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Need To File 2012 Taxes

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Need To File 2012 Taxes

Need to file 2012 taxes Publication 584-B - Main Content Table of Contents How To Use This Workbook Comments and SuggestionsOrdering forms and publications. Need to file 2012 taxes Tax questions. Need to file 2012 taxes How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Need to file 2012 taxes How To Use This Workbook You can use this workbook by following these five steps. Need to file 2012 taxes Read Publication 547 to learn about the tax rules for casualties, disasters, and thefts. Need to file 2012 taxes Know the definitions of adjusted basis and fair market value, discussed below. Need to file 2012 taxes Fill out Schedules 1 through 6. Need to file 2012 taxes Read the Instructions for Form 4684. Need to file 2012 taxes Fill out Form 4684 using the information you entered in Schedules 1 through 6. Need to file 2012 taxes Use the chart below to find out how to use Schedules 1 through 6 to fill out Form 4684. Need to file 2012 taxes Take what's in each row of. Need to file 2012 taxes . Need to file 2012 taxes . Need to file 2012 taxes And enter it on Form 4684. Need to file 2012 taxes . Need to file 2012 taxes . Need to file 2012 taxes Column 1 Line 19 Column 2 Line 20 Column 3 Line 21 Column 4 Line 22 Column 5 Line 23 Column 6 Line 24 Column 7 Line 25 Column 8 Line 26 Column 9 Line 27 Adjusted basis. Need to file 2012 taxes   Adjusted basis usually means original cost plus improvements, minus depreciation allowed or allowable (including any section 179 expense deduction), amortization, depletion, etc. Need to file 2012 taxes If you did not acquire the property by purchasing it, your basis is determined as discussed in Publication 551, Basis of Assets. Need to file 2012 taxes If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, Allocation of Increase in Basis for Property Received From a Decedent, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. Need to file 2012 taxes Fair market value. Need to file 2012 taxes   Fair market value is the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts. Need to file 2012 taxes When filling out Schedules 1 through 6, you need to know the fair market value of the property immediately before and immediately after the disaster or casualty. Need to file 2012 taxes Deduction limits. Need to file 2012 taxes   If your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. Need to file 2012 taxes See the Instructions for Form 4684, Section B. Need to file 2012 taxes If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. Need to file 2012 taxes   The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040), must be reduced by 2% of your adjusted gross income. Need to file 2012 taxes Employee property is property used in performing services as an employee. Need to file 2012 taxes Comments and Suggestions We welcome your comments about this publication and your suggestions for future editions. Need to file 2012 taxes You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Need to file 2012 taxes NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Need to file 2012 taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Need to file 2012 taxes You can email us at taxforms@irs. Need to file 2012 taxes gov. Need to file 2012 taxes Please put “Publications Comment” on the subject line. Need to file 2012 taxes You can also send us comments from www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/formspubs/. Need to file 2012 taxes Select “Comment on Tax Forms and Publications” under “Information about. Need to file 2012 taxes ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Need to file 2012 taxes Ordering forms and publications. Need to file 2012 taxes   Visit www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Need to file 2012 taxes Internal Revenue Service 1201 N. Need to file 2012 taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Need to file 2012 taxes   If you have a tax question, check the information available on IRS. Need to file 2012 taxes gov or call 1-800-829-1040. Need to file 2012 taxes We cannot answer tax questions sent to either of the above addresses. Need to file 2012 taxes How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Need to file 2012 taxes By selecting the method that is best for you, you will have quick and easy access to tax help. Need to file 2012 taxes Free help with your return. Need to file 2012 taxes   Free help in preparing your return is available nationwide from IRS-certified volunteers. Need to file 2012 taxes The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Need to file 2012 taxes 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. Need to file 2012 taxes To find the nearest VITA or TCE site, visit IRS. Need to file 2012 taxes gov or call 1-800-906-9887 or 1-800-829-1040. Need to file 2012 taxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. Need to file 2012 taxes To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Need to file 2012 taxes aarp. Need to file 2012 taxes org/money/taxaide. Need to file 2012 taxes   For more information on these programs, go to IRS. Need to file 2012 taxes gov and enter keyword “VITA” in the upper right-hand corner. Need to file 2012 taxes Internet. Need to file 2012 taxes You can access the IRS website at IRS. Need to file 2012 taxes gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Need to file 2012 taxes Go to IRS. Need to file 2012 taxes gov and click on Where's My Refund. Need to file 2012 taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Need to file 2012 taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Need to file 2012 taxes Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Need to file 2012 taxes E-file your return. Need to file 2012 taxes Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Need to file 2012 taxes Download forms, including talking tax forms, instructions, and publications. Need to file 2012 taxes Order IRS products online. Need to file 2012 taxes Research your tax questions online. Need to file 2012 taxes Search publications online by topic or keyword. Need to file 2012 taxes Use the online Internal Revenue Code, regulations, or other official guidance. Need to file 2012 taxes View Internal Revenue Bulletins (IRBs) published in the last few years. Need to file 2012 taxes Figure your withholding allowances using the withholding calculator online at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/individuals. Need to file 2012 taxes Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/individuals. Need to file 2012 taxes Sign up to receive local and national tax news by email. Need to file 2012 taxes Get information on starting and operating a small business. Need to file 2012 taxes Phone. Need to file 2012 taxes Many services are available by phone. Need to file 2012 taxes   Ordering forms, instructions, and publications. Need to file 2012 taxes Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Need to file 2012 taxes You should receive your order within 10 days. Need to file 2012 taxes Asking tax questions. Need to file 2012 taxes Call the IRS with your tax questions at 1-800-829-1040. Need to file 2012 taxes Solving problems. Need to file 2012 taxes You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Need to file 2012 taxes An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Need