File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Income Taxes Free

2012 Federal Tax Return FormsMyfreetaxes ReviewEz1040H & R Block Tax EstimatorFile 1040ez OnlineWhere Can I Get Form 1040xFree Tax Filing Online2014 1040 EzFree State Tax Filing2012 Free TaxesHr Block Free State FileForm 1040nr 2011Irs.gov Form 1040xWhere Can I Get A 1040ez Tax FormFederal Tax Form 1040xFile A Free Tax Extension OnlineCan I Still File My 2012 Taxes2012 Income Tax ReturnsTax AidTurbotax 1040ez FreeFiling Tax ReturnWhere File Amended 1040xE File Tax ReturnsIrs Form 1040ez InstructionsHow Do I Complete A 1040x FormsBuy Turbotax 2011Free Taxes H&r BlockCan You File An Amended Tax Return Online1040nr Filing OnlineIrs 2012 Tax Forms 1040 EzForm Ez 1040Www.myfreetaxes.comHrblockfree ComFile 2011 Federal TaxesIrs Gov Free FileFile Taxes 2012 FreeHow To File State Taxes2009 TaxTurbo Taxes 2011Amend A Tax Return 2010

Income Taxes Free

Income taxes free 3. Income taxes free   Rent Expense Table of Contents Introduction Topics - This chapter discusses: RentConditional sales contract. Income taxes free Leveraged leases. Income taxes free Leveraged leases of limited-use property. Income taxes free Taxes on Leased Property Cost of Getting a Lease Improvements by Lessee Capitalizing Rent Expenses Introduction This chapter discusses the tax treatment of rent or lease payments you make for property you use in your business but do not own. Income taxes free It also discusses how to treat other kinds of payments you make that are related to your use of this property. Income taxes free These include payments you make for taxes on the property. Income taxes free Topics - This chapter discusses: The definition of rent Taxes on leased property The cost of getting a lease Improvements by the lessee Capitalizing rent expenses Rent Rent is any amount you pay for the use of property you do not own. Income taxes free In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. Income taxes free If you have or will receive equity in or title to the property, the rent is not deductible. Income taxes free Unreasonable rent. Income taxes free   You cannot take a rental deduction for unreasonable rent. Income taxes free Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Income taxes free Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Income taxes free Rent is not unreasonable just because it is figured as a percentage of gross sales. Income taxes free For examples of related persons, see Related persons in chapter 2, Publication 544. Income taxes free Rent on your home. Income taxes free   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Income taxes free You must meet the requirements for business use of your home. Income taxes free For more information, see Business use of your home in chapter 1. Income taxes free Rent paid in advance. Income taxes free   Generally, rent paid in your trade or business is deductible in the year paid or accrued. Income taxes free If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Income taxes free You can deduct the rest of your payment only over the period to which it applies. Income taxes free Example 1. Income taxes free You are a calendar year taxpayer and you leased a building for 5 years beginning July 1. Income taxes free Your rent is $12,000 per year. Income taxes free You paid the first year's rent ($12,000) on June 30. Income taxes free You can deduct only $6,000 (6/12 × $12,000) for the rent that applies to the first year. Income taxes free Example 2. Income taxes free You are a calendar year taxpayer. Income taxes free Last January you leased property for 3 years for $6,000 a year. Income taxes free You paid the full $18,000 (3 × $6,000) during the first year of the lease. Income taxes free Each year you can deduct only $6,000, the part of the lease that applies to that year. Income taxes free Canceling a lease. Income taxes free   You generally can deduct as rent an amount you pay to cancel a business lease. Income taxes free Lease or purchase. Income taxes free   There may be instances in which you must determine whether your payments are for rent or for the purchase of the property. Income taxes free You must first determine whether your agreement is a lease or a conditional sales contract. Income taxes free Payments made under a conditional sales contract are not deductible as rent expense. Income taxes free Conditional sales contract. Income taxes free   Whether an agreement is a conditional sales contract depends on the intent of the parties. Income taxes free Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. Income taxes free No single test, or special combination of tests, always applies. Income taxes free However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. Income taxes free The agreement applies part of each payment toward an equity interest you will receive. Income taxes free You get title to the property after you make a stated amount of required payments. Income taxes free The amount you must pay to use the property for a short time is a large part of the amount you would pay to