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1040 Ez 2013 Tax Form

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1040 Ez 2013 Tax Form

1040 ez 2013 tax form 1. 1040 ez 2013 tax form   Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. 1040 ez 2013 tax form Employee. 1040 ez 2013 tax form Other payee. 1040 ez 2013 tax form Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. 1040 ez 2013 tax form Earning credits in 2013 and 2014. 1040 ez 2013 tax form Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. 1040 ez 2013 tax form Penalties. 1040 ez 2013 tax form Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. 1040 ez 2013 tax form It also discusses taxpayer identification numbers. 1040 ez 2013 tax form Table 1-1 lists the benefits of filing electronically. 1040 ez 2013 tax form Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. 1040 ez 2013 tax form Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. 1040 ez 2013 tax form You may want to get Publication 509, Tax Calendars. 1040 ez 2013 tax form It has tax calendars that tell you when to file returns and make tax payments. 1040 ez 2013 tax form Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. 1040 ez 2013 tax form S. 1040 ez 2013 tax form Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. 1040 ez 2013 tax form Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. 1040 ez 2013 tax form Social security number (SSN). 1040 ez 2013 tax form   Generally, use your SSN as your taxpayer identification number. 1040 ez 2013 tax form You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. 1040 ez 2013 tax form   To apply for an SSN, use Form SS-5, Application for a Social Security Card. 1040 ez 2013 tax form This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. 1040 ez 2013 tax form It is also available from the SSA website at www. 1040 ez 2013 tax form socialsecurity. 1040 ez 2013 tax form gov. 1040 ez 2013 tax form Individual taxpayer identification number (ITIN). 1040 ez 2013 tax form   The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. 1040 ez 2013 tax form In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. 1040 ez 2013 tax form  Internal Revenue Service ITIN Operation P. 1040 ez 2013 tax form O. 1040 ez 2013 tax form Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. 1040 ez 2013 tax form If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. 1040 ez 2013 tax form The application is also available in Spanish. 1040 ez 2013 tax form The form is available at IRS. 1040 ez 2013 tax form gov or you can call 1-800-829-3676 to order the form. 1040 ez 2013 tax form    An ITIN is for tax use only. 1040 ez 2013 tax form It does not entitle the holder to social security benefits or change the holder's employment or immigration status. 1040 ez 2013 tax form Employer identification number (EIN). 1040 ez 2013 tax form   You must also have an EIN to use as a taxpayer identification number if you do either of the following. 1040 ez 2013 tax form Pay wages to one or more employees. 1040 ez 2013 tax form File pension or excise tax returns. 1040 ez 2013 tax form   If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. 1040 ez 2013 tax form   You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. 1040 ez 2013 tax form irs. 1040 ez 2013 tax form gov/businesses/small. 1040 ez 2013 tax form The EIN is issued immediately once the application information is validated. 1040 ez 2013 tax form By telephone at 1-800-829-4933. 1040 ez 2013 tax form By mailing or faxing Form SS-4, Application for Employer Identification Number. 1040 ez 2013 tax form New EIN. 1040 ez 2013 tax form   You may need to get a new EIN if either the form or the ownership of your business changes. 1040 ez 2013 tax form For more information, see Publication 1635, Understanding Your EIN. 1040 ez 2013 tax form When you need identification numbers of other persons. 1040 ez 2013 tax form   In operating your business, you will probably make certain payments you must report on information returns. 1040 ez 2013 tax form These payments are discussed under Information Returns, later in this chapter. 1040 ez 2013 tax form You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. 1040 ez 2013 tax form You must include the payee's identification number and your identification number on the returns and statements. 1040 ez 2013 tax form Employee. 1040 ez 2013 tax form   If you have employees, you must get an SSN from each of them. 1040 ez 2013 tax form Record the name and SSN of each employee exactly as they are shown on the employee's social security card. 1040 ez 2013 tax form If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. 1040 ez 2013 tax form This may occur if the employee's name was changed due to marriage or divorce. 1040 ez 2013 tax form   Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. 1040 ez 2013 tax form   If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. 1040 ez 2013 tax form Other payee. 1040 ez 2013 tax form   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. 1040 ez 2013 tax form If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. 1040 ez 2013 tax form   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. 1040 ez 2013 tax form   A payee who does not provide you with an identification number may be subject to backup withholding. 1040 ez 2013 tax form For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. 1040 ez 2013 tax form Income Tax This part explains whether you have to file an income tax return and when you file it. 1040 ez 2013 tax form It also explains how you pay the tax. 1040 ez 2013 tax form Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. 1040 ez 2013 tax form If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. 1040 ez 2013 tax form How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. 1040 ez 2013 tax form Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. 1040 ez 2013 tax form Use Schedule C to figure your net profit or loss from your business. 1040 ez 2013 tax form If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. 1040 ez 2013 tax form You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. 1040 ez 2013 tax form IRS e-file (Electronic Filing) Please click here for the text description of the image. 1040 ez 2013 tax form E-file logo You may be able to file your tax returns electronically using an IRS e-file option. 1040 ez 2013 tax form Table 1-1 lists the benefits of IRS e-file. 1040 ez 2013 tax form IRS e-file uses automation to replace most of the manual steps needed to process paper returns. 1040 ez 2013 tax form As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. 1040 ez 2013 tax form As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. 1040 ez 2013 tax form Using e-file does not affect your chances of an IRS examination of your return. 1040 ez 2013 tax form You can file most commonly used business forms using IRS e-file. 1040 ez 2013 tax form For more information, visit IRS. 1040 ez 2013 tax form gov. 1040 ez 2013 tax form Electronic signatures. 1040 ez 2013 tax form   Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. 1040 ez 2013 tax form If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. 1040 ez 2013 tax form If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. 1040 ez 2013 tax form    To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). 1040 ez 2013 tax form You will also need to provide your date of birth (DOB). 1040 ez 2013 tax form Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. 1040 ez 2013 tax form To do this, check your annual Social Security Statement. 1040 ez 2013 tax form   With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. 1040 ez 2013 tax form For more details on the Self-Select PIN program, visit IRS. 1040 ez 2013 tax form gov. 1040 ez 2013 tax form State returns. 1040 ez 2013 tax form   In most states, you can file an electronic state return simultaneously with your federal return. 1040 ez 2013 tax form For more information, check with your local IRS office, state tax agency, tax professional, or IRS. 1040 ez 2013 tax form gov. 1040 ez 2013 tax form Refunds. 1040 ez 2013 tax form   You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. 1040 ez 2013 tax form   With e-file, your refund will be issued in half the time as when filing on paper. 1040 ez 2013 tax form Most refunds are issued within 3 weeks. 1040 ez 2013 tax form If you choose Direct Deposit, you can receive your refund in as few as 10 days. 1040 ez 2013 tax form Offset against debts. 1040 ez 2013 tax form   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. 1040 ez 2013 tax form You will be notified if the refund you claimed has been offset against your debts. 1040 ez 2013 tax form Refund inquiries. 1040 ez 2013 tax form   You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. 1040 ez 2013 tax form Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. 1040 ez 2013 tax form To check on your refund, do one of the following. 1040 ez 2013 tax form Go to IRS. 1040 ez 2013 tax form gov and click on Where's My Refund. 