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How To Amend Tax

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How To Amend Tax

How to amend tax Publication 575 - Main Content Table of Contents General InformationPension. How to amend tax Annuity. How to amend tax Qualified employee plan. How to amend tax Qualified employee annuity. How to amend tax Designated Roth account. How to amend tax Tax-sheltered annuity plan. How to amend tax Fixed-period annuities. How to amend tax Annuities for a single life. How to amend tax Joint and survivor annuities. How to amend tax Variable annuities. How to amend tax Disability pensions. How to amend tax Variable Annuities Section 457 Deferred Compensation Plans Disability Pensions Insurance Premiums for Retired Public Safety Officers Railroad Retirement Benefits Withholding Tax and Estimated Tax Cost (Investment in the Contract)Foreign employment contributions while a nonresident alien. How to amend tax Taxation of Periodic PaymentsPeriod of participation. How to amend tax Fully Taxable Payments Partly Taxable Payments Taxation of Nonperiodic PaymentsFiguring the Taxable Amount Loans Treated as Distributions Transfers of Annuity Contracts Lump-Sum Distributions RolloversExceptions. How to amend tax No tax withheld. How to amend tax Partial rollovers. How to amend tax Frozen deposits. How to amend tax Reasonable period of time. How to amend tax 20% Mandatory withholding. How to amend tax How to report. How to amend tax How to report. How to amend tax Special rule for Roth IRAs and designated Roth accounts. How to amend tax Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and BeneficiariesGuaranteed payments. How to amend tax How To Get Tax HelpLow Income Taxpayer Clinics General Information Definitions. How to amend tax   Some of the terms used in this publication are defined in the following paragraphs. How to amend tax Pension. How to amend tax   A pension is generally a series of definitely determinable payments made to you after you retire from work. How to amend tax Pension payments are made regularly and are based on such factors as years of service and prior compensation. How to amend tax Annuity. How to amend tax   An annuity is a series of payments under a contract made at regular intervals over a period of more than one full year. How to amend tax They can be either fixed (under which you receive a definite amount) or variable (not fixed). How to amend tax You can buy the contract alone or with the help of your employer. How to amend tax Qualified employee plan. How to amend tax   A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries and that meets Internal Revenue Code requirements. How to amend tax It qualifies for special tax benefits, such as tax deferral for employer contributions and capital gain treatment or the 10-year tax option for lump-sum distributions (if participants qualify). How to amend tax To determine whether your plan is a qualified plan, check with your employer or the plan administrator. How to amend tax Qualified employee annuity. How to amend tax   A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. How to amend tax Designated Roth account. How to amend tax   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 to amend tax Elective deferrals that are designated as Roth contributions are included in your income. How to amend tax However, qualified distributions (explained later) are not included in your income. How to amend tax You should check with your plan administrator to determine if your plan will accept designated Roth contributions. How to amend tax Tax-sheltered annuity plan. How to amend tax   A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. How to amend tax Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants. How to amend tax Types of pensions and annuities. How to amend tax   Pensions and annuities include the following types. How to amend tax Fixed-period annuities. How to amend tax   You receive definite amounts at regular intervals for a specified length of time. How to amend tax Annuities for a single life. How to amend tax   You receive definite amounts at regular intervals for life. How to amend tax The payments end at death. How to amend tax Joint and survivor annuities. How to amend tax   The first annuitant receives a definite amount at regular intervals for life. How to amend tax After he or she dies, a second annuitant receives a definite amount at regular intervals for life. How to amend tax The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. How to amend tax Variable annuities. How to amend tax   You receive payments that may vary in amount for a specified length of time or for life. How to amend tax The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund. How to amend tax Disability pensions. How to amend tax   You receive disability payments because you retired on disability and have not reached minimum retirement age. How to amend tax More than one program. How to amend tax   You may receive employee plan benefits from more than one program under a single trust or plan of your employer. How to amend tax If you participate in more than one program, you may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. How to amend tax Also, you may be considered to have received more than one pension or annuity. How to amend tax Your former employer or the plan administrator should be able to tell you if you have more than one contract. How to amend tax Example. How to amend tax Your employer set up a noncontributory profit-sharing plan for its employees. How to amend tax The plan provides that the amount held in the account of each participant will be paid when that participant retires. How to amend tax Your employer also set up a contributory defined benefit pension plan for its employees providing for the payment of a lifetime pension to each participant after retirement. How to amend tax The amount of any distribution from the profit-sharing plan depends on the contributions (including allocated forfeitures) made for the participant and the earnings from those contributions. How to amend tax Under the pension plan, however, a formula determines the amount of the pension benefits. How to amend tax The amount of contributions is the amount necessary to provide that pension. How to amend tax Each plan is a separate program and a separate contract. How to amend tax If you get benefits from these plans, you must account for each separately, even though the benefits from both may be included in the same check. How to amend tax Distributions from a designated Roth account are treated separately from other distributions from the plan. How to amend tax Qualified domestic relations order (QDRO). How to amend tax   A QDRO is a judgment, decree, or order relating to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of a participant in a retirement plan. How to amend tax The QDRO must contain certain specific information, such as the name and last known mailing address of the participant and each alternate payee, and the amount or percentage of the participant's benefits to be paid to each alternate payee. How to amend tax A QDRO may not award an amount or form of benefit that is not available under the plan. How to amend tax   A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if he or she were a plan participant. How to amend tax The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. How to amend tax The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. How to amend tax The denominator is the present value of all benefits payable to the participant. How to amend tax   A distribution that is paid to a child or other dependent under a QDRO is taxed to the plan participant. How to amend tax Variable Annuities The tax rules in this publication apply both to annuities that provide fixed payments and to annuities that provide payments that vary in amount based on investment results or other factors. How to amend tax For example, they apply to commercial variable annuity contracts, whether bought by an employee retirement plan for its participants or bought directly from the issuer by an individual investor. How to amend tax Under these contracts, the owner can generally allocate the purchase payments among several types of investment portfolios or mutual funds and the contract value is determined by the performance of those investments. How to amend tax The earnings are not taxed until distributed either in a withdrawal or in annuity payments. How to amend tax The taxable part of a distribution is treated as ordinary income. How to amend tax Net investment income tax. How to amend tax   Beginning in 2013, annuities under a nonqualified plan are included in calculating your net investment income for the net investment income tax (NIIT). How to amend tax For information see the Instructions for Form 8960, Net Investment Income Tax — Individuals, Estates and Trusts. How to amend tax For information on the tax treatment of a transfer or exchange of a variable annuity contract, see Transfers of Annuity Contracts under Taxation of Nonperiodic Payments, later. How to amend tax Withdrawals. How to amend tax   If you withdraw funds before your annuity starting date and your annuity is under a qualified retirement plan, a ratable part of the amount withdrawn is tax free. How to amend tax The tax-free part is based on the ratio of your cost (investment in the contract) to your account balance under the plan. How to amend tax   If your annuity is under a nonqualified plan (including a contract you bought directly from the issuer), the amount withdrawn is allocated first to earnings (the taxable part) and then to your cost (the tax-free part). How to amend tax However, if you bought your annuity contract before August 14, 1982, a different allocation applies to the investment before that date and the earnings on that investment. How to amend tax To the extent the amount withdrawn does not exceed that investment and earnings, it is allocated first to your cost (the tax-free part) and then to earnings (the taxable part). How to amend tax   If you withdraw funds (other than as an annuity) on or after your annuity starting date, the entire amount withdrawn is generally taxable. How to amend tax   The amount you receive in a full surrender of your annuity contract at any time is tax free to the extent of any cost that you have not previously