get title to the property. Income taxes free You pay much more than the current fair rental value of the property. Income taxes free You have an option to buy the property at a nominal price compared to the value of the property when you may exercise the option. Income taxes free Determine this value when you make the agreement. Income taxes free You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. Income taxes free The agreement designates part of the payments as interest, or that part is easy to recognize as interest. Income taxes free Leveraged leases. Income taxes free   Leveraged lease transactions may not be considered leases. Income taxes free Leveraged leases generally involve three parties: a lessor, a lessee, and a lender to the lessor. Income taxes free Usually the lease term covers a large part of the useful life of the leased property, and the lessee's payments to the lessor are enough to cover the lessor's payments to the lender. Income taxes free   If you plan to take part in what appears to be a leveraged lease, you may want to get an advance ruling. Income taxes free Revenue Procedure 2001-28 on page 1156 of Internal Revenue Bulletin 2001-19 contains the guidelines the IRS will use to determine if a leveraged lease is a lease for federal income tax purposes. Income taxes free Revenue Procedure 2001-29 on page 1160 of the same Internal Revenue Bulletin provides the information required to be furnished in a request for an advance ruling on a leveraged lease transaction. Income taxes free Internal Revenue Bulletin 2001-19 is available at www. Income taxes free irs. Income taxes free gov/pub/irs-irbs/irb01-19. Income taxes free pdf. Income taxes free   In general, Revenue Procedure 2001-28 provides that, for advance ruling purposes only, the IRS will consider the lessor in a leveraged lease transaction to be the owner of the property and the transaction to be a valid lease if all the factors in the revenue procedure are met, including the following. Income taxes free The lessor must maintain a minimum unconditional “at risk” equity investment in the property (at least 20% of the cost of the property) during the entire lease term. Income taxes free The lessee may not have a contractual right to buy the property from the lessor at less than fair market value when the right is exercised. Income taxes free The lessee may not invest in the property, except as provided by Revenue Procedure 2001-28. Income taxes free The lessee may not lend any money to the lessor to buy the property or guarantee the loan used by the lessor to buy the property. Income taxes free The lessor must show that it expects to receive a profit apart from the tax deductions, allowances, credits, and other tax attributes. Income taxes free   The IRS may charge you a user fee for issuing a tax ruling. Income taxes free For more information, see Revenue Procedure 2014-1 available at  www. Income taxes free irs. Income taxes free gov/irb/2014-1_IRB/ar05. Income taxes free html. Income taxes free Leveraged leases of limited-use property. Income taxes free   The IRS will not issue advance rulings on leveraged leases of so-called limited-use property. Income taxes free Limited-use property is property not expected to be either useful to or usable by a lessor at the end of the lease term except for continued leasing or transfer to a lessee. Income taxes free See Revenue Procedure 2001-28 for examples of limited-use property and property that is not limited-use property. Income taxes free Leases over $250,000. Income taxes free   Special rules are provided for certain leases of tangible property. Income taxes free The rules apply if the lease calls for total payments of more than $250,000 and any of the following apply. Income taxes free Rents increase during the lease. Income taxes free Rents decrease during the lease. Income taxes free Rents are deferred (rent is payable after the end of the calendar year following the calendar year in which the use occurs and the rent is allocated). Income taxes free Rents are prepaid (rent is payable before the end of the calendar year preceding the calendar year in which the use occurs and the rent is allocated). Income taxes free These rules do not apply if your lease specifies equal amounts of rent for each month in the lease term and all rent payments are due in the calendar year to which the rent relates (or in the preceding or following calendar year). Income taxes free   Generally, if the special rules apply, you must use an accrual method of accounting (and time value of money principles) for your rental expenses, regardless of your overall method of accounting. Income taxes free In addition, in certain cases in which the IRS has determined that a lease was designed to achieve tax avoidance, you must take rent and stated or imputed interest into account under a constant rental accrual method in which the rent is treated as accruing ratably over the entire lease term. Income taxes free For details, see section 467 of the Internal Revenue Code. Income taxes free Taxes on Leased Property If you lease