1040 ez 2013 tax form Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. 1040 ez 2013 tax form Call 1-800-829-1954 during the hours shown in your form instructions. 1040 ez 2013 tax form Balance due. 1040 ez 2013 tax form   If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. 1040 ez 2013 tax form You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. 1040 ez 2013 tax form Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. 1040 ez 2013 tax form You have two options. 1040 ez 2013 tax form You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. 1040 ez 2013 tax form You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. 1040 ez 2013 tax form You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. 1040 ez 2013 tax form Depending on the provider and the specific services requested, a fee may be charged. 1040 ez 2013 tax form To find an authorized IRS e-file provider near you, go to IRS. 1040 ez 2013 tax form gov or look for an “Authorized IRS e-file Provider” sign. 1040 ez 2013 tax form Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. 1040 ez 2013 tax form When you use your personal computer, you can e-file your return from your home any time of the day or night. 1040 ez 2013 tax form Sign your return electronically using a self-selected PIN to complete the process. 1040 ez 2013 tax form There is no signature form to submit or Forms W-2 to send in. 1040 ez 2013 tax form Free Internet filing options. 1040 ez 2013 tax form   More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. 1040 ez 2013 tax form gov or www. 1040 ez 2013 tax form usa. 1040 ez 2013 tax form gov. 1040 ez 2013 tax form The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. 1040 ez 2013 tax form Security and privacy certificate programs will assure tax data is safe and secure. 1040 ez 2013 tax form To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. 1040 ez 2013 tax form gov. 1040 ez 2013 tax form   If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. 1040 ez 2013 tax form You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. 1040 ez 2013 tax form Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. 1040 ez 2013 tax form Others offer it for a fee. 1040 ez 2013 tax form Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. 1040 ez 2013 tax form Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. 1040 ez 2013 tax form The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. 1040 ez 2013 tax form Some locations offer free electronic filing. 1040 ez 2013 tax form Table 1-1. 1040 ez 2013 tax form Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. 1040 ez 2013 tax form Security • Your privacy and security are assured. 1040 ez 2013 tax form Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. 1040 ez 2013 tax form There is nothing to mail. 1040 ez 2013 tax form Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. 1040 ez 2013 tax form Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. 1040 ez 2013 tax form Free Internet filing options • Use IRS. 1040 ez 2013 tax form gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. 1040 ez 2013 tax form Electronic payment options • Convenient, safe, and secure electronic payment options are available. 1040 ez 2013 tax form E-file and pay your taxes in a single step. 1040 ez 2013 tax form Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. 1040 ez 2013 tax form Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. 1040 ez 2013 tax form When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. 1040 ez 2013 tax form If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. 1040 ez 2013 tax form If you file late, you may have to pay penalties and interest. 1040 ez 2013 tax form If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. 1040 ez 2013 tax form S. 1040 ez 2013 tax form Individual Income Tax Return, to request an automatic 6-month extension. 1040 ez 2013 tax form For calendar year taxpayers, this will extend the tax filing due date until October 15. 1040 ez 2013 tax form Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. 1040 ez 2013 tax form How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. 1040 ez 2013 tax form You must pay it as you earn or receive income during the year. 1040 ez 2013 tax form An employee usually has income tax withheld from his or her pay. 1040 ez 2013 tax form If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 1040 ez 2013 tax form You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. 1040 ez 2013 tax form Use Form 1040-ES to figure and pay the tax. 1040 ez 2013 tax form If you do not have to make estimated tax payments, you can pay any tax due when you file your return. 1040 ez 2013 tax form For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. 1040 ez 2013 tax form What are my payment options?   You can pay your estimated tax electronically using various options. 1040 ez 2013 tax form If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. 1040 ez 2013 tax form These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). 1040 ez 2013 tax form Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. 1040 ez 2013 tax form Paying by credit or debit card over the phone or by Internet. 1040 ez 2013 tax form Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. 1040 ez 2013 tax form EFTPS    To enroll in EFTPS, go to www. 1040 ez 2013 tax form eftps. 1040 ez 2013 tax form gov or call 1-800-555-4477. 1040 ez 2013 tax form When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. 1040 ez 2013 tax form Benefits of EFTPS: The chance of an error in making your payments is reduced. 1040 ez 2013 tax form You receive immediate confirmation of every transaction. 1040 ez 2013 tax form Penalty for underpayment of tax. 1040 ez 2013 tax form   If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. 1040 ez 2013 tax form The IRS will figure the penalty for you and send you a bill. 1040 ez 2013 tax form Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. 1040 ez 2013 tax form For more information, see Publication 505. 1040 ez 2013 tax form Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. 1040 ez 2013 tax form It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. 1040 ez 2013 tax form If you earned income as a statutory employee, you do not pay SE tax on that income. 1040 ez 2013 tax form Social security coverage. 1040 ez 2013 tax form   Social security benefits are available to self-employed persons just as they are to wage earners. 1040 ez 2013 tax form Your payments of SE tax contribute to your coverage under the social security system. 1040 ez 2013 tax form Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. 1040 ez 2013 tax form By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. 1040 ez 2013 tax form How to become insured under social security. 1040 ez 2013 tax form   You must be insured under the social security system before you begin receiving social security benefits. 1040 ez 2013 tax form You are insured if you have the required number of credits (also called quarters of coverage), discussed next. 1040 ez 2013 tax form Earning credits in 2013 and 2014. 1040 ez 2013 tax form   For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. 1040 ez 2013 tax form Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). 1040 ez 2013 tax form   For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. 1040 ez 2013 tax form    Making false statements to get or to increase social security benefits may subject you to penalties. 1040 ez 2013 tax form The Social Security Administration (SSA) time limit for posting self-employment income. 1040 ez 2013 tax form   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. 1040 ez 2013 tax form If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. 1040 ez 2013 tax form The SSA will not change its records to increase your self-employment income. 1040 ez 2013 tax form Who must pay self-employment tax. 1040 ez 2013 tax form   You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. 1040 ez 2013 tax form Your net earnings from self-employment (excluding church employee income) were $400 or more. 1040 ez 2013 tax form You had church employee income of $108. 1040 ez 2013 tax form 28 or more. 1040 ez 2013 tax form The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. 1040 ez 2013 tax form SE tax rate. 1040 ez 2013 tax form   For 2013, the SE tax rate on net earnings is 15. 1040 ez 2013 tax form 3% (12. 1040 ez 2013 tax form 4% social security tax plus 2. 1040 ez 2013 tax form 9% Medicare tax). 1040 ez 2013 tax form Maximum earnings subject to SE tax. 1040 ez 2013 tax form   Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. 1040 ez 2013 tax form 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. 1040 ez 2013 tax form   All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. 1040 ez 2013 tax form 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. 1040 ez 2013 tax form   If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. 1040 ez 2013 tax form 4% social security part of the SE tax on any of your net earnings. 1040 ez 2013 tax form However, you must pay the 2. 