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How Do I Efile My State Taxes

State Tax Online FilingFreefilefillableforms1040ez 2010 FormAmending 2011 Taxes1040a 2012Federal Tax Form 1040x1040x Tax Return For Prior Year Instructions2012 1040ezFiling Back TaxDo I Have To File A State Tax ReturnHr Block Tax CutTax Forms For 2009Prior Year Taxes1040ez Form OnlineTax Amendment Form 2010State Income Tax Return1040nr TurbotaxFree Tax Filing For SeniorsForm 1040ezInstructions For 1040ezHttp Www Irs Gov Freefile1040 Ez Tax FormFree Tax Filing 2012 State And FederalFile Past Year Taxes1040ezE File State TaxHr Block ComFree Irs Form 1040ezNj 1040nr FormAmending 2011 Tax Return2012 Tax Forms 1040ezWhat Forms Do I Need To Amend My TaxesFile Taxes Previous Years1040ez Tax Form 2014Address For State TaxesFile State Tax ReturnE File State Taxes FreeIrs Form 1040x InstructionsWhere Do I Get A 1040x FormCan I File 2012 Taxes Online

How Do I Efile My State Taxes

How do i efile my state taxes 6. How do i efile my state taxes   Dual-Status Tax Year Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Income Subject to Tax Restrictions for Dual-Status Taxpayers Exemptions How To Figure TaxIncome Tax Credits and Payments Forms To File When and Where To File Introduction You have a dual-status tax year when you have been both a resident alien and a nonresident alien in the same year. How do i efile my state taxes Dual status does not refer to your citizenship; it refers only to your resident status in the United States. How do i efile my state taxes In determining your U. How do i efile my state taxes S. How do i efile my state taxes income tax liability for a dual-status tax year, different rules apply for the part of the year you are a resident of the United States and the part of the year you are a nonresident. How do i efile my state taxes The most common dual-status tax years are the years of arrival and departure. How do i efile my state taxes See Dual-Status Aliens in chapter 1. How do i efile my state taxes If you are married and choose to be treated as a U. How do i efile my state taxes S. How do i efile my state taxes resident for the entire year, as explained in chapter 1, the rules of this chapter do not apply to you for that year. How do i efile my state taxes Topics - This chapter discusses: Income subject to tax, Restrictions for dual-status taxpayers, Exemptions, How to figure the tax, Forms to file, When and where to file, and How to fill out a dual-status return. How do i efile my state taxes Useful Items - You may want to see: Publication 503 Child and Dependent Care Expenses 514 Foreign Tax Credit for Individuals 575 Pension and Annuity Income Form (and Instructions) 1040 U. How do i efile my state taxes S. How do i efile my state taxes Individual Income Tax Return 1040-C U. How do i efile my state taxes S. How do i efile my state taxes Departing Alien Income Tax Return 1040-ES Estimated Tax for Individuals 1040-ES (NR) U. How do i efile my state taxes S. How do i efile my state taxes Estimated Tax for Nonresident Alien Individuals 1040NR U. How do i efile my state taxes S. How do i efile my state taxes Nonresident Alien Income Tax Return 1116 Foreign Tax Credit See chapter 12 for information about getting these publications and forms. How do i efile my state taxes Tax Year You must file your tax return on the basis of an annual accounting period called a tax year. How do i efile my state taxes If you have not previously established a fiscal tax year, your tax year is the calendar year. How do i efile my state taxes A calendar year is 12 consecutive months ending on December 31. How do i efile my state taxes If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December, or a 52–53 week year) and are considered to be a U. How do i efile my state taxes S. How do i efile my state taxes resident for any calendar year, you will be treated as a U. How do i efile my state taxes S. How do i efile my state taxes resident for any part of your fiscal year that falls within that calendar year. How do i efile my state taxes Income Subject to Tax For the part of the year you are a resident alien, you are taxed on income from all sources. How do i efile my state taxes Income from sources outside the United States is taxable if you receive it while you are a resident alien. How do i efile my state taxes The income is taxable even if you earned it while you were a nonresident alien or if you became a nonresident alien after receiving it and before the end of the year. How do i efile my state taxes For the part of the year you are a nonresident alien, you are taxed on income from U. How do i efile my state taxes S. How do i efile my state taxes sources and on certain foreign source income treated as effectively connected with a U. How do i efile my state taxes S. How do i efile my state taxes trade or business. How do i efile my state taxes (The rules for treating foreign source income as effectively connected are discussed in chapter 4 under Foreign Income. How do i efile my state taxes ) Income from sources outside the United States that is not effectively connected with a trade or business in the United States is not taxable if you receive it while you are a nonresident alien. How do i efile my state taxes The income is not taxable even if you earned it while you were a resident alien or if you became a resident alien or a U. How do i efile my state taxes S. How do i efile my state taxes citizen after receiving it and before the end of the year. How do i efile my state taxes Income from U. How do i efile my state taxes S. How do i efile my state taxes sources is taxable whether you receive it while a nonresident alien or a resident alien unless specifically exempt under the Internal Revenue Code or a tax treaty provision. How do i efile my state taxes Generally, tax treaty provisions apply only to the part of the year you were a nonresident. How do i efile my state taxes In certain cases, however, treaty provisions may apply while you were a resident alien. How do i efile my state taxes See chapter 9 for more information. How do i efile my state taxes When determining what income is taxed in the United States, you must consider exemptions under U. How do i efile my state taxes S. How do i efile my state taxes tax law as well as the reduced tax rates and exemptions provided by tax treaties between the United States and certain foreign countries. How do i efile my state taxes For a further discussion of tax treaties, see chapter 9. How do i efile my state taxes Restrictions for Dual-Status Taxpayers The following restrictions apply if you are filing a tax return for a dual-status tax year. How do i efile my state taxes 1) Standard deduction. How do i efile my state taxes   You cannot use the standard deduction allowed on Form 1040. How do i efile my state taxes However, you can itemize any allowable deductions. How do i efile my state taxes 2) Exemptions. How do i efile my state taxes   Your total deduction for the exemptions for your spouse and allowable dependents cannot be more than your taxable income (figured without deducting personal exemptions) for the period you are a resident alien. How do i efile my state taxes 3) Head of household. How do i efile my state taxes   You cannot use the head of household Tax Table column or Tax Computation Worksheet. How do i efile my state taxes 4) Joint return. How do i efile my state taxes   You cannot file a joint return. How do i efile my state taxes However, see Choosing Resident Alien Status under Dual-Status Aliens in chapter 1. How do i efile my state taxes 5) Tax rates. How do i efile my state taxes   If you are married and a nonresident of the United States for all or part of the tax year and you do not choose to file jointly as discussed in chapter 1, you must use the Tax Table column or Tax Computation Worksheet for married filing separately to figure your tax on income effectively connected with a U. How do i efile my state taxes S. How do i efile my state taxes trade or business. How do i efile my state taxes You cannot use the Tax Table column or Tax Computation Worksheet for married filing jointly or single. How do i efile my state taxes