business property, you can deduct as additional rent any taxes you have to pay to or for the lessor. Income taxes free When you can deduct these taxes as additional rent depends on your accounting method. Income taxes free Cash method. Income taxes free   If you use the cash method of accounting, you can deduct the taxes as additional rent only for the tax year in which you pay them. Income taxes free Accrual method. Income taxes free   If you use an accrual method of accounting, you can deduct taxes as additional rent for the tax year in which you can determine all the following. Income taxes free That you have a liability for taxes on the leased property. Income taxes free How much the liability is. Income taxes free That economic performance occurred. Income taxes free   The liability and amount of taxes are determined by state or local law and the lease agreement. Income taxes free Economic performance occurs as you use the property. Income taxes free Example 1. Income taxes free Oak Corporation is a calendar year taxpayer that uses an accrual method of accounting. Income taxes free Oak leases land for use in its business. Income taxes free Under state law, owners of real property become liable (incur a lien on the property) for real estate taxes for the year on January 1 of that year. Income taxes free However, they do not have to pay these taxes until July 1 of the next year (18 months later) when tax bills are issued. Income taxes free Under the terms of the lease, Oak becomes liable for the real estate taxes in the later year when the tax bills are issued. Income taxes free If the lease ends before the tax bill for a year is issued, Oak is not liable for the taxes for that year. Income taxes free Oak cannot deduct the real estate taxes as rent until the tax bill is issued. Income taxes free This is when Oak's liability under the lease becomes fixed. Income taxes free Example 2. Income taxes free The facts are the same as in Example 1 except that, according to the terms of the lease, Oak becomes liable for the real estate taxes when the owner of the property becomes liable for them. Income taxes free As a result, Oak will deduct the real estate taxes as rent on its tax return for the earlier year. Income taxes free This is the year in which Oak's liability under the lease becomes fixed. Income taxes free Cost of Getting a Lease You may either enter into a new lease with the lessor of the property or get an existing lease from another lessee. Income taxes free Very often when you get an existing lease from another lessee, you must pay the previous lessee money to get the lease, besides having to pay the rent on the lease. Income taxes free If you get an existing lease on property or equipment for your business, you generally must amortize any amount you pay to get that lease over the remaining term of the lease. Income taxes free For example, if you pay $10,000 to get a lease and there are 10 years remaining on the lease with no option to renew, you can deduct $1,000 each year. Income taxes free The cost of getting an existing lease of tangible property is not subject to the amortization rules for section 197 intangibles discussed in chapter 8. Income taxes free Option to renew. Income taxes free   The term of the lease for amortization includes all renewal options plus any other period for which you and the lessor reasonably expect the lease to be renewed. Income taxes free However, this applies only if less than 75% of the cost of getting the lease is for the term remaining on the purchase date (not including any period for which you may choose to renew, extend, or continue the lease). Income taxes free Allocate the lease cost to the original term and any option term based on the facts and circumstances. Income taxes free In some cases, it may be appropriate to make the allocation using a present value computation. Income taxes free For more information, see Regulations section 1. Income taxes free 178-1(b)(5). Income taxes free Example 1. Income taxes free You paid $10,000 to get a lease with 20 years remaining on it and two options to renew for 5 years each. Income taxes free Of this cost, you paid $7,000 for the original lease and $3,000 for the renewal options. Income taxes free Because $7,000 is less than 75% of the total $10,000 cost of the lease (or $7,500), you must amortize the $10,000 over 30 years. Income taxes free That is the remaining life of your present lease plus the periods for renewal. Income taxes free Example 2. Income taxes free The facts are the same as in Example 1, except that you paid $8,000 for the original lease and $2,000 for the renewal options. Income taxes free You can amortize the entire $10,000 over the 20-year remaining life of the original lease. Income taxes free The $8,000 cost of getting the original lease was not less than 75% of the total cost of the lease (or $7,500). Income taxes free Cost of a modification agreement. Income taxes free   You may have to pay an additional “rent” amount over part of the lease period to change certain provisions in your lease. Income