to file 2012 taxes Call your local Taxpayer Assistance Center for an appointment. Need to file 2012 taxes To find the number, go to www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Need to file 2012 taxes TTY/TDD equipment. Need to file 2012 taxes If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Need to file 2012 taxes TeleTax topics. Need to file 2012 taxes Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Need to file 2012 taxes Refund information. Need to file 2012 taxes You can check the status of your refund on the new IRS phone app. Need to file 2012 taxes Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Need to file 2012 taxes IRS2Go is a new way to provide you with information and tools. Need to file 2012 taxes To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Need to file 2012 taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Need to file 2012 taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Need to file 2012 taxes Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Need to file 2012 taxes If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Need to file 2012 taxes Other refund information. Need to file 2012 taxes To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Need to file 2012 taxes Evaluating the quality of our telephone services. Need to file 2012 taxes To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Need to file 2012 taxes One method is for a second IRS representative to listen in on or record random telephone calls. Need to file 2012 taxes Another is to ask some callers to complete a short survey at the end of the call. Need to file 2012 taxes Walk-in. Need to file 2012 taxes Many products and services are available on a walk-in basis. Need to file 2012 taxes   Products. Need to file 2012 taxes You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Need to file 2012 taxes Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Need to file 2012 taxes Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Need to file 2012 taxes Services. Need to file 2012 taxes You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Need to file 2012 taxes An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Need to file 2012 taxes If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Need to file 2012 taxes No appointment is necessary—just walk in. Need to file 2012 taxes If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Need to file 2012 taxes A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Need to file 2012 taxes If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Need to file 2012 taxes All other issues will be handled without an appointment. Need to file 2012 taxes To find the number of your local office, go to  www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Need to file 2012 taxes Mail. Need to file 2012 taxes You can send your order for forms, instructions, and publications to the address below. Need to file 2012 taxes You should receive a response within 10 days after your request is received. Need to file 2012 taxes  Internal Revenue Service 1201 N. Need to file 2012 taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Need to file 2012 taxes   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Need to file 2012 taxes Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Need to file 2012 taxes We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Need to file 2012 taxes Remember, the worst thing you can do is nothing at all. Need to file 2012 taxes   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Need to file 2012 taxes You face (or your business is facing) an immediate threat of adverse action. Need to file 2012 taxes You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Need to file 2012 taxes   If you qualify for our help, we’ll do everything we can to get your problem resolved. Need to file 2012 taxes You will be assigned to one advocate who will be with you at every turn. Need to file 2012 taxes We have offices in every state, the District of Columbia, and Puerto Rico. Need to file 2012 taxes Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Need to file 2012 taxes And our services are always free. Need to file 2012 taxes   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Need to file 2012 taxes Our tax toolkit at www. Need to file 2012 taxes TaxpayerAdvocate. Need to file 2012 taxes irs. Need to file 2012 taxes gov can help you understand these rights. Need to file 2012 taxes   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/advocate. Need to file 2012 taxes You can also call our toll-free number at 1-877-777-4778. Need to file 2012 taxes   TAS also handles large-scale or systemic problems that affect many taxpayers. Need to file 2012 taxes If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/advocate. Need to file 2012 taxes Low Income Taxpayer Clinics (LITCs). Need to file 2012 taxes   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Need to file 2012 taxes Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Need to file 2012 taxes These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Need to file 2012 taxes Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Need to file 2012 taxes For more information and to find a clinic near you, see the LITC page at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Need to file 2012 taxes This publication is also available by calling 1-800-829-3676 or at your local IRS office. Need to file 2012 taxes Free tax services. Need to file 2012 taxes   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Need to file 2012 taxes Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Need to file 2012 taxes The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Need to file 2012 taxes The majority of the information and services listed in this publication are available to you free of charge. Need to file 2012 taxes If there is a fee associated with a resource or service, it is listed in the publication. Need to file 2012 taxes   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Need to file 2012 taxes DVD for tax products. Need to file 2012 taxes You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Need to file 2012 taxes Prior-year forms, instructions, and publications. Need to file 2012 taxes Tax Map: an electronic research tool and finding aid. Need to file 2012 taxes Tax law frequently asked questions. Need to file 2012 taxes Tax Topics from the IRS telephone response system. Need to file 2012 taxes Internal Revenue Code—Title 26 of the U. Need to file 2012 taxes S. Need to file 2012 taxes Code. Need to file 2012 taxes Links to other Internet based Tax Research Materials. Need to file 2012 taxes Fill-in, print, and save features for most tax forms. Need to file 2012 taxes Internal Revenue Bulletins. Need to file 2012 taxes Toll-free and email technical support. Need to file 2012 taxes Two releases during the year. Need to file 2012 taxes  – The first release will ship the beginning of January 2012. Need to file 2012 taxes  – The final release will ship the beginning of March 2012. Need to file 2012 taxes Purchase the DVD from National Technical Information Service (NTIS) at www. Need to file 2012 taxes irs. Need to file 2012 taxes gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Need to file 2012 taxes Prev  Up  Next   Home   More Online Publications
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Understanding Your CP515 Business Notice