1040 ez 2013 tax form 9% Medicare part of the SE tax on all your net earnings. 1040 ez 2013 tax form Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. 1040 ez 2013 tax form   More information. 1040 ez 2013 tax form   For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. 1040 ez 2013 tax form Table 1-2. 1040 ez 2013 tax form Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of  tax year. 1040 ez 2013 tax form Self-employment tax Schedule SE File with Form 1040. 1040 ez 2013 tax form Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. 1040 ez 2013 tax form Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. 1040 ez 2013 tax form     See Publication 15. 1040 ez 2013 tax form Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee)  W-2 and W-3 (to the Social Security Administration) January 313. 1040 ez 2013 tax form   Last day of February (March 31 if filing electronically)3. 1040 ez 2013 tax form Federal unemployment (FUTA) tax 940 January 313. 1040 ez 2013 tax form     April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. 1040 ez 2013 tax form Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). 1040 ez 2013 tax form     Other forms – see the General Instructions for Certain Information Returns. 1040 ez 2013 tax form Excise tax See Excise Taxes See the instructions to the forms. 1040 ez 2013 tax form 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. 1040 ez 2013 tax form For more information, see Publication 509, Tax Calendars. 1040 ez 2013 tax form 2 File a separate schedule for each business. 1040 ez 2013 tax form 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. 1040 ez 2013 tax form     Employment Taxes If you have employees, you will need to file forms to report employment taxes. 1040 ez 2013 tax form Employment taxes include the following items. 1040 ez 2013 tax form Social security and Medicare taxes. 1040 ez 2013 tax form Federal income tax withholding. 1040 ez 2013 tax form Federal unemployment (FUTA) tax. 1040 ez 2013 tax form For more information, see Publication 15 (Circular E), Employer's Tax Guide. 1040 ez 2013 tax form That publication explains your tax responsibilities as an employer. 1040 ez 2013 tax form To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. 1040 ez 2013 tax form That publication has information to help you determine whether an individual is an independent contractor or an employee. 1040 ez 2013 tax form If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. 1040 ez 2013 tax form An independent contractor is someone who is self-employed. 1040 ez 2013 tax form You do not generally have to withhold or pay any taxes on payments made to an independent contractor. 1040 ez 2013 tax form Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. 1040 ez 2013 tax form Manufacture or sell certain products. 1040 ez 2013 tax form Operate certain kinds of businesses. 1040 ez 2013 tax form Use various kinds of equipment, facilities, or products. 1040 ez 2013 tax form Receive payment for certain services. 1040 ez 2013 tax form For more information on excise taxes, see Publication 510, Excise Taxes. 1040 ez 2013 tax form Form 720. 1040 ez 2013 tax form   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. 1040 ez 2013 tax form Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. 1040 ez 2013 tax form Communications and air transportation taxes. 1040 ez 2013 tax form Fuel taxes. 1040 ez 2013 tax form Tax on the first retail sale of heavy trucks, trailers, and tractors. 1040 ez 2013 tax form Manufacturers taxes on the sale or use of a variety of different articles. 1040 ez 2013 tax form Tax on indoor tanning services. 1040 ez 2013 tax form Form 2290. 1040 ez 2013 tax form   There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. 1040 ez 2013 tax form The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. 1040 ez 2013 tax form Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. 1040 ez 2013 tax form For more information, see the Instructions for Form 2290. 1040 ez 2013 tax form Depositing excise taxes. 1040 ez 2013 tax form   If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. 1040 ez 2013 tax form For details on depositing excise taxes, see the Instructions for Form 720. 1040 ez 2013 tax form Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. 1040 ez 2013 tax form The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. 1040 ez 2013 tax form You must give a copy of each information return you are required to file to the recipient or payer. 1040 ez 2013 tax form In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. 1040 ez 2013 tax form For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. 1040 ez 2013 tax form Form 1099-MISC. 1040 ez 2013 tax form   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. 1040 ez 2013 tax form These payments include the following items. 1040 ez 2013 tax form Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. 1040 ez 2013 tax form Rent payments of $600 or more, other than rents paid to real estate agents. 1040 ez 2013 tax form Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. 1040 ez 2013 tax form Royalty payments of $10 or more. 1040 ez 2013 tax form Payments to certain crew members by operators of fishing boats. 1040 ez 2013 tax form You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. 1040 ez 2013 tax form Form W-2. 1040 ez 2013 tax form   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. 1040 ez 2013 tax form You can file Form W-2 online. 1040 ez 2013 tax form For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. 1040 ez 2013 tax form Penalties. 1040 ez 2013 tax form   The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. 1040 ez 2013 tax form For more information, see the General Instructions for Certain Information Returns. 1040 ez 2013 tax form Failure to file information returns. 1040 ez 2013 tax form This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. 1040 ez 2013 tax form Failure to furnish correct payee statements. 1040 ez 2013 tax form This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. 1040 ez 2013 tax form Waiver of penalties. 1040 ez 2013 tax form   These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. 1040 ez 2013 tax form   In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. 1040 ez 2013 tax form (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. 1040 ez 2013 tax form ) Form 8300. 1040 ez 2013 tax form   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or two or more related business transactions. 1040 ez 2013 tax form Cash includes U. 1040 ez 2013 tax form S. 1040 ez 2013 tax form and foreign coin and currency. 1040 ez 2013 tax form It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. 1040 ez 2013 tax form Cash does not include a check drawn on an individual's personal account (personal check). 1040 ez 2013 tax form For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). 1040 ez 2013 tax form Penalties. 1040 ez 2013 tax form   There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. 1040 ez 2013 tax form Table 1-3. 1040 ez 2013 tax form Going Out of Business Checklists (Note. 1040 ez 2013 tax form The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. 1040 ez 2013 tax form For more information, see the instructions for the listed forms. 1040 ez 2013 tax form ) IF you are liable for:   THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. 1040 ez 2013 tax form   □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. 1040 ez 2013 tax form   □ File Form 8594 with your Form 1040 if you sold your business. 1040 ez 2013 tax form Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. 1040 ez 2013 tax form Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. 1040 ez 2013 tax form Note. 1040 ez 2013 tax form Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. 1040 ez 2013 tax form   □ File Form 940 for the calendar year in which final wages were paid. 1040 ez 2013 tax form Note. 1040 ez 2013 tax form Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. 1040 ez 2013 tax form Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. 1040 ez 2013 tax form Note. 1040 ez 2013 tax form These forms are generally due by the due date of your final Form 941 or Form 944. 1040 ez 2013 tax form   □ File Form W-3 to file Forms W-2. 1040 ez 2013 tax form Note. 1040 ez 2013 tax form These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. 1040 ez 2013 tax form   □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. 1040 ez 2013 tax form   □ File Form 1096 to file Forms 1099-MISC. 1040 ez 2013 tax form Prev  Up  Next   Home   More Online 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The 1040 Ez 2013 Tax Form

