculator 2012   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. Free tax calculator 2012 The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Free tax calculator 2012 If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Free tax calculator 2012 To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Free tax calculator 2012 C. Free tax calculator 2012 calling area must call 202-606-0500). Free tax calculator 2012 No special form is needed. Free tax calculator 2012 You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Free tax calculator 2012 If you have TTY/TDD equipment, call 1-855–887–4957. Free tax calculator 2012 If you need a PIN, call OPM's Retirement Information Office. Free tax calculator 2012 You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Free tax calculator 2012 servicesonline. Free tax calculator 2012 opm. Free tax calculator 2012 gov. Free tax calculator 2012 You will need your retirement CSA or CSF claim number and your PIN. Free tax calculator 2012 Withholding from certain lump-sum payments. Free tax calculator 2012   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. Free tax calculator 2012 Tax will be withheld at a 20% rate on the interest distributed. Free tax calculator 2012 However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Free tax calculator 2012 If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Free tax calculator 2012 Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Free tax calculator 2012 See Rollover Rules in Part II. Free tax calculator 2012 If you receive only your contributions, no tax will be withheld. Free tax calculator 2012 Withholding from Thrift Savings Plan payments. Free tax calculator 2012   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Free tax calculator 2012 The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. Free tax calculator 2012  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Free tax calculator 2012 By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. Free tax calculator 2012   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. Free tax calculator 2012 The above document is also available in the “Forms & Publications” section of the TSP website at www. Free tax calculator 2012 tsp. Free tax calculator 2012 gov. Free tax calculator 2012 Estimated tax. Free tax calculator 2012   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). Free tax calculator 2012 The return must cover all 12 months. Free tax calculator 2012   You do not have to pay estimated tax for 2014 if you were a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Free tax calculator 2012   Publication 505 contains information that you can use to help you figure your estimated tax payments. Free tax calculator 2012 Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. Free tax calculator 2012 The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Free tax calculator 2012 Children. Free tax calculator 2012   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. Free tax calculator 2012   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. Free tax calculator 2012 Form CSF 1099R. Free tax calculator 2012   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Free tax calculator 2012 It will show the total amount of the annuity you received in the past year. Free tax calculator 2012 It also should show, separately, the survivor annuity for a child or children. Free tax calculator 2012 Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Free tax calculator 2012   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. Free tax calculator 2012    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Free tax calculator 2012 servicesonline. Free tax calculator 2012 opm. Free tax calculator 2012 gov. Free tax calculator 2012 To log in you will need your retirement CSF claim number and personal identification number. Free tax calculator 2012    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Free tax calculator 2012 C. Free tax calculator 2012 calling area must call 202-606-0500). Free tax calculator 2012 You will need your CSF claim number and your social security number when you call. Free tax calculator 2012 Taxable part of annuity. Free tax calculator 2012   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. Free tax calculator 2012 To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. Free tax calculator 2012 Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Free tax calculator 2012 If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. Free tax calculator 2012 However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. Free tax calculator 2012 Annuity statement. Free tax calculator 2012   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). Free tax calculator 2012 You will use this information to figure the tax-free recovery of your cost. Free tax calculator 2012 Annuity starting date. Free tax calculator 2012   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. Free tax calculator 2012 If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. Free tax calculator 2012 Gross monthly rate. Free tax calculator 2012   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. Free tax calculator 2012 Your cost. Free tax calculator 2012   Your monthly annuity payment contains an amount on which you have previously paid income tax. Free tax calculator 2012 This amount represents part of your contributions to the retirement plan. Free tax calculator 2012 Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. Free tax calculator 2012   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Free tax calculator 2012 If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Free tax calculator 2012 (See Lump-sum credit under Alternative Annuity Option, later. Free tax calculator 2012 )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. Free tax calculator 2012 You cannot claim an interest deduction for any interest payments. Free tax calculator 2012 You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Free tax calculator 2012 Recovering your cost tax free. Free tax calculator 2012   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Free tax calculator 2012 If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. Free tax calculator 2012 If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). Free tax calculator 2012 If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Free tax calculator 2012   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). Free tax calculator 2012 The tax-free part is a fixed dollar amount. Free tax calculator 2012 It remains the same, even if your annuity is increased. Free tax calculator 2012 Generally, this rule applies as long as you receive your annuity. Free tax calculator 2012 However, see Exclusion limit , later. Free tax calculator 2012 Choosing a survivor annuity after retirement. Free tax calculator 2012    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. Free tax calculator 2012   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. Free tax calculator 2012 To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Free tax calculator 2012 Figure the expected return as of the date the reduced annuity begins. Free tax calculator 2012 For details on the General Rule, see Publication 939. Free tax calculator 2012 Canceling a survivor annuity after retirement. Free tax calculator 2012   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. Free tax calculator 2012 The increased annuity does not change the cost recovery you figured at the annuity starting date. Free tax calculator 2012 The tax-free part of each annuity payment remains the same. Free tax calculator 2012    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Free tax calculator 2012 C. Free tax calculator 2012 calling area must call 202-606-0500). Free tax calculator 2012 Exclusion limit. Free tax calculator 2012   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Free tax calculator 2012 Annuity starting date after 1986. Free tax calculator 2012   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. Free tax calculator 2012 Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Free tax calculator 2012 Example. Free tax calculator 2012 Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Free tax calculator 2012 If your cost is $12,000, the exclusion ends after 10 years (120 months). Free tax calculator 2012 Thereafter, your entire annuity is generally fully taxable. Free tax calculator 2012 Annuity starting date before 1987. Free tax calculator 2012   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. Free tax calculator 2012 If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Free tax calculator 2012 The total exclusion may be more than your cost. Free tax calculator 2012 Deduction of unrecovered cost. Free tax calculator 2012   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. Free tax calculator 2012 The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). Free tax calculator 2012 If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Free tax calculator 2012 Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. Free tax calculator 2012 (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Free tax calculator 2012 ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. Free tax calculator 2012 The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Free tax calculator 2012 Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. Free tax calculator 2012 This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Free tax calculator 2012 If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. Free tax calculator 2012 Worksheet A. Free tax calculator 2012   Use Worksheet A. Free tax calculator 2012 Simplified Method (near the end of this publication), to figure your taxable annuity. Free tax calculator 2012 Be sure to keep the completed worksheet. Free tax calculator 2012 It will help you figure your taxable amounts for later years. Free tax calculator 2012 Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. Free tax calculator 2012 However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Free tax calculator 2012 Line 2. Free tax calculator 2012   See Your cost , earlier, for an explanation of your cost in the plan. Free tax calculator 2012 If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. Free tax calculator 2012 Line 3. Free tax calculator 2012   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Free tax calculator 2012 If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. Free tax calculator 2012 If your annuity starting date is before 1998, use Table 1. Free tax calculator 2012 Line 6. Free tax calculator 2012   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. Free tax calculator 2012 If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. Free tax calculator 2012 Example. Free tax calculator 2012 Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Free tax calculator 2012 His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. Free tax calculator 2012 He must use the Simplified Method to figure the tax-free part of his annuity benefits. Free tax calculator 2012 Bill's monthly annuity benefit is $1,000. Free tax calculator 2012 He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Free tax calculator 2012 At his annuity starting date, he was 65 and Kathy was 57. Free tax calculator 2012 Bill's completed Worksheet A is shown later. Free tax calculator 2012 To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). Free tax calculator 2012 Bill keeps a copy of the completed worksheet for his records. Free tax calculator 