You received this reminder notice because our records indicate you didn't file a business tax return.


What you need to do

  • File your required business return immediately.
  • If eligible, file your return electronically with all required schedules, using your e-file provider, or
  • File a paper return with all required schedules
  • Complete the Response form enclosed with your notice and mail it to us, using the enclosed envelope:
    • To explain why you are filing late.
    • To explain why you don’t think you need to file.
    • If you already filed and it's been more than four weeks, or if you used a different name or employer ID number (EIN) than shown on the notice when filing.
  • If you filed within the last four weeks using the same name and EIN shown on the notice, you may disregard this notice.

You may want to...

  • Review Tax Information for Businesses which provides information regarding various business filing issues.
  • Review your records and ensure all returns are filed timely.

Answers to Common Questions

Why did I receive multiple CP 515 notices?
If your business hasn't filed tax returns, a notice will be generated and mailed for each tax form and tax period the IRS shows as delinquent.

I have never had employees and or filed this return previously so why did I receive a notice requesting me to file?
When you apply for an employer identification number, filing requirements are established requiring specific types of returns to be filed (e.g. Form 940, Employer's Annual Federal Unemployment Tax Return; Form 941, Employer's Quarterly Federal Tax Return; Form 1120, U.S. Corporation Income Tax Return, etc.). When the return isn't filed, the IRS considers it to be delinquent and generates a notice requesting the return be filed.

Do I still need to file a tax return even if I had no employees or business activity during the tax period(s) in question?
If you had no employees or business activity during a tax period, you aren't required to file a return for that tax period. You still need to respond to this notice. 

If you made Federal Tax Deposits or other payments or credits for the tax period, you must file a signed return showing the payments to get a refund.


Tips for next year

File all required returns by the appropriate due date.


  • Understanding your notice

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

    Notice CP515B, Page 1

    Notice CP515B, Page 2

    Notice CP515B, Page 3

    Notice CP515B, Page 4

    Notice CP515B, Page 5

Page Last Reviewed or Updated: 10-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Need To File 2012 Taxes

