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Irs Forms

Irs forms 33. Irs forms   Credit for the Elderly or the Disabled Table of Contents Introduction Useful Items - You may want to see: Are You Eligible for the Credit?Qualified Individual Income Limits How to Claim the CreditCredit Figured for You Credit Figured by You Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled which is figured on Schedule R (Form 1040A or 1040). Irs forms This chapter explains the following. Irs forms Who qualifies for the credit for the elderly or the disabled. Irs forms How to claim the credit. Irs forms You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. Irs forms Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 554 Tax Guide for Seniors Form (and Instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Irs forms You are a qualified individual. Irs forms Your income is not more than certain limits. Irs forms You can use Figure 33-A and Table 33-1 as guides to see if you are eligible for the credit. Irs forms Use Figure 33-A first to see if you are a qualified individual. Irs forms If you are, go to Table 33-1 to make sure your income is not too high to take the credit. Irs forms You can take the credit only if you file Form 1040 or Form 1040A. Irs forms You cannot take the credit if you file Form 1040EZ. Irs forms Qualified Individual You are a qualified individual for this credit if you are a U. Irs forms S. Irs forms citizen or resident alien, and either of the following applies. Irs forms You were age 65 or older at the end of 2013. Irs forms You were under age 65 at the end of 2013 and all three of the following statements are true. Irs forms You retired on permanent and total disability (explained later). Irs forms You received taxable disability income for 2013. Irs forms On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Irs forms Age 65. Irs forms   You are considered to be age 65 on the day before your 65th birthday. Irs forms Therefore, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Irs forms U. Irs forms S. Irs forms Citizen or Resident Alien You must be a U. Irs forms S. Irs forms citizen or resident alien (or be treated as a resident alien) to take the credit. Irs forms Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Irs forms Exceptions. Irs forms   You may be able to take the credit if you are a nonresident alien who is married to a U. Irs forms S. Irs forms citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Irs forms S. Irs forms resident alien. Irs forms If you make that choice, both you and your spouse are taxed on your worldwide incomes. Irs forms If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Irs forms S. Irs forms citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Irs forms S. Irs forms resident alien for the entire year. Irs forms In that case, you may be allowed to take the credit. Irs forms For information on these choices, see chapter 1 of Publication 519, U. Irs forms S. Irs forms Tax Guide for Aliens. Irs forms Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Irs forms However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Irs forms Head of household. Irs forms   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet certain tests. Irs forms See Head of Household in chapter 2 for the tests you must meet. Irs forms Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). Irs forms You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. Irs forms Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Irs forms If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Irs forms Permanent and total disability. Irs forms    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Irs forms A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Irs forms See Physician's statement , later. Irs forms Substantial gainful activity. Irs forms   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Irs forms Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Irs forms   Substantial gainful activity is not work you do to take care of yourself or your home. Irs forms It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Irs forms However, doing this kind of work may show that you are able to engage in substantial gainful activity. Irs forms    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Irs forms Sheltered employment. Irs forms   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. Irs forms These qualified locations are in sheltered workshops, hospitals, and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. Irs forms   Compared to commercial employment, pay is lower for sheltered employment. Irs forms Therefore, one usually does not look for sheltered employment if he or she can get other employment. Irs forms The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. Irs forms Physician's statement. Irs forms   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Irs forms You can use the statement in the Instructions for Schedule R. Irs forms    Figure 33-A. Irs forms Are You a Qualified Individual? This image is too large to be displayed in the current screen. Irs forms Please click the link to view the image. Irs forms Figure 33-A Are You a Qualified Individual?   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. Irs forms Veterans. Irs forms   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Irs forms VA Form 21-0172 must be signed by a person authorized by the VA to do so. Irs forms You can get this form from your local VA regional office. Irs forms Physician's statement obtained in earlier year. Irs forms   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Irs forms For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. Irs forms If you meet the required conditions, check the box on your Schedule R, Part II, line 2. Irs forms   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. Irs forms Table 33-1. Irs forms Income Limits IF your filing status is . Irs forms . Irs forms . Irs forms THEN, even if you qualify (see Figure 33-A ), you CANNOT take the credit if. Irs forms . Irs forms . Irs forms   Your adjusted gross income (AGI)* is equal to or more than. Irs forms . Irs forms . Irs forms     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Irs forms . Irs forms . Irs forms   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure 33-A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure 33-A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. Irs forms Disability income. Irs forms   If you are under age 65, you must also have taxable disability income to qualify for the credit. Irs forms Disability income must meet both of the following requirements. Irs forms It must be paid under your employer's accident or health plan or pension plan. Irs forms It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. Irs forms Payments that are not disability income. Irs forms   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Irs forms Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Irs forms   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Irs forms Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. Irs forms Income Limits To determine if you can claim the credit, you must consider two income limits. Irs forms The first limit is the amount of your adjusted gross income (AGI). Irs forms The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. Irs forms The limits are shown in Table 33-1. Irs forms If your AGI and nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. Irs forms See How to Claim the Credit , later. Irs forms If either your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. Irs forms How to Claim the Credit You can figure the credit yourself or the Internal Revenue Service will figure it for you. Irs forms Credit Figured for You If you choose to have the IRS figure the credit for you, read the following discussion for the form you will file (Form 1040 or 1040A). Irs forms If you want the IRS to figure your tax, see chapter 30. Irs forms Form 1040. Irs forms   If you want the IRS to figure your credit, see Form 1040 Line Entries under Tax Figured by IRS in chapter 30. Irs forms Form 1040A. Irs forms   If you want the IRS to figure your credit, see Form 1040A Line Entries under Tax Figured by IRS in chapter 30. Irs forms Credit Figured by You If you choose to figure the credit yourself, fill out the front of Schedule R. Irs forms Next, fill out Schedule R, Part III. Irs forms If you file Form 1040A, enter the amount from Schedule R, line 22, on Form 1040A, line 30. Irs forms If you file Form 1040, include the amount from Schedule R, line 22, on line 53; check box c, and enter “Sch R” on the line next to that box. Irs forms For a step-by-step discussion about filling out Part III of Schedule R, see Figuring the Credit Yourself in Publication 524. Irs forms Limit on credit. Irs forms   The amount of the credit you can claim is generally limited to the amount of your tax. Irs forms Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. Irs forms Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Oregon

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Bend 

250 NW Franklin Ave.
Bend, OR  97701

Monday-Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(541) 706-5732
Eugene 211 E 7th           
Eugene, OR 97401

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(541) 342-8766
Medford 960 Ellendale Dr.
Medford, OR 97504

Monday-Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:30 p.m.)

 

Services Provided

(541) 282-1350
Portland 1220 SW Third Ave.
Portland, OR  97204
 

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(503) 265-3501
Salem

1660 Oak St. S.E.
Salem, OR  97301

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(503) 587-3101

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses

The Taxpayer Advocate Service: Call (503) 265-3591 in the Portland area or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see  Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
100 SW Main Street, MS 0180
Portland, OR 97204

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Irs Forms

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