2012 It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Free tax calculator 2012 Bill's tax-free monthly amount is $100. Free tax calculator 2012 (See line 4 of the worksheet. Free tax calculator 2012 ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. Free tax calculator 2012 If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. Free tax calculator 2012 If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. Free tax calculator 2012 General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. Free tax calculator 2012 If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. Free tax calculator 2012 If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. Free tax calculator 2012 Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. Free tax calculator 2012 Figuring this percentage is complex and requires the use of actuarial tables. Free tax calculator 2012 For these tables and other information about using the General Rule, see Publication 939. Free tax calculator 2012 Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. Free tax calculator 2012 Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Free tax calculator 2012 After your cost was recovered, all payments became fully taxable. Free tax calculator 2012 You cannot use another rule to again exclude amounts from income. Free tax calculator 2012 The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Free tax calculator 2012 Worksheet A. Free tax calculator 2012 Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Free tax calculator 2012 1. Free tax calculator 2012 Enter the total pension or annuity payments received this year. Free tax calculator 2012 Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Free tax calculator 2012 $ 8,000 2. Free tax calculator 2012 Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Free tax calculator 2012 See Your cost in Part II, Rules for Retirees, earlier 2. Free tax calculator 2012 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 tax calculator 2012 Otherwise, go to line 3. Free tax calculator 2012   3. Free tax calculator 2012 Enter the appropriate number from Table 1 below. Free tax calculator 2012 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. Free tax calculator 2012 3. Free tax calculator 2012 310 4. Free tax calculator 2012 Divide line 2 by the number on line 3 4. Free tax calculator 2012 100 5. Free tax calculator 2012 Multiply line 4 by the number of months for which this year's payments were made. Free tax calculator 2012 If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Free tax calculator 2012 Otherwise, go to line 6 5. Free tax calculator 2012 800 6. Free tax calculator 2012 Enter any amounts previously recovered tax free in years after 1986. Free tax calculator 2012 This is the amount shown on line 10 of your worksheet for last year 6. Free tax calculator 2012 0 7. Free tax calculator 2012 Subtract line 6 from line 2 7. Free tax calculator 2012 31,000 8. Free tax calculator 2012 Enter the smaller of line 5 or line 7 8. Free tax calculator 2012 800 9. Free tax calculator 2012 Taxable amount for year. Free tax calculator 2012 Subtract line 8 from line 1. Free tax calculator 2012 Enter the result, but not less than zero. Free tax calculator 2012 Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Free tax calculator 2012 If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Free tax calculator 2012 If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Free tax calculator 2012 If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Free tax calculator 2012 $7,200 10. Free tax calculator 2012 Was your annuity starting date before 1987?   Yes. Free tax calculator 2012 Do not complete the rest of this worksheet. Free tax calculator 2012    No. Free tax calculator 2012 Add lines 6 and 8. Free tax calculator 2012 This is the amount you have recovered tax free through 2013. Free tax calculator 2012 You will need this number if you need to fill out this worksheet next year 10. Free tax calculator 2012 800 11. Free tax calculator 2012 Balance of cost to be recovered. Free tax calculator 2012 Subtract line 10 from line 2. Free tax calculator 2012 If zero, you will not have to complete this worksheet next year. Free tax calculator 2012 The payments you receive next year will generally be fully taxable 11. Free tax calculator 2012 $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Free tax calculator 2012 Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Free tax calculator 2012 If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Free tax calculator 2012 You are eligible to make this choice if you meet all of the following requirements. Free tax calculator 2012 You are retiring, but not on disability. Free tax calculator 2012 You have a life-threatening illness or other critical medical condition. Free tax calculator 2012 You do not have a former spouse entitled to court ordered benefits based on your service. Free tax calculator 2012 If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. Free tax calculator 2012 Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Free tax calculator 2012 The tax-free part represents part of your cost. Free tax calculator 2012 The taxable part represents part of the earnings on your annuity contract. Free tax calculator 2012 Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. Free tax calculator 2012 Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Free tax calculator 2012 Your taxable amount may therefore be more than the lump-sum payment you receive. Free tax calculator 2012 You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. Free tax calculator 2012 If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Free tax calculator 2012 See Rollover Rules , later, for information on how to make a rollover. Free