1040 ez 2013 tax form 1. 1040 ez 2013 tax form   Traditional IRAs Table of Contents What's New for 2013 What's New for 2014 Introduction Who Can Open a Traditional IRA?What Is Compensation? When Can a Traditional IRA Be Opened? How Can a Traditional IRA Be Opened?Individual Retirement Account Individual Retirement Annuity Individual Retirement Bonds Simplified Employee Pension (SEP) Employer and Employee Association Trust Accounts Required Disclosures How Much Can Be Contributed?Limit. 1040 ez 2013 tax form When repayment contributions can be made. 1040 ez 2013 tax form No deduction. 1040 ez 2013 tax form Reserve component. 1040 ez 2013 tax form Figuring your IRA deduction. 1040 ez 2013 tax form Reporting the repayment. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form General Limit Kay Bailey Hutchison Spousal IRA Limit Filing Status Less Than Maximum Contributions More Than Maximum Contributions When Can Contributions Be Made? How Much Can You Deduct?Kay Bailey Hutchison Spousal IRA. 1040 ez 2013 tax form Are You Covered by an Employer Plan? Limit if Covered by Employer Plan Reporting Deductible Contributions Nondeductible Contributions Examples — Worksheet for Reduced IRA Deduction for 2013 What if You Inherit an IRA?Treating it as your own. 1040 ez 2013 tax form Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. 1040 ez 2013 tax form Trustee-to-Trustee Transfer Rollovers Transfers Incident To Divorce Converting From Any Traditional IRA Into a Roth IRA Recharacterizations When Can You Withdraw or Use Assets?Contributions Returned Before Due Date of Return When Must You Withdraw Assets? (Required Minimum Distributions)IRA Owners IRA Beneficiaries Which Table Do You Use To Determine Your Required Minimum Distribution? What Age(s) Do You Use With the Table(s)? Miscellaneous Rules for Required Minimum Distributions Are Distributions Taxable?January 2013 QCDs treated as made in 2012. 1040 ez 2013 tax form 2013 Reporting. 1040 ez 2013 tax form Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. 1040 ez 2013 tax form One-time transfer. 1040 ez 2013 tax form Testing period rules apply. 1040 ez 2013 tax form More information. 1040 ez 2013 tax form Distributions Fully or Partly Taxable Figuring the Nontaxable and Taxable Amounts Recognizing Losses on Traditional IRA Investments Other Special IRA Distribution Situations Reporting and Withholding Requirements for Taxable Amounts What Acts Result in Penalties or Additional Taxes?Prohibited Transactions Investment in Collectibles Excess Contributions Early Distributions Excess Accumulations (Insufficient Distributions) Reporting Additional Taxes What's New for 2013 Traditional IRA contribution and deduction limit. 1040 ez 2013 tax form  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. 1040 ez 2013 tax form If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. 1040 ez 2013 tax form For more information, see How Much Can Be Contributed? in this chapter. 1040 ez 2013 tax form Modified AGI limit for traditional IRA contributions increased. 1040 ez 2013 tax form  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. 1040 ez 2013 tax form If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. 1040 ez 2013 tax form If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. 1040 ez 2013 tax form See How Much Can You Deduct? in this chapter. 1040 ez 2013 tax form Net Investment Income Tax. 1040 ez 2013 tax form  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). 1040 ez 2013 tax form However, these distributions are taken into account when determining the modified adjusted gross income threshold. 1040 ez 2013 tax form Distributions from a nonqualified retirement plan are included in net investment income. 1040 ez 2013 tax form See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. 1040 ez 2013 tax form What's New for 2014 Modified AGI limit for traditional IRA contributions increased. 1040 ez 2013 tax form  For 2014, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er), More than $60,000 but less than $70,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. 1040 ez 2013 tax form If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. 1040 ez 2013 tax form If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. 1040 ez 2013 tax form Introduction This chapter discusses the original IRA. 1040 ez 2013 tax form In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. 1040 ez 2013 tax form ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. 1040 ez 2013 tax form The following are two advantages of a traditional IRA: You may be able to deduct some or all of your contributions to it, depending on your circumstances. 1040 ez 2013 tax form Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. 1040 ez 2013 tax form Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. 1040 ez 2013 tax form You can have a traditional IRA whether or not you are covered by any other retirement plan. 1040 ez 2013 tax form However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. 1040 ez 2013 tax form See How Much Can You Deduct , later. 1040 ez 2013 tax form Both spouses have compensation. 1040 ez 2013 tax form   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. 1040 ez 2013 tax form You cannot both participate in the same IRA. 1040 ez 2013 tax form If you file a joint return, only one of you needs to have compensation. 1040 ez 2013 tax form What Is Compensation? Generally, compensation is what you earn from working. 1040 ez 2013 tax form For a summary of what compensation does and does not include, see Table 1-1. 1040 ez 2013 tax form Compensation includes all of the items discussed next (even if you have more than one type). 1040 ez 2013 tax form Wages, salaries, etc. 1040 ez 2013 tax form   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. 1040 ez 2013 tax form The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). 1040 ez 2013 tax form Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. 1040 ez 2013 tax form Commissions. 1040 ez 2013 tax form   An amount you receive that is a percentage of profits or sales price is compensation. 1040 ez 2013 tax form Self-employment income. 1040 ez 2013 tax form   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deduction allowed for the deductible part of your self-employment taxes. 1040 ez 2013 tax form   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. 1040 ez 2013 tax form Self-employment loss. 1040 ez 2013 tax form   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. 1040 ez 2013 tax form Alimony and separate maintenance. 1040 ez 2013 tax form   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. 1040 ez 2013 tax form Nontaxable combat pay. 1040 ez 2013 tax form   If you were a member of the U. 1040 ez 2013 tax form S. 1040 ez 2013 tax form Armed Forces, compensation includes any nontaxable combat pay you received. 1040 ez 2013 tax form This amount should be reported in box 12 of your 2013 Form W-2 with code Q. 1040 ez 2013 tax form Table 1-1. 1040 ez 2013 tax form Compensation for Purposes of an IRA Includes . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form Does not include . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form   earnings and profits from property. 1040 ez 2013 tax form wages, salaries, etc. 1040 ez 2013 tax form     interest and dividend income. 1040 ez 2013 tax form commissions. 1040 ez 2013 tax form     pension or annuity income. 1040 ez 2013 tax form self-employment income. 1040 ez 2013 tax form     deferred compensation. 1040 ez 2013 tax form alimony and separate maintenance. 1040 ez 2013 tax form     income from certain  partnerships. 1040 ez 2013 tax form nontaxable combat pay. 1040 ez 2013 tax form     any amounts you exclude from income. 1040 ez 2013 tax form     What Is Not Compensation? Compensation does not include any of the following items. 1040 ez 2013 tax form Earnings and profits from property, such as rental income, interest income, and dividend income. 1040 ez 2013 tax form Pension or annuity income. 1040 ez 2013 tax form Deferred compensation received (compensation payments postponed from a past year). 1040 ez 2013 tax form Income from a partnership for which you do not provide services that are a material income-producing factor. 1040 ez 2013 tax form Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. 1040 ez 2013 tax form Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. 1040 ez 2013 tax form When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. 1040 ez 2013 tax form However, the time for making contributions for any year is limited. 1040 ez 2013 tax form See When Can Contributions Be Made , later. 1040 ez 2013 tax form How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. 1040 ez 2013 tax form You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. 1040 ez 2013 tax form You can also open an IRA through your stockbroker. 1040 ez 2013 tax form Any IRA must meet Internal Revenue Code requirements. 1040 ez 2013 tax form The requirements for the various arrangements are discussed below. 1040 ez 2013 tax form Kinds of traditional IRAs. 1040 ez 2013 tax form   Your traditional IRA can be an individual retirement account or annuity. 1040 ez 2013 tax form It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. 1040 ez 2013 tax form Individual Retirement Account An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. 1040 ez 2013 tax form The account is created by a written document. 