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Instructions For Form 1040ez

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Instructions For Form 1040ez

Instructions for form 1040ez Publication 15-A - Introductory Material Table of Contents Future Developments What's New Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 15-A, such as legislation enacted after it was published, go to www. Instructions for form 1040ez irs. Instructions for form 1040ez gov/pub15a. Instructions for form 1040ez What's New Social security and Medicare tax for 2014. Instructions for form 1040ez  The social security tax rate is 6. Instructions for form 1040ez 2% each for the employee and employer, unchanged from 2013. Instructions for form 1040ez The social security wage base limit is $117,000. Instructions for form 1040ez The Medicare tax rate is 1. Instructions for form 1040ez 45% each for the employee and employer, unchanged from 2013. Instructions for form 1040ez There is no wage base limit for Medicare tax. Instructions for form 1040ez Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Instructions for form 1040ez Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Instructions for form 1040ez Withholding allowance. Instructions for form 1040ez  The 2014 amount for one withholding allowance on an annual basis is $3,950. Instructions for form 1040ez Same-sex marriage. Instructions for form 1040ez  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Instructions for form 1040ez For more information, see Revenue Ruling 2013-17, 2013-38 I. Instructions for form 1040ez R. Instructions for form 1040ez B. Instructions for form 1040ez 201, available at www. Instructions for form 1040ez irs. Instructions for form 1040ez gov/irb/2013-38_IRB/ar07. Instructions for form 1040ez html. Instructions for form 1040ez Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Instructions for form 1040ez Notice 2013-61, 2013-44 I. Instructions for form 1040ez R. Instructions for form 1040ez B. Instructions for form 1040ez 432, is available at www. Instructions for form 1040ez irs. Instructions for form 1040ez gov/irb/2013-44_IRB/ar10. Instructions for form 1040ez html. Instructions for form 1040ez Reminders Additional Medicare Tax withholding. Instructions for form 1040ez . Instructions for form 1040ez  In addition to withholding Medicare tax at 1. Instructions for form 1040ez 45%, you must withhold a 0. Instructions for form 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Instructions for form 1040ez You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Instructions for form 1040ez Additional Medicare Tax is only imposed on the employee. Instructions for form 1040ez There is no employer share of Additional Medicare Tax. Instructions for form 1040ez All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Instructions for form 1040ez For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Instructions for form 1040ez For more information on Additional Medicare Tax, visit IRS. Instructions for form 1040ez gov and enter “Additional Medicare Tax” in the search box. Instructions for form 1040ez Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Instructions for form 1040ez  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Instructions for form 1040ez Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Instructions for form 1040ez For more information, visit IRS. Instructions for form 1040ez gov and enter “work opportunity tax credit” in the search box. Instructions for form 1040ez COBRA premium assistance credit. Instructions for form 1040ez  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. Instructions for form 1040ez For more information, see COBRA premium assistance credit in Publication 15 (Circular E). Instructions for form 1040ez Federal tax deposits must be made by electronic funds transfer. Instructions for form 1040ez  You must use electronic funds transfer to make all federal tax deposits. Instructions for form 1040ez Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Instructions for form 1040ez If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Instructions for form 1040ez Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Instructions for form 1040ez EFTPS is a free service provided by the Department of Treasury. Instructions for form 1040ez Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Instructions for form 1040ez For more information on making federal tax deposits, see How To Deposit in Publication 15 (Circular E). Instructions for form 1040ez To get more information about EFTPS or to enroll in EFTPS, visit www. Instructions for form 1040ez eftps. Instructions for form 1040ez gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Instructions for form 1040ez Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Instructions for form 1040ez You must receive written notice from the IRS to file Form 944. Instructions for form 1040ez  If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. Instructions for form 1040ez S. Instructions for form 1040ez Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. Instructions for form 1040ez You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. Instructions for form 1040ez For more information on requesting to file Form 944, visit IRS. Instructions for form 1040ez gov and enter “file employment taxes annually” in the search box. Instructions for form 1040ez Employers can request to file Forms 941 instead of Form 944. Instructions for form 1040ez  If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. Instructions for form 1040ez You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. Instructions for form 1040ez For more information on requesting to file Form 944, visit IRS. Instructions for form 1040ez gov and enter “file employment taxes annually” in the search box. Instructions for form 1040ez Aggregate Form 941 filers. Instructions for form 1040ez  Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. Instructions for form 1040ez Aggregate Forms 941 can only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. Instructions for form 1040ez To request approval to act as an agent for an employer, the agent must file Form 2678, Employer/Payer Appointment of Agent, with the IRS. Instructions for form 1040ez Aggregate Form 940 filers. Instructions for form 1040ez  Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Instructions for form 1040ez Aggregate Forms 940 may only be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. Instructions for form 1040ez To request approval to act as an agent on behalf of home care service recipients, the agent must file Form 2678 with the IRS. Instructions for form 1040ez Electronic filing and payment. Instructions for form 1040ez  Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Instructions for form 1040ez Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. Instructions for form 1040ez Spend less time and worry about taxes and more time running your business. Instructions for form 1040ez Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. Instructions for form 1040ez For e-file, visit www. Instructions for form 1040ez irs. Instructions for form 1040ez gov/efile for additional information. Instructions for form 1040ez For EFTPS, visit www. Instructions for form 1040ez eftps. Instructions for form 1040ez gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). Instructions for form 1040ez Electronic submission of Forms W-4, W-4P, W-4S and W-4V. Instructions for form 1040ez  You may set up a system to electronically receive any or all of the following forms (and their Spanish versions, if available) from an employee or payee. Instructions for form 1040ez Form W-4, Employee's Withholding Allowance Certificate. Instructions for form 1040ez Form W-4P, Withholding Certificate for Pension or Annuity Payments. Instructions for form 1040ez Form W-4S, Request for Federal Income Tax Withholding From Sick Pay. Instructions for form 1040ez Form W-4V, Voluntary