recovered tax free. How to amend tax The rest is taxable. How to amend tax   For more information on the tax treatment of withdrawals, see Taxation of Nonperiodic Payments , later. How to amend tax If you withdraw funds from your annuity before you reach age 59½, also see Tax on Early Distributions under Special Additional Taxes, later. How to amend tax Annuity payments. How to amend tax   If you receive annuity payments under a variable annuity plan or contract, you recover your cost tax free under either the Simplified Method or the General Rule, as explained under Taxation of Periodic Payments , later. How to amend tax For a variable annuity paid under a qualified plan, you generally must use the Simplified Method. How to amend tax For a variable annuity paid under a nonqualified plan (including a contract you bought directly from the issuer), you must use a special computation under the General Rule. How to amend tax For more information, see Variable annuities in Publication 939 under Computation Under the General Rule. How to amend tax Death benefits. How to amend tax    If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. How to amend tax If you choose to receive an annuity, the payments are subject to tax as described above. How to amend tax If the contract provides a joint and survivor annuity and the primary annuitant had received annuity payments before death, you figure the tax-free part of annuity payments you receive as the survivor in the same way the primary annuitant did. How to amend tax See Survivors and Beneficiaries , later. How to amend tax Section 457 Deferred Compensation Plans 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 to amend tax 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 to amend tax You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. How to amend tax You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. How to amend tax Your 457(b) plan may have a designated Roth account option. How to amend tax If so, you may be able to roll over amounts to the designated Roth account or make contributions. How to amend tax Elective deferrals to a designated Roth account are included in your income. How to amend tax Qualified distributions (explained later) are not included in your income. How to amend tax See the Designated Roth accounts discussion under Taxation of Periodic Payments, later. How to amend tax This publication covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. How to amend tax For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525. How to amend tax Is your plan eligible?   To find out if your plan is an eligible plan, check with your employer. How to amend tax Plans that are not eligible section 457 plans include the following: Bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plans. How to amend tax Nonelective deferred compensation plans for nonemployees (independent contractors). How to amend tax Deferred compensation plans maintained by churches. How to amend tax Length of service award plans for bona fide volunteer firefighters and emergency medical personnel. How to amend tax An exception applies if the total amount paid to a volunteer exceeds $3,000 for any year of service. How to amend tax Disability Pensions 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 to amend tax You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. How to amend tax Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. How to amend tax You may be entitled to a tax credit if you were permanently and totally disabled when you retired. How to amend tax For information on this credit, see Publication 524. How to amend tax Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. How to amend tax Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. How to amend tax 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 to amend tax For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. How to amend tax Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. How to amend tax The premiums can be for coverage for you, your spouse, or dependents. How to amend tax The distribution must be made directly from the plan to the insurance provider. How to amend tax You can exclude from income the smaller of the amount of the insurance premiums or $3,000. How to amend tax You can only make this election for amounts that would otherwise be included in your income. How to amend tax The amount excluded from your income cannot be used to claim a medical expense deduction. How to amend tax An eligible retirement plan is a governmental plan that is: a qualified trust, a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. How to amend tax If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. How to amend tax The amount shown in box 2a of Form 1099-R does not reflect this exclusion. How to amend tax Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to amend tax Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. How to amend tax Enter “PSO” next to the appropriate line on which you report the taxable amount. How to amend tax If you are retired on disability and reporting your disability pension on line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to the applicable line. How to amend tax Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. How to amend tax These categories are treated differently for income tax purposes. How to amend tax The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. How to amend tax This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and you treat it for tax purposes like social security benefits. How to amend tax If you received, repaid, or had tax withheld from the SSEB portion of tier 1 benefits during 2013, you will receive Form RRB-1099, Payments by the Railroad Retirement Board (or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, if you are a nonresident alien) from the U. How to amend tax S. How to amend tax Railroad Retirement Board (RRB). How to amend tax For more information about the tax treatment of the SSEB portion of tier 1 benefits and Forms RRB-1099 and RRB-1042S, see Publication 915. How to amend tax The second category contains the rest of the tier 1 railroad retirement benefits, called the non-social security equivalent benefit (NSSEB). How to amend tax It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. How to amend tax Treat this category of benefits, shown on Form RRB-1099-R, as an amount received from a qualified employee plan. How to amend tax This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. How to amend tax (The NSSEB and tier 2 benefits, less certain repayments, are combined into one amount called the Contributory Amount Paid on Form RRB-1099-R. How to amend tax ) Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. How to amend tax See Taxation of Periodic Payments , later, for information on how to report your benefits and how to recover the employee contributions tax free. How to amend tax Form RRB-1099-R is used for U. How to amend tax S. How to amend tax citizens, resident aliens, and nonresident aliens. How to amend tax Nonresident aliens. How to amend tax   A nonresident alien is an individual who is not a citizen or a resident alien of the United States. How to amend tax Nonresident aliens are subject to mandatory U. How to amend tax S. How to amend tax tax withholding unless exempt under a tax treaty between the United States and their country of legal residency. How to amend tax A tax treaty exemption may reduce or eliminate tax withholding from railroad retirement benefits. How to amend tax See Tax withholding next for more information. How to amend tax   If you are a nonresident alien and your tax withholding rate changed or your country of legal residence changed during the year, you may receive more than one Form RRB-1042S or Form RRB-1099-R. How to amend tax To determine your total benefits paid or repaid and total tax withheld for the year, you should add the amounts shown on all forms you received for that year. How to amend tax For information on filing requirements for aliens, see Publication 519, U. How to amend tax S. How to amend tax Tax Guide for Aliens. How to amend tax For information on tax treaties between the United States and other countries that may reduce or eliminate U. How to amend tax S. How to amend tax tax on your benefits, see Publication 901, U. How to amend tax S. How to amend tax Tax Treaties. How to amend tax Tax withholding. How to amend tax   To request or change your income tax withholding from SSEB payments, U. How to amend tax S. How to amend tax citizens should contact the IRS for Form W-4V, Voluntary Withholding Request, and file it with the RRB. How to amend tax To elect, revoke, or change your income tax withholding from NSSEB, tier 2, VDB, and supplemental annuity payments received, use Form RRB W-4P, Withholding Certificate for Railroad Retirement Payments. How to amend tax If you are a nonresident alien or a U. How to amend tax S. How to amend tax citizen living abroad, you should provide Form RRB-1001, Nonresident Questionnaire, to the RRB to furnish citizenship and residency information and to claim any treaty exemption from U. How to amend tax S. How to amend tax tax withholding. How to amend tax Nonresident U. How to amend tax S. How to amend tax citizens cannot elect to be exempt from withholding on payments delivered outside of the U. How to amend tax S. How to amend tax Help from the RRB. How to amend tax   To request an RRB form or to get help with questions about an RRB benefit, you should contact your nearest RRB field office if you reside in the United States (call 1-877-772-5772 for the nearest field office) or U. How to amend tax S. How to amend tax consulate/Embassy if you reside outside the United States. How to amend tax You can visit the RRB on the Internet at www. How to amend tax rrb. How to amend tax gov. How to amend tax Form RRB-1099-R. How to amend tax   The following discussion explains the items shown on Form RRB-1099-R. How to amend tax The amounts shown on this form are before any deduction for: Federal income tax withholding, Medicare premiums, Legal process garnishment payments, Recovery of a prior year overpayment of an NSSEB, tier 2 benefit, VDB, or supplemental annuity benefit, or Recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity. How to amend tax   The amounts shown on this form are after any offset for: Social Security benefits, Age