1040 ez 2013 tax form The document must show that the account meets all of the following requirements. 1040 ez 2013 tax form The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. 1040 ez 2013 tax form The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. 1040 ez 2013 tax form However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. 1040 ez 2013 tax form Contributions, except for rollover contributions, must be in cash. 1040 ez 2013 tax form See Rollovers , later. 1040 ez 2013 tax form You must have a nonforfeitable right to the amount at all times. 1040 ez 2013 tax form Money in your account cannot be used to buy a life insurance policy. 1040 ez 2013 tax form Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. 1040 ez 2013 tax form You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. 1040 ez 2013 tax form See When Must You Withdraw Assets? (Required Minimum Distributions) , later. 1040 ez 2013 tax form Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. 1040 ez 2013 tax form An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. 1040 ez 2013 tax form An individual retirement annuity must meet all the following requirements. 1040 ez 2013 tax form Your entire interest in the contract must be nonforfeitable. 1040 ez 2013 tax form The contract must provide that you cannot transfer any portion of it to any person other than the issuer. 1040 ez 2013 tax form There must be flexible premiums so that if your compensation changes, your payment can also change. 1040 ez 2013 tax form This provision applies to contracts issued after November 6, 1978. 1040 ez 2013 tax form The contract must provide that contributions cannot be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. 1040 ez 2013 tax form Distributions must begin by April 1 of the year following the year in which you reach age 70½. 1040 ez 2013 tax form See When Must You Withdraw Assets? (Required Minimum Distributions) , later. 1040 ez 2013 tax form Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. 1040 ez 2013 tax form The bonds have the following features. 1040 ez 2013 tax form They stop earning interest when you reach age 70½. 1040 ez 2013 tax form If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. 1040 ez 2013 tax form You cannot transfer the bonds. 1040 ez 2013 tax form If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. 1040 ez 2013 tax form See Age 59½ Rule under Early Distributions, later. 1040 ez 2013 tax form You can roll over redemption proceeds into IRAs. 1040 ez 2013 tax form Simplified Employee Pension (SEP) A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to receive such contributions. 1040 ez 2013 tax form Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. 1040 ez 2013 tax form See Publication 560 for more information about SEPs. 1040 ez 2013 tax form Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members. 1040 ez 2013 tax form The requirements for individual retirement accounts apply to these traditional IRAs. 1040 ez 2013 tax form Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA generally must give you a disclosure statement at least 7 days before you open your IRA. 1040 ez 2013 tax form However, the sponsor does not have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. 1040 ez 2013 tax form The disclosure statement must explain certain items in plain language. 1040 ez 2013 tax form For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. 1040 ez 2013 tax form This explanation must appear at the beginning of the disclosure statement. 1040 ez 2013 tax form If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. 1040 ez 2013 tax form The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. 1040 ez 2013 tax form These requirements apply to all sponsors. 1040 ez 2013 tax form How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. 1040 ez 2013 tax form These limits and rules are explained below. 1040 ez 2013 tax form Community property laws. 1040 ez 2013 tax form   Except as discussed later under Kay Bailey Hutchison Spousal IRA Limit , each spouse figures his or her limit separately, using his or her own compensation. 1040 ez 2013 tax form This is the rule even in states with community property laws. 1040 ez 2013 tax form Brokers' commissions. 1040 ez 2013 tax form   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. 1040 ez 2013 tax form For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. 1040 ez 2013 tax form Trustees' fees. 1040 ez 2013 tax form   Trustees' administrative fees are not subject to the contribution limit. 1040 ez 2013 tax form For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. 1040 ez 2013 tax form Qualified reservist repayments. 1040 ez 2013 tax form   If you were a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined later under Early Distributions) you received. 1040 ez 2013 tax form You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. 1040 ez 2013 tax form To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or a similar arrangement. 1040 ez 2013 tax form Limit. 1040 ez 2013 tax form   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. 1040 ez 2013 tax form When repayment contributions can be made. 1040 ez 2013 tax form   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. 1040 ez 2013 tax form No deduction. 1040 ez 2013 tax form   You cannot deduct qualified reservist repayments. 1040 ez 2013 tax form Reserve component. 1040 ez 2013 tax form   The term “reserve component” means the: Army National Guard of the United States, Army Reserve, Naval Reserve, Marine Corps Reserve, Air National Guard of the United States, Air Force Reserve, Coast Guard Reserve, or Reserve Corps of the Public Health Service. 1040 ez 2013 tax form Figuring your IRA deduction. 1040 ez 2013 tax form   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. 1040 ez 2013 tax form Reporting the repayment. 1040 ez 2013 tax form   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form   In 2013, your IRA contribution limit is $5,500. 1040 ez 2013 tax form However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. 1040 ez 2013 tax form You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). 1040 ez 2013 tax form In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. 1040 ez 2013 tax form   For 2013, you can contribute a total of $8,500 to your IRA. 1040 ez 2013 tax form This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; and a $3,000 qualified reservist repayment. 1040 ez 2013 tax form You contribute the maximum allowable for the year. 1040 ez 2013 tax form Since you are making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $5,000 ($2,000 + $3,000) on line 1 of Form 8606. 1040 ez 2013 tax form The qualified reservist repayment is not deductible. 1040 ez 2013 tax form Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. 1040 ez 2013 tax form See chapter 2 for information about Roth IRAs. 1040 ez 2013 tax form General Limit For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation (defined earlier) for the year. 1040 ez 2013 tax form Note. 1040 ez 2013 tax form This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). 1040 ez 2013 tax form This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. 1040 ez 2013 tax form (See Nondeductible Contributions , later. 1040 ez 2013 tax form ) Qualified reservist repayments do not affect this limit. 1040 ez 2013 tax form Examples. 1040 ez 2013 tax form George, who is 34 years old and single, earns $24,000 in 2013. 1040 ez 2013 tax form His IRA contributions for 2013 are limited to $5,500. 1040 ez 2013 tax form Danny, an unmarried college student working part time, earns $3,500 in 2013. 1040 ez 2013 tax form His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. 1040 ez 2013 tax form More than one IRA. 1040 ez 2013 tax form   If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. 1040 ez 2013 tax form Annuity or endowment contracts. 1040 ez 2013 tax form   If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. 1040 ez 2013 tax form If more than this amount is contributed, the annuity or endowment contract is disqualified. 1040 ez 2013 tax form Kay Bailey Hutchison Spousal IRA Limit For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts: $5,500 ($6,500 if you are age 50 or older), or The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. 1040 ez 2013 tax form Your spouse's IRA contribution for the year to a traditional IRA. 1040 ez 2013 tax form Any contributions for the year to a Roth IRA on behalf of your spouse. 1040 ez 2013 tax form This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is age 50 or older or $13,000 if both of you are age 50 or older). 1040 ez 2013 tax form Note. 1040 ez 2013 tax form This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). 1040 ez 2013 tax form Example. 1040 ez 2013 tax form Kristin, a full-time student with no taxable compensation, marries Carl during the year. 1040 ez 2013 tax form Neither of them was age 50 by the end of 2013. 1040 ez 2013 tax form For the year, Carl has taxable compensation of $30,000. 