tax calculator 2012 OPM can make a direct rollover only up to the amount of the lump-sum payment. Free tax calculator 2012 Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Free tax calculator 2012 The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Free tax calculator 2012 It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. Free tax calculator 2012 For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Free tax calculator 2012 Worksheet B. Free tax calculator 2012   Use Worksheet B. Free tax calculator 2012 Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Free tax calculator 2012 Be sure to keep the completed worksheet for your records. Free tax calculator 2012   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Free tax calculator 2012 Lump-sum credit. Free tax calculator 2012   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Free tax calculator 2012 However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. Free tax calculator 2012 Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Free tax calculator 2012 Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Free tax calculator 2012 You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. Free tax calculator 2012 Present value of your annuity contract. Free tax calculator 2012   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Free tax calculator 2012 If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. Free tax calculator 2012 Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Free tax calculator 2012 , NW Washington, DC 20224-0002 Example. Free tax calculator 2012 David Brown retired from the federal government in 2013, one month after his 55th birthday. Free tax calculator 2012 He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. Free tax calculator 2012 The present value of his annuity contract was $155,000. Free tax calculator 2012 The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Free tax calculator 2012 The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. Free tax calculator 2012 See Reduced Annuity , later. Free tax calculator 2012 Worksheet B. Free tax calculator 2012 Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Free tax calculator 2012  1. Free tax calculator 2012 Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Free tax calculator 2012 $ 31,000 2. Free tax calculator 2012 Enter the present value of your annuity contract 2. Free tax calculator 2012 155,000 3. Free tax calculator 2012 Divide line 1 by line 2 3. Free tax calculator 2012 . Free tax calculator 2012 20 4. Free tax calculator 2012 Tax-free amount. Free tax calculator 2012 Multiply line 1 by line 3. Free tax calculator 2012 (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Free tax calculator 2012 ) 4. Free tax calculator 2012 $6,200 5. Free tax calculator 2012 Taxable amount (net cost in the plan). Free tax calculator 2012 Subtract line 4 from line 1. Free tax calculator 2012 Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Free tax calculator 2012 Also, enter this amount on line 2 of Worksheet A in this publication. Free tax calculator 2012 5. Free tax calculator 2012 $24,800   Lump-sum payment in installments. Free tax calculator 2012   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Free tax calculator 2012 You will receive the first installment after you make the choice upon retirement. Free tax calculator 2012 The second installment will be paid to you, with interest, in the next calendar year. Free tax calculator 2012 (Exceptions to the installment rule are provided for cases of critical medical need. Free tax calculator 2012 )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. Free tax calculator 2012 If the payment has a tax-free part, you must treat the taxable part as received first. Free tax calculator 2012 How to report. Free tax calculator 2012   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Free tax calculator 2012 Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. Free tax calculator 2012    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. Free tax calculator 2012 Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. Free tax calculator 2012 These annuity payments each will have a tax-free and a taxable part. Free tax calculator 2012 To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Free tax calculator 2012 For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Free tax calculator 2012 To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. Free tax calculator 2012 Enter as your net cost on line 2 the amount from Worksheet B, line 5. Free tax calculator 2012 Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Free tax calculator 2012 Example. Free tax calculator 2012 The facts are the same as in the example for David Brown in the preceding discussion. Free tax calculator 2012 In addition, David received 10 annuity payments in 2013 of $1,200 each. Free tax calculator 2012 Using Worksheet A, he figures the taxable part of his annuity payments. Free tax calculator 2012 He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Free tax calculator 2012 His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Free tax calculator 2012 He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Free tax calculator 2012 David's filled-in Worksheet A is shown on the next page. Free tax calculator 2012 Worksheet A. Free tax calculator 2012 Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Free tax calculator 2012 1. Free tax calculator 2012 Enter the total pension or annuity payments received this year. Free tax calculator 2012 Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Free tax calculator 2012 $ 12,000 2. Free tax calculator 2012 Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Free tax calculator 2012 See Your cost in Part II, Rules for