reduction, Public Service pensions or public disability benefits, Dual railroad retirement entitlement under another RRB claim number, Work deductions, Legal process partition deductions, Actuarial adjustment, Annuity waiver, or Recovery of a current-year overpayment of NSSEB, tier 2, VDB, or supplemental annuity benefits. How to amend tax   The amounts shown on Form RRB-1099-R do not reflect any special rules, such as capital gain treatment or the special 10-year tax option for lump-sum payments, or tax-free rollovers. How to amend tax To determine if any of these rules apply to your benefits, see the discussions about them later. How to amend tax   Generally, amounts shown on your Form RRB-1099-R are considered a normal distribution. How to amend tax Use distribution code “7” if you are asked for a distribution code. How to amend tax Distribution codes are not shown on Form RRB-1099-R. How to amend tax   There are three copies of this form. How to amend tax Copy B is to be included with your income tax return if federal income tax is withheld. How to amend tax Copy C is for your own records. How to amend tax Copy 2 is filed with your state, city, or local income tax return, when required. How to amend tax See the illustrated Copy B (Form RRB-1099-R) above. How to amend tax       Each beneficiary will receive his or her own Form RRB-1099-R. How to amend tax If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099-R. How to amend tax So that you get your form timely, make sure the RRB always has your current mailing address. How to amend tax Please click here for the text description of the image. How to amend tax Form RRB-1099-R Box 1—Claim Number and Payee Code. How to amend tax   Your claim number is a six- or nine-digit number preceded by an alphabetical prefix. How to amend tax This is the number under which the RRB paid your benefits. How to amend tax Your payee code follows your claim number and is the last number in this box. How to amend tax It is used by the RRB to identify you under your claim number. How to amend tax In all your correspondence with the RRB, be sure to use the claim number and payee code shown in this box. How to amend tax Box 2—Recipient's Identification Number. How to amend tax   This is the recipient's U. How to amend tax S. How to amend tax taxpayer identification number. How to amend tax It is the social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient. How to amend tax If you are a resident or nonresident alien who must furnish a taxpayer identification number to the IRS and are not eligible to obtain an SSN, use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN. How to amend tax The Instructions for Form W-7 explain how and when to apply. How to amend tax Box 3—Employee Contributions. How to amend tax   This is the amount of taxes withheld from the railroad employee's earnings that exceeds the amount of taxes that would have been withheld had the earnings been covered under the social security system. How to amend tax This amount is the employee's cost that you use to figure the tax-free part of the NSSEB and tier 2 benefit you received (the amount shown in box 4). How to amend tax (For information on how to figure the tax-free part, see Partly Taxable Payments under Taxation of Periodic Payments, later. How to amend tax ) The amount shown is the total employee contribution amount, not reduced by any amounts that the RRB calculated as previously recovered. How to amend tax It is the latest amount reported for 2013 and may have increased or decreased from a previous Form RRB-1099-R. How to amend tax If this amount has changed, the change is retroactive. How to amend tax You may need to refigure the tax-free part of your NSSEB/tier 2 benefit for 2013 and prior tax years. How to amend tax If this box is blank, it means that the amount of your NSSEB and tier 2 payments shown in box 4 is fully taxable. How to amend tax    If you had a previous annuity entitlement that ended and you are figuring the tax-free part of your NSSEB/tier 2 benefit for your current annuity entitlement, you should contact the RRB for confirmation of your correct employee contribution amount. How to amend tax Box 4—Contributory Amount Paid. How to amend tax   This is the gross amount of the NSSEB and tier 2 benefit you received in 2013, less any 2013 benefits you repaid in 2013. How to amend tax (Any benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. How to amend tax ) This amount is the total contributory pension paid in 2013. How to amend tax It may be partly taxable and partly tax free or fully taxable. How to amend tax If you determine you are eligible to compute a tax-free part as explained later in Partly Taxable Payments under Taxation of Periodic Payments, use the latest reported employee contribution amount shown in box 3 as the cost. How to amend tax Box 5—Vested Dual Benefit. How to amend tax   This is the gross amount of vested dual benefit (VDB) payments paid in 2013, less any 2013 VDB payments you repaid in 2013. How to amend tax It is fully taxable. How to amend tax VDB payments you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. How to amend tax Note. How to amend tax The amounts shown in boxes 4 and 5 may represent payments for 2013 and/or other years after 1983. How to amend tax Box 6—Supplemental Annuity. How to amend tax   This is the gross amount of supplemental annuity benefits paid in 2013, less any 2013 supplemental annuity benefits you repaid in 2013. How to amend tax It is fully taxable. How to amend tax Supplemental annuity benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. How to amend tax Box 7—Total Gross Paid. How to amend tax   This is the sum of boxes 4, 5, and 6. How to amend tax The amount represents the total pension paid in 2013. How to amend tax Include this amount on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to amend tax Box 8—Repayments. How to amend tax   This amount represents any NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit you repaid to the RRB in 2013 for years before 2013 or for unknown years. How to amend tax The amount shown in this box has not been deducted from the amounts shown in boxes 4, 5, and 6. How to amend tax It only includes repayments of benefits that were taxable to you. How to amend tax This means it only includes repayments in 2013 of NSSEB benefits paid after 1985, tier 2 and VDB benefits paid after 1983, and supplemental annuity benefits paid in any year. How to amend tax If you included the benefits in your income in the year you received them, you may be able to deduct the repaid amount. How to amend tax For more information about repayments, see Repayment of benefits received in an earlier year , later. How to amend tax    You may have repaid an overpayment of benefits by returning a payment, by making a payment, or by having an amount withheld from your railroad retirement annuity payment. How to amend tax Box 9—Federal Income Tax Withheld. How to amend tax   This is the total federal income tax withheld from your NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit. How to amend tax Include this on your income tax return as tax withheld. How to amend tax If you are a nonresident alien and your tax withholding rate and/or country of legal residence changed during 2013, you will receive more than one Form RRB-1099-R for 2013. How to amend tax Determine the total amount of U. How to amend tax S. How to amend tax federal income tax withheld from your 2013 RRB NSSEB, tier 2, VDB, and supplemental annuity payments by adding the amounts in box 9 of all original 2013 Forms RRB-1099-R, or the latest corrected or duplicate Forms RRB-1099-R you receive. How to amend tax Box 10—Rate of Tax. How to amend tax   If you are taxed as a U. How to amend tax S. How to amend tax citizen or resident alien, this box does not apply to you. How to amend tax If you are a nonresident alien, an entry in this box indicates the rate at which tax was withheld on the NSSEB, tier 2, VDB, and supplemental annuity payments that were paid to you in 2013. How to amend tax If you are a nonresident alien whose tax was withheld at more than one rate during 2013, you will receive a separate Form RRB-1099-R for each rate change during 2013. How to amend tax Box 11—Country. How to amend tax   If you are taxed as a U. How to amend tax S. How to amend tax citizen or resident alien, this box does not apply to you. How to amend tax If you are a nonresident alien, an entry in this box indicates the country of which you were a resident for tax purposes at the time you received railroad retirement payments in 2013. How to amend tax If you are a nonresident alien who was a resident of more than one country during 2013, you will receive a separate Form RRB-1099-R for each country of residence during 2013. How to amend tax Box 12—Medicare Premium Total. How to amend tax   This is for information purposes only. How to amend tax The amount shown in this box represents the total amount of Part B Medicare premiums deducted from your railroad retirement annuity payments in 2013. How to amend tax Medicare premium refunds are not included in the Medicare total. How to amend tax The Medicare total is normally shown on Form RRB-1099 (if you are a citizen or resident alien of the United States) or Form RRB-1042S (if you are a nonresident alien). How to amend tax However, if Form RRB-1099 or Form RRB-1042S is not required for 2013, then this total will be shown on Form RRB-1099-R. How to amend tax If your Medicare premiums were deducted from your social security benefits, paid by a third party, refunded to you, and/or you paid the premiums by direct billing, your Medicare total will not be shown in this box. How to amend tax Repayment of benefits received in an earlier year. How to amend tax   If you had to repay any railroad retirement benefits that you had included in your income in an earlier year because at that time you thought you had an unrestricted right to it, you can deduct the amount you repaid in the year in which you repaid it. How to amend tax   If you repaid $3,000 or less in 2013, deduct it on Schedule A (Form 1040), line 23. How to amend tax The 2%-of-adjusted-gross-income limit applies to this deduction. How to amend tax You cannot take this deduction if you file Form 1040A. How to amend tax    If you repaid more than $3,000 in 2013, you can either take a deduction for the