1040 ez 2013 tax form He plans to contribute (and deduct) $5,500 to a traditional IRA. 1040 ez 2013 tax form If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. 1040 ez 2013 tax form This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the amount of his IRA contribution ($30,000 − $5,500 = $24,500), to her own compensation (-0-) to figure her maximum contribution to a traditional IRA. 1040 ez 2013 tax form In her case, $5,500 is her contribution limit, because $5,500 is less than $24,500 (her compensation for purposes of figuring her contribution limit). 1040 ez 2013 tax form Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit , your filing status has no effect on the amount of allowable contributions to your traditional IRA. 1040 ez 2013 tax form However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. 1040 ez 2013 tax form See How Much Can You Deduct , later. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form Tom and Darcy are married and both are 53. 1040 ez 2013 tax form They both work and each has a traditional IRA. 1040 ez 2013 tax form Tom earned $3,800 and Darcy earned $48,000 in 2013. 1040 ez 2013 tax form Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint return. 1040 ez 2013 tax form They can contribute up to $6,500 to Darcy's IRA. 1040 ez 2013 tax form If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. 1040 ez 2013 tax form Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you cannot contribute more after the due date of your return for that year to make up the difference. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form Rafael, who is 40, earns $30,000 in 2013. 1040 ez 2013 tax form Although he can contribute up to $5,500 for 2013, he contributes only $3,000. 1040 ez 2013 tax form After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). 1040 ez 2013 tax form He cannot contribute $2,500 more than the limit for any later year. 1040 ez 2013 tax form More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. 1040 ez 2013 tax form However, a penalty or additional tax may apply. 1040 ez 2013 tax form See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. 1040 ez 2013 tax form When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). 1040 ez 2013 tax form Contributions must be in the form of money (cash, check, or money order). 1040 ez 2013 tax form Property cannot be contributed. 1040 ez 2013 tax form Although property cannot be contributed, your IRA may invest in certain property. 1040 ez 2013 tax form For example, your IRA may purchase shares of stock. 1040 ez 2013 tax form For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. 1040 ez 2013 tax form You may be able to transfer or roll over certain property from one retirement plan to another. 1040 ez 2013 tax form See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . 1040 ez 2013 tax form You can make a contribution to your IRA by having your income tax refund (or a portion of your refund), if any, paid directly to your traditional IRA, Roth IRA, or SEP IRA. 1040 ez 2013 tax form For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). 1040 ez 2013 tax form Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. 1040 ez 2013 tax form For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. 1040 ez 2013 tax form See Who Can Open a Traditional IRA , earlier. 1040 ez 2013 tax form Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. 1040 ez 2013 tax form Contributions can resume for any years that you qualify. 1040 ez 2013 tax form Contributions must be made by due date. 1040 ez 2013 tax form   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. 1040 ez 2013 tax form For most people, this means that contributions for 2013 must be made by April 15, 2014, and contributions for 2014 must be made by April 15, 2015. 1040 ez 2013 tax form Age 70½ rule. 1040 ez 2013 tax form   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. 1040 ez 2013 tax form   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. 1040 ez 2013 tax form If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. 1040 ez 2013 tax form Designating year for which contribution is made. 1040 ez 2013 tax form   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. 1040 ez 2013 tax form If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). 1040 ez 2013 tax form Filing before a contribution is made. 1040 ez 2013 tax form    You can file your return claiming a traditional IRA contribution before the contribution is actually made. 1040 ez 2013 tax form Generally, the contribution must be made by the due date of your return, not including extensions. 1040 ez 2013 tax form Contributions not required. 1040 ez 2013 tax form   You do not have to contribute to your traditional IRA for every tax year, even if you can. 1040 ez 2013 tax form How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if applicable) explained earlier under How Much Can Be Contributed . 1040 ez 2013 tax form However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. 1040 ez 2013 tax form See Limit if Covered by Employer Plan , later. 1040 ez 2013 tax form You may be able to claim a credit for contributions to your traditional IRA. 1040 ez 2013 tax form For more information, see chapter 4. 1040 ez 2013 tax form Trustees' fees. 1040 ez 2013 tax form   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. 1040 ez 2013 tax form However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). 1040 ez 2013 tax form For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. 1040 ez 2013 tax form Brokers' commissions. 1040 ez 2013 tax form   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. 1040 ez 2013 tax form Full deduction. 1040 ez 2013 tax form   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more of your traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older), or 100% of your compensation. 1040 ez 2013 tax form   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. 1040 ez 2013 tax form Kay Bailey Hutchison Spousal IRA. 1040 ez 2013 tax form   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of: $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. 1040 ez 2013 tax form The IRA deduction for the year of the spouse with the greater compensation. 1040 ez 2013 tax form Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. 1040 ez 2013 tax form Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. 1040 ez 2013 tax form   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. 1040 ez 2013 tax form Note. 1040 ez 2013 tax form If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. 1040 ez 2013 tax form After a divorce or legal separation, you can deduct only the contributions to your own IRA. 1040 ez 2013 tax form Your deductions are subject to the rules for single individuals. 1040 ez 2013 tax form Covered by an employer retirement plan. 1040 ez 2013 tax form   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. 1040 ez 2013 tax form This is discussed later under Limit if Covered by Employer Plan . 1040 ez 2013 tax form Limits on the amount you can deduct do not affect the amount that can be contributed. 1040 ez 2013 tax form Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. 1040 ez 2013 tax form The “Retirement Plan” box should be checked if you were covered. 1040 ez 2013 tax form Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. 1040 ez 2013 tax form If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. 1040 ez 2013 tax form Federal judges. 1040 ez 2013 tax form   For purposes of the IRA deduction, federal judges are covered by an employer plan. 1040 ez 2013 tax form For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. 1040 ez 2013 tax form These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. 1040 ez 2013 tax form Tax year. 1040 ez 2013 tax form   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. 1040 ez 2013 tax form For almost all people, the tax year is the calendar year. 1040 ez 2013 tax form Defined contribution plan. 1040 ez 2013 tax form   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. 1040 ez 2013 tax form However, also see Situations in Which You Are Not Covered , later. 1040 ez 2013 tax form   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. 1040 ez 2013 tax form In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. 1040 ez 2013 tax form The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. 1040 ez 2013 tax form Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form Company A has a money purchase pension plan. 1040 ez 2013 tax form Its plan year is from July 1 to June 30. 1040 ez 2013 tax form The plan provides that contributions must be allocated as of June 30. 1040 ez 2013 tax form Bob, an employee, leaves Company A on December 31, 2012. 1040 ez 2013 tax form The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. 1040 ez 2013 tax form Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. 