taxes free You must capitalize these payments and amortize them over the remaining period of the lease. Income taxes free You cannot deduct the payments as additional rent, even if they are described as rent in the agreement. Income taxes free Example. Income taxes free You are a calendar year taxpayer and sign a 20-year lease to rent part of a building starting on January 1. Income taxes free However, before you occupy it, you decide that you really need less space. Income taxes free The lessor agrees to reduce your rent from $7,000 to $6,000 per year and to release the excess space from the original lease. Income taxes free In exchange, you agree to pay an additional rent amount of $3,000, payable in 60 monthly installments of $50 each. Income taxes free   You must capitalize the $3,000 and amortize it over the 20-year term of the lease. Income taxes free Your amortization deduction each year will be $150 ($3,000 ÷ 20). Income taxes free You cannot deduct the $600 (12 × $50) that you will pay during each of the first 5 years as rent. Income taxes free Commissions, bonuses, and fees. Income taxes free   Commissions, bonuses, fees, and other amounts you pay to get a lease on property you use in your business are capital costs. Income taxes free You must amortize these costs over the term of the lease. Income taxes free Loss on merchandise and fixtures. Income taxes free   If you sell at a loss merchandise and fixtures that you bought solely to get a lease, the loss is a cost of getting the lease. Income taxes free You must capitalize the loss and amortize it over the remaining term of the lease. Income taxes free Improvements by Lessee If you add buildings or make other permanent improvements to leased property, depreciate the cost of the improvements using the modified accelerated cost recovery system (MACRS). Income taxes free Depreciate the property over its appropriate recovery period. Income taxes free You cannot amortize the cost over the remaining term of the lease. Income taxes free If you do not keep the improvements when you end the lease, figure your gain or loss based on your adjusted basis in the improvements at that time. Income taxes free For more information, see the discussion of MACRS in Publication 946, How To Depreciate Property. Income taxes free Assignment of a lease. Income taxes free   If a long-term lessee who makes permanent improvements to land later assigns all lease rights to you for money and you pay the rent required by the lease, the amount you pay for the assignment is a capital investment. Income taxes free If the rental value of the leased land increased since the lease began, part of your capital investment is for that increase in the rental value. Income taxes free The rest is for your investment in the permanent improvements. Income taxes free   The part that is for the increased rental value of the land is a cost of getting a lease, and you amortize it over the remaining term of the lease. Income taxes free You can depreciate the part that is for your investment in the improvements over the recovery period of the property as discussed earlier, without regard to the lease term. Income taxes free Capitalizing Rent Expenses Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Income taxes free Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. Income taxes free You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Income taxes free Indirect costs include amounts incurred for renting or leasing equipment, facilities, or land. Income taxes free Uniform capitalization rules. Income taxes free   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. Income taxes free Produce real property or tangible personal property. Income taxes free For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. Income taxes free Acquire property for resale. Income taxes free However, these rules do not apply to the following property. Income taxes free Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. Income taxes free Property you produce if you meet either of the following conditions. Income taxes free Your indirect costs of producing the property are $200,000 or less. Income taxes free You use the cash method of accounting and do not account for inventories. Income taxes free Example 1. Income taxes free You rent construction equipment to build a storage facility. Income taxes free If you are subject to the uniform capitalization rules, you must capitalize as part of the cost of the building the rent you paid for the equipment. Income taxes free You recover your cost by claiming a deduction for depreciation on the building. Income taxes free Example 2. Income taxes free You rent space in a facility to conduct your business of manufacturing tools. Income taxes free If you are subject to the uniform capitalization rules, you must include the rent you paid to occupy the facility in the cost of the tools you produce. Income taxes free More information. Income taxes free   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. Income taxes free Prev  Up  Next   Home   More Online Publications
Español