However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a: Married resident of Canada, Mexico, or South Korea, or Married U. How do i efile my state taxes S. How do i efile my state taxes national. How do i efile my state taxes  See the instructions for Form 1040NR to see if you qualify. How do i efile my state taxes    A U. How do i efile my state taxes S. How do i efile my state taxes national is an individual who, although not a U. How do i efile my state taxes S. How do i efile my state taxes citizen, owes his or her allegiance to the United States. How do i efile my state taxes U. How do i efile my state taxes S. How do i efile my state taxes nationals include American Samoans and Northern Mariana Islanders who chose to become U. How do i efile my state taxes S. How do i efile my state taxes nationals instead of U. How do i efile my state taxes S. How do i efile my state taxes citizens. How do i efile my state taxes 6) Tax credits. How do i efile my state taxes   You cannot claim the education credits, the earned income credit, or the credit for the elderly or the disabled unless: You are married, and You choose to be treated as a resident for all of 2013 by filing a joint return with your spouse who is a U. How do i efile my state taxes S. How do i efile my state taxes citizen or resident, as discussed in chapter 1. How do i efile my state taxes Exemptions As a dual-status taxpayer, you usually will be able to claim your own personal exemption. How do i efile my state taxes Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. How do i efile my state taxes The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. How do i efile my state taxes You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. How do i efile my state taxes Special rules apply to exemptions for the part of the tax year you are a nonresident alien if you are a: Resident of Canada, Mexico, or South Korea, U. How do i efile my state taxes S. How do i efile my state taxes national, or Student or business apprentice from India. How do i efile my state taxes For more information, see Exemptions in chapter 5. How do i efile my state taxes How To Figure Tax When you figure your U. How do i efile my state taxes S. How do i efile my state taxes tax for a dual-status year, you are subject to different rules for the part of the year you are a resident and the part of the year you are a nonresident. How do i efile my state taxes Income All income for your period of residence and all income that is effectively connected with a trade or business in the United States for your period of nonresidence, after allowable deductions, is added and taxed at the rates that apply to U. How do i efile my state taxes S. How do i efile my state taxes citizens and residents. How do i efile my state taxes Income that is not connected with a trade or business in the United States for your period of nonresidence is subject to the flat 30% rate or lower treaty rate. How do i efile my state taxes You cannot take any deductions against this income. How do i efile my state taxes Social security and railroad retirement benefits. How do i efile my state taxes   During the part of the year you are a nonresident alien, 85% of any U. How do i efile my state taxes S. How do i efile my state taxes social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. How do i efile my state taxes (See The 30% Tax in chapter 4. How do i efile my state taxes )   During the part of the year you are a resident alien, part of the social security and the equivalent portion of tier 1 railroad retirement benefits will be taxed at graduated rates if your modified adjusted gross income plus half of these benefits is more than a certain base amount. How do i efile my state taxes Use the Social Security Benefits Worksheet in the Form 1040 instructions to help you figure the taxable part of your social security and equivalent tier 1 railroad retirement benefits for the part of the year you were a resident alien. How do i efile my state taxes If you received U. How do i efile my state taxes S. How do i efile my state taxes social security benefits while you were a nonresident alien, the Social Security Administration will send you Form SSA-1042S showing your combined benefits for the entire year and the amount of tax withheld. How do i efile my state taxes You will not receive separate statements for the benefits received during your periods of U. How do i efile my state taxes S. How do i efile my state taxes residence and nonresidence. How do i efile my state taxes Therefore, it is important for you to keep careful records of these amounts. How do i efile my state taxes You will need this information to properly complete your return and determine your tax liability. How do i efile my state taxes If you received railroad retirement benefits while you were a nonresident alien, the U. How do i efile my state taxes S. How do i efile my state taxes Railroad Retirement Board (RRB) will send you Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, and/or Form RRB-1099-R, Annuities or Pensions by the Railroad Retirement Board. How do i efile my state taxes If your country of legal residence changed or your rate of tax changed during the tax year, you may receive more than one form. How do i efile my state taxes Tax Credits and Payments This discussion covers tax credits and payments for dual-status aliens. How do i efile my state taxes Credits As a dual-status alien, you generally can claim tax credits using the same rules that apply to resident aliens. How do i efile my state taxes There are certain restrictions that may apply. How do i efile my state taxes These restrictions are discussed here, along with a brief explanation of credits often claimed by individuals. How do i efile my state taxes Foreign tax credit. How do i efile my state taxes   If you have paid or are liable for the payment of income tax to a foreign country on income from foreign sources, you may be able to claim a credit for the foreign taxes. How do i efile my state taxes   If you claim the foreign tax credit, you generally must file Form 1116 with your income tax return. How do i efile my state taxes For more information, see the Instructions for Form 1116 and Publication 514. How do i efile my state taxes Child and dependent care credit. How do i efile my state taxes   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse so that you can work or look for work. How do i efile my state taxes Generally, you must be able to claim an exemption for your dependent. How do i efile my state taxes   Married dual-status aliens can claim the credit only if they choose to file a joint return as discussed in chapter 1, or if they qualify as certain married individuals living apart. How do i efile my state taxes   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income for that tax year. How do i efile my state taxes   For more information, get Publication 503 and Form 2441. How do i efile my state taxes Retirement savings contributions credit. How do i efile my state taxes   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. How do i efile my state taxes You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. How do i efile my state taxes Use Form 8880 to figure the credit. How do i efile my state taxes For more information, see Publication 590. How do i efile my state taxes Child tax credit. How do i efile my state taxes   You may be able to take this credit if you have a qualifying child. How do i efile my state taxes   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. How do i efile my state taxes Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). How do i efile my state taxes Is a U. How do i efile my state taxes S. How do i efile my state taxes citizen, a U. How do i efile my state taxes S. How do i efile my state taxes national, or a resident alien. How do i efile my state taxes Did not provide over half of his or her own support for 2013. How do i efile my state taxes Lived with you more than half of 2013. How do i efile my state taxes Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. How do i efile my state taxes Is claimed as a dependent on your return. How do i efile my state taxes An adopted child is always treated