1040 ez 2013 tax form   A special rule applies to certain plans in which it is not possible to determine if an amount will be contributed to your account for a given plan year. 1040 ez 2013 tax form If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you are not covered for the tax year in which the plan year ends. 1040 ez 2013 tax form If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. 1040 ez 2013 tax form The plan year runs from July 1 to June 30. 1040 ez 2013 tax form Under the terms of the plan, employer contributions do not have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. 1040 ez 2013 tax form Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. 1040 ez 2013 tax form As of June 30, 2013, no contributions were made that were allocated to the June 30, 2013, plan year, and no forfeitures had been allocated within the plan year. 1040 ez 2013 tax form In addition, as of that date, the company was not obligated to make a contribution for such plan year and it was impossible to determine whether or not a contribution would be made for the plan year. 1040 ez 2013 tax form On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. 1040 ez 2013 tax form That contribution was made on February 15, 2014. 1040 ez 2013 tax form Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. 1040 ez 2013 tax form No vested interest. 1040 ez 2013 tax form   If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. 1040 ez 2013 tax form Defined benefit plan. 1040 ez 2013 tax form   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. 1040 ez 2013 tax form This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. 1040 ez 2013 tax form   A defined benefit plan is any plan that is not a defined contribution plan. 1040 ez 2013 tax form In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. 1040 ez 2013 tax form The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. 1040 ez 2013 tax form Defined benefit plans include pension plans and annuity plans. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form Nick, an employee of Company B, is eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. 1040 ez 2013 tax form Nick leaves Company B on December 31, 2012. 1040 ez 2013 tax form Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is covered by the plan for his 2013 tax year. 1040 ez 2013 tax form No vested interest. 1040 ez 2013 tax form   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. 1040 ez 2013 tax form Situations in Which You Are Not Covered Unless you are covered by another employer plan, you are not covered by an employer plan if you are in one of the situations described below. 1040 ez 2013 tax form Social security or railroad retirement. 1040 ez 2013 tax form   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. 1040 ez 2013 tax form Benefits from previous employer's plan. 1040 ez 2013 tax form   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. 1040 ez 2013 tax form Reservists. 1040 ez 2013 tax form   If the only reason you participate in a plan is because you are a member of a reserve unit of the Armed Forces, you may not be covered by the plan. 1040 ez 2013 tax form You are not covered by the plan if both of the following conditions are met. 1040 ez 2013 tax form The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. 1040 ez 2013 tax form You did not serve more than 90 days on active duty during the year (not counting duty for training). 1040 ez 2013 tax form Volunteer firefighters. 1040 ez 2013 tax form   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. 1040 ez 2013 tax form You are not covered by the plan if both of the following conditions are met. 1040 ez 2013 tax form The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. 1040 ez 2013 tax form Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. 1040 ez 2013 tax form Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. 1040 ez 2013 tax form Your deduction is also affected by how much income you had and by your filing status. 1040 ez 2013 tax form Your deduction may also be affected by social security benefits you received. 1040 ez 2013 tax form Reduced or no deduction. 1040 ez 2013 tax form   If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. 1040 ez 2013 tax form   Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. 1040 ez 2013 tax form These amounts vary depending on your filing status. 1040 ez 2013 tax form   To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under Deduction Phaseout . 1040 ez 2013 tax form Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. 1040 ez 2013 tax form Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, later, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. 1040 ez 2013 tax form You received social security benefits. 1040 ez 2013 tax form You received taxable compensation. 1040 ez 2013 tax form Contributions were made to your traditional IRA. 1040 ez 2013 tax form You or your spouse was covered by an employer retirement plan. 1040 ez 2013 tax form Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. 1040 ez 2013 tax form Appendix B includes an example with filled-in worksheets to assist you. 1040 ez 2013 tax form Table 1-2. 1040 ez 2013 tax form Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. 1040 ez 2013 tax form IF your filing status is . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your modified adjusted gross income (modified AGI) is . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form THEN you can take . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form single or head of household $59,000 or less a full deduction. 1040 ez 2013 tax form more than $59,000 but less than $69,000 a partial deduction. 1040 ez 2013 tax form $69,000 or more no deduction. 1040 ez 2013 tax form married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. 1040 ez 2013 tax form more than $95,000 but less than $115,000 a partial deduction. 1040 ez 2013 tax form $115,000 or more no deduction. 1040 ez 2013 tax form married filing separately2 less than $10,000 a partial deduction. 1040 ez 2013 tax form $10,000 or more no deduction. 1040 ez 2013 tax form 1 Modified AGI (adjusted gross income). 1040 ez 2013 tax form See Modified adjusted gross income (AGI) , later. 1040 ez 2013 tax form  2 If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” filing status). 1040 ez 2013 tax form Table 1-3. 1040 ez 2013 tax form Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. 1040 ez 2013 tax form IF your filing status is . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your modified adjusted gross income (modified AGI) is . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form THEN you can take . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form single, head of household, or qualifying widow(er) any amount a full deduction. 1040 ez 2013 tax form married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. 1040 ez 2013 tax form married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. 1040 ez 2013 tax form more than $178,000 but less than $188,000 a partial deduction. 1040 ez 2013 tax form $188,000 or more no deduction. 1040 ez 2013 tax form married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. 1040 ez 2013 tax form $10,000 or more no deduction. 1040 ez 2013 tax form 1 Modified AGI (adjusted gross income). 1040 ez 2013 tax form See Modified adjusted gross income (AGI) , later. 1040 ez 2013 tax form  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. 1040 ez 2013 tax form For 2014, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. 1040 ez 2013 tax form If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. 1040 ez 2013 tax form Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. 1040 ez 2013 tax form Covered by a retirement plan. 1040 ez 2013 tax form   If you are covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI, as shown in Table 1-2. 1040 ez 2013 tax form For 2014, if you are covered by a retirement plan at work, your IRA deduction will not be reduced (phased out) unless your modified AGI is: More than $60,000 but less than $70,000 for a single individual (or head of household), More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying widow(er)), or Less than $10,000 for a married individual filing a separate return. 1040 ez 2013 tax form If your spouse is covered. 1040 ez 2013 tax form   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 1-3. 1040 ez 2013 tax form Filing status. 1040 ez 2013 tax form   Your filing status depends primarily on your marital status. 1040 ez 2013 tax form For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. 1040 ez 2013 tax form If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. 1040 ez 2013 tax form Lived apart from spouse. 1040 ez 2013 tax form   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. 1040 ez 2013 tax form Modified adjusted gross income (AGI). 1040 ez 2013 tax form   You can use Worksheet 1-1 to figure your modified AGI. 1040 ez 2013 tax form If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 2013 and distributions in 2013 , later. 1040 ez 2013 tax form    Do not assume that your modified AGI is the same as your compensation. 1040 ez 2013 tax form Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. 