1.USA.gov Data

About The Data

1.USA.gov URLs are created whenever anyone shortens a .gov or .mil URL using bitly.

We provide a raw pub/sub feed of data created any time anyone clicks on a 1.USA.gov URL. The pub/sub endpoint responds to http requests for any 1.USA.gov URL and returns a stream of JSON entries, one per line, that represent real-time clicks.

If you are using the 1.USA.gov data and have feedback or want to tell us about your product, please e-mail us.

How to Access The Data

You can access the feed at http://developer.usa.gov/1usagov

Measured Voice stores archives of the raw data. They created this archive in anticipation of the 1.USA.gov Hack Day so other developers could more easily access it.

The JSON data dictionary is as follows:

{
        "a": USER_AGENT, 
        "c": COUNTRY_CODE, # 2-character iso code
        "nk": KNOWN_USER,  # 1 or 0. 0=this is the first time we've seen this browser
        "g": GLOBAL_BITLY_HASH, 
        "h": ENCODING_USER_BITLY_HASH,
        "l": ENCODING_USER_LOGIN,
        "hh": SHORT_URL_CNAME,
        "r": REFERRING_URL,
        "u": LONG_URL,
        "t": TIMESTAMP,
        "gr": GEO_REGION,
        "ll": [LATITUDE, LONGITUDE],
        "cy": GEO_CITY_NAME,
        "tz": TIMEZONE # in http://en.wikipedia.org/wiki/Zoneinfo format
        "hc": TIMESTAMP OF TIME HASH WAS CREATED, 
        "al": ACCEPT_LANGUAGE http://www.w3.org/Protocols/rfc2616/rfc2616-sec14.html#sec14.4 
    }


Code from the 1.USA.gov Hack Day

We held a nationwide 1.USA.gov Hack Day on July 29, 2011 to encourage people to explore the 1.USA.gov data. The following code was created by participants and shared publicly for others to use:

Back to Top

Projects from the 1.USA.gov Hack Day

A number of items were created in anticipation of and at the Hack Day. Most tools centered around finding popular links, showing links by location, and using click data to enhance security:

  • Popular now - Barg Upender and Adam created a site called PopGov.us that shows which government links are popular in real time.
  • Popularity by day - Measured Voice created GovClicks to show the most popular links per day. GovClicks is built using Gogogon which consumes the 1.USA.Gov click feed and generates daily rankings of URLs.
  • NASA links - Adam Laiacano analyzed 1.USA.gov data and found that 42% of all clicks on 1.USA.gov links go to NASA websites. He created a map that shows that people in Europe are more likely to only click on NASA links, while people in the United States click on links from a wider variety of government links.
  • Across the world - Helmut Hissen made an animation that shows clicks across the globe on 1.USA.gov links from June 2 through July 14. Red flashes represent clicks from non-mobile devices, and green flashes represent clicks from mobile devices. Note that the final NASA Shuttle launch occurred on July 8. There’s a dramatic increase in activity at the 1:24 mark.
  • Map of clicks - Chris Metcalf built a tool that ingests the 1.USA.gov data and feeds it into Data.gov. It also feeds the data into a Google Map to show clicks based on location.
  • Popularity by location - Robert built a tool that searches for the most popular links near your city or within your country.
  • NASA shuttle launch - Bitly created a visualization that shows clicks around the globe that relate to the NASA shuttle launch on July 8.
  • Sharing by domain - Shreyas Karnik looked at which government domains are commonly shortened at a particular point of time and from what location. The resulted in a map showing the location of where the top 10 domains are shared.
  • DNSSEC status - Earl Crane, Scott Rose, and Richard Bullington-McGuire worked on a tool to look at the popularity of 1.USA.gov links against the DNSSEC status of .gov domains. Their project is still in progress, but the code is available to the public (gogogon fork and DNSSEC List Walk).
  • DNSSEC status visualization - Duane Wessels graphed the DNSSEC status of domains by popularity of short URLs from that domain. The size of nodes in the graph represent the number of URLs at or below that name that were shortened. A number of agencies have DNSSEC deployed on their own domains, but employ third party CDN services, such as Akamai, which do not utilize DNSSEC at this point. Scripts and additional results are also available.
  • Twitter mentions - Dmitry Kachaev compared the list of .gov domain names from Data.gov against 1.USA.gov data. He found that only 296 registered domains, out of 1,731, were mentioned on Twitter in the past 60 days. He also created Python code to get archived click data.
  • Creation and clicks - Harlan Harris looked at the time difference between when a link was created and when it was clicked. He created density plots to show the results. Results are available on his blog.
  • Word cloud - Hani Anani used 1.USA.gov data to identify popular government links, and then analyzed the contents with Open Calais to create a word cloud that summarizes popular government topics in near real time.
  • Sonifications - Niki Yoshiuchi from the New York event created a sonification, or audio representation of the data. Joachim Gossmann is also started working on a variety of sonifications.