Withholding Request. Instructions for form 1040ez For each form that you establish an electronic submission system for, you must meet each of the following five requirements. Instructions for form 1040ez The electronic system must ensure that the information received by the payer is the information sent by the payee. Instructions for form 1040ez The system must document all occasions of user access that result in a submission. Instructions for form 1040ez In addition, the design and operation of the electronic system, including access procedures, must make it reasonably certain that the person accessing the system and submitting the form is the person identified on the form. Instructions for form 1040ez The electronic system must provide exactly the same information as the paper form. Instructions for form 1040ez The electronic submission must be signed with an electronic signature by the payee whose name is on the form. Instructions for form 1040ez The electronic signature must be the final entry in the submission. Instructions for form 1040ez Upon request, you must furnish a hard copy of any completed electronic form to the IRS and a statement that, to the best of the payer's knowledge, the electronic form was submitted by the named payee. Instructions for form 1040ez The hard copy of the electronic form must provide exactly the same information as, but need not be a facsimile of, the paper form. Instructions for form 1040ez For Form W-4, the signature must be under penalty of perjury, and must contain the same language that appears on the paper version of the form. Instructions for form 1040ez The electronic system must inform the employee that he or she must make a declaration contained in the perjury statement and that the declaration is made by signing the Form W-4. Instructions for form 1040ez You must also meet all recordkeeping requirements that apply to the paper forms. Instructions for form 1040ez For more information, see: Regulations sections 31. Instructions for form 1040ez 3402(f)(5)-1(c) (for Form W-4), and Announcement 99-6 (for Forms W-4P, W-4S, and W-4V). Instructions for form 1040ez You can find Announcement 99-6 on page 24 of Internal Revenue Bulletin 1999-4 at www. Instructions for form 1040ez irs. Instructions for form 1040ez gov/pub/irs-irbs/irb99-04. Instructions for form 1040ez pdf. Instructions for form 1040ez Additional employment tax information. Instructions for form 1040ez  Visit the IRS website at www. Instructions for form 1040ez irs. Instructions for form 1040ez gov/businesses and click on the Employment Taxes link under Businesses Topics. Instructions for form 1040ez Telephone help. Instructions for form 1040ez  You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. Instructions for form 1040ez Help for people with disabilities. Instructions for form 1040ez  You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability) with any tax question or to order forms and publications. Instructions for form 1040ez You may also use this number for assistance with unresolved tax problems. Instructions for form 1040ez Furnishing Form W-2 to employees electronically. Instructions for form 1040ez  You may set up a system to furnish Form W-2, Wage and Tax Statement, electronically. Instructions for form 1040ez Each employee participating must consent (either electronically or by paper document) to receive his or her Form W-2 electronically, and you must notify the employee of all hardware and software requirements to receive the form. Instructions for form 1040ez You may not send a Form W-2 electronically to any employee who does not consent or who has revoked consent previously provided. Instructions for form 1040ez To furnish Forms W-2 electronically, you must meet the following disclosure requirements and provide a clear and conspicuous statement of each requirement to your employees. Instructions for form 1040ez The employee must be informed that he or she will receive a paper Form W-2 if consent is not given to receive it electronically. Instructions for form 1040ez The employee must be informed of the scope and duration of the consent. Instructions for form 1040ez The employee must be informed of any procedure for obtaining a paper copy of his or her Form W-2 and whether or not the request for a paper statement is treated as a withdrawal of his or her consent to receiving his or her Form W-2 electronically. Instructions for form 1040ez The employee must be notified about how to withdraw a consent and the effective date and manner by which the employer will confirm the withdrawn consent. Instructions for form 1040ez The employee must also be notified that the withdrawn consent does not apply to the previously issued Forms W-2. Instructions for form 1040ez The employee must be informed about any conditions under which electronic Forms W-2 will no longer be furnished (for example, termination of employment). Instructions for form 1040ez The employee must be informed of any procedures for updating his or her contact information that enables the employer to provide electronic Forms W-2. Instructions for form 1040ez The employer must notify the employee of any changes to the employer's contact information. Instructions for form 1040ez You must furnish electronic Forms W-2 by the same due date as the paper Forms W-2. Instructions for form 1040ez For more information on furnishing Form W-2 to employees electronically, see Regulations section 31. Instructions for form 1040ez 6051-1(j). Instructions for form 1040ez Photographs of missing children. Instructions for form 1040ez  The IRS is a proud partner with the National Center for Missing and Exploited Children. Instructions for form 1040ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Instructions for form 1040ez 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. Instructions for form 1040ez Introduction This publication supplements Publication 15 (Circular E). Instructions for form 1040ez It contains specialized and detailed employment tax information supplementing the basic information provided in Publication 15 (Circular E). Instructions for form 1040ez This publication also contains tables for withholding on distributions of Indian gaming profits to tribal members. Instructions for form 1040ez Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment of various types of noncash compensation. Instructions for form 1040ez Ordering publications and forms. Instructions for form 1040ez   See Ordering Employer Tax Forms and Publications in Publication 15 (Circular E) and How To Get Tax Help , later, for more information on how to obtain forms and publications. Instructions for form 1040ez Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 505 Tax Withholding and Estimated Tax 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Comments and suggestions. Instructions for form 1040ez   We welcome your comments about this publication and your suggestions for future editions. Instructions for form 1040ez    You can write to us at the following address: Internal Revenue Service Tax Forms & Publications Division 1111 Constitution Ave. Instructions for form 1040ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Instructions for form 1040ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Instructions for form 1040ez   You can also send us comments from www. Instructions for form 1040ez irs. Instructions for form 1040ez gov/formspubs. Instructions for form 1040ez Click on More Information and then click on Comment on Tax Forms and Publications. Instructions for form 1040ez   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Instructions for form 1040ez Prev  Up  Next   Home   More Online Publications
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Understanding your CP276A Notice

We didn't receive a correctly completed tax liability schedule. We normally charge a Federal Tax Deposit (FTD) penalty when this happens. We decided not to do so this time.