amount repaid on Schedule A (Form 1040), line 28 or you can take a credit against your tax. How to amend tax For more information, see Repayments in Publication 525. How to amend tax Withholding Tax and Estimated Tax Your retirement plan distributions are subject to federal income tax withholding. How to amend tax However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. How to amend tax (These are distributions, described later under Rollovers, that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. How to amend tax ) If you choose not to have tax withheld or if you do not have enough tax withheld, you may have to make estimated tax payments. How to amend tax See Estimated tax , later. How to amend tax The withholding rules apply to the taxable part of payments you receive from: An employer pension, annuity, profit-sharing, or stock bonus plan, Any other deferred compensation plan, A traditional individual retirement arrangement (IRA), or A commercial annuity. How to amend tax For this purpose, a commercial annuity means an annuity, endowment, or life insurance contract issued by an insurance company. How to amend tax There will be no withholding on any part of a distribution where it is reasonable to believe that it will not be includible in gross income. How to amend tax Choosing no withholding. How to amend tax   You can choose not to have income tax withheld from retirement plan payments unless they are eligible rollover distributions. How to amend tax You can make this choice on Form W-4P for periodic and nonperiodic payments. How to amend tax This choice generally remains in effect until you revoke it. How to amend tax   The payer will ignore your choice not to have tax withheld if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer, before the payment is made, that you gave an incorrect social security number. How to amend tax   To choose not to have tax withheld, a U. How to amend tax S. How to amend tax citizen or resident alien must give the payer a home address in the United States or its possessions. How to amend tax Without that address, the payer must withhold tax. How to amend tax For example, the payer has to withhold tax if the recipient has provided a U. How to amend tax S. How to amend tax address for a nominee, trustee, or agent to whom the benefits are delivered, but has not provided his or her own U. How to amend tax S. How to amend tax home address. How to amend tax   If you do not give the payer a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to the payer that you are not a U. How to amend tax S. How to amend tax citizen, a U. How to amend tax S. How to amend tax resident alien, or someone who left the country to avoid tax. How to amend tax But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. How to amend tax This 30% rate will not apply if you are exempt or subject to a reduced rate by treaty. How to amend tax For details, get Publication 519. How to amend tax Periodic payments. How to amend tax   Unless you choose no withholding, your annuity or similar periodic payments (other than eligible rollover distributions) will be treated like wages for withholding purposes. How to amend tax Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). How to amend tax You should give the payer a completed withholding certificate (Form W-4P or a similar form provided by the payer). How to amend tax If you do not, tax will be withheld as if you were married and claiming three withholding allowances. How to amend tax   Tax will be withheld as if you were single and were claiming no withholding allowances if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer (before any payment is made) that you gave an incorrect social security number. How to amend tax   You must file a new withholding certificate to change the amount of withholding. How to amend tax Nonperiodic distributions. How to amend tax    Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that is not an eligible rollover distribution is 10% of the distribution. How to amend tax You can also ask the payer to withhold an additional amount using Form W-4P. How to amend tax The part of any loan treated as a distribution (except an offset amount to repay the loan), explained later, is subject to withholding under this rule. How to amend tax Eligible rollover distribution. How to amend tax    If you receive an eligible rollover distribution, 20% of it generally will be withheld for income tax. How to amend tax You cannot choose not to have tax withheld from an eligible rollover distribution. How to amend tax However, tax will not be withheld if you have the plan administrator pay the eligible rollover distribution directly to another qualified plan or an IRA in a direct rollover. How to amend tax For more information about eligible rollover distributions, see Rollovers , later. How to amend tax Estimated tax. How to amend tax   Your estimated tax is the total of your expected income tax, self-employment tax, and certain other taxes for the year, minus your expected credits and withheld tax. How to amend tax Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 return, or 100% of the tax shown on your 2013 return. How to amend tax If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. How to amend tax For more information, get Publication 505, Tax Withholding and Estimated Tax. How to amend tax In figuring your withholding or estimated tax, remember that a part of your monthly social security or equivalent tier 1 railroad retirement benefits may be taxable. How to amend tax See Publication 915. How to amend tax You can choose to have income tax withheld from those benefits. How to amend tax Use Form W-4V to make this choice. How to amend tax Cost (Investment in the Contract) Distributions from your pension or annuity plan may include amounts treated as a recovery of your cost (investment in the contract). How to amend tax If any part of a distribution is treated as a recovery of your cost under the rules explained in this publication, that part is tax free. How to amend tax Therefore, the first step in figuring how much of a distribution is taxable is to determine the cost of your pension or annuity. How to amend tax In general, your cost is your net investment in the contract as of the annuity starting date (or the date of the distribution, if earlier). How to amend tax To find this amount, you must first figure the total premiums, contributions, or other amounts you paid. How to amend tax This includes the amounts your employer contributed that were taxable to you when paid. How to amend tax (However, see Foreign employment contributions , later. How to amend tax ) It does not include amounts withheld from your pay on a tax-deferred basis (money that was taken out of your gross pay before taxes were deducted). How to amend tax It also does not include amounts you contributed for health and accident benefits (including any additional premiums paid for double indemnity or disability benefits). How to amend tax From this total cost you must subtract the following amounts. How to amend tax Any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income and that you received by the later of the annuity starting date or the date on which you received your first payment. How to amend tax Any other tax-free amounts you received under the contract or plan by the later of the dates in (1). How to amend tax If you must use the Simplified Method for your annuity payments, the tax-free part of any single-sum payment received in connection with the start of the annuity payments, regardless of when you received it. How to amend tax (See Simplified Method , later, for information on its required use. How to amend tax ) If you use the General Rule for your annuity payments, the value of the refund feature in your annuity contract. How to amend tax (See General Rule , later, for information on its use. How to amend tax ) Your annuity contract has a refund feature if the annuity payments are for your life (or the lives of you and your survivor) and payments in the nature of a refund of the annuity's cost will be made to your beneficiary or estate if all annuitants die before a stated amount or a stated number of payments are made. How to amend tax For more information, see Publication 939. How to amend tax The tax treatment of the items described in (1) through (3) is discussed later under Taxation of Nonperiodic Payments . How to amend tax Form 1099-R. How to amend tax If you began receiving periodic payments of a life annuity in 2013, the payer should show your total contributions to the plan in box 9b of your 2013 Form 1099-R. How to amend tax Annuity starting date defined. How to amend tax   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 to amend tax Example. How to amend tax On January 1, you completed all your payments required under an annuity contract providing for monthly payments starting on August 1 for the period beginning July 1. How to amend tax The annuity starting date is July 1. How to amend tax This is the date you use in figuring the cost of the contract and selecting the appropriate number from Table 1 for line 3 of the Simplified Method Worksheet. How to amend tax Designated Roth accounts. How to amend tax   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. How to amend tax Your cost will also include any in-plan Roth rollovers you included in income. How to amend tax Foreign employment contributions. How to amend tax   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. How to amend tax The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (not including the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) but only if the contributions would be excludible from your gross income had they been paid directly to you. How to amend tax Foreign employment contributions while a nonresident alien. How to amend tax   In determining your cost, special rules apply if you are a U. How to amend tax S. How to amend tax citizen or resident alien who received distributions in 2013 from a plan to which contributions were made while you were a nonresident alien. How to amend tax Your contributions and your employer's contributions are not included in your cost if the contribution: Was made based on compensation which was for services performed outside the United States while you were a nonresident alien, and Was not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if