Terms of Service

By using this data, you agree to the Terms of Service.

Back to Top

The Income Taxes Free

Income taxes free Publication 560 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSEP plans. Income taxes free SIMPLE plans. Income taxes free Qualified plans. Income taxes free Ordering forms and publications. Income taxes free Tax questions. Income taxes free Future Developments For the latest information about developments related to Publication 560, such as legislation enacted after we release it, go to www. Income taxes free irs. Income taxes free gov/pub560. Income taxes free What's New Compensation limit increased for 2013 and 2014. Income taxes free  For 2013 the maximum compensation used for figuring contributions and benefits increases to $255,000. Income taxes free This limit increases to $260,000 for 2014. Income taxes free Elective deferral limit for 2013 and 2014. Income taxes free  The limit on elective deferrals, other than catch-up contributions, increases to $17,500 for 2013 and remains at $17,500 for 2014. Income taxes free These limits apply for participants in SARSEPs, 401(k) plans (excluding SIMPLE plans), section 403(b) plans and section 457(b) plans. Income taxes free Defined contribution limit increased for 2013 and 2014. Income taxes free  The limit on contributions, other than catch-up contributions, for a participant in a defined contribution plan increases to $51,000 for 2013. Income taxes free This limit increases to $52,000 for 2014. Income taxes free SIMPLE plan salary reduction contribution limit for 2013 and 2014. Income taxes free  The limit on salary reduction contributions, other than catch-up contributions, increases to $12,000 for 2013 and remains at $12,000 for 2014. Income taxes free Catch-up contribution limit remains unchanged for 2013 and 2014. Income taxes free  A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. Income taxes free The catch-up contribution limitation for defined contribution plans other than SIMPLE plans remains unchanged at $5,500 for 2013 and 2014. Income taxes free The catch-up contribution limitation for SIMPLE plans remains unchanged at $2,500 for 2013 and 2014. Income taxes free The catch-up contributions a participant can make for a year cannot exceed the lesser of the following amounts. Income taxes free The catch-up contribution limit. Income taxes free The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Income taxes free See “Catch-up contributions” under Contribution Limits and Limit on Elective Deferrals in chapters 3 and 4, respectively, for more information. Income taxes free All section references are to the Internal Revenue Code, unless otherwise stated. Income taxes free Reminders In-plan Roth rollovers. Income taxes free  Section 402A(c)(4) provides for a distribution from an individual's account in a 401(k) plan, other than from a designated Roth account, that is rolled over to the individual's designated Roth account in the same plan. Income taxes free An in-plan Roth rollover is not treated as a distribution for most purposes. Income taxes free Section 402A(c)(4) was added by the Small Business Jobs Act of 2010 and applies to distributions made after September 27, 2010. Income taxes free For additional guidance on in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Income taxes free R. Income taxes free B. Income taxes free 872, available at  www. Income taxes free irs. Income taxes free gov/irb/2010-51_IRB/ar11. Income taxes free html. Income taxes free In-plan Roth rollovers expanded. Income taxes free  Beginning in 2013, a plan with designated Roth accounts can permit a participant to roll over amounts into a designated Roth account from his or her other accounts in the same plan, regardless of whether the participant is eligible for a distribution from the other accounts. Income taxes free Section 402A(c)(4) was amended by the American Taxpayer Relief Act of 2012. Income taxes free For more information, see Notice 2013-74, 2013-52 I. Income taxes free R. Income taxes free B. Income taxes free 819, available at www. Income taxes free irs. Income taxes free gov/irb/2013-52_IRB/ar11. Income taxes free html. Income taxes free Credit for startup costs. Income taxes free  You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan. Income taxes free The credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. Income taxes free You can choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective. Income taxes free You must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year. Income taxes free At least one participant must be a non-highly compensated employee. Income taxes free The employees generally cannot be substantially the same employees for whom contributions were made or benefits accrued under a plan of any of the following employers in the 3-tax-year period immediately before the first year to which the credit applies. Income taxes free You. Income taxes free A member of a controlled group that includes you. Income taxes free A predecessor of (1) or (2). Income taxes free The credit is part of the general business credit, which can be carried back or forward to other tax years if it cannot be used in the current year. Income taxes free