Tax publications you may find useful

How to get help

Calling the toll free number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).
 


What you need to do

  • Review your tax liability schedule. Enter the liability amount for each payroll date and see if your payroll tax deposit liability matches the tax liability you reported on your tax form. When they don't match, we reject your tax liability schedule.
  • Correct the copy of your tax return and the schedule that you kept for your records.

You may want to...


Answers to Common Questions

Do I have to reply to this notice?
No, but you should check your records to see why your tax liability schedule was incorrect.

How do I know whether I should make monthly or semiweekly payroll tax deposits?
Go back and look at the total tax liability for the four quarters before the quarter ending in June of last year if you file a quarterly return. Annual return filers should go back and look at the total tax liability of the year before their previous filing year.

For either a quarterly or an annual filer, a total tax liability of $50,000 or less means you can make your federal payroll tax deposits monthly. A tax liability greater than $50,000 means you have to make semiweekly payroll tax deposits.

When are my payroll tax deposits due?
The following table shows the schedule for semiweekly payroll tax deposits:

When Then
The payroll tax liability period is Saturday, Sunday, Monday, and Tuesday Make the tax deposit by the following Friday.
The payroll tax liability period is Wednesday, Thursday, and Friday Make the tax deposit by the following Wednesday.
A holiday falls on a weekday after the payroll tax liability period and before or on the normal deposit day Extend the deposit due date one business day for each day of holiday.

Monthly payroll tax depositors must make their tax deposits by the fifteenth of each month. When the fifteenth falls on a Saturday, a Sunday, or a legal holiday, tax deposits are due on the next business day.

Do I have to make my payroll tax deposits electronically?
Normally, yes. However, you may send your payment in with your tax return when your tax liability is $2,500 or less. If you file a quarterly tax return, another time when you may send in your payment with your return is when:

  • Your tax liabilities never totaled $100,000 or more in a deposit period, and
  • Your tax liability in the preceding quarter was $2,500 or less.

Tips for next time you file

Report each tax liability (not your deposits) on the tax liability schedule.

Make sure that that the amount on your tax liability schedule matches the payroll tax amount on your tax return.

Do not list negative amounts on your tax liability schedule.