Retirees, earlier 2. Free tax calculator 2012 24,800 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Free tax calculator 2012 Otherwise, go to line 3. Free tax calculator 2012   3. Free tax calculator 2012 Enter the appropriate number from Table 1 below. Free tax calculator 2012 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. Free tax calculator 2012 3. Free tax calculator 2012 360 4. Free tax calculator 2012 Divide line 2 by the number on line 3 4. Free tax calculator 2012 68. Free tax calculator 2012 89 5. Free tax calculator 2012 Multiply line 4 by the number of months for which this year's payments were made. Free tax calculator 2012 If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Free tax calculator 2012 Otherwise, go to line 6 5. Free tax calculator 2012 688. Free tax calculator 2012 90 6. Free tax calculator 2012 Enter any amounts previously recovered tax free in years after 1986. Free tax calculator 2012 This is the amount shown on line 10 of your worksheet for last year 6. Free tax calculator 2012 0 7. Free tax calculator 2012 Subtract line 6 from line 2 7. Free tax calculator 2012 24,800 8. Free tax calculator 2012 Enter the smaller of line 5 or line 7 8. Free tax calculator 2012 688. Free tax calculator 2012 90 9. Free tax calculator 2012 Taxable amount for year. Free tax calculator 2012 Subtract line 8 from line 1. Free tax calculator 2012 Enter the result, but not less than zero. Free tax calculator 2012 Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Free tax calculator 2012 If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Free tax calculator 2012 If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Free tax calculator 2012 If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Free tax calculator 2012 $11,311. Free tax calculator 2012 10 10. Free tax calculator 2012 Was your annuity starting date before 1987?   Yes. Free tax calculator 2012 Do not complete the rest of this worksheet. Free tax calculator 2012    No. Free tax calculator 2012 Add lines 6 and 8. Free tax calculator 2012 This is the amount you have recovered tax free through 2013. Free tax calculator 2012 You will need this number if you need to fill out this worksheet next year 10. Free tax calculator 2012 688. Free tax calculator 2012 90 11. Free tax calculator 2012 Balance of cost to be recovered. Free tax calculator 2012 Subtract line 10 from line 2. Free tax calculator 2012 If zero, you will not have to complete this worksheet next year. Free tax calculator 2012 The payments you receive next year will generally be fully taxable 11. Free tax calculator 2012 $24,111. Free tax calculator 2012 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Free tax calculator 2012 Reemployment after choosing the alternative annuity option. Free tax calculator 2012 If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. Free tax calculator 2012 If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. Free tax calculator 2012 Annuity starting date before November 19, 1996. Free tax calculator 2012   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. Free tax calculator 2012 Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. Free tax calculator 2012 However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Free tax calculator 2012 Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. Free tax calculator 2012 The gift may be taxable for gift tax purposes. Free tax calculator 2012 The value of the gift is equal to the value of the annuity. Free tax calculator 2012 Joint and survivor annuity. Free tax calculator 2012   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. Free tax calculator 2012 This will eliminate any gift tax liability with regard to that gift. Free tax calculator 2012   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. Free tax calculator 2012 This may result in a taxable gift. Free tax calculator 2012 More information. Free tax calculator 2012   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. Free tax calculator 2012 Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. Free tax calculator 2012 Annual leave. Free tax calculator 2012   A payment for accrued annual leave received on retirement is a salary payment. Free tax calculator 2012 It is taxable as wages in the tax year you receive it. Free tax calculator 2012 Voluntary contributions. Free tax calculator 2012   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Free tax calculator 2012 They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. Free tax calculator 2012 Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Free tax calculator 2012 See Thrift Savings Plan , later. Free tax calculator 2012 Additional annuity benefit. Free tax calculator 2012   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. Free tax calculator 2012 This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Free tax calculator 2012 It does not matter that you receive only one monthly check covering both benefits. Free tax calculator 2012 Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. Free tax calculator 2012   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. Free tax calculator 2012 Refund of voluntary contributions. Free tax calculator 2012   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. Free tax calculator 2012 If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. Free tax calculator 2012 See Rollover Rules , later. Free tax calculator 2012 The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Free tax calculator 2012 It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. Free tax calculator 2012 For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Free tax calculator 2012 Community property laws. Free tax calculator 2012   State community property laws apply to your annuity. Free