However, the part of the general business credit attributable to the small employer pension plan startup cost credit cannot be carried back to a tax year beginning before January 1, 2002. Income taxes free You cannot deduct the part of the startup costs equal to the credit claimed for a tax year, but you can choose not to claim the allowable credit for a tax year. Income taxes free To take the credit, use Form 8881, Credit for Small Employer Pension Plan Startup Costs. Income taxes free Retirement savings contributions credit. Income taxes free  Retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. Income taxes free The maximum contribution eligible for the credit is $2,000. Income taxes free To take the credit, use Form 8880, Credit for Qualified Retirement Savings Contributions. Income taxes free For more information on who is eligible for the credit, retirement plan contributions eligible for the credit and how to figure the credit, see Form 8880 and its instructions or go to the IRS website and search Retirement Topics-Retirement Savings Contributions Credit (Saver's Credit). Income taxes free Photographs of missing children. Income taxes free  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Income taxes free Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Income taxes free You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Income taxes free Introduction This publication discusses retirement plans you can set up and maintain for yourself and your employees. Income taxes free In this publication, “you” refers to the employer. Income taxes free See chapter 1 for the definition of the term employer and the definitions of other terms used in this publication. Income taxes free This publication covers the following types of retirement plans. Income taxes free SEP (simplified employee pension) plans. Income taxes free SIMPLE (savings incentive match plan for employees) plans. Income taxes free Qualified plans (also called H. Income taxes free R. Income taxes free 10 plans or Keogh plans when covering self-employed individuals), including 401(k) plans. Income taxes free SEP, SIMPLE, and qualified plans offer you and your employees a tax-favored way to save for retirement. Income taxes free You can deduct contributions you make to the plan for your employees. Income taxes free If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. Income taxes free You can also deduct trustees' fees if contributions to the plan do not cover them. Income taxes free Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Income taxes free Under a 401(k) plan, employees can have you contribute limited amounts of their before-tax (after-tax, in the case of a qualified Roth contribution program) pay to the plan. Income taxes free These amounts (and the earnings on them) are generally tax free until your employees receive distributions from the plan or, in the case of a qualified distribution from a designated Roth account, completely tax free. Income taxes free What this publication covers. Income taxes free   This publication contains the information you need to understand the following topics. Income taxes free What type of plan to set up. Income taxes free How to set up a plan. Income taxes free How much you can contribute to a plan. Income taxes free How much of your contribution is deductible. Income taxes free How to treat certain distributions. Income taxes free How to report information about the plan to the IRS and your employees. Income taxes free Basic features of SEP, SIMPLE, and qualified plans. Income taxes free The key rules for SEP, SIMPLE, and qualified plans are outlined in Table 1. Income taxes free SEP plans. Income taxes free   SEPs provide a simplified method for you to make contributions to a retirement plan for yourself and your employees. Income taxes free Instead of setting up a profit-sharing or money purchase plan with a trust, you can adopt a SEP agreement and make contributions directly to a traditional individual retirement account or a traditional individual retirement annuity (SEP-IRA) set up for yourself and each eligible employee. Income taxes free SIMPLE plans. Income taxes free   Generally, if you had 100 or fewer employees who received at least $5,000 in compensation last year, you can set up a SIMPLE plan. Income taxes free Under a SIMPLE plan, employees can choose to make salary reduction contributions rather than receiving these amounts as part of their regular pay. Income taxes free In addition, you will contribute matching or nonelective contributions. Income taxes free The two types of SIMPLE plans are the SIMPLE IRA plan and the SIMPLE 401(k) plan. Income taxes free Qualified plans. Income taxes free   The qualified plan rules are more complex than the SEP plan and SIMPLE plan rules. Income taxes free However, there are advantages to qualified plans, such as increased flexibility in designing plans and increased contribution and deduction limits in some cases. Income taxes free Table 1. Income taxes free Key Retirement Plan Rules for 2013 Type  of  Plan Last Date for Contribution Maximum Contribution Maximum Deduction When To Set Up Plan SEP Due date of employer's return (including extensions). Income taxes free Smaller