Understanding your notice

Reading your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP276A, Page 1

Notice CP276A, Page 2

Page Last Reviewed or Updated: 14-Mar-2014

The Instructions For Form 1040ez

Instructions for form 1040ez Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. Instructions for form 1040ez A pension is generally a series of payments made to you after you retire from work. Instructions for form 1040ez Pension payments are made regularly and are for past services with an employer. Instructions for form 1040ez An annuity is a series of payments under a contract. Instructions for form 1040ez You can buy the contract alone or you can buy it with the help of your employer. Instructions for form 1040ez Annuity payments are made regularly for more than one full year. Instructions for form 1040ez Note. Instructions for form 1040ez Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. Instructions for form 1040ez Types of pensions and annuities. Instructions for form 1040ez   Particular types of pensions and annuities include: Fixed period annuities. Instructions for form 1040ez You receive definite amounts at regular intervals for a definite length of time. Instructions for form 1040ez Annuities for a single life. Instructions for form 1040ez You receive definite amounts at regular intervals for life. Instructions for form 1040ez The payments end at death. Instructions for form 1040ez Joint and survivor annuities. Instructions for form 1040ez The first annuitant receives a definite amount at regular intervals for life. Instructions for form 1040ez After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Instructions for form 1040ez The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Instructions for form 1040ez Variable annuities. Instructions for form 1040ez You receive payments that may vary in amount for a definite length of time or for life. Instructions for form 1040ez The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. Instructions for form 1040ez Disability pensions. Instructions for form 1040ez You are under minimum retirement age and receive payments because you retired on disability. Instructions for form 1040ez If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. Instructions for form 1040ez If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. Instructions for form 1040ez 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. Instructions for form 1040ez This plan must meet Internal Revenue Code requirements. Instructions for form 1040ez It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. Instructions for form 1040ez However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. Instructions for form 1040ez A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Instructions for form 1040ez A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. Instructions for form 1040ez   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. Instructions for form 1040ez A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. Instructions for form 1040ez It does not qualify for most of the tax benefits of a qualified plan. Instructions for form 1040ez Annuity worksheets. Instructions for form 1040ez   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. Instructions for form 1040ez Request for a ruling. Instructions for form 1040ez   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. Instructions for form 1040ez This is treated as a request for a ruling. Instructions for form 1040ez See Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040ez Withholding tax and estimated tax. Instructions for form 1040ez   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. Instructions for form 1040ez If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. Instructions for form 1040ez Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. Instructions for form 1040ez 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). Instructions for form 1040ez These payments are also known as amounts received as an annuity. Instructions for form 1040ez If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. Instructions for form 1040ez In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. Instructions for form 1040ez The amount of each payment that is more than the part that represents your net cost is taxable. Instructions for form 1040ez Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. Instructions for form 1040ez These terms are explained in the following discussions. Instructions for form 1040ez Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. Instructions for form 1040ez First, find your net cost of the contract as of the annuity starting date (defined later). Instructions for form 1040ez To find this amount, you must first figure the total premiums, contributions, or other amounts paid. Instructions for form 1040ez This includes the amounts your employer contributed if you were required to include these amounts in income. Instructions for form 1040ez It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). Instructions for form 1040ez From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. Instructions for form 1040ez Any additional premiums paid for double indemnity or disability benefits. Instructions for form 1040ez Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). Instructions for form 1040ez The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. Instructions for form 1040ez Example. Instructions for form 1040ez 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. Instructions for form 1040ez The annuity starting date is July 1. Instructions for form 1040ez This is the date you use in figuring your investment in the contract and your expected return (discussed later). Instructions for form 1040ez Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. Instructions for form 1040ez Foreign employment. Instructions for form 1040ez   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. Instructions for form 1040ez 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 (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. Instructions for form 1040ez Foreign employment contributions while a nonresident alien. Instructions for form 1040ez   In determining your cost, special rules apply if you are a U. Instructions for form 1040ez S. Instructions for form 1040ez citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. Instructions for form 1040ez Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were 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 they had been paid as cash compensation when the services were performed. Instructions for form 1040ez Death benefit exclusion. Instructions for form 1040ez   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. Instructions for form 1040ez The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. Instructions for form 1040ez How to adjust your total cost. Instructions for form 1040ez   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. Instructions for form 1040ez Add it to the cost or unrecovered cost of the annuity at the annuity starting date. Instructions for form 1040ez See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. Instructions for form 1040ez Net cost. Instructions for form 1040ez   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. Instructions for form 1040ez This is the unrecovered investment in the contract as of the annuity starting date. Instructions for form 1040ez If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. Instructions for form 1040ez Refund feature. Instructions for form 1040ez   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. Instructions for form 1040ez Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. Instructions for form 1040ez   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. Instructions for form 1040ez Zero value of refund feature. Instructions for form 1040ez   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. Instructions for form 1040ez   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). Instructions for form 1040ez   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. Instructions for form 1040ez Examples. Instructions for form 1040ez The first example shows how to figure the value of the refund feature when there is only one beneficiary. Instructions for form 1040ez Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. Instructions for form 1040ez In both examples, the taxpayer elects to use Tables V through VIII. Instructions for form 1040ez If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040ez Example 1. Instructions for form 1040ez At age 65, Barbara bought for $21,053 an annuity with a refund feature. Instructions for form 1040ez She will get $100 a month for life. Instructions for form 1040ez Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. Instructions for form 1040ez In this case, the contract cost and the total guaranteed return are the same ($21,053). Instructions for form 1040ez Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. Instructions for form 1040ez 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. Instructions for form 1040ez For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). Instructions for form 1040ez In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. Instructions for form 1040ez Example 2. Instructions for form 1040ez John died while still employed. Instructions for form 1040ez His widow, Eleanor, age 48, receives $171 a