paid as cash compensation when the services were performed. How to amend tax Taxation of Periodic Payments This section explains how the periodic payments you receive from a pension or annuity plan are taxed. How to amend tax Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). How to amend tax These payments are also known as amounts received as an annuity. How to amend tax If you receive an amount from your plan that is not a periodic payment, see Taxation of Nonperiodic Payments , later. How to amend tax In general, you can recover the cost of your pension or annuity tax free over the period you are to receive the payments. How to amend tax The amount of each payment that is more than the part that represents your cost is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). How to amend tax Designated Roth accounts. How to amend tax   If you receive a qualified distribution from a designated Roth account, the distribution is not included in your gross income. How to amend tax This applies to both your cost in the account and income earned on that account. How to amend tax A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. How to amend tax   If the distribution is not a qualified distribution, the rules discussed in this section apply. How to amend tax The designated Roth account is treated as a separate contract. How to amend tax Period of participation. How to amend tax   The 5-tax-year period of participation is the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the plan. How to amend tax Therefore, for designated Roth contributions made for 2013, the first year for which a qualified distribution can be made is 2018. How to amend tax   However, if a direct rollover is made to the plan from a designated Roth account under another plan, the 5-tax-year period for the recipient plan begins with the first tax year for which the participant first had designated Roth contributions made to the other plan. How to amend tax   Your 401(k), 403(b), or 457(b) plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. How to amend tax This is known as an in-plan Roth rollover. How to amend tax For more details, see In-plan Roth rollovers , later. How to amend tax Fully Taxable Payments The pension or annuity payments that you receive are fully taxable if you have no cost in the contract because any of the following situations applies to you (however, see Insurance Premiums for Retired Public Safety Officers , earlier). How to amend tax You did not pay anything or are not considered to have paid anything for your pension or annuity. How to amend tax Amounts withheld from your pay on a tax-deferred basis are not considered part of the cost of the pension or annuity payment. How to amend tax Your employer did not withhold contributions from your salary. How to amend tax You got back all of your contributions tax free in prior years (however, see Exclusion not limited to cost under Partly Taxable Payments, later). How to amend tax Report the total amount you got on Form 1040, line 16b; Form 1040A, line 12b; or on Form 1040NR, line 17b. How to amend tax You should make no entry on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to amend tax Deductible voluntary employee contributions. How to amend tax   Distributions you receive that are based on your accumulated deductible voluntary employee contributions are generally fully taxable in the year distributed to you. How to amend tax Accumulated deductible voluntary employee contributions include net earnings on the contributions. How to amend tax If distributed as part of a lump sum, they do not qualify for the 10-year tax option or capital gain treatment, explained later. How to amend tax Partly Taxable Payments If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. How to amend tax This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. How to amend tax The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). How to amend tax You figure the tax-free part of the payment using one of the following methods. How to amend tax Simplified Method. How to amend tax You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). How to amend tax You cannot use this method if your annuity is paid under a nonqualified plan. How to amend tax General Rule. How to amend tax You must use this method if your annuity is paid under a nonqualified plan. How to amend tax You generally cannot use this method if your annuity is paid under a qualified plan. How to amend tax You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. How to amend tax If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. How to amend tax Qualified plan annuity starting before November 19, 1996. How to amend tax   If your annuity is paid under a qualified plan and your annuity starting date (defined earlier under Cost (Investment in the Contract) ) is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the Simplified Method or the General Rule. How to amend tax If your annuity starting date is before July 2, 1986, you use the General Rule unless your annuity qualified for the Three-Year Rule. How to amend tax If you used the Three-Year Rule (which was repealed for annuities starting after July 1, 1986), your annuity payments are generally now fully taxable. How to amend tax Exclusion limit. How to amend tax   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. How to amend tax Once your annuity starting date is determined, it does not change. How to amend tax 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 to amend tax That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. How to amend tax Exclusion limited to cost. How to amend tax   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 to amend tax 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 to amend tax This deduction is not subject to the 2%-of-adjusted-gross-income limit. How to amend tax Example 1. How to amend tax Your annuity starting date is after 1986, and you exclude $100 a month ($1,200 a year) under the Simplified Method. How to amend tax The total cost of your annuity is $12,000. How to amend tax Your exclusion ends when you have recovered your cost tax free, that is, after 10 years (120 months). How to amend tax After that, your annuity payments are generally fully taxable. How to amend tax Example 2. How to amend tax The facts are the same as in Example 1, except you die (with no surviving annuitant) after the eighth year of retirement. How to amend tax You have recovered tax free only $9,600 (8 × $1,200) of your cost. How to amend tax An itemized deduction for your unrecovered cost of $2,400 ($12,000 – $9,600) can be taken on your final return. How to amend tax Exclusion not limited to cost. How to amend tax   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 to amend tax 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 to amend tax The total exclusion may be more than your cost. How to amend tax 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 to amend tax 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 to amend tax For any other annuity, this number is the number of monthly annuity payments under the contract. How to amend tax Who must use the Simplified Method. How to amend tax   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions. How to amend tax You receive your pension or annuity payments from any of the following plans. How to amend tax A qualified employee plan. How to amend tax A qualified employee annuity. How to amend tax A tax-sheltered annuity plan (403(b) plan). How to amend tax On your annuity starting date, at least one of the following conditions applies to you. How to amend tax You are under age 75. How to amend tax You are entitled to less than 5 years of guaranteed payments. How to amend tax Guaranteed payments. How to amend tax   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 to amend tax 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 to amend tax Annuity starting before November 19, 1996. How to amend tax   If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. How to amend tax You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed earlier under Who must use the Simplified Method . How to amend tax Who cannot use the Simplified Method. How to amend tax   You cannot use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. How to amend tax See General Rule , later. How to amend tax How to use the Simplified Method. How to amend tax    Complete Worksheet A in the back of this publication to figure your taxable annuity for 2013. How to amend tax Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. How to amend tax   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. How to amend tax How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. How to amend tax For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. How to amend tax    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. How to amend tax Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. How to amend tax Single-life annuity. How to amend tax   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 to amend tax Enter on line 3 the number shown for your age on your annuity starting date. How to amend tax This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. How to amend tax Multiple-lives annuity. How to amend tax   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 to amend tax Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. How to amend tax For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. How to amend tax For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. How to amend tax Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. How to amend tax   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. How to amend tax Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. How to amend tax This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. How to amend tax Fixed-period annuity. How to amend tax   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. How to amend tax Line 6. How to amend tax   The amount on line 6 should include all amounts that could have been recovered in prior years. How to amend tax If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. How to amend tax Example. How to amend tax Bill Smith, age 65, began receiving retirement benefits in 2013 under a joint and survivor annuity. How to amend tax Bill's annuity starting date is January 1, 2013. How to amend tax The