as your own child. How do i efile my state taxes An adopted child includes a child lawfully placed with you for legal adoption. How do i efile my state taxes   See your form instructions for additional details. How do i efile my state taxes Adoption credit. How do i efile my state taxes   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. How do i efile my state taxes This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. How do i efile my state taxes To claim the adoption credit, file Form 8839 with the U. How do i efile my state taxes S. How do i efile my state taxes income tax return that you file. How do i efile my state taxes   Married dual-status aliens can claim the credit only if they choose to file a joint return with a U. How do i efile my state taxes S. How do i efile my state taxes citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). How do i efile my state taxes Payments You can report as payments against your U. How do i efile my state taxes S. How do i efile my state taxes income tax liability certain taxes you paid, are considered to have paid, or that were withheld from your income. How do i efile my state taxes These include: Tax withheld from wages earned in the United States, Taxes withheld at the source from various items of income from U. How do i efile my state taxes S. How do i efile my state taxes sources other than wages, Estimated tax paid with Form 1040-ES or Form 1040-ES (NR), and Tax paid with Form 1040-C, at the time of departure from the United States. How do i efile my state taxes Forms To File The U. How do i efile my state taxes S. How do i efile my state taxes income tax return you must file as a dual-status alien depends on whether you are a resident alien or a nonresident alien at the end of the tax year. How do i efile my state taxes Resident at end of year. How do i efile my state taxes   You must file Form 1040 if you are a dual-status taxpayer who becomes a resident during the year and who is a U. How do i efile my state taxes S. How do i efile my state taxes resident on the last day of the tax year. How do i efile my state taxes Write “Dual-Status Return” across the top of the return. How do i efile my state taxes Attach a statement to your return to show the income for the part of the year you are a nonresident. How do i efile my state taxes You can use Form 1040NR or Form 1040NR-EZ as the statement, but be sure to mark “Dual-Status Statement” across the top. How do i efile my state taxes Nonresident at end of year. How do i efile my state taxes   You must file Form 1040NR or Form 1040NR-EZ if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U. How do i efile my state taxes S. How do i efile my state taxes resident on the last day of the tax year. How do i efile my state taxes Write “Dual-Status Return” across the top of the return. How do i efile my state taxes Attach a statement to your return to show the income for the part of the year you are a resident. How do i efile my state taxes You can use Form 1040 as the statement, but be sure to mark “Dual-Status Statement” across the top. How do i efile my state taxes   If you expatriated or terminated your residency in 2013, you may be required to file an expatriation statement (Form 8854) with your tax return. How do i efile my state taxes For more information, see Expatriation Tax in chapter 4. How do i efile my state taxes Statement. How do i efile my state taxes   Any statement must have your name, address, and taxpayer identification number on it. How do i efile my state taxes You do not need to sign a separate statement or schedule accompanying your return, because your signature on the return also applies to the supporting statements and schedules. How do i efile my state taxes When and Where To File If you are a resident alien on the last day of your tax year and report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year. How do i efile my state taxes If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. How do i efile my state taxes In either case, file your return with the address for dual-status aliens shown on the back page of the Form 1040 instructions. How do i efile my state taxes If you are a nonresident alien on the last day of your tax year and you report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year if you receive wages subject to withholding. How do i efile my state taxes If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. How do i efile my state taxes If you did not receive wages subject to withholding and you report your income on a calendar year basis, you must file no later than June 15 of the year following the close of your tax year. How do i efile my state taxes If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 6th month following the close of your tax year. How do i efile my state taxes In any case, mail your return to:  Department of the Treasury Internal Revenue Service  Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. How do i efile my state taxes O. How do i efile my state taxes Box 1303 Charlotte, NC 28201-1303 If the regular due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day that is not a Saturday, Sunday, or legal holiday. How do i efile my state taxes Prev  Up  Next   Home   More Online Publications
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The How Do I Efile My State Taxes

How do i efile my state taxes 10. How do i efile my state taxes   Retirement Plans, Pensions, and Annuities Table of Contents What's New Reminder IntroductionThe General Rule. How do i efile my state taxes Individual retirement arrangements (IRAs). How do i efile my state taxes Civil service retirement benefits. How do i efile my state taxes Useful Items - You may want to see: General InformationIn-plan rollovers to designated Roth accounts. How do i efile my state taxes How To Report Cost (Investment in the Contract) Taxation of Periodic PaymentsExclusion limited to cost. How do i efile my state taxes Exclusion not limited to cost. How do i efile my state taxes Simplified Method Taxation of Nonperiodic PaymentsLump-Sum Distributions RolloversIn-plan rollovers to designated Roth accounts. How do i efile my state taxes 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). How do i efile my state taxes However, these distributions are taken into account when determining the modified adjusted gross income threshold. How do i efile my state taxes Distributions from a nonqualified retirement plan are included in net investment income. How do i efile my state taxes See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. How do i efile my state taxes Reminder Starting in 2013, the American Taxpayer Relief Act of 2012 expanded the rules for in-plan Roth rollovers to include more taxpayers. How do i efile my state taxes For more information, see Designated Roth accounts discussed later. How do i efile my state taxes 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. How do i efile my state taxes What is not covered in this chapter. How do i efile my state taxes   The following topics are not discussed in this chapter. How do i efile my state taxes The General Rule. How do i efile my state taxes   This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans (including commercial annuities). How do i efile my state taxes For a qualified plan, you generally cannot use the General Rule unless your annuity starting date is before November 19, 1996. How do i efile my state taxes For more information about the General Rule, see Publication 939, General Rule for Pensions and Annuities. How do i efile my state taxes Individual retirement arrangements (IRAs). How do i efile my state taxes   Information on the tax treatment of amounts you receive from an IRA is in chapter 17. How do i efile my state taxes Civil service retirement benefits. How do i efile my state taxes    If you are retired from the federal government (regular, phased, or disability retirement), see Publication 721, Tax Guide to U. How do i efile my state taxes S. How do i efile my state taxes Civil Service Retirement Benefits. How do i efile my state taxes Publication 721 also covers the information that you need if you are the survivor or beneficiary of a federal employee