month for the rest of her life. Instructions for form 1040ez John's son, Elmer, age 9, receives $50 a month until he reaches age 18. Instructions for form 1040ez John's contributions to the retirement fund totaled $7,559. Instructions for form 1040ez 45, with interest on those contributions of $1,602. Instructions for form 1040ez 53. Instructions for form 1040ez The guarantee or total refund feature of the contract is $9,161. Instructions for form 1040ez 98 ($7,559. Instructions for form 1040ez 45 plus $1,602. Instructions for form 1040ez 53). Instructions for form 1040ez The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. Instructions for form 1040ez 9 $71,614. Instructions for form 1040ez 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. Instructions for form 1040ez 0 5,400. Instructions for form 1040ez 00   3) Total expected return   $77,014. Instructions for form 1040ez 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. Instructions for form 1040ez 45   2) Guaranteed amount (contributions of $7,559. Instructions for form 1040ez 45 plus interest of $1,602. Instructions for form 1040ez 53) $9,161. Instructions for form 1040ez 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. Instructions for form 1040ez 00   4) Net guaranteed amount $3,761. Instructions for form 1040ez 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. Instructions for form 1040ez 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. Instructions for form 1040ez 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Instructions for form 1040ez See the discussion of expected return, later in this publication. Instructions for form 1040ez Free IRS help. Instructions for form 1040ez   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040ez Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Instructions for form 1040ez The following discussions explain how to figure the expected return with each type of annuity. Instructions for form 1040ez A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. Instructions for form 1040ez Fixed period annuity. Instructions for form 1040ez   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. Instructions for form 1040ez It is the total amount you will get beginning at the annuity starting date. Instructions for form 1040ez You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). Instructions for form 1040ez To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. Instructions for form 1040ez Single life annuity. Instructions for form 1040ez   If you are to get annuity payments for the rest of your life, find your expected return as follows. Instructions for form 1040ez You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. Instructions for form 1040ez These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). Instructions for form 1040ez   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. Instructions for form 1040ez See Adjustments to Tables I, II, V, VI, and VIA following Table I. Instructions for form 1040ez Example. Instructions for form 1040ez Henry bought an annuity contract that will give him an annuity of $500 a month for his life. Instructions for form 1040ez If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. Instructions for form 1040ez 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. Instructions for form 1040ez 2 multiple by +. Instructions for form 1040ez 1. Instructions for form 1040ez His expected return would then be $115,800 ($6,000 × 19. Instructions for form 1040ez 3). Instructions for form 1040ez Annuity for shorter of life or specified period. Instructions for form 1040ez   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. Instructions for form 1040ez To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. Instructions for form 1040ez Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. Instructions for form 1040ez Example. Instructions for form 1040ez Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. Instructions for form 1040ez She was age 65 at her birthday nearest the annuity starting date. Instructions for form 1040ez She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. Instructions for form 1040ez 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. Instructions for form 1040ez See Special Elections, later. Instructions for form 1040ez Joint and survivor annuities. Instructions for form 1040ez   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. Instructions for form 1040ez To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. Instructions for form 1040ez If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. Instructions for form 1040ez See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. Instructions for form 1040ez Example. Instructions for form 1040ez John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. Instructions for form 1040ez At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. Instructions for form 1040ez The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. Instructions for form 1040ez 0 Expected return $132,000 Different payments to survivor. Instructions for form 1040ez   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. Instructions for form 1040ez Example 1. Instructions for form 1040ez Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. Instructions for form 1040ez If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. Instructions for form 1040ez 0 Multiple for Gerald, age 70 (from Table V)   16. Instructions for form 1040ez 0 Difference: Multiple applicable to Mary   6. Instructions for form 1040ez 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. Instructions for form 1040ez 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. Instructions for form 1040ez 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. Instructions for form 1040ez Your husband died while still employed. Instructions for form 1040ez Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. Instructions for form 1040ez Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. Instructions for form 1040ez You were 50 years old at the annuity starting date. Instructions for form 1040ez Marie was 16 and Jean was 14. Instructions for form 1040ez Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. Instructions for form 1040ez 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. Instructions for form 1040ez 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. Instructions for form 1040ez 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. Instructions for form 1040ez Computation Under the General Rule Note. Instructions for form 1040ez Variable annuities use a different computation for determining the exclusion amounts. Instructions for form 1040ez See Variable annuities later. Instructions for form 1040ez Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. Instructions for form 1040ez   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. Instructions for form 1040ez See Death benefit exclusion , earlier. Instructions for form 1040ez Step 2. Instructions for form 1040ez   Figure your expected return. Instructions for form 1040ez Step 3. Instructions for form 1040ez   Divide Step 1 by Step 2 and round to three decimal places. Instructions for form 1040ez This will give you the exclusion percentage. Instructions for form 1040ez Step 4. Instructions for form 1040ez   Multiply the exclusion percentage by the first regular periodic payment. Instructions for form 1040ez The result is the tax-free part of each pension or annuity payment. Instructions for form 1040ez   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. Instructions for form 1040ez However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. Instructions for form 1040ez   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. Instructions for form 1040ez Step 5. Instructions for form 1040ez   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. Instructions for form 1040ez This will give you the tax-free part of the total payment for the year. Instructions for form 1040ez    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. Instructions for form 1040ez This fractional amount is multiplied by your exclusion percentage to get the tax-free part. Instructions for form 1040ez Step 6. Instructions for form 1040ez   Subtract the tax-free part from the total payment you received. Instructions for form 1040ez The rest is the taxable part of your pension or annuity. Instructions for form 1040ez Example 1. Instructions for form 1040ez You purchased an annuity with an investment in the contract of $10,800. Instructions for form 1040ez Under its terms, the annuity will pay you $100 a month for life. Instructions for form 1040ez The multiple for your age (age 65) is 20. Instructions for form 1040ez 0 as shown in Table V. Instructions for form 1040ez Your expected return is $24,000 (20 × 12 × $100). Instructions for form 1040ez Your cost of $10,800, divided by your expected return of $24,000, equals 45. Instructions for form 1040ez 0%. Instructions for form 1040ez This is the percentage you will not have to include in income. Instructions for form 1040ez Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. Instructions for form 1040ez If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). Instructions for form 1040ez Example 2. Instructions for form 1040ez Gerald bought a joint and survivor annuity. Instructions for form 1040ez Gerald's investment in the contract is $62,712 and the expected