benefits are to be paid for the joint lives of Bill and his wife, Kathy, age 65. How to amend tax Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. How to amend tax 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 to amend tax 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 to amend tax 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 Worksheet A in completing line 3 of the worksheet. How to amend tax His completed worksheet is shown later. How to amend tax Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. How to amend tax 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 to amend tax The full amount of any annuity payments received after 310 payments are paid must be included in gross income. How to amend tax 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 to amend tax This deduction is not subject to the 2%-of-adjusted-gross-income limit. How to amend tax Worksheet A. How to amend tax Simplified Method Worksheet for Bill Smith 1. How to amend tax Enter the total pension or annuity payments received this year. How to amend tax Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. How to amend tax $14,400 2. How to amend tax Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. How to amend tax * See Cost (Investment in the Contract) , earlier 2. How to amend tax 31,000   Note. How to amend tax 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 to amend tax Otherwise, go to line 3. How to amend tax     3. How to amend tax Enter the appropriate number from Table 1 below. How to amend tax 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 to amend tax 310 4. How to amend tax Divide line 2 by the number on line 3 4. How to amend tax 100 5. How to amend tax Multiply line 4 by the number of months for which this year's payments were made. How to amend tax If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. How to amend tax Otherwise, go to line 6 5. How to amend tax 1,200 6. How to amend tax Enter any amount previously recovered tax free in years after 1986. How to amend tax This is the amount shown on line 10 of your worksheet for last year 6. How to amend tax -0- 7. How to amend tax Subtract line 6 from line 2 7. How to amend tax 31,000 8. How to amend tax Enter the smaller of line 5 or line 7 8. How to amend tax 1,200 9. How to amend tax Taxable amount for year. How to amend tax Subtract line 8 from line 1. How to amend tax Enter the result, but not less than zero. How to amend tax Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. How to amend tax Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. How to amend tax If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. How to amend tax $13,200 10. How to amend tax Was your annuity starting date before 1987? □ Yes. How to amend tax STOP. How to amend tax Do not complete the rest of this worksheet. How to amend tax  ☑ No. How to amend tax Add lines 6 and 8. How to amend tax This is the amount you have recovered tax free through 2013. How to amend tax You will need this number if you need to fill out this worksheet next year 10. How to amend tax 1,200 11. How to amend tax Balance of cost to be recovered. How to amend tax Subtract line 10 from line 2. How to amend tax If zero, you will not have to complete this worksheet next year. How to amend tax The payments you receive next year will generally be fully taxable 11. How to amend tax $29,800         * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. How to amend tax           Table 1 for Line 3 Above       AND your annuity starting date was—     IF the age at annuity starting date was. How to amend tax . How to amend tax . How to amend tax BEFORE November 19, 1996, enter on line 3. How to amend tax . How to amend tax . How to amend tax AFTER November 18, 1996, enter on line 3. How to amend tax . How to amend tax . How to amend tax     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 to amend tax . How to amend tax . How to amend tax THEN enter on line 3. How to amend tax . How to amend tax . How to amend tax     110 or under   410     111-120   360     121-130   310     131-140   260     141 or older   210   Multiple annuitants. How to amend tax   If you and one or more other annuitants receive payments at the same time, you exclude from each annuity payment a pro rata share of the monthly tax-free amount. How to amend tax Figure your share by taking the following steps. How to amend tax Complete your worksheet through line 4 to figure the monthly tax-free amount. How to amend tax Divide the amount of your monthly payment by the total amount of the monthly payments to all annuitants. How to amend tax Multiply the amount on line 4 of your worksheet by the amount figured in (2) above. How to amend tax The result is your share of the monthly tax-free amount. How to amend tax   Replace the amount on line 4 of the worksheet with the result in (3) above. How to amend tax Enter that amount on line 4 of your worksheet each year. How to amend tax General Rule Under the General Rule, you determine the tax-free part of each annuity payment based on the ratio of the cost of the contract to the total expected return. How to amend tax Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. How to amend tax To figure it, you must use life expectancy (actuarial) tables prescribed by the IRS. How to amend tax Who must use the General Rule. How to amend tax   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 to amend tax Annuity starting before November 19, 1996. How to amend tax   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 to amend tax You also had to use it for any fixed-period annuity. How to amend tax If you did not have to use the General Rule, you could have chosen to use it. How to amend tax 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 to amend tax   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 to amend tax Who cannot use the General Rule. How to amend tax   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 to amend tax See Simplified Method , earlier. How to amend tax More information. How to amend tax   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. How to amend tax Taxation of Nonperiodic Payments This section of the publication explains how any nonperiodic distributions you receive under a pension or annuity plan are taxed. How to amend tax Nonperiodic distributions are also known as amounts not received as an annuity. How to amend tax They include all payments other than periodic payments and corrective distributions. How to amend tax For example, the following items are treated as nonperiodic distributions. How to amend tax Cash withdrawals. How to amend tax Distributions of current earnings (dividends) on your investment. How to amend tax However, do not include these distributions in your income to the extent the insurer keeps them to pay premiums or other consideration for the contract. How to amend tax Certain loans. How to amend tax See Loans Treated as Distributions , later. How to amend tax The value of annuity contracts transferred without full and adequate consideration. How to amend tax See Transfers of Annuity Contracts , later. How to amend tax Corrective distributions of excess plan contributions. How to amend tax   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. How to amend tax To correct an excess, your plan may distribute it to you (along with any income earned on the excess). How to amend tax Although the plan reports the corrective distributions on Form 1099-R, the distribution is not treated as a nonperiodic distribution from the plan. How to amend tax It is not subject to the allocation rules explained in the following discussion, it cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. How to amend tax    If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099-R should have the code “8,” “B,” “P,” or “E” in box 7. How to amend tax   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 to amend tax Figuring the Taxable Amount 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 to amend tax 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 to amend tax 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 to amend tax You may be able to roll over the taxable amount of a nonperiodic distribution from a qualified retirement plan into another qualified retirement plan or a traditional IRA tax free. How to amend tax See Rollovers, later. How to amend tax If you do not make a tax-free rollover and the distribution qualifies as a lump-sum distribution, you may be able to elect an optional method of figuring the tax on the taxable amount. How to amend tax See Lump-Sum Distributions, later. How to amend tax Annuity starting date. How to amend tax   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 to amend tax Distributions of employer securities. How to amend tax    If you receive a distribution of employer securities from a qualified retirement plan, you may be able to defer the tax on the net unrealized appreciation (NUA) in the securities. How to amend tax The NUA is the net increase in the securities' value while they were in the trust. How to amend tax This tax deferral applies to distributions of the employer corporation's stocks, bonds, registered debentures, and debentures with interest coupons attached. How to amend tax   If the distribution is a lump-sum distribution, tax is deferred on all of the NUA unless you choose to include it in your income for the year of the distribution. How to amend tax    A lump-sum distribution for this purpose is the distribution or payment of a plan participant's entire balance (within a single tax year) from all of the employer's qualified plans of one kind (pension, profit-sharing, or stock bonus plans), but only if paid: Because of the plan participant's death, After the participant reaches age 59½, Because the participant, if an employee, separates from service, or After the participant, if a self-employed individual, becomes totally and permanently disabled. How to amend tax    If you choose to include NUA in your income for the year of the distribution and the participant was born before January 2, 1936, you may be able to figure the tax on the NUA using the optional methods described und
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Understanding Your CP518 Individuals Notice

This is a final reminder notice that we still have no record that you filed your prior tax return(s).