tax calculator 2012 These laws will affect your income tax only if you file a return separately from your spouse. Free tax calculator 2012   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. Free tax calculator 2012 Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. Free tax calculator 2012   At any time, you have only one domicile even though you may have more than one home. Free tax calculator 2012 Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Free tax calculator 2012 The question of your domicile is mainly a matter of your intentions as indicated by your actions. Free tax calculator 2012   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Free tax calculator 2012 The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Free tax calculator 2012   For more information, see Publication 555, Community Property. Free tax calculator 2012 Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. Free tax calculator 2012 The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Free tax calculator 2012 This amount is taxable as wages. Free tax calculator 2012 Your annuity will continue to be taxed just as it was before. Free tax calculator 2012 If you are still recovering your cost, you continue to do so. Free tax calculator 2012 If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Free tax calculator 2012 Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. Free tax calculator 2012 A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Free tax calculator 2012 Special rule for figuring your total contributions. Free tax calculator 2012   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Free tax calculator 2012 You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. Free tax calculator 2012 For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Free tax calculator 2012 Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Free tax calculator 2012   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. Free tax calculator 2012 Limit on taxable amount. Free tax calculator 2012   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. Free tax calculator 2012 Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Free tax calculator 2012 The numerator of the fraction is the retiree's total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay, other than tax-exempt pay for services performed outside the United States. Free tax calculator 2012 The denominator is the retiree's total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay for all services. Free tax calculator 2012    Basic pay includes regular pay plus any standby differential. Free tax calculator 2012 It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Free tax calculator 2012   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Free tax calculator 2012 (For an annuity, first complete Worksheet A in this publication. Free tax calculator 2012 ) Worksheet C. Free tax calculator 2012 Limited Taxable Amount for Nonresident Alien 1. Free tax calculator 2012 Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Free tax calculator 2012   2. Free tax calculator 2012 Enter the total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay other than tax-exempt pay for services performed outside the United States 2. Free tax calculator 2012   3. Free tax calculator 2012 Enter the total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay for all services 3. Free tax calculator 2012   4. Free tax calculator 2012 Divide line 2 by line 3 4. Free tax calculator 2012   5. Free tax calculator 2012 Limited taxable amount. Free tax calculator 2012 Multiply line 1 by line 4. Free tax calculator 2012 Enter this amount on Form 1040NR, line 17b 5. Free tax calculator 2012   Example 1. Free tax calculator 2012 You are a nonresident alien who performed all services for the U. Free tax calculator 2012 S. Free tax calculator 2012 Government abroad as a nonresident alien. Free tax calculator 2012 You retired and began to receive a monthly annuity of $200. Free tax calculator 2012 Your total basic pay for all services for the U. Free tax calculator 2012 S. Free tax calculator 2012 Government was $100,000. Free tax calculator 2012 All of your basic pay was tax exempt because it was not U. Free tax calculator 2012 S. Free tax calculator 2012 source income. Free tax calculator 2012 The taxable amount of your annuity using Worksheet A in this publication is $720. Free tax calculator 2012 You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Free tax calculator 2012 Worksheet C. Free tax calculator 2012 Limited Taxable Amount for Nonresident Alien — Example 1 1. Free tax calculator 2012 Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Free tax calculator 2012 $ 720 2. Free tax calculator 2012 Enter the total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay other than tax-exempt pay for services performed outside the United States 2. Free tax calculator 2012 0 3. Free tax calculator 2012 Enter the total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay for all services 3. Free tax calculator 2012 100,000 4. Free tax calculator 2012 Divide line 2 by line 3 4. Free tax calculator 2012 0 5. Free tax calculator 2012 Limited taxable amount. Free tax calculator 2012 Multiply line 1 by line 4. Free tax calculator 2012 Enter this amount on Form 1040NR, line 17b 5. Free tax calculator 2012 0 Example 2. Free tax calculator 2012 You are a nonresident alien who performed services for the U. Free tax calculator 2012 S. Free tax calculator 2012 Government as a nonresident alien both within the United States and abroad. Free tax calculator 2012 You retired and began to receive a monthly annuity of $240. Free tax calculator 2012 Your total basic pay for your services for the U. Free tax calculator 2012 S. Free tax calculator 2012 Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. Free tax calculator 2012 The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Free tax calculator 2012 S. Free tax calculator 2012 source income. Free tax calculator 2012 The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Free tax calculator 2012 You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Free tax calculator 2012 Worksheet C. Free tax calculator 2012 Limited Taxable Amount for Nonresident Alien — Example 2 1. Free tax calculator 2012 Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Free tax calculator 2012 $ 1,980 2. Free tax calculator 2012 Enter the total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay other than tax-exempt pay for services performed outside the United States 2. Free tax calculator 2012 40,000 3. Free tax calculator 2012 Enter the total U. Free tax calculator 2012 S. Free tax calculator 2012 Government basic pay for all services 3. Free tax calculator 2012 120,000 4. Free tax calculator 2012 Divide line 2 by line 3 4. Free tax calculator 2012 . Free tax calculator 2012 333 5. Free tax calculator 2012 Limited taxable amount. Free tax calculator 2012 Multiply line 1 by line 4. Free tax calculator 2012 Enter this amount on Form 1040NR, line 17b 5. Free tax calculator 2012 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Free tax calculator 2012 (However, see Roth TSP balance and Uniformed services TSP accounts, next. Free tax calculator 2012 ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Free tax calculator 2012 The way that you withdraw your account balance determines when you must pay the tax. Free tax calculator 2012 Roth TSP balance. Free tax calculator 2012   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Free tax calculator 2012 This means Roth TSP contributions are included in your income. Free tax calculator 2012 The contribution limits are the same as the traditional TSP. Free tax calculator 2012 You can elect to have part or all of your TSP contributions designated as a Roth TSP. Free tax calculator 2012 Agency contributions will be part of your traditional TSP balance. Free tax calculator 2012 Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Free tax calculator 2012   Qualified distributions from your Roth TSP are not included in income. Free tax calculator 2012 This applies to both your cost in the account and income earned on that account. Free tax calculator 2012 A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Free tax calculator 2012   For more information, go to the TSP website, www. Free tax calculator 2012 tsp. Free tax calculator 2012 gov, or the TSP Service Office. Free tax calculator 2012 See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Free tax calculator 2012 Uniformed services TSP accounts. Free tax calculator 2012   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Free tax calculator 2012 However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Free tax calculator 2012 See Roth TSP balance discussed previously to get more information about Roth contributions. Free tax calculator 2012 The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. Free tax calculator 2012 You can get more information from the TSP website, www. Free tax calculator 2012 tsp. Free tax calculator 2012 gov, or the TSP Service Office. Free tax calculator 2012 Direct rollover by the TSP. Free tax calculator 2012   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. Free tax calculator 2012 However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Free tax calculator 2012 Also, see Rollover Rules , later. Free tax calculator 2012 Direct rollover by the TSP to a Roth IRA. Free tax calculator 2012   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. Free tax calculator 2012 However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Free tax calculator 2012 Also, see Rollovers to Roth IRAs for more information, later. Free tax calculator 2012 Note. Free tax calculator 2012 A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. Free tax calculator 2012 This is because you already paid tax on those contributions. Free tax calculator 2012 You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Free tax calculator 2012 TSP annuity. Free tax calculator 2012   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. Free tax calculator 2012 The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Free tax calculator 2012 However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. Free tax calculator 2012 See Roth TSP balance , earlier. Free tax calculator 2012 This is because you already paid tax on those contributions. Free tax calculator 2012 Cash withdrawals. Free tax calculator 2012   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. Free tax calculator 2012 (See Rollover Rules , later. Free tax calculator 2012 ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. Free tax calculator 2012 See Lump-Sum Distributions in Publication 575 for details. Free tax calculator 2012 However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Free tax calculator 2012 See Roth TSP balance , earlier. Free tax calculator 2012    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Free tax calculator 2012   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. Free tax calculator 2012 If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. Free tax calculator 2012 See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Free tax calculator 2012 However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. Free tax calculator 2012 See Roth TSP balance , earlier, for a discussion of those conditions. Free tax calculator 2012 Tax on early distributions. Free tax calculator 2012   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. Free tax calculator 2012 