return is $121,200. Instructions for form 1040ez The exclusion percentage is 51. Instructions for form 1040ez 7% ($62,712 ÷ $121,200). Instructions for form 1040ez Gerald will receive $500 a month ($6,000 a year). Instructions for form 1040ez Each year, until his net cost is recovered, $3,102 (51. Instructions for form 1040ez 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. Instructions for form 1040ez If Gerald dies, his wife will receive $350 a month ($4,200 a year). Instructions for form 1040ez If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. Instructions for form 1040ez 7%). Instructions for form 1040ez Each year, until the entire net cost is recovered, his wife will receive $2,171. Instructions for form 1040ez 40 (51. Instructions for form 1040ez 7% of her payments received of $4,200) tax free. Instructions for form 1040ez She will include $2,028. Instructions for form 1040ez 60 ($4,200 − $2,171. Instructions for form 1040ez 40) in her income tax return. Instructions for form 1040ez Example 3. Instructions for form 1040ez Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. Instructions for form 1040ez Your two daughters each receive annual annuities of $1,800 until they reach age 18. Instructions for form 1040ez Your husband contributed $25,576 to the plan. Instructions for form 1040ez You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. Instructions for form 1040ez Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. Instructions for form 1040ez The exclusion percentage of 18. Instructions for form 1040ez 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. Instructions for form 1040ez Each full year $864 (18. Instructions for form 1040ez 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. Instructions for form 1040ez Each year, until age 18, $324 (18. Instructions for form 1040ez 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. Instructions for form 1040ez Part-year payments. Instructions for form 1040ez   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. Instructions for form 1040ez   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. Instructions for form 1040ez For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. Instructions for form 1040ez   If you received a fractional payment, follow Step 5, discussed earlier. Instructions for form 1040ez This gives you the tax-free part of your total payment. Instructions for form 1040ez Example. Instructions for form 1040ez On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. Instructions for form 1040ez The applicable multiple from Table V is 23. Instructions for form 1040ez 3 (age 61). Instructions for form 1040ez Her expected return is $34,950 ($125 × 12 × 23. Instructions for form 1040ez 3). Instructions for form 1040ez Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. Instructions for form 1040ez 1%. Instructions for form 1040ez Each payment received will consist of 63. Instructions for form 1040ez 1% return of cost and 36. Instructions for form 1040ez 9% taxable income, until her net cost of the contract is fully recovered. Instructions for form 1040ez During the first year, Mary received three payments of $125, or $375, of which $236. Instructions for form 1040ez 63 (63. Instructions for form 1040ez 1% × $375) is a return of cost. Instructions for form 1040ez The remaining $138. Instructions for form 1040ez 37 is included in income. Instructions for form 1040ez Increase in annuity payments. Instructions for form 1040ez   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. Instructions for form 1040ez All increases in the installment payments are fully taxable. Instructions for form 1040ez   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. Instructions for form 1040ez 72-5(a)(5) of the regulations. Instructions for form 1040ez Example. Instructions for form 1040ez Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. Instructions for form 1040ez In figuring the taxable part, Joe elects to use Tables V through VIII. Instructions for form 1040ez The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. Instructions for form 1040ez His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. Instructions for form 1040ez 0 × $1,764 annual payment). Instructions for form 1040ez The exclusion percentage is $7,938 ÷ $35,280, or 22. Instructions for form 1040ez 5%. Instructions for form 1040ez During the year he received 11 monthly payments of $147, or $1,617. Instructions for form 1040ez Of this amount, 22. Instructions for form 1040ez 5% × $147 × 11 ($363. Instructions for form 1040ez 83) is tax free as a return of cost and the balance of $1,253. Instructions for form 1040ez 17 is taxable. Instructions for form 1040ez Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). Instructions for form 1040ez The tax-free part is still only 22. Instructions for form 1040ez 5% of the annuity payments as of the annuity starting date (22. Instructions for form 1040ez 5% × $147 × 12 = $396. Instructions for form 1040ez 90 for a full year). Instructions for form 1040ez The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. Instructions for form 1040ez Variable annuities. Instructions for form 1040ez   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. Instructions for form 1040ez   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. Instructions for form 1040ez If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. Instructions for form 1040ez Example. Instructions for form 1040ez Frank purchased a variable annuity at age 65. Instructions for form 1040ez The total cost of the contract was $12,000. Instructions for form 1040ez The annuity starting date is January 1 of the year of purchase. Instructions for form 1040ez His annuity will be paid, starting July 1, in variable annual installments for his life. Instructions for form 1040ez The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. Instructions for form 1040ez   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. Instructions for form 1040ez Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. Instructions for form 1040ez The result is added to the previously figured periodic tax-free part. Instructions for form 1040ez The sum is the amount of each future payment that will be tax free. Instructions for form 1040ez Example. Instructions for form 1040ez Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. Instructions for form 1040ez Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. Instructions for form 1040ez Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. Instructions for form 1040ez 00 Amount received in second year 500. Instructions for form 1040ez 00 Difference $100. Instructions for form 1040ez 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. Instructions for form 1040ez 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. Instructions for form 1040ez 4) $5. Instructions for form 1040ez 43 Revised annual tax-free part for third and later years ($600 + $5. Instructions for form 1040ez 43) $605. Instructions for form 1040ez 43 Amount taxable in third year ($1,200 − $605. Instructions for form 1040ez 43) $594. Instructions for form 1040ez 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. Instructions for form 1040ez 72–4(d)(3) of the Income Tax Regulations. Instructions for form 1040ez The statement must also show the following information: The annuity starting date and your age on that date. Instructions for form 1040ez The first day of the first period for which you received an annuity payment in the current year. Instructions for form 1040ez Your investment in the contract as originally figured. Instructions for form 1040ez The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. Instructions for form 1040ez Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. Instructions for form 1040ez Exclusion limited to net cost. Instructions for form 1040ez   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). Instructions for form 1040ez This is the unrecovered investment in the contract as of the annuity starting date. Instructions for form 1040ez   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Instructions for form 1040ez This deduction is not subject to the 2%-of-adjusted-gross-income limit. Instructions for form 1040ez Example 1. Instructions for form 1040ez Your annuity starting date is after 1986. Instructions for form 1040ez Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. Instructions for form 1040ez There is no refund feature. Instructions for form 1040ez Your monthly annuity payment is $833. Instructions for form 1040ez 33. Instructions for form 1040ez Your exclusion ratio is 12% and you exclude $100 a month. Instructions for form 1040ez Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. Instructions for form 1040ez Thereafter, your annuity payments are fully taxable. Instructions for form 1040ez Example 2. Instructions for form 1040ez The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. Instructions for form 1040ez The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. Instructions for form 1040ez The exclusion ratio is 10. Instructions for form 1040ez 8%, and your monthly exclusion is $90. Instructions for form 1040ez After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). Instructions for form 1040ez An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. Instructions for form 1040ez Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. Instructions