or retiree who died. How do i efile my state taxes Useful Items - You may want to see: Publication 575 Pension and Annuity Income 721 Tax Guide to U. How do i efile my state taxes S. How do i efile my state taxes 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. How do i efile my state taxes 4972 Tax on Lump-Sum Distributions 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts General Information Designated Roth accounts. How do i efile my state taxes   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. How do i efile my state taxes Elective deferrals that are designated as Roth contributions are included in your income. How do i efile my state taxes However, qualified distributions are not included in your income. How do i efile my state taxes See Publication 575 for more information. How do i efile my state taxes In-plan rollovers to designated Roth accounts. How do i efile my state taxes   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. How do i efile my state taxes The rollover of any untaxed amounts must be included in income. How do i efile my state taxes See Publication 575 for more information. How do i efile my state taxes More than one program. How do i efile my state taxes   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. How do i efile my state taxes Your former employer or the plan administrator should be able to tell you if you have more than one pension or annuity contract. How do i efile my state taxes Section 457 deferred compensation plans. How do i efile my state taxes    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. How do i efile my state taxes 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. How do i efile my state taxes You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. How do i efile my state taxes You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. How do i efile my state taxes   Your 457(b) plan may have a designated Roth account option. How do i efile my state taxes If so, you may be able to roll over amounts to the designated Roth account or make contributions. How do i efile my state taxes Elective deferrals to a designated Roth account are included in your income. How do i efile my state taxes Qualified distributions from a designated Roth account are not subject to tax. How do i efile my state taxes   This chapter covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. How do i efile my state taxes For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525, Taxable and Nontaxable Income. How do i efile my state taxes   For general information on these deferred compensation plans, see Section 457 Deferred Compensation Plans in Publication 575. How do i efile my state taxes Disability pensions. How do i efile my state taxes   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. How do i efile my state taxes You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. How do i efile my state taxes Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. How do i efile my state taxes    You may be entitled to a tax credit if you were permanently and totally disabled when you retired. How do i efile my state taxes For information on the credit for the elderly or the disabled, see chapter 33. How do i efile my state taxes   Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. How do i efile my state taxes Report the payments on Form 1040, lines 16a and 16b, or on Form 1040A, lines 12a and 12b. How do i efile my state taxes    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. How do i efile my state taxes For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. How do i efile my state taxes   For more information on how to report disability pensions, including military and certain government disability pensions, see chapter 5. How do i efile my state taxes Retired public safety officers. How do i efile my state taxes   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. How do i efile my state taxes See Insurance Premiums for Retired Public Safety Officers in Publication 575 for more information. How do i efile my state taxes Railroad retirement benefits. How do i efile my state taxes   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. How do i efile my state taxes For information about railroad retirement benefits treated as social security benefits, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. How do i efile my state taxes For information about railroad retirement benefits treated as an employee pension, see Railroad Retirement Benefits in Publication 575. How do i efile my state taxes Withholding and estimated tax. How do i efile my state taxes   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. How do i efile my state taxes You can tell the payer how much to withhold, or not to withhold, by filing Form W-4P. How do i efile my state taxes If you choose not to have tax withheld, or you do not have enough tax withheld, you may have to pay estimated tax. How do i efile my state taxes   If you receive an eligible rollover distribution, you cannot choose not to have tax withheld. How do i efile my state taxes Generally, 20% will be withheld, but no tax will be withheld on a direct rollover of an eligible rollover distribution. How do i efile my state taxes See Direct rollover option under Rollovers, later. How do i efile my state taxes   For more information, see Pensions and Annuities under Tax Withholding for 2014 in chapter 4. How do i efile my state taxes Qualified plans for self-employed individuals. How do i efile my state taxes   Qualified plans set up by self-employed individuals are sometimes called Keogh or H. How do i efile my state taxes R. How do i efile my state taxes 10 plans. How do i efile my state taxes Qualified plans can be set up by sole proprietors, partnerships (but not a partner), and corporations. How do i efile my state taxes They can cover self-employed persons, such as the sole proprietor or partners, as well as regular (common-law) employees. How do i efile my state taxes    Distributions from a qualified plan are usually fully taxable because most recipients have no cost basis. How do i efile my state taxes 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. How do i efile my state taxes For more information about qualified plans, see Publication 560, Retirement Plans for Small Business. How do i efile my state taxes Purchased annuities. How do i efile my state taxes   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. How do i efile my state taxes For more information about the General Rule, get Publication 939. How do i efile my state taxes Also, see Variable Annuities in Publication 575 for the special provisions that apply to these annuity contracts. How do i efile my state taxes Loans. How do i efile my state taxes   If you borrow money from your retirement plan, you must treat the loan as a nonperiodic distribution from the plan unless certain exceptions apply. How do i efile my state taxes 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. How do i efile my state taxes This means that you must include in income all or part of the amount borrowed. How do i efile my state taxes 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. How do i efile my state taxes For details, see Loans Treated as Distributions in Publication 575. How do i efile my state taxes For information on the deductibility of interest, see chapter 23. How do i efile my state taxes Tax-free exchange. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes See Transfers of Annuity Contracts in Publication 575 for more information about exchanges of annuity contracts. How do i efile my state taxes How To Report If you file Form 1040, report your total annuity on line 16a and the taxable part on line 16b. How do i efile my state taxes If your pension or annuity is fully taxable, enter it on line 16b; do not make an entry on line 16a. How do i efile my state taxes If you file Form 1040A, report your total annuity on line 12a and the taxable part on line 12b. How do i efile my state taxes If your pension or annuity is fully taxable, enter it on line 12b; do not make an entry on line 12a. How do i efile my state taxes More than one annuity. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes Joint return. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes Your total cost in the plan includes the total premiums, contributions, or other amounts you paid. How do i efile my state taxes This includes the amounts your employer contributed that were taxable to you when paid. How do i efile my state taxes Cost does not include any amounts you deducted or were excluded from your income. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes Designated Roth accounts. How do i efile my state taxes   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. How do i efile my state taxes Your cost will also include any in-plan Roth rollovers you included in income. How do i efile my state taxes Foreign employment contributions. How do i efile my state taxes   If you worked in a foreign country and contributions were made to your retirement plan, special rules apply in determining your cost. How do i efile my state taxes See Foreign employment contributions under Cost (Investment in the Contract) in Publication 575. How do i efile my state taxes Taxation of Periodic Payments Fully taxable payments. How do i efile my state taxes   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. How do i efile my state taxes You must report them on your income tax return. How do i efile my state taxes Partly taxable payments. How do i efile my state taxes   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. How do i efile my state taxes The rest of the amount you receive is generally taxable. How do i efile my state taxes You figure the tax-free part of the payment using either the Simplified Method or the General Rule. How do i efile my state taxes Your annuity starting date and whether or not your plan is qualified determine which method you must or may use. How do i efile my state taxes   If your annuity starting date is after November 18, 1996, and your payments are from a qualified plan, you must use the Simplified Method. How do i efile my state taxes 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. How do i efile my state taxes   If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. How do i efile my state taxes   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. How do i efile my state taxes Exclusion limit. How do i efile my state taxes   Your annuity starting date determines the total amount of annuity payments that you can exclude from your taxable income over the years. How do i efile my state taxes Once your annuity starting date is determined, it does not change. How do i efile my state taxes 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. How do i efile my state taxes That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. How do i efile my state taxes Exclusion limited to cost. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes This deduction is not subject to the 2%-of-adjusted-gross-income limit. How do i efile my state taxes Exclusion not limited to cost. How do i efile my state taxes   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. How do i efile my state taxes 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. How do i efile my state taxes The total exclusion may be more than your cost. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes For any other annuity, this number is the number of monthly annuity payments under the contract. How do i efile my state taxes Who must use the Simplified Method. How do i efile my state taxes   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. How do i efile my state taxes Guaranteed payments. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes How to use the Simplified Method. How do i efile my state taxes    Complete the Simplified Method Worksheet in Publication 575 to figure your taxable annuity for 2013. How do i efile my state taxes Single-life annuity. How do i efile my state taxes    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. How do i efile my state taxes Enter on line 3 the number shown for your age at the annuity starting date. How do i efile my state taxes Multiple-lives annuity. How do i efile my state taxes   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. How do i efile my state taxes Enter on line 3 the number shown for the combined ages of you and the youngest survivor annuitant at the annuity starting date. How do i efile my state taxes   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. How do i efile my state taxes 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. How do i efile my state taxes    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity next year. How do i efile my state taxes Example. How do i efile my state taxes Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. How do i efile my state taxes Bill's annuity starting date is January 1, 2013. How do i efile my state taxes The benefits are to be paid for the joint lives of Bill and his wife Kathy, age 65. How do i efile my state taxes Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes His completed worksheet is shown in Worksheet 10-A. How do i efile my state taxes Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. How do i efile my state taxes Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. How do i efile my state taxes The full amount of any annuity payments received after 310 payments are paid must be included in gross income. How do i efile my state taxes 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. How do i efile my state taxes This deduction is not subject to the 2%-of-adjusted- gross-income limit. How do i efile my state taxes Worksheet 10-A. How do i efile my state taxes Simplified Method Worksheet for Bill Smith 1. How do i efile my state taxes Enter the total pension or annuity payments received this year. How do i efile my state taxes Also, add this amount to the total for Form 1040, line 16a, or Form 1040A, line 12a 1. How do i efile my state taxes 14,400 2. How do i efile my state taxes Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion*. How do i efile my state taxes See Cost (Investment in the Contract) , earlier 2. How do i efile my state taxes 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). How do i efile my state taxes Otherwise, go to line 3. How do i efile my state taxes         3. How do i efile my state taxes Enter the appropriate number from Table 1 below. How do i efile my state taxes 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. How do i efile my state taxes 310     4. How do i efile my state taxes Divide line 2 by the number on line 3 4. How do i efile my state taxes 100     5. How do i efile my state taxes Multiply line 4 by the number of months for which this year's payments were made. How do i efile my state taxes If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. How do i efile my state taxes Otherwise, go to line 6 5. How do i efile my state taxes 1,200     6. How do i efile my state taxes Enter any amounts previously recovered tax free in years after 1986. How do i efile my state taxes This is the amount shown on line 10 of your worksheet for last year 6. How do i efile my state taxes -0-     7. How do i efile my state taxes Subtract line 6 from line 2 7. How do i efile my state taxes 31,000     8. How do i efile my state taxes Enter the smaller of line 5 or line 7 8. How do i efile my state taxes 1,200 9. How do i efile my state taxes Taxable amount for year. How do i efile my state taxes Subtract line 8 from line 1. How do i efile my state taxes Enter the result, but not less than zero. How do i efile my state taxes Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b 9. How do i efile my state taxes 13,200   Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. How do i efile my state taxes 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. How do i efile my state taxes     10. How do i efile my state taxes Was your annuity starting date before 1987? □ Yes. How do i efile my state taxes STOP. How do i efile my state taxes Do not complete the rest of this worksheet. How do i efile my state taxes  ☑ No. How do i efile my state taxes Add lines 6 and 8. How do i efile my state taxes This is the amount you have recovered tax free through 2013. How do i efile my state taxes You will need this number