of $51,000 or 25%1 of participant's compensation. Income taxes free 2 25%1 of all participants' compensation. Income taxes free 2 Any time up to the due date of employer's return (including extensions). Income taxes free SIMPLE IRA and SIMPLE 401(k) Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made. Income taxes free 4  Matching or nonelective contributions: Due date of employer's return (including extensions). Income taxes free Employee contribution: Salary reduction contribution up to $12,000, $14,500 if age 50 or over. Income taxes free   Employer contribution:  Either dollar-for-dollar matching contributions, up to 3% of employee's compensation,3 or fixed nonelective contributions of 2% of compensation. Income taxes free 2 Same as maximum contribution. Income taxes free Any time between 1/1 and 10/1 of the calendar year. Income taxes free   For a new employer coming into existence after 10/1, as soon as administratively feasible. Income taxes free Qualified Plan: Defined Contribution Plan  Elective deferral: Due date of employer's return (including extensions). Income taxes free 4   Employer contribution: Money Purchase or Profit-Sharing: Due date of employer's return (including extensions). Income taxes free  Employee contribution: Elective deferral up to $17,500, $23,000 if age 50 or over. Income taxes free   Employer contribution: Money Purchase: Smaller of $51,000 or 100%1 of participant's compensation. Income taxes free 2  Profit-Sharing: Smaller of $51,000 or 100%1 of participant's compensation. Income taxes free 2  25%1 of all participants' compensation2, plus amount of elective deferrals made. Income taxes free   By the end of the tax year. Income taxes free Qualified Plan: Defined Benefit Plan Contributions generally must be paid in quarterly installments, due 15 days after the end of each quarter. Income taxes free See Minimum Funding Requirement in chapter 4. Income taxes free Amount needed to provide an annual benefit no larger than the smaller of $205,000 or 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Income taxes free Based on actuarial assumptions and computations. Income taxes free By the end of the tax year. Income taxes free 1Net earnings from self-employment must take the contribution into account. Income taxes free See Deduction Limit for Self-Employed Individuals in chapters 2 and 4 . Income taxes free  2Compensation is generally limited to $255,000 in 2013. Income taxes free  3Under a SIMPLE 401(k) plan, compensation is generally limited to $255,000 in 2013. Income taxes free  4Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions and elective deferrals. Income taxes free What this publication does not cover. Income taxes free   Although the purpose of this publication is to provide general information about retirement plans you can set up for your employees, it does not contain all the rules and exceptions that apply to these plans. Income taxes free You may also need professional help and guidance. Income taxes free   Also, this publication does not cover all the rules that may be of interest to employees. Income taxes free For example, it does not cover the following topics. Income taxes free The comprehensive IRA rules an employee needs to know. Income taxes free These rules are covered in Publication 590, Individual Retirement Arrangements (IRAs). Income taxes free The comprehensive rules that apply to distributions from retirement plans. Income taxes free These rules are covered in Publication 575, Pension and Annuity Income. Income taxes free The comprehensive rules that apply to section 403(b) plans. Income taxes free These rules are covered in Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). Income taxes free Comments and suggestions. Income taxes free   We welcome your comments about this publication and your suggestions for future editions. Income taxes free   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Income taxes free NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Income taxes free Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Income taxes free   You can send your comments from www. Income taxes free irs. Income taxes free gov/formspubs. Income taxes free Click on “More Information” and then on “Give us feedback. Income taxes free ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Income taxes free Ordering forms and publications. Income taxes free   Visit www. Income taxes free irs. Income taxes free gov/formspubs to download forms  and publications, call 1-800-TAX-FORM  (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Income taxes free Internal Revenue Service 1201 N. Income taxes free Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Income taxes free   If you have a tax question, check the information available on IRS. Income taxes free gov or call 1-800-829-1040. Income taxes free We cannot answer tax questions sent to either of the above addresses. Income taxes free Note. Income taxes free Forms filed electronically with the Department of Labor are not available on the IRS website. Income taxes free Instead, see www. Income taxes free efast. Income taxes free dol. Income taxes free gov. Income taxes free Prev  Up  Next   Home   More Online Publications