for form 1040ez Exclusion not limited to net cost. Instructions for form 1040ez   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. Instructions for form 1040ez If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. Instructions for form 1040ez The total exclusion may be more than your investment in the contract. Instructions for form 1040ez How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. Instructions for form 1040ez Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. Instructions for form 1040ez These tables correspond to the old Tables I through IV. Instructions for form 1040ez In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. Instructions for form 1040ez If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. Instructions for form 1040ez However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). Instructions for form 1040ez Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. Instructions for form 1040ez Contributions made both before July 1986 and after June 1986. Instructions for form 1040ez   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. Instructions for form 1040ez (See the examples below. Instructions for form 1040ez )    Making the election. Instructions for form 1040ez Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. Instructions for form 1040ez 72–6 of the Income Tax Regulations. Instructions for form 1040ez ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. Instructions for form 1040ez   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. Instructions for form 1040ez You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. Instructions for form 1040ez    Advantages of election. Instructions for form 1040ez In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. Instructions for form 1040ez    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. Instructions for form 1040ez If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. Instructions for form 1040ez   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. Instructions for form 1040ez Example 1. Instructions for form 1040ez Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. Instructions for form 1040ez Payment of the $42,000 contribution is guaranteed under a refund feature. Instructions for form 1040ez Bill is 55 years old as of the annuity starting date. Instructions for form 1040ez For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. Instructions for form 1040ez       Pre- July 1986   Post- June 1986 A. Instructions for form 1040ez Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. Instructions for form 1040ez of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. Instructions for form 1040ez Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. Instructions for form 1040ez Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. Instructions for form 1040ez 7   28. Instructions for form 1040ez 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. Instructions for form 1040ez Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . Instructions for form 1040ez 079   . Instructions for form 1040ez 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). Instructions for form 1040ez The taxable part of his annuity is $22,080 ($24,000 minus $1,920). Instructions for form 1040ez If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). Instructions for form 1040ez Example 2. Instructions for form 1040ez Al is age 62 at his nearest birthday to the annuity starting date. Instructions for form 1040ez Al's wife is age 60 at her nearest birthday to the annuity starting date. Instructions for form 1040ez The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. Instructions for form 1040ez The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. Instructions for form 1040ez Al makes the election described in Example 1 . Instructions for form 1040ez For purposes of this example, assume the refund feature adjustment is zero. Instructions for form 1040ez If an adjustment is required, IRS will figure the amount. Instructions for form 1040ez See Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040ez       Pre-  July 1986   Post-  June 1986 A. Instructions for form 1040ez Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. Instructions for form 1040ez Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. Instructions for form 1040ez Expected return         1) Multiple for both annuitants from Tables II and VI 25. Instructions for form 1040ez 4   28. Instructions for form 1040ez 8   2) Multiple for first annuitant from Tables I and V 16. Instructions for form 1040ez 9   22. Instructions for form 1040ez 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. Instructions for form 1040ez 5   6. Instructions for form 1040ez 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. Instructions for form 1040ez Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . Instructions for form 1040ez 209   . Instructions for form 1040ez 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). Instructions for form 1040ez The taxable part of his annuity is $9,216 ($12,000 − $2,784). Instructions for form 1040ez The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. Instructions for form 1040ez After Al's death, his widow will apply the same exclusion percentages (20. Instructions for form 1040ez 9% and 2. Instructions for form 1040ez 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. Instructions for form 1040ez Annuity received after June 30, 1986. Instructions for form 1040ez   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. Instructions for form 1040ez Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. Instructions for form 1040ez    Make the election by attaching the following statement to your income tax return. Instructions for form 1040ez    “I elect, under section 1. Instructions for form 1040ez 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. Instructions for form 1040ez ”   The statement must also include your name, address, and social security number. Instructions for form 1040ez   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. Instructions for form 1040ez Disqualifying form of payment or settlement. Instructions for form 1040ez   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. Instructions for form 1040ez See regulations section 1. Instructions for form 1040ez 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. Instructions for form 1040ez You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. Instructions for form 1040ez Worksheets for Determining Taxable Annuity Worksheets I and II. Instructions for form 1040ez   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. Instructions for form 1040ez 72–6(d)(6) Election. Instructions for form 1040ez Worksheet I For Determining Taxable Annuity Under Regulations Section 1. Instructions for form 1040ez 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. Instructions for form 1040ez   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Instructions for form 1040ez )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Instructions for form 1040ez If not, the IRS will calculate the refund feature percentage. Instructions for form 1040ez             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Instructions for form 1040ez   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. Instructions for form 1040ez   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. Instructions for form 1040ez   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Instructions for form 1040ez     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. Instructions for form 1040ez 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. Instructions for form 1040ez   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Instructions for form 1040ez )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Instructions for form 1040ez If not, the IRS will calculate the refund feature percentage. Instructions for form 1040ez             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Instructions for form 1040ez   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. Instructions for form 1040ez   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. Instructions for form 1040ez Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. Instructions for form 1040ez   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Instructions for form 1040ez   Actuarial Tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial Tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial Tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Please click here for the text description of the image. Instructions for form 1040ez Actuarial tables Requesting a Ruling on Taxation of Annuity If you are a retiree, or the survivor of an employee or retiree, you may ask the Internal Revenue Service to help you determine the taxation of your annuity. Instructions for form 1040ez If you make this request, you are asking for a ruling. Instructions for form 1040ez User fee. Instructions for form 1040ez   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. Instructions for form 1040ez You should call the IRS for the proper fee. Instructions for form 1040ez A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. Instructions for form 1040ez Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. Instructions for form 1040ez O. Instructions for form 1040ez Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. Instructions