Need to file 2012 taxes 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. Need to file 2012 taxes Gross monthly rate. Need to file 2012 taxes Your cost. Need to file 2012 taxes Choosing a survivor annuity after retirement. Need to file 2012 taxes Canceling a survivor annuity after retirement. Need to file 2012 taxes Annuity starting date after 1986. Need to file 2012 taxes Annuity starting date before 1987. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Need to file 2012 taxes If the refund includes only your contributions, none of the refund is taxable. Need to file 2012 taxes 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). Need to file 2012 taxes 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. Need to file 2012 taxes See Rollover Rules in Part II for information on how to make a rollover. Need to file 2012 taxes 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. Need to file 2012 taxes Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes OPM will tell you how to make the choice. Need to file 2012 taxes The choice for no withholding remains in effect until you change it. Need to file 2012 taxes These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Need to file 2012 taxes Form CSA 1099R. Need to file 2012 taxes   Form CSA 1099R is mailed to you by OPM each year. Need to file 2012 taxes It will show any tax you had withheld. Need to file 2012 taxes File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Need to file 2012 taxes    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Need to file 2012 taxes servicesonline. Need to file 2012 taxes opm. Need to file 2012 taxes gov. Need to file 2012 taxes To log in, you will need your retirement CSA claim number and your personal identification number. Need to file 2012 taxes Choosing no withholding on payments outside the United States. Need to file 2012 taxes   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Need to file 2012 taxes   To choose no withholding if you are a U. Need to file 2012 taxes S. Need to file 2012 taxes citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Need to file 2012 taxes Otherwise, OPM has to withhold tax. Need to file 2012 taxes For example, OPM must withhold if you provide a U. Need to file 2012 taxes S. Need to file 2012 taxes 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. Need to file 2012 taxes S. Need to file 2012 taxes home address. Need to file 2012 taxes   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. Need to file 2012 taxes S. Need to file 2012 taxes citizen, a U. Need to file 2012 taxes S. Need to file 2012 taxes resident alien, or someone who left the United States to avoid tax. Need to file 2012 taxes But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Need to file 2012 taxes For details, see Publication 519, U. Need to file 2012 taxes S. Need to file 2012 taxes Tax Guide for Aliens. Need to file 2012 taxes Withholding certificate. Need to file 2012 taxes   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. Need to file 2012 taxes The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Need to file 2012 taxes If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Need to file 2012 taxes 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. Need to file 2012 taxes C. Need to file 2012 taxes calling area must call 202-606-0500). Need to file 2012 taxes No special form is needed. Need to file 2012 taxes You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Need to file 2012 taxes If you have TTY/TDD equipment, call 1-855–887–4957. Need to file 2012 taxes If you need a PIN, call OPM's Retirement Information Office. Need to file 2012 taxes You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Need to file 2012 taxes servicesonline. Need to file 2012 taxes opm. Need to file 2012 taxes gov. Need to file 2012 taxes You will need your retirement CSA or CSF claim number and your PIN. Need to file 2012 taxes Withholding from certain lump-sum payments. Need to file 2012 taxes   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. Need to file 2012 taxes Tax will be withheld at a 20% rate on the interest distributed. Need to file 2012 taxes However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Need to file 2012 taxes If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Need to file 2012 taxes Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Need to file 2012 taxes See Rollover Rules in Part II. Need to file 2012 taxes If you receive only your contributions, no tax will be withheld. Need to file 2012 taxes Withholding from Thrift Savings Plan payments. Need to file 2012 taxes   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Need to file 2012 taxes 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. Need to file 2012 taxes  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes The above document is also available in the “Forms & Publications” section of the TSP website at www. Need to file 2012 taxes tsp. Need to file 2012 taxes gov. Need to file 2012 taxes Estimated tax. Need to file 2012 taxes   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)). Need to file 2012 taxes The return must cover all 12 months. Need to file 2012 taxes   You do not have to pay estimated tax for 2014 if you were a U. Need to file 2012 taxes S. Need to file 2012 taxes citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Need to file 2012 taxes   Publication 505 contains information that you can use to help you figure your estimated tax payments. Need to file 2012 taxes 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. Need to file 2012 taxes The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Need to file 2012 taxes Children. Need to file 2012 taxes   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. Need to file 2012 taxes   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. Need to file 2012 taxes Form CSF 1099R. Need to file 2012 taxes   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Need to file 2012 taxes It will show the total amount of the annuity you received in the past year. Need to file 2012 taxes It also should show, separately, the survivor annuity for a child or children. Need to file 2012 taxes Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Need to file 2012 taxes   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. Need to file 2012 taxes    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Need to file 2012 taxes servicesonline. Need to file 2012 taxes opm. Need to file 2012 taxes gov. Need to file 2012 taxes To log in you will need your retirement CSF claim number and personal identification number. Need to file 2012 taxes    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. Need to file 2012 taxes C. Need to file 2012 taxes calling area must call 202-606-0500). Need to file 2012 taxes You will need your CSF claim number and your social security number when you call. Need to file 2012 taxes Taxable part of annuity. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Annuity statement. Need to file 2012 taxes   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). Need to file 2012 taxes You will use this information to figure the tax-free recovery of your cost. Need to file 2012 taxes Annuity starting date. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Gross monthly rate. Need to file 2012 taxes   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. Need to file 2012 taxes Your cost. Need to file 2012 taxes   Your monthly annuity payment contains an amount on which you have previously paid income tax. Need to file 2012 taxes This amount represents part of your contributions to the retirement plan. Need to file 2012 taxes 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. Need to file 2012 taxes   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Need to file 2012 taxes If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Need to file 2012 taxes (See Lump-sum credit under Alternative Annuity Option, later. Need to file 2012 taxes )   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. Need to file 2012 taxes You cannot claim an interest deduction for any interest payments. Need to file 2012 taxes You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Need to file 2012 taxes Recovering your cost tax free. Need to file 2012 taxes   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Need to file 2012 taxes 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. Need to file 2012 taxes 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). Need to file 2012 taxes If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Need to file 2012 taxes   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). Need to file 2012 taxes The tax-free part is a fixed dollar amount. Need to file 2012 taxes It remains the same, even if your annuity is increased. Need to file 2012 taxes Generally, this rule applies as long as you receive your annuity. Need to file 2012 taxes However, see Exclusion limit , later. Need to file 2012 taxes Choosing a survivor annuity after retirement. Need to file 2012 taxes    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. Need to file 2012 taxes   