However, this additional tax does not apply in certain situations, including any of the following. Free tax calculator 2012 You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Free tax calculator 2012 You choose to receive your account balance in monthly payments based on your life expectancy. Free tax calculator 2012 You are totally and permanently disabled. Free tax calculator 2012 You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Free tax calculator 2012 The earnings may be subject to the 10% tax depending on whether you met certain conditions. Free tax calculator 2012 See Roth TSP balance , earlier. Free tax calculator 2012   For more information, see Tax on Early Distributions in Publication 575. Free tax calculator 2012 Outstanding loan. Free tax calculator 2012   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. Free tax calculator 2012 The distribution also may be subject to the additional 10% tax on early distributions. Free tax calculator 2012 However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. Free tax calculator 2012 See Rollover Rules , later. Free tax calculator 2012   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. Free tax calculator 2012 However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Free tax calculator 2012 See Roth TSP balance , earlier. Free tax calculator 2012 More information. Free tax calculator 2012   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Free tax calculator 2012 Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). Free tax calculator 2012    The above documents are also available on the TSP website at www. Free tax calculator 2012 tsp. Free tax calculator 2012 gov. Free tax calculator 2012 Select “Forms & Publications. Free tax calculator 2012 ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. Free tax calculator 2012 You do not include the amount rolled over in your income, and you cannot take a deduction for it. Free tax calculator 2012 The amount rolled over is taxed later as the new program pays that amount to you. Free tax calculator 2012 If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. Free tax calculator 2012 However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. Free tax calculator 2012 To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Free tax calculator 2012 You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Free tax calculator 2012 Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. Free tax calculator 2012 See Rollovers to Roth IRAs , later, for more information. Free tax calculator 2012 Qualified retirement plan. Free tax calculator 2012   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. Free tax calculator 2012 The CSRS, FERS, and TSP are considered qualified retirement plans. Free tax calculator 2012 Distributions eligible for rollover treatment. Free tax calculator 2012   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. Free tax calculator 2012 You cannot roll over any part of your CSRS or FERS annuity payments. Free tax calculator 2012   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. Free tax calculator 2012   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Free tax calculator 2012 However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Free tax calculator 2012 Direct rollover option. Free tax calculator 2012   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. Free tax calculator 2012   There is an automatic rollover requirement for mandatory distributions. Free tax calculator 2012 A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Free tax calculator 2012 The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Free tax calculator 2012 You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. Free tax calculator 2012 If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Free tax calculator 2012 No tax withheld. Free tax calculator 2012   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 tax calculator 2012 However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. Free tax calculator 2012 Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Free tax calculator 2012 Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Free tax calculator 2012 Payment to you option. Free tax calculator 2012   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. Free tax calculator 2012 However, the full amount is treated as distributed to you even though you actually receive only 80%. Free tax calculator 2012 You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. Free tax calculator 2012 Rollovers to Roth IRAs are generally included in income. Free tax calculator 2012 Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Free tax calculator 2012 If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. Free tax calculator 2012 However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). Free tax calculator 2012 Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Free tax calculator 2012 See Roth TSP balance , earlier. Free tax calculator 2012 Also, see Tax on Early Distributions in Publication 575. Free tax calculator 2012 Exception to withholding. Free tax calculator 2012   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Free tax calculator 2012 Partial rollovers. Free tax calculator 2012   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. Free tax calculator 2012 See Lump-Sum Distributions in Publication 575. Free tax calculator 2012 However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Free tax calculator 2012 Rolling over more than amount received. Free tax calculator 2012   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). Free tax calculator 2012 Example. Free tax calculator 2012 You left government service at age 53. Free tax calculator 2012 On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you