if you need to fill out this worksheet next year 10. How do i efile my state taxes 1,200 11. How do i efile my state taxes Balance of cost to be recovered. How do i efile my state taxes Subtract line 10 from line 2. How do i efile my state taxes If zero, you will not have to complete this worksheet next year. How do i efile my state taxes The payments you receive next year will generally be fully taxable 11. How do i efile my state taxes 29,800 TABLE 1 FOR LINE 3 ABOVE   AND your annuity starting date was— IF the age at annuity starting date was. How do i efile my state taxes . How do i efile my state taxes . How do i efile my state taxes before November 19, 1996, enter on line 3. How do i efile my state taxes . How do i efile my state taxes . How do i efile my state taxes after November 18, 1996, enter on line 3. How do i efile my state taxes . How do i efile my state taxes . How do i efile my state taxes 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. How do i efile my state taxes . How do i efile my state taxes . How do i efile my state taxes   THEN enter on line 3. How do i efile my state taxes . How do i efile my state taxes . How do i efile my state taxes 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. How do i efile my state taxes Who must use the General Rule. How do i efile my state taxes   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. How do i efile my state taxes Annuity starting before November 19, 1996. How do i efile my state taxes   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. How do i efile my state taxes You also had to use it for any fixed-period annuity. How do i efile my state taxes If you did not have to use the General Rule, you could have chosen to use it. How do i efile my state taxes 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. How do i efile my state taxes   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. How do i efile my state taxes Who cannot use the General Rule. How do i efile my state taxes   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. How do i efile my state taxes See Who must use the Simplified Method , earlier. How do i efile my state taxes More information. How do i efile my state taxes   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. How do i efile my state taxes Taxation of Nonperiodic Payments Nonperiodic distributions are also known as amounts not received as an annuity. How do i efile my state taxes They include all payments other than periodic payments and corrective distributions. How do i efile my state taxes 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. How do i efile my state taxes Corrective distributions of excess plan contributions. How do i efile my state taxes   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. How do i efile my state taxes To correct an excess, your plan may distribute it to you (along with any income earned on the excess). How do i efile my state taxes 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. How do i efile my state taxes Figuring the taxable amount of nonperiodic payments. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes Annuity starting date. How do i efile my state taxes   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. How do i efile my state taxes Distribution on or after annuity starting date. How do i efile my state taxes   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. How do i efile my state taxes Distribution before annuity starting date. How do i efile my state taxes   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. How do i efile my state taxes You exclude from your gross income the part that you allocate to the cost. How do i efile my state taxes You include the remainder in your gross income. How do i efile my state taxes   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). How do i efile my state taxes This allocation rule applies, for example, to a commercial annuity contract you bought directly from the issuer. How do i efile my state taxes    Distributions from nonqualified plans are subject to the net investment income tax. How do i efile my state taxes See the Instructions for Form 8960. How do i efile my state taxes   For more information, see Figuring the Taxable Amount under Taxation of Nonperiodic Payments in Publication 575. How do i efile my state taxes Lump-Sum Distributions This section on lump-sum distributions only applies if the plan participant was born before January 2, 1936. How do i efile my state taxes If the plan participant was born after January 1, 1936, the taxable amount of this nonperiodic payment is reported as discussed earlier. How do i efile my state taxes 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). How do i efile my state taxes 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. How do i efile my state taxes The participant's entire balance from a plan does not include certain forfeited amounts. How do i efile my state taxes It also does not include any deductible voluntary employee contributions allowed by the plan after 1981 and before 1987. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. How do i efile my state taxes The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. How do i efile my state taxes You may be able to use the 10-year tax option, discussed later, to figure tax on the ordinary income part. How do i efile my state taxes Use Form 4972 to figure the separate tax on a lump-sum distribution using the optional methods. How do i efile my state taxes The tax figured on Form 4972 is added to the regular tax figured on your other income. How do i efile my state taxes 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. How do i efile my state taxes How to treat the distribution. How do i efile my state taxes   If you receive a lump-sum distribution, you may have the following options for how you treat the taxable part. How do i efile my state taxes 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. How do i efile my state taxes 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). How do i efile my state taxes Use the 10-year tax option to figure the tax on the total taxable amount (if you qualify). How do i efile my state taxes Roll over all or part of the distribution. How do i efile my state taxes See Rollovers , later. How do i efile my state taxes No tax is currently due on the part rolled over. How do i efile my state taxes Report any part not rolled over as ordinary income. How do i efile my state taxes Report the entire taxable part of the distribution as ordinary income on your tax return. How do i efile my state taxes   The first three options are explained in the following discussions. How do i efile my state taxes Electing optional lump-sum treatment. How do i efile my state taxes   You can choose to use the 10-year tax option or capital gain treatment only once after 1986 for any plan participant. How do i efile my state taxes If you make this choice, you cannot use either of these optional treatments for any future distributions for the participant. How do i efile my state taxes Taxable and tax-free parts of the distribution. How do i efile my state taxes    The taxable part of a lump-sum distribution is the employer's contributions and income earned on your account. How do i efile my state taxes You may recover your cost in the lump sum and any net unrealized appreciation (NUA) in employer securities tax free. How do i efile my state taxes Cost. How do i efile my state taxes   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. How do i efile my state taxes You must reduce this cost by amounts previously distributed tax free. How do i efile my state taxes Net unrealized appreciation (NUA). How do i efile my state taxes   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. How do i efile my state taxes (For more information, see Distributions of employer securities under Taxation of Nonperiodic Payments in Publication 575. How do i efile my state taxes ) 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. How do i efile my state taxes The amount treated as capital gain is taxed at a 20% rate. How do i efile my state taxes You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. How do i efile my state taxes Complete Part II of Form 4972 to choose the 20% capital gain election. How do i efile my state taxes For more information, see Capital Gain Treatment under Lump-Sum Distributions in Publication 575. How do i efile my state taxes 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. How do i efile my state taxes You pay the tax only once, for the year in which you receive the distribution, not over the next 10 years. How do i efile my state taxes You can elect this treatment only once for any plan participant, and only if the plan participant was born before January 2, 1936. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes Complete Part III of Form 4972 to choose the 10-year tax option. How do i efile my state taxes You must use the special Tax Rate Schedule shown in the instructions for Part III to figure the tax. How do i efile my state taxes Publication 575 illustrates how to complete Form 4972 to figure the separate tax. How do i efile my state taxes 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. How do i efile my state taxes For this purpose, the following plans are qualified retirement plans. How do i efile my state taxes A qualified employee plan. How do i efile my state taxes A qualified employee annuity. How do i efile my state taxes A tax-sheltered annuity plan (403(b) plan). How do i efile my state taxes An eligible state or local government section 457 deferred compensation plan. How do i efile my state taxes Eligible rollover distributions. How do i efile my state taxes   Generally, an eligible rollover distribution is any distribution of all or any part of the balance to your credit in a qualified retirement plan. How do i efile my state taxes For information about exceptions to eligible rollover distributions, see Publication 575. How do i efile my state taxes Rollover of nontaxable amounts. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes   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. How do i efile my state taxes   Any after-tax contributions that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. How do i efile my state taxes To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. How do i efile my state taxes For more information, see the Form 8606 instructions. How do i efile my state taxes Direct rollover option. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes Payment to you option. How do i efile my state taxes   If an eligible rollover distribution is paid to you, 20% generally will be withheld for income tax. How do i efile my state taxes However, the full amount is treated as distributed to you even though you actually receive only 80%. How do i efile my state taxes 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. How do i efile my state taxes (See Pensions and Annuities under Tax Withholding for 2014 in chapter 4. How do i efile my state taxes )    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. How do i efile my state taxes Time for making rollover. How do i efile my state taxes   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. How do i efile my state taxes (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. How do i efile my state taxes )   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. How do i efile my state taxes   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. How do i efile my state taxes Qualified domestic relations order (QDRO). How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes You can roll over the distribution from the plan into a traditional IRA or to another eligible retirement plan. How do i efile my state taxes See Rollovers in Publication 575 for more information on benefits received under a QDRO. How do i efile my state taxes Rollover by surviving spouse. How do i efile my state taxes   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. How do i efile my state taxes The rollover rules apply to you as if you were the employee. How do i efile my state taxes You can roll over a distribution into a qualified retirement plan or a traditional or Roth IRA. How do i efile my state taxes For a rollover to a Roth IRA, see Rollovers to Roth IRAs , later. How do i efile my state taxes    A distribution paid to a beneficiary other than the employee's surviving spouse is generally not an eligible rollover distribution. How do i efile my state taxes However, see Rollovers by nonspouse beneficiary next. How do i efile my state taxes Rollovers by nonspouse beneficiary. How do i efile my state taxes   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. How do i efile my state taxes The distribution must be a direct trustee-to-trustee transfer to your traditional or Roth IRA that was set up to receive the distribution. How do i efile my state taxes The transfer will be treated as an eligible rollover distribution and the receiving plan will be treated as an inherited IRA. How do i efile my state taxes For information on inherited IRAs, see What if You Inherit an IRA? in chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs). How do i efile my state taxes Retirement bonds. How do i efile my state taxes   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. How do i efile my state taxes Designated Roth accounts. How do i efile my state taxes   You can roll over an eligible rollover distribution from a designated Roth account into another designated Roth account or a Roth IRA. How do i efile my state taxes 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. How do i efile my state taxes For more information on rollovers from designated Roth accounts, see Rollovers in Publication 575. How do i efile my state taxes In-plan rollovers to designated Roth accounts. How do i efile my state taxes   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. How do i efile my state taxes The rollover of any untaxed amounts must be included in income. How do i efile my state taxes See Designated Roth accounts under Rollovers in Publication 575 for more information. How do i efile my state taxes Rollovers to Roth IRAs. How do i efile my state taxes   You can roll over distributions directly from a qualified retirement plan (other than a designated Roth account) to a Roth IRA. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes In addition, the 10% tax on early distributions does not apply. How do i efile my state taxes More information. How do i efile my state taxes   For more information on the rules for rolling over distributions, see Rollovers in Publication 575. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes These special additional taxes are the taxes on: Early distributions, and Excess accumulation (not receiving minimum distributions). How do i efile my state taxes These taxes are discussed in the following sections. How do i efile my state taxes If you must pay either of these taxes, report them on Form 5329. How do i efile my state taxes 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. How do i efile my state taxes 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. How do i efile my state taxes Even if you do not owe any of these taxes, you may have to complete Form 5329 and attach it to your Form 1040. How do i efile my state taxes 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. How do i efile my state taxes 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%. How do i efile my state taxes This tax applies to the part of the distribution that you must include in gross income. How do i efile my state taxes 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). How do i efile my state taxes 5% rate on certain early distributions from deferred annuity contracts. How do i efile my state taxes   If an early withdrawal from a deferred annuity is otherwise subject to the 10% additional tax, a 5% rate may apply instead. How do i efile my state taxes 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. How do i efile my state taxes On line 4 of Form 5329, multiply the line 3 amount by 5% instead of 10%. How do i efile my state taxes Attach an explanation to your return. How do i efile my state taxes Distributions from Roth IRAs allocable to a rollover from an eligible retirement plan within the 5-year period. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes The additional tax is figured on Form 5329. How do i efile my state taxes For more information, see Form 5329 and its instructions. How do i efile my state taxes For information on qualified distributions from Roth IRAs, see Additional Tax on Early Distributions in chapter 2 of Publication 590. How do i efile my state taxes Distributions from designated Roth accounts allocable to in-plan Roth rollovers within the 5-year period. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes The additional tax is figured on Form 5329. How do i efile my state taxes For more information, see Form 5329 and its instructions. How do i efile my state taxes For information on qualified distributions from designated Roth accounts, see Designated Roth accounts under Taxation of Periodic Payments in Publication 575. How do i efile my state taxes Exceptions to tax. How do i efile my state taxes    Certain early distributions are excepted from the early distribution tax. How do i efile my state taxes 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. How do i efile my state taxes If an exception applies but distribution code “1” (early distribution, no known exception) is shown in box 7, you must file Form 5329. How do i efile my state taxes Enter the taxable amount of the distribution shown in box 2a of your Form 1099-R on line 1 of Form 5329. How do i efile my state taxes On line 2, enter the amount that can be excluded and the exception number shown in the Form 5329 instructions. How do i efile my state taxes    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. How do i efile my state taxes Enter exception number “12” on line 2. How do i efile my state taxes General exceptions. How do i efile my state taxes   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. How do i efile my state taxes Additional exceptions for qualified retirement plans. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes See Pub. How do i efile my state taxes 721 for more information on the phased retirement program. How do i efile my state taxes Qualified public safety employees. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes Qualified reservist distributions. How do i efile my state taxes   A qualified reservist distribution is not subject to the additional tax on early distributions. How do i efile my state taxes 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. How do i efile my state taxes You must have been ordered or called to active duty after September 11, 2001. How do i efile my state taxes For more information, see Qualified reservist distributions under Special Additional Taxes in Publication 575. How do i efile my state taxes Additional exceptions for nonqualified annuity contracts. How do i efile my state taxes   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). How do i efile my state taxes 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). How do i efile my state taxes The payments each year cannot be less than the required minimum distribution. How do i efile my state taxes Required distributions not made. How do i efile my state taxes   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. How do i efile my state taxes The tax equals 50% of the part of the required minimum distribution that was not distributed. How do i efile my state taxes   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). How do i efile my state taxes Waiver. How do i efile my state taxes   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. How do i efile my state taxes See the Instructions for Form 5329 for the procedure to follow if you believe you qualify for a waiver of this tax. How do i efile my state taxes State insurer delinquency proceedings. How do i efile my state taxes   You might not receive the minimum distribution because assets are invested in a contract issued by an insurance company in state insurer delinquency proceedings. How do i efile my state taxes If your payments are reduced below the minimum due to these proceedings, you should contact your plan administrator. How do i efile my state taxes Under certain conditions, you will not have to pay the 50% excise tax. How do i efile my state taxes Required beginning date. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes   If you reached age 70½ in 2013, you may be required to receive your first distribution by April 1, 2014. How do i efile my state taxes Your required distribution then must be made for 2014 by December 31, 2014. How do i efile my state taxes 5% owners. How do i efile my state taxes   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. How do i efile my state taxes   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. How do i efile my state taxes Age 70½. How do i efile my state taxes   You reach age 70½ on the date that is 6 calendar months after the date of your 70th birthday. How do i efile my state taxes   For example, if you are retired and your 70th birthday was on June 30, 2013, you were age 70½ on December 30, 2013. How do i efile my state taxes If your 70th birthday was on July 1, 2013, you reached age 70½ on January 1, 2014. How do i efile my state taxes Required distributions. How do i efile my state taxes   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). How do i efile my state taxes Additional information. How do i efile my state taxes   For more information on this rule, see Tax on Excess Accumulation in Publication 575. How do i efile my state taxes Form 5329. How do i efile my state taxes   You must file Form 5329 if you owe tax because you did not receive a minimum required distribution from your qualified retirement plan. How do i efile my state taxes Survivors and Beneficiaries Generally, a survivor or beneficiary reports pension or annuity income in the same way the plan participant would have. How do i efile my state taxes However, some special rules apply. How do i efile my state taxes See Publication 575 for more information. How do i efile my state taxes Survivors of employees. How do i efile my state taxes   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. How do i efile my state taxes You must figure the taxable and tax-free parts of your annuity payments using the method that applies as if you were the employee. How do i efile my state taxes Survivors of retirees. How do i efile my state taxes   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. How do i efile my state taxes 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. How do i efile my state taxes    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. How do i efile my state taxes The resulting tax-free amount will then remain fixed. How do i efile my state taxes Any increases in the survivor annuity are fully taxable. How do i efile my state taxes    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. How do i efile my state taxes This amount remains fixed even if the annuity payments are increased or decreased. How do i efile my state taxes See Simplified Method , earlier. How do i efile my state taxes   In any case, if the annuity starting date is after 1986, the total exclusion over the years cannot be more than the cost. How do i efile my state taxes Estate tax deduction. How do i efile my state taxes   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. How do i efile my state taxes You can deduct the part of the total estate tax that was based on the annuity. How do i efile my state taxes The deceased annuitant must have died after the annuity starting date. How do i efile my state taxes (For details, see section 1. How do i efile my state taxes 691(d)-1 of the regulations. How do i efile my state taxes ) Deduct it in equal amounts over your remaining life expectancy. How do i efile my state taxes   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. How do i efile my state taxes   You can take the estate tax deduction as an itemized deduction on Schedule A, Form 1040. How do i efile my state taxes This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. How do i efile my state taxes See Publication 559, Survivors, Executors, and Administrators, for more information on the estate tax deduction. How do i efile my state taxes Prev  Up  Next   Home   More Online Publications