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. Need to file 2012 taxes To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Need to file 2012 taxes Figure the expected return as of the date the reduced annuity begins. Need to file 2012 taxes For details on the General Rule, see Publication 939. Need to file 2012 taxes Canceling a survivor annuity after retirement. Need to file 2012 taxes   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. Need to file 2012 taxes The increased annuity does not change the cost recovery you figured at the annuity starting date. Need to file 2012 taxes The tax-free part of each annuity payment remains the same. Need to file 2012 taxes    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. Need to file 2012 taxes C. Need to file 2012 taxes calling area must call 202-606-0500). Need to file 2012 taxes Exclusion limit. Need to file 2012 taxes   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Need to file 2012 taxes Annuity starting date after 1986. Need to file 2012 taxes   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. Need to file 2012 taxes Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Need to file 2012 taxes Example. Need to file 2012 taxes Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Need to file 2012 taxes If your cost is $12,000, the exclusion ends after 10 years (120 months). Need to file 2012 taxes Thereafter, your entire annuity is generally fully taxable. Need to file 2012 taxes Annuity starting date before 1987. Need to file 2012 taxes   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. Need to file 2012 taxes If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Need to file 2012 taxes The total exclusion may be more than your cost. Need to file 2012 taxes Deduction of unrecovered cost. Need to file 2012 taxes   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. Need to file 2012 taxes 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). Need to file 2012 taxes If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Need to file 2012 taxes 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. Need to file 2012 taxes (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Need to file 2012 taxes ) 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. Need to file 2012 taxes The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Need to file 2012 taxes 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. Need to file 2012 taxes This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Need to file 2012 taxes 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. Need to file 2012 taxes Worksheet A. Need to file 2012 taxes   Use Worksheet A. Need to file 2012 taxes Simplified Method (near the end of this publication), to figure your taxable annuity. Need to file 2012 taxes Be sure to keep the completed worksheet. Need to file 2012 taxes It will help you figure your taxable amounts for later years. Need to file 2012 taxes 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. Need to file 2012 taxes However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Need to file 2012 taxes Line 2. Need to file 2012 taxes   See Your cost , earlier, for an explanation of your cost in the plan. Need to file 2012 taxes 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. Need to file 2012 taxes Line 3. Need to file 2012 taxes   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Need to file 2012 taxes 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. Need to file 2012 taxes If your annuity starting date is before 1998, use Table 1. Need to file 2012 taxes Line 6. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Example. Need to file 2012 taxes Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Need to file 2012 taxes 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. Need to file 2012 taxes He must use the Simplified Method to figure the tax-free part of his annuity benefits. Need to file 2012 taxes Bill's monthly annuity benefit is $1,000. Need to file 2012 taxes He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Need to file 2012 taxes At his annuity starting date, he was 65 and Kathy was 57. Need to file 2012 taxes Bill's completed Worksheet A is shown later. Need to file 2012 taxes 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). Need to file 2012 taxes Bill keeps a copy of the completed worksheet for his records. Need to file 2012 taxes It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Need to file 2012 taxes Bill's tax-free monthly amount is $100. Need to file 2012 taxes (See line 4 of the worksheet. Need to file 2012 taxes ) 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Figuring this percentage is complex and requires the use of actuarial tables. Need to file 2012 taxes For these tables and other information about using the General Rule, see Publication 939. Need to file 2012 taxes 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. Need to file 2012 taxes Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Need to file 2012 taxes After your cost was recovered, all payments became fully taxable. Need to file 2012 taxes You cannot use another rule to again exclude amounts from income. Need to file 2012 taxes The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Need to file 2012 taxes Worksheet A. Need to file 2012 taxes Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Need to file 2012 taxes 1. Need to file 2012 taxes Enter the total pension or annuity payments received this year. Need to file 2012 taxes Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Need to file 2012 taxes $ 8,000 2. Need to file 2012 taxes Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Need to file 2012 taxes See Your cost in Part II, Rules for Retirees, earlier 2. Need to file 2012 taxes 31,000 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Need to file 2012 taxes Otherwise, go to line 3. Need to file 2012 taxes   3. Need to file 2012 taxes Enter the appropriate number from Table 1 below. Need to file 2012 taxes But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Need to file 2012 taxes 3. Need to file 2012 taxes 310 4. Need to file 2012 taxes Divide line 2 by the number on line 3 4. Need to file 2012 taxes 100 5. Need to file 2012 taxes Multiply line 4 by the number of months for which this year's payments were made. Need to file 2012 taxes If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Need to file 2012 taxes Otherwise, go to line 6 5. Need to file 2012 taxes 800 6. Need to file 2012 taxes Enter any amounts previously recovered tax free in years after 1986. Need to file 2012 taxes This is the amount shown on line 10 of your worksheet for last year 6. Need to file 2012 taxes 0 7. Need to file 2012 taxes Subtract line 6 from line 2 7. Need to file 2012 taxes 31,000 8. Need to file 2012 taxes Enter the smaller of line 5 or line 7 8. Need to file 2012 taxes 800 9. Need to file 2012 taxes Taxable amount for year. Need to file 2012 taxes Subtract line 8 from line 1. Need to file 2012 taxes Enter the result, but not less than zero. Need to file 2012 taxes Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Need to file 2012 taxes If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Need to file 2012 taxes If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Need to file 2012 taxes 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. Need to file 2012 taxes $7,200 10. Need to file 2012 taxes Was your annuity starting date before 1987?   Yes. Need to file 2012 taxes Do not complete the rest of this worksheet. Need to file 2012 taxes    No. Need to file 2012 taxes Add lines 6 and 8. Need to file 2012 taxes This is the amount you have recovered tax free through 2013. Need to file 2012 taxes You will need this number if you need to fill out this worksheet next year 10. Need to file 2012 taxes 800 11. Need to file 2012 taxes Balance of cost to be recovered. Need to file 2012 taxes Subtract line 10 from line 2. Need to file 2012 taxes If zero, you will not have to complete this worksheet next year. Need to file 2012 taxes The payments you receive next year will generally be fully taxable 11. Need to file 2012 taxes $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. Need to file 2012 taxes Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Need to file 2012 taxes If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Need to file 2012 taxes You are eligible to make this choice if you meet all of the following requirements. Need to file 2012 taxes You are retiring, but not on disability. Need to file 2012 taxes You have a life-threatening illness or other critical medical condition. Need to file 2012 taxes You do not have a former spouse entitled to court ordered benefits based on your service. Need to file 2012 taxes 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. Need to file 2012 taxes Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Need to file 2012 taxes The tax-free part represents part of your cost. Need to file 2012 taxes The taxable part represents part of the earnings on your annuity contract. Need to file 2012 taxes 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. Need to file 2012 taxes Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Need to file 2012 taxes Your taxable amount may therefore be more than the lump-sum payment you receive. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes See Rollover Rules , later, for information on how to make a rollover. Need to file 2012 taxes OPM can make a direct rollover only up to the amount of the lump-sum payment. Need to file 2012 taxes Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Need to file 2012 taxes Worksheet B. Need to file 2012 taxes   Use Worksheet B. Need to file 2012 taxes Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Need to file 2012 taxes Be sure to keep the completed worksheet for your records. Need to file 2012 taxes   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Need to file 2012 taxes Lump-sum credit. Need to file 2012 taxes   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Need to file 2012 taxes 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. Need to file 2012 taxes Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Need to file 2012 taxes Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Need to file 2012 taxes 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. Need to file 2012 taxes Present value of your annuity contract. Need to file 2012 taxes   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Need to file 2012 taxes 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. Need to file 2012 taxes Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Need to file 2012 taxes , NW Washington, DC 20224-0002 Example. Need to file 2012 taxes David Brown retired from the federal government in 2013, one month after his 55th birthday. Need to file 2012 taxes 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. Need to file 2012 taxes The present value of his annuity contract was $155,000. Need to file 2012 taxes The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Need to file 2012 taxes 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. Need to file 2012 taxes See Reduced Annuity , later. Need to file 2012 taxes Worksheet B. Need to file 2012 taxes Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Need to file 2012 taxes  1. Need to file 2012 taxes Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Need to file 2012 taxes $ 31,000 2. Need to file 2012 taxes Enter the present value of your annuity contract 2. Need to file 2012 taxes 155,000 3. Need to file 2012 taxes Divide line 1 by line 2 3. Need to file 2012 taxes . Need to file 2012 taxes 20 4. Need to file 2012 taxes Tax-free amount. Need to file 2012 taxes Multiply line 1 by line 3. Need to file 2012 taxes (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Need to file 2012 taxes ) 4. Need to file 2012 taxes $6,200 5. Need to file 2012 taxes Taxable amount (net cost in the plan). Need to file 2012 taxes Subtract line 4 from line 1. Need to file 2012 taxes Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Need to file 2012 taxes Also, enter this amount on line 2 of Worksheet A in this publication. Need to file 2012 taxes 5. Need to file 2012 taxes $24,800   Lump-sum payment in installments. Need to file 2012 taxes   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Need to file 2012 taxes You will receive the first installment after you make the choice upon retirement. Need to file 2012 taxes The second installment will be paid to you, with interest, in the next calendar year. Need to file 2012 taxes (Exceptions to the installment rule are provided for cases of critical medical need. Need to file 2012 taxes )   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. Need to file 2012 taxes If the payment has a tax-free part, you must treat the taxable part as received first. Need to file 2012 taxes How to report. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes    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. Need to file 2012 taxes 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. Need to file 2012 taxes These annuity payments each will have a tax-free and a taxable part. Need to file 2012 taxes To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Need to file 2012 taxes For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Need to file 2012 taxes 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. Need to file 2012 taxes Enter as your net cost on line 2 the amount from Worksheet B, line 5. Need to file 2012 taxes 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. Need to file 2012 taxes Example. Need to file 2012 taxes The facts are the same as in the example for David Brown in the preceding discussion. Need to file 2012 taxes In addition, David received 10 annuity payments in 2013 of $1,200 each. Need to file 2012 taxes Using Worksheet A, he figures the taxable part of his annuity payments. Need to file 2012 taxes He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Need to file 2012 taxes His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Need to file 2012 taxes He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Need to file 2012 taxes David's filled-in Worksheet A is shown on the next page. Need to file 2012 taxes Worksheet A. Need to file 2012 taxes Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Need to file 2012 taxes 1. Need to file 2012 taxes Enter the total pension or annuity payments received this year. Need to file 2012 taxes Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Need to file 2012 taxes $ 12,000 2. Need to file 2012 taxes Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Need to file 2012 taxes See Your cost in Part II, Rules for Retirees, earlier 2. Need to file 2012 taxes 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). Need to file 2012 taxes Otherwise, go to line 3. Need to file 2012 taxes   3. Need to file 2012 taxes Enter the appropriate number from Table 1 below. Need to file 2012 taxes But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Need to file 2012 taxes 3. Need to file 2012 taxes 360 4. Need to file 2012 taxes Divide line 2 by the number on line 3 4. Need to file 2012 taxes 68. Need to file 2012 taxes 89 5. Need to file 2012 taxes Multiply line 4 by the number of months for which this year's payments were made. Need to file 2012 taxes If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Need to file 2012 taxes Otherwise, go to line 6 5. Need to file 2012 taxes 688. Need to file 2012 taxes 90 6. Need to file 2012 taxes Enter any amounts previously recovered tax free in years after 1986. Need to file 2012 taxes This is the amount shown on line 10 of your worksheet for last year 6. Need to file 2012 taxes 0 7. Need to file 2012 taxes Subtract line 6 from line 2 7. Need to file 2012 taxes 24,800 8. Need to file 2012 taxes Enter the smaller of line 5 or line 7 8. Need to file 2012 taxes 688. Need to file 2012 taxes 90 9. Need to file 2012 taxes Taxable amount for year. Need to file 2012 taxes Subtract line 8 from line 1. Need to file 2012 taxes Enter the result, but not less than zero. Need to file 2012 taxes Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Need to file 2012 taxes If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Need to file 2012 taxes If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Need to file 2012 taxes 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. Need to file 2012 taxes $11,311. Need to file 2012 taxes 10 10. Need to file 2012 taxes Was your annuity starting date before 1987?   Yes. Need to file 2012 taxes Do not complete the rest of this worksheet. Need to file 2012 taxes    No. Need to file 2012 taxes Add lines 6 and 8. Need to file 2012 taxes This is the amount you have recovered tax free through 2013. Need to file 2012 taxes You will need this number if you need to fill out this worksheet next year 10. Need to file 2012 taxes 688. Need to file 2012 taxes 90 11. Need to file 2012 taxes Balance of cost to be recovered. Need to file 2012 taxes Subtract line 10 from line 2. Need to file 2012 taxes If zero, you will not have to complete this worksheet next year. Need to file 2012 taxes The payments you receive next year will generally be fully taxable 11. Need to file 2012 taxes $24,111. Need to file 2012 taxes 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. Need to file 2012 taxes Reemployment after choosing the alternative annuity option. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes Annuity starting date before November 19, 1996. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes The gift may be taxable for gift tax purposes. Need to file 2012 taxes The value of the gift is equal to the value of the annuity. Need to file 2012 taxes Joint and survivor annuity. Need to file 2012 taxes   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. Need to file 2012 taxes This will eliminate any gift tax liability with regard to that gift. Need to file 2012 taxes   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. Need to file 2012 taxes This may result in a taxable gift. Need to file 2012 taxes More information. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes Annual leave. Need to file 2012 taxes   A payment for accrued annual leave received on retirement is a salary payment. Need to file 2012 taxes It is taxable as wages in the tax year you receive it. Need to file 2012 taxes Voluntary contributions. Need to file 2012 taxes   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Need to file 2012 taxes 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. Need to file 2012 taxes Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Need to file 2012 taxes See Thrift Savings Plan , later. Need to file 2012 taxes Additional annuity benefit. Need to file 2012 taxes   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. Need to file 2012 taxes This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Need to file 2012 taxes It does not matter that you receive only one monthly check covering both benefits. Need to file 2012 taxes 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. Need to file 2012 taxes   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. Need to file 2012 taxes Refund of voluntary contributions. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes See Rollover Rules , later. Need to file 2012 taxes The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Need to file 2012 taxes 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. Need to file 2012 taxes For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Need to file 2012 taxes Community property laws. Need to file 2012 taxes   State community property laws apply to your annuity. Need to file 2012 taxes These laws will affect your income tax only if you file a return separately from your spouse. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes   At any time, you have only one domicile even though you may have more than one home. Need to file 2012 taxes 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. Need to file 2012 taxes The question of your domicile is mainly a matter of your intentions as indicated by your actions. Need to file 2012 taxes   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Need to file 2012 taxes The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Need to file 2012 taxes   For more information, see Publication 555, Community Property. Need to file 2012 taxes 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. Need to file 2012 taxes The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Need to file 2012 taxes This amount is taxable as wages. Need to file 2012 taxes Your annuity will continue to be taxed just as it was before. Need to file 2012 taxes If you are still recovering your cost, you continue to do so. Need to file 2012 taxes If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Need to file 2012 taxes 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. Need to file 2012 taxes A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Need to file 2012 taxes Special rule for figuring your total contributions. Need to file 2012 taxes   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Need to file 2012 taxes 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. Need to file 2012 taxes For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Need to file 2012 taxes Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Need to file 2012 taxes   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. Need to file 2012 taxes Limit on taxable amount. Need to file 2012 taxes   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. Need to file 2012 taxes Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Need to file 2012 taxes The numerator of the fraction is the retiree's total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay, other than tax-exempt pay for services performed outside the United States. Need to file 2012 taxes The denominator is the retiree's total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay for all services. Need to file 2012 taxes    Basic pay includes regular pay plus any standby differential. Need to file 2012 taxes It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Need to file 2012 taxes   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Need to file 2012 taxes (For an annuity, first complete Worksheet A in this publication. Need to file 2012 taxes ) Worksheet C. Need to file 2012 taxes Limited Taxable Amount for Nonresident Alien 1. Need to file 2012 taxes 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. Need to file 2012 taxes   2. Need to file 2012 taxes Enter the total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay other than tax-exempt pay for services performed outside the United States 2. Need to file 2012 taxes   3. Need to file 2012 taxes Enter the total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay for all services 3. Need to file 2012 taxes   4. Need to file 2012 taxes Divide line 2 by line 3 4. Need to file 2012 taxes   5. Need to file 2012 taxes Limited taxable amount. Need to file 2012 taxes Multiply line 1 by line 4. Need to file 2012 taxes Enter this amount on Form 1040NR, line 17b 5. Need to file 2012 taxes   Example 1. Need to file 2012 taxes You are a nonresident alien who performed all services for the U. Need to file 2012 taxes S. Need to file 2012 taxes Government abroad as a nonresident alien. Need to file 2012 taxes You retired and began to receive a monthly annuity of $200. Need to file 2012 taxes Your total basic pay for all services for the U. Need to file 2012 taxes S. Need to file 2012 taxes Government was $100,000. Need to file 2012 taxes All of your basic pay was tax exempt because it was not U. Need to file 2012 taxes S. Need to file 2012 taxes source income. Need to file 2012 taxes The taxable amount of your annuity using Worksheet A in this publication is $720. Need to file 2012 taxes You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Need to file 2012 taxes Worksheet C. Need to file 2012 taxes Limited Taxable Amount for Nonresident Alien — Example 1 1. Need to file 2012 taxes 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. Need to file 2012 taxes $ 720 2. Need to file 2012 taxes Enter the total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay other than tax-exempt pay for services performed outside the United States 2. Need to file 2012 taxes 0 3. Need to file 2012 taxes Enter the total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay for all services 3. Need to file 2012 taxes 100,000 4. Need to file 2012 taxes Divide line 2 by line 3 4. Need to file 2012 taxes 0 5. Need to file 2012 taxes Limited taxable amount. Need to file 2012 taxes Multiply line 1 by line 4. Need to file 2012 taxes Enter this amount on Form 1040NR, line 17b 5. Need to file 2012 taxes 0 Example 2. Need to file 2012 taxes You are a nonresident alien who performed services for the U. Need to file 2012 taxes S. Need to file 2012 taxes Government as a nonresident alien both within the United States and abroad. Need to file 2012 taxes You retired and began to receive a monthly annuity of $240. Need to file 2012 taxes Your total basic pay for your services for the U. Need to file 2012 taxes S. Need to file 2012 taxes 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. Need to file 2012 taxes The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Need to file 2012 taxes S. Need to file 2012 taxes source income. Need to file 2012 taxes The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Need to file 2012 taxes You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Need to file 2012 taxes Worksheet C. Need to file 2012 taxes Limited Taxable Amount for Nonresident Alien — Example 2 1. Need to file 2012 taxes 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. Need to file 2012 taxes $ 1,980 2. Need to file 2012 taxes Enter the total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay other than tax-exempt pay for services performed outside the United States 2. Need to file 2012 taxes 40,000 3. Need to file 2012 taxes Enter the total U. Need to file 2012 taxes S. Need to file 2012 taxes Government basic pay for all services 3. Need to file 2012 taxes 120,000 4. Need to file 2012 taxes Divide line 2 by line 3 4. Need to file 2012 taxes . Need to file 2012 taxes 333 5. Need to file 2012 taxes Limited taxable amount. Need to file 2012 taxes Multiply line 1 by line 4. Need to file 2012 taxes Enter this amount on Form 1040NR, line 17b 5. Need to file 2012 taxes 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Need to file 2012 taxes (However, see Roth TSP balance and Uniformed services TSP accounts, next. Need to file 2012 taxes ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Need to file 2012 taxes The way that you withdraw your account balance determines when you must pay the tax. Need to file 2012 taxes Roth TSP balance. Need to file 2012 taxes   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Need to file 2012 taxes This means Roth TSP contributions are included in your income. Need to file 2012 taxes The contribution limits are the same as the traditional TSP. Need to file 2012 taxes You can elect to have part or all of your TSP contributions designated as a Roth TSP. Need to file 2012 taxes Agency contributions will be part of your traditional TSP balance. Need to file 2012 taxes Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Need to file 