for form 1040ez When to make the request. Instructions for form 1040ez   Please note that requests sent between February 1 and April 15 may experience some delay. Instructions for form 1040ez We process requests in the order received, and we will reply to your request as soon as we can process it. Instructions for form 1040ez If you do not receive your ruling by the required filing date, you may use Form 4868, Application for Automatic Extension of Time To File U. Instructions for form 1040ez S. Instructions for form 1040ez Individual Income Tax Return, to get an extension of time to file. Instructions for form 1040ez Information you must furnish. Instructions for form 1040ez   You must furnish the information listed below so the IRS can comply with your request. Instructions for form 1040ez Failure to furnish the information will result in a delay in processing your request. Instructions for form 1040ez Please send only copies of the following documents, as the IRS retains all material sent for its records: A letter explaining the question(s) you wish to have resolved or the information you need from the ruling. Instructions for form 1040ez Copies of any documents showing distributions, annuity rates, and annuity options available to you. Instructions for form 1040ez A copy of any Form 1099–R you received since your annuity began. Instructions for form 1040ez A statement indicating whether you have filed your return for the year for which you are making the request. Instructions for form 1040ez If you have requested an extension of time to file that return, please indicate the extension date. Instructions for form 1040ez Your daytime phone number. Instructions for form 1040ez Your current mailing address. Instructions for form 1040ez A power of attorney if someone other than you, an attorney, a certified public accountant, or an enrolled agent is signing this request. Instructions for form 1040ez Form 2848, Power of Attorney and Declaration of Representative, may be used for this purpose. Instructions for form 1040ez A completed Tax Information Sheet (or facsimile) shown on the next page. Instructions for form 1040ez Sign and date the Disclosure and Perjury Statement (or facsimile) at the end of the tax information sheet. Instructions for form 1040ez This statement must be signed by the retiree or the survivor annuitant. Instructions for form 1040ez It cannot be signed by a representative. Instructions for form 1040ez Tax Information Sheet Please click here for the text description of the image. Instructions for form 1040ez Tax Information Sheet Please click here for the text description of the image. Instructions for form 1040ez Tax Information Sheet (continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Instructions for form 1040ez Free help with your tax return. Instructions for form 1040ez   You can get free help preparing your return nationwide from IRS-certified volunteers. Instructions for form 1040ez The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Instructions for form 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Instructions for form 1040ez Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Instructions for form 1040ez In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Instructions for form 1040ez To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Instructions for form 1040ez gov, download the IRS2Go app, or call 1-800-906-9887. Instructions for form 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. Instructions for form 1040ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. Instructions for form 1040ez aarp. Instructions for form 1040ez org/money/taxaide or call 1-888-227-7669. Instructions for form 1040ez For more information on these programs, go to IRS. Instructions for form 1040ez gov and enter “VITA” in the search box. Instructions for form 1040ez Internet. Instructions for form 1040ez    IRS. Instructions for form 1040ez gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Instructions for form 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. Instructions for form 1040ez Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Instructions for form 1040ez Check the status of your 2013 refund with the Where's My Refund? application on IRS. Instructions for form 1040ez gov or download the IRS2Go app and select the Refund Status option. Instructions for form 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. Instructions for form 1040ez Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Instructions for form 1040ez You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Instructions for form 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Instructions for form 1040ez Use the Interactive Tax Assistant (ITA) to research your tax questions. Instructions for form 1040ez No need to wait on the phone or stand in line. Instructions for form 1040ez The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Instructions for form 1040ez When you reach the response screen, you can print the entire interview and the final response for your records. Instructions for form 1040ez New subject areas are added on a regular basis. Instructions for form 1040ez  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Instructions for form 1040ez gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Instructions for form 1040ez You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Instructions for form 1040ez The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Instructions for form 1040ez When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Instructions for form 1040ez Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Instructions for form 1040ez You can also ask the IRS to mail a return or an account transcript to you. Instructions for form 1040ez Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Instructions for form 1040ez gov or by calling 1-800-908-9946. Instructions for form 1040ez Tax return and tax account transcripts are generally available for the current year and the past three years. Instructions for form 1040ez Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Instructions for form 1040ez Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Instructions for form 1040ez If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Instructions for form 1040ez Check the status of your amended return using Where's My Amended Return? Go to IRS. Instructions for form 1040ez gov and enter Where's My Amended Return? in the search box. Instructions for form 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Instructions for form 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. Instructions for form 1040ez Make a payment using one of several safe and convenient electronic payment options available on IRS. Instructions for form 1040ez gov. Instructions for form 1040ez Select the Payment tab on the front page of IRS. Instructions for form 1040ez gov for more information. Instructions for form 1040ez Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Instructions for form 1040ez Figure your income tax withholding with the IRS Withholding Calculator on IRS. Instructions for form 1040ez gov. Instructions for form 1040ez Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Instructions for form 1040ez Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Instructions for form 1040ez gov. Instructions for form 1040ez Request an Electronic Filing PIN by going to IRS. Instructions for form 1040ez gov and entering Electronic Filing PIN in the search box. Instructions for form 1040ez Download forms, instructions and publications, including accessible versions for people with disabilities. Instructions for form 1040ez Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Instructions for form 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Instructions for form 1040ez An employee can answer questions about your tax account or help you set up a payment plan. Instructions for form 1040ez Before you visit, check the Office Locator on IRS. Instructions for form 1040ez gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Instructions for form 1040ez If you have a special need, such as a disability, you can request an appointment. Instructions for form 1040ez Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Instructions for form 1040ez Apply for an Employer Identification Number (EIN). Instructions for form 1040ez Go to IRS. Instructions for form 1040ez gov and enter Apply for an EIN in the search box. Instructions for form 1040ez Read the Internal Revenue Code, regulations, or other official guidance. Instructions for form 1040ez Read Internal Revenue Bulletins. Instructions for form 1040ez Sign up to receive local and national tax news and more by email. Instructions for form 1040ez Just click on “subscriptions” above the search box on IRS. Instructions for form 1040ez gov and choose from a variety of options. Instructions for form 1040ez    Phone. Instructions for form 1040ez You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Instructions for form 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. Instructions for form 1040ez Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Instructions for form 1040ez gov, or download the IRS2Go app. Instructions for form 1040ez Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Instructions for form 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Instructions for form 1040ez Mos