What you need to do

  • File your tax return immediately or explain to us why you don't need to file.
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If we don't hear from you

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Page Last Reviewed or Updated: 16-Jan-2014

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The How To Amend Tax

How to amend tax 5. How to amend tax   Recordkeeping Table of Contents How To Prove ExpensesWhat Are Adequate Records? What If I Have Incomplete Records? Separating and Combining Expenses How Long To Keep Records and Receipts Examples of Records If you deduct travel, entertainment, gift, or transportation expenses, you must be able to prove (substantiate) certain elements of expense. How to amend tax This chapter discusses the records you need to keep to prove these expenses. How to amend tax If you keep timely and accurate records, you will have support to show the IRS if your tax return is ever examined. How to amend tax You will also have proof of expenses that your employer may require if you are reimbursed under an accountable plan. How to amend tax These plans are discussed in chapter 6 under Reimbursements . How to amend tax How To Prove Expenses Table 5-1 is a summary of records you need to prove each expense discussed in this publication. How to amend tax You must be able to prove the elements listed across the top portion of the chart. How to amend tax You prove them by having the information and receipts (where needed) for the expenses listed in the first column. How to amend tax You cannot deduct amounts that you approximate or estimate. How to amend tax You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. How to amend tax You must generally prepare a written record for it to be considered adequate. How to amend tax This is because written evidence is more reliable than oral evidence alone. How to amend tax However, if you prepare a record on a computer, it is considered an adequate record. How to amend tax What Are Adequate Records? You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. How to amend tax You should also keep documentary evidence that, together with your record, will support each element of an expense. How to amend tax Documentary evidence. How to amend tax   You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. How to amend tax Exception. How to amend tax   Documentary evidence is not needed if any of the following conditions apply. How to amend tax You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. How to amend tax ( Accountable plans and per diem allowances are discussed in chapter 6. How to amend tax ) Your expense, other than lodging, is less than $75. How to amend tax You have a transportation expense for which a receipt is not readily available. How to amend tax Adequate evidence. How to amend tax   Documentary evidence ordinarily will be considered adequate if it shows the amount, date, place, and essential character of the expense. How to amend tax   For example, a hotel receipt is enough to support expenses for business travel if it has all of the following information. How to amend tax The name and location of the hotel. How to amend tax The dates you stayed there. How to amend tax Separate amounts for charges such as lodging, meals, and telephone calls. How to amend tax   A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information. How to amend tax The name and location of the restaurant. How to amend tax The number of people served. How to amend tax The date and amount of the expense. How to amend tax If a charge is made for items other than food and beverages, the receipt must show that this is the case. How to amend tax Canceled check. How to amend tax   A canceled check, together with a bill from the payee, ordinarily establishes the cost. How to amend tax However, a canceled check by itself does not prove a business expense without other evidence to show that it was for a business purpose. How to amend tax Duplicate information. How to amend tax   You do not have to record information in your account book or other record that duplicates information shown on a receipt as long as your records and receipts complement each other in an orderly manner. How to amend tax   You do not have to record amounts your employer pays directly for any ticket or other travel item. How to amend tax However, if you charge these items to your employer, through a credit card or otherwise, you must keep a record of the amounts you spend. How to amend tax Timely-kept records. How to amend tax   You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence. How to amend tax A timely-kept record has more value than a statement prepared later when generally there is a lack of accurate recall. How to amend tax   You do not need to write down the elements of every expense on the day of the expense. How to amend tax If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely-kept record. How to amend tax   If you give your employer, client, or customer an expense account statement, it can also be considered a timely-kept record. How to amend tax This is true if you copy it from your account book, diary, log, statement of expense, trip sheets, or similar record. How to amend tax Proving business purpose. How to amend tax   You must generally provide a written statement of the business purpose of an expense. How to amend tax However, the degree of proof varies according to the circumstances in each case. How to amend tax If the business purpose of an expense is clear from the surrounding circumstances, then you do not need to give a written explanation. How to amend tax Example. How to amend tax If you are a sales representative who calls on customers on an established sales route, you do not have to give a written explanation of the business purpose for traveling that route. How to amend tax You can satisfy the requirements by recording the length of the delivery route once, the date of each trip at or near the time of the trips, and the total miles you drove the car during the tax year. How to amend tax You could also establish the date of each trip with a receipt, record of delivery, or other documentary evidence. How to amend tax Confidential information. How to amend tax   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. How to amend tax However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. How to amend tax What If I Have Incomplete Records? If you do not have complete records to prove an element of an expense, then you must prove the element with: Your own written or oral statement containing specific information about the element, and Other supporting evidence that is sufficient to establish the element. How to amend tax If the element is the description of a gift, or the cost, time, place, or date of an expense, the supporting evidence must be either direct evidence or documentary evidence. How to amend tax Direct evidence can be written statements or the oral testimony of your guests or other witnesses setting forth detailed information about the element. How to amend tax Documentary evidence can be receipts, paid bills, or similar evidence. How to amend tax If the element is either the business relationship of your guests or the business purpose of the amount spent, the supporting evidence can be circumstantial rather than direct. How to amend tax For example, the nature of your work, such as making deliveries, provides circumstantial evidence of the use of your car for business purposes. How to amend tax Invoices of deliveries establish when you used the car for business. How to amend tax Table 5-1. How to amend tax How To Prove Certain Business Expenses IF you have expenses for . How to amend tax . How to amend tax THEN you must keep records that show details of the following elements . How to amend tax . How to amend tax . How to amend tax   Amount Time Place or  Description Business Purpose Business Relationship Travel Cost of each separate expense for travel, lodging, and meals. How to amend tax Incidental expenses may be totaled in reasonable categories such as taxis, fees and tips, etc. How to amend tax Dates you left and returned for each trip and number of days spent on business. How to amend tax Destination or area of your travel (name of city, town, or other designation). How to amend tax Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. How to amend tax    Relationship: N/A Entertainment Cost of each separate expense. How to amend tax Incidental expenses such as taxis, telephones, etc. How to amend tax , may be totaled on a daily basis. How to amend tax Date of entertainment. How to amend tax (Also see Business Purpose. How to amend tax ) Name and address or location of place of entertainment. How to amend tax Type of entertainment if not otherwise apparent. How to amend tax (Also see Business Purpose. How to amend tax ) Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. How to amend tax  For entertainment, the nature of the business discussion or activity. How to amend tax If the entertainment was directly before or after a business discussion: the date, place, nature, and duration of the business discussion, and the identities of the persons who took part in both the business discussion and the entertainment activity. How to amend tax    Relationship: Occupations or other information (such as names, titles, or other designations) about the recipients that shows their business relationship to you. How to amend tax  For entertainment, you must also prove that you or your employee was present if the entertainment was a business meal. How to amend tax Gifts Cost of the gift. How to amend tax Date of the gift. How to amend tax Description of the gift. How to amend tax   Transportation Cost of each separate expense. How to amend tax For car expenses, the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year. How to amend tax Date of the expense. How to amend tax For car expenses, the date of the use of the car. How to amend tax Your business destination. How to amend tax Purpose: Business purpose for the expense. How to amend tax    Relationship: N/A Sampling. How