2012 taxes   Qualified distributions from your Roth TSP are not included in income. Need to file 2012 taxes This applies to both your cost in the account and income earned on that account. Need to file 2012 taxes 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. Need to file 2012 taxes   For more information, go to the TSP website, www. Need to file 2012 taxes tsp. Need to file 2012 taxes gov, or the TSP Service Office. Need to file 2012 taxes See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Need to file 2012 taxes Uniformed services TSP accounts. Need to file 2012 taxes   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Need to file 2012 taxes However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Need to file 2012 taxes See Roth TSP balance discussed previously to get more information about Roth contributions. Need to file 2012 taxes 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. Need to file 2012 taxes You can get more information from the TSP website, www. Need to file 2012 taxes tsp. Need to file 2012 taxes gov, or the TSP Service Office. Need to file 2012 taxes Direct rollover by the TSP. Need to file 2012 taxes   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. Need to file 2012 taxes However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Need to file 2012 taxes Also, see Rollover Rules , later. Need to file 2012 taxes Direct rollover by the TSP to a Roth IRA. Need to file 2012 taxes   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. Need to file 2012 taxes However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Need to file 2012 taxes Also, see Rollovers to Roth IRAs for more information, later. Need to file 2012 taxes Note. Need to file 2012 taxes 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. Need to file 2012 taxes This is because you already paid tax on those contributions. Need to file 2012 taxes You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Need to file 2012 taxes TSP annuity. Need to file 2012 taxes   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. Need to file 2012 taxes The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Need to file 2012 taxes 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. Need to file 2012 taxes See Roth TSP balance , earlier. Need to file 2012 taxes This is because you already paid tax on those contributions. Need to file 2012 taxes Cash withdrawals. Need to file 2012 taxes   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. Need to file 2012 taxes (See Rollover Rules , later. Need to file 2012 taxes ) 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. Need to file 2012 taxes See Lump-Sum Distributions in Publication 575 for details. Need to file 2012 taxes However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Need to file 2012 taxes See Roth TSP balance , earlier. Need to file 2012 taxes    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Need to file 2012 taxes   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. Need to file 2012 taxes 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. Need to file 2012 taxes See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Need to file 2012 taxes 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. Need to file 2012 taxes See Roth TSP balance , earlier, for a discussion of those conditions. Need to file 2012 taxes Tax on early distributions. Need to file 2012 taxes   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. Need to file 2012 taxes However, this additional tax does not apply in certain situations, including any of the following. Need to file 2012 taxes You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Need to file 2012 taxes You choose to receive your account balance in monthly payments based on your life expectancy. Need to file 2012 taxes You are totally and permanently disabled. Need to file 2012 taxes You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Need to file 2012 taxes The earnings may be subject to the 10% tax depending on whether you met certain conditions. Need to file 2012 taxes See Roth TSP balance , earlier. Need to file 2012 taxes   For more information, see Tax on Early Distributions in Publication 575. Need to file 2012 taxes Outstanding loan. Need to file 2012 taxes   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. Need to file 2012 taxes The distribution also may be subject to the additional 10% tax on early distributions. Need to file 2012 taxes 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. Need to file 2012 taxes See Rollover Rules , later. Need to file 2012 taxes   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. Need to file 2012 taxes However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Need to file 2012 taxes See Roth TSP balance , earlier. Need to file 2012 taxes More information. Need to file 2012 taxes   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Need to file 2012 taxes 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). Need to file 2012 taxes    The above documents are also available on the TSP website at www. Need to file 2012 taxes tsp. Need to file 2012 taxes gov. Need to file 2012 taxes Select “Forms & Publications. Need to file 2012 taxes ” 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. Need to file 2012 taxes You do not include the amount rolled over in your income, and you cannot take a deduction for it. Need to file 2012 taxes The amount rolled over is taxed later as the new program pays that amount to you. Need to file 2012 taxes 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. Need to file 2012 taxes 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. Need to file 2012 taxes To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Need to file 2012 taxes You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Need to file 2012 taxes 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. Need to file 2012 taxes See Rollovers to Roth IRAs , later, for more information. Need to file 2012 taxes Qualified retirement plan. Need to file 2012 taxes   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. Need to file 2012 taxes The CSRS, FERS, and TSP are considered qualified retirement plans. Need to file 2012 taxes Distributions eligible for rollover treatment. Need to file 2012 taxes   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. Need to file 2012 taxes You cannot roll over any part of your CSRS or FERS annuity payments. Need to file 2012 taxes   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. Need to file 2012 taxes   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Need to file 2012 taxes However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Need to file 2012 taxes Direct rollover option. Need to file 2012 taxes   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. Need to file 2012 taxes   There is an automatic rollover requirement for mandatory distributions. Need to file 2012 taxes A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Need to file 2012 taxes The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Need to file 2012 taxes 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. Need to file 2012 taxes If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Need to file 2012 taxes No tax withheld. Need to file 2012 taxes   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. Need to file 2012 taxes 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. Need to file 2012 taxes Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Need to file 2012 taxes Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Need to file 2012 taxes Payment to you option. Need to file 2012 taxes   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. Need to file 2012 taxes However, the full amount is treated as distributed to you even though you actually receive only 80%. Need to file 2012 taxes You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. Need to file 2012 taxes Rollovers to Roth IRAs are generally included in income. Need to file 2012 taxes Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Need to file 2012 taxes 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. Need to file 2012 taxes 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). Need to file 2012 taxes Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Need to file 2012 taxes See Roth TSP balance , earlier. Need to file 2012 taxes Also, see Tax on Early Distributions in Publication 575. Need to file 2012 taxes Exception to withholding. Need to file 2012 taxes   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Need to file 2012 taxes Partial rollovers. Need to file 2012 taxes   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. Need to file 2012 taxes See Lump-Sum Distributions in Publication 575. Need to file 2012 taxes However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Need to file 2012 taxes Rolling over more than amount received. Need to file 2012 taxes   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). Need to file 2012 taxes Example. Need to file 2012 taxes You left government service at age 53. Need to file 2012 taxes On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you