to amend tax   You can keep an adequate record for parts of a tax year and use that record to prove the amount of business or investment use for the entire year. How to amend tax You must demonstrate by other evidence that the periods for which an adequate record is kept are representative of the use throughout the tax year. How to amend tax Example. How to amend tax You use your car to visit the offices of clients, meet with suppliers and other subcontractors, and pick up and deliver items to clients. How to amend tax There is no other business use of the car, but you and your family use the car for personal purposes. How to amend tax You keep adequate records during the first week of each month that show that 75% of the use of the car is for business. How to amend tax Invoices and bills show that your business use continues at the same rate during the later weeks of each month. How to amend tax Your weekly records are representative of the use of the car each month and are sufficient evidence to support the percentage of business use for the year. How to amend tax Exceptional circumstances. How to amend tax   You can satisfy the substantiation requirements with other evidence if, because of the nature of the situation in which an expense is made, you cannot get a receipt. How to amend tax This applies if all the following are true. How to amend tax You were unable to obtain evidence for an element of the expense or use that completely satisfies the requirements explained earlier under What Are Adequate Records . How to amend tax You are unable to obtain evidence for an element that completely satisfies the two rules listed earlier under What If I Have Incomplete Records . How to amend tax You have presented other evidence for the element that is the best proof possible under the circumstances. How to amend tax Destroyed records. How to amend tax   If you cannot produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. How to amend tax Reasons beyond your control include fire, flood, and other casualties. How to amend tax    Table 5-2. How to amend tax Daily Business Mileage and Expense Log Name:       Odometer Readings Expenses Date Destination  (City, Town, or Area) Business Purpose Start Stop Miles  this trip Type  (Gas, oil, tolls, etc. How to amend tax ) Amount                                                                                                                   Weekly  Total             Total Year-to-Date             Separating and Combining Expenses This section explains when expenses must be kept separate and when expenses can be combined. How to amend tax Separating expenses. How to amend tax   Each separate payment is generally considered a separate expense. How to amend tax For example, if you entertain a customer or client at dinner and then go to the theater, the dinner expense and the cost of the theater tickets are two separate expenses. How to amend tax You must record them separately in your records. How to amend tax Season or series tickets. How to amend tax   If you buy season or series tickets for business use, you must treat each ticket in the series as a separate item. How to amend tax To determine the cost of individual tickets, divide the total cost (but not more than face value) by the number of games or performances in the series. How to amend tax You must keep records to show whether you use each ticket as a gift or entertainment. How to amend tax Also, you must be able to prove the cost of nonluxury box seat tickets if you rent a skybox or other private luxury box for more than one event. How to amend tax See Entertainment tickets in chapter 2. How to amend tax Combining items. How to amend tax   You can make one daily entry in your record for reasonable categories of expenses. How to amend tax Examples are taxi fares, telephone calls, or other incidental travel costs. How to amend tax Meals should be in a separate category. How to amend tax You can include tips for meal-related services with the costs of the meals. How to amend tax   Expenses of a similar nature occurring during the course of a single event are considered a single expense. How to amend tax For example, if during entertainment at a cocktail lounge, you pay separately for each serving of refreshments, the total expense for the refreshments is treated as a single expense. How to amend tax Car expenses. How to amend tax   You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. How to amend tax Minimal personal use, such as a stop for lunch on the way between two business stops, is not an interruption of business use. How to amend tax Example. How to amend tax You make deliveries at several different locations on a route that begins and ends at your employer's business premises and that includes a stop at the business premises between two deliveries. How to amend tax You can account for these using a single record of miles driven. How to amend tax Gift expenses. How to amend tax   You do not always have to record the name of each recipient of a gift. How to amend tax A general listing will be enough if it is evident that you are not trying to avoid the $25 annual limit on the amount you can deduct for gifts to any one person. How to amend tax For example, if you buy a large number of tickets to local high school basketball games and give one or two tickets to each of many customers, it is usually enough to record a general description of the recipients. How to amend tax Allocating total cost. How to amend tax   If you can prove the total cost of travel or entertainment but you cannot prove how much it cost for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro rata basis. How to amend tax To do so, you must establish the number of persons who participated in the event. How to amend tax   An allocation would be needed, for example, if you did not have a business relationship with all of your guests. How to amend tax See Allocating between business and nonbusiness in chapter 2. How to amend tax If your return is examined. How to amend tax    If your return is examined, you may have to provide additional information to the IRS. How to amend tax This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed. How to amend tax    THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Table 5-3. How to amend tax Weekly Traveling Expense and Entertainment Record From: To: Name: Expenses Sunday Monday Tuesday Wednesday Thursday Friday Saturday Total 1. How to amend tax Travel Expenses: Airlines                                 Excess Baggage                                 Bus – Train                                 Cab and Limousine                                 Tips                                 Porter                                 2. How to amend tax Meals and Lodging:  Breakfast                                 Lunch                                 Dinner                                 Hotel and Motel  (Detail in Schedule B)                                 3. How to amend tax Entertainment  (Detail in Schedule C)                                 4. How to amend tax Other Expenses:  Postage                                 Telephone & Telegraph                                 Stationery & Printing                                 Stenographer                                 Sample Room                                 Advertising                                 Assistant(s)                                 Trade Shows                                 5. How to amend tax Car Expenses: (List all car expenses - the division between business and personal expenses may be made at the end of the year. How to amend tax ) (Detail mileage in Schedule A. How to amend tax ) Gas, oil, lube, wash                                 Repairs, parts                                 Tires, supplies                                 Parking fees, tolls                                 6. How to amend tax Other (Identify)                                 Total                                 Note: Attach receipted bills for (1) ALL lodging and (2) any other expenses of $75. How to amend tax 00 or more. How to amend tax Schedule A – Car Mileage: End                 Start                 Total                 Business Mileage                 Schedule B – Lodging Hotel or Motel Name                 City                 Schedule C – Entertainment Date Item Place Amount Business Purpose Business Relationship                                             WEEKLY REIMBURSEMENTS:     Travel and transportation expenses     Other reimbursements     TOTAL   How Long To Keep Records and Receipts You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. How to amend tax Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed. How to amend tax A return filed early is considered filed on the due date. How to amend tax For a more complete explanation of how long to keep records, see Publication 583, Starting a Business and Keeping Records. How to amend tax You must keep records of the business use of your car for each year of the recovery period. How to amend tax See More-than-50%-use test in chapter 4 under Depreciation Deduction. How to amend tax Reimbursed for expenses. How to amend tax   Employees who give their records and documentation to their employers and are reimbursed for their expenses generally do not have to keep copies of this information. How to amend tax However, you may have to prove your expenses if any of the following conditions apply. How to amend tax You claim deductions for expenses that are more than reimbursements. How to amend tax Your expenses are reimbursed under a nonaccountable plan. How to amend tax Your employer does not use adequate accounting procedures to verify expense accounts. How to amend tax You are related to your employer as defined under Per Diem and Car Allowances , in chapter 6. How to amend tax Reimbursements , adequate accounting , and nonaccountable plans are discussed in chapter 6. How to amend tax Examples of Records Table 5-2 and Table 5-3 are examples of worksheets which can be used for tracking business expenses. How to amend tax Prev  Up  Next   Home   More Online Publications