1040 ez 2013 tax form Form 1040. 1040 ez 2013 tax form   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. 1040 ez 2013 tax form IRA deduction. 1040 ez 2013 tax form Student loan interest deduction. 1040 ez 2013 tax form Tuition and fees deduction. 1040 ez 2013 tax form Domestic production activities deduction. 1040 ez 2013 tax form Foreign earned income exclusion. 1040 ez 2013 tax form Foreign housing exclusion or deduction. 1040 ez 2013 tax form Exclusion of qualified savings bond interest shown on Form 8815. 1040 ez 2013 tax form Exclusion of employer-provided adoption benefits shown on Form 8839. 1040 ez 2013 tax form This is your modified AGI. 1040 ez 2013 tax form Form 1040A. 1040 ez 2013 tax form   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. 1040 ez 2013 tax form IRA deduction. 1040 ez 2013 tax form Student loan interest deduction. 1040 ez 2013 tax form Tuition and fees deduction. 1040 ez 2013 tax form Exclusion of qualified savings bond interest shown on Form 8815. 1040 ez 2013 tax form This is your modified AGI. 1040 ez 2013 tax form Form 1040NR. 1040 ez 2013 tax form   If you file Form 1040NR, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. 1040 ez 2013 tax form IRA deduction. 1040 ez 2013 tax form Student loan interest deduction. 1040 ez 2013 tax form Domestic production activities deduction. 1040 ez 2013 tax form Exclusion of qualified savings bond interest shown on Form 8815. 1040 ez 2013 tax form Exclusion of employer-provided adoption benefits shown on Form 8839. 1040 ez 2013 tax form This is your modified AGI. 1040 ez 2013 tax form Income from IRA distributions. 1040 ez 2013 tax form   If you received distributions in 2013 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, the distributions are fully taxable and are included in your modified AGI. 1040 ez 2013 tax form Both contributions for 2013 and distributions in 2013. 1040 ez 2013 tax form   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. 1040 ez 2013 tax form You received distributions in 2013 from one or more traditional IRAs, You made contributions to a traditional IRA for 2013, and Some of those contributions may be nondeductible contributions. 1040 ez 2013 tax form (See Nondeductible Contributions and Worksheet 1-2, later. 1040 ez 2013 tax form ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. 1040 ez 2013 tax form To do this, you can use Worksheet 1-5, later. 1040 ez 2013 tax form   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. 1040 ez 2013 tax form How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. 1040 ez 2013 tax form Figuring Your Reduced IRA Deduction for 2013. 1040 ez 2013 tax form The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. 1040 ez 2013 tax form If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. 1040 ez 2013 tax form Note. 1040 ez 2013 tax form If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. 1040 ez 2013 tax form Worksheet 1-1. 1040 ez 2013 tax form Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. 1040 ez 2013 tax form 1. 1040 ez 2013 tax form Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 1. 1040 ez 2013 tax form   2. 1040 ez 2013 tax form Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. 1040 ez 2013 tax form   3. 1040 ez 2013 tax form Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. 1040 ez 2013 tax form   4. 1040 ez 2013 tax form Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. 1040 ez 2013 tax form   5. 1040 ez 2013 tax form Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. 1040 ez 2013 tax form   6. 1040 ez 2013 tax form Enter any foreign housing deduction from Form 2555, line 50 6. 1040 ez 2013 tax form   7. 1040 ez 2013 tax form Enter any excludable savings bond interest from Form 8815, line 14 7. 1040 ez 2013 tax form   8. 1040 ez 2013 tax form Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. 1040 ez 2013 tax form   9. 1040 ez 2013 tax form Add lines 1 through 8. 1040 ez 2013 tax form This is your Modified AGI for traditional IRA purposes 9. 1040 ez 2013 tax form   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. 1040 ez 2013 tax form If you file Form 1040A, enter your IRA deduction on line 17 of that form. 1040 ez 2013 tax form If you file Form 1040NR, enter your IRA deduction on line 32 of that form. 1040 ez 2013 tax form You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. 1040 ez 2013 tax form Self-employed. 1040 ez 2013 tax form   If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, line 28. 1040 ez 2013 tax form If you file Form 1040NR, enter your deduction on line 28 of that form. 1040 ez 2013 tax form Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. 1040 ez 2013 tax form The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. 1040 ez 2013 tax form Example. 1040 ez 2013 tax form Tony is 29 years old and single. 1040 ez 2013 tax form In 2013, he was covered by a retirement plan at work. 1040 ez 2013 tax form His salary is $62,000. 1040 ez 2013 tax form His modified AGI is $70,000. 1040 ez 2013 tax form Tony makes a $5,500 IRA contribution for 2013. 1040 ez 2013 tax form Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. 1040 ez 2013 tax form He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. 1040 ez 2013 tax form Repayment of reservist distributions. 1040 ez 2013 tax form   Nondeductible contributions may include repayments of qualified reservist distributions. 1040 ez 2013 tax form For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. 1040 ez 2013 tax form Form 8606. 1040 ez 2013 tax form   To designate contributions as nondeductible, you must file Form 8606. 1040 ez 2013 tax form (See the filled-in Forms 8606 in this chapter. 1040 ez 2013 tax form )   You do not have to designate a contribution as nondeductible until you file your tax return. 1040 ez 2013 tax form When you file, you can even designate otherwise deductible contributions as nondeductible contributions. 1040 ez 2013 tax form   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. 1040 ez 2013 tax form    A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. 1040 ez 2013 tax form In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. 1040 ez 2013 tax form See Form 8606 under Distributions Fully or Partly Taxable, later. 1040 ez 2013 tax form Failure to report nondeductible contributions. 1040 ez 2013 tax form   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. 1040 ez 2013 tax form All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 1040 ez 2013 tax form Penalty for overstatement. 1040 ez 2013 tax form   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. 1040 ez 2013 tax form Penalty for failure to file Form 8606. 1040 ez 2013 tax form   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. 1040 ez 2013 tax form Tax on earnings on nondeductible contributions. 1040 ez 2013 tax form   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. 1040 ez 2013 tax form Cost basis. 1040 ez 2013 tax form   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. 1040 ez 2013 tax form Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. 1040 ez 2013 tax form    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. 1040 ez 2013 tax form See Are Distributions Taxable, later, for more information. 1040 ez 2013 tax form Recordkeeping. 1040 ez 2013 tax form There is a recordkeeping worksheet, Appendix A. 1040 ez 2013 tax form Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. 1040 ez 2013 tax form Examples — Worksheet for Reduced IRA Deduction for 2013 The following examples illustrate the use of Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013. 1040 ez 2013 tax form Example 1. 1040 ez 2013 tax form For 2013, Tom and Betty file a joint return on Form 1040. 1040 ez 2013 tax form They are both 39 years old. 1040 ez 2013 tax form They are both employed and Tom is covered by his employer's retirement plan. 1040 ez 2013 tax form Tom's salary is $59,000 and Betty's is $32,555. 1040 ez 2013 tax form They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. 1040 ez 2013 tax form Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an employer plan, Tom is subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . 1040 ez 2013 tax form For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. 1040 ez 2013 tax form Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. 1040 ez 2013 tax form Tom can take a deduction of only $5,080. 1040 ez 2013 tax form He can choose to treat the $5,080 as either deductible or nondeductible contributions. 1040 ez 2013 tax form He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. 1040 ez 2013 tax form He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. 1040 ez 2013 tax form Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. 1040 ez 2013 tax form Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. 1040 ez 2013 tax form Betty figures her IRA deduction as follows. 1040 ez 2013 tax form Betty can treat all or part of her contributions as either deductible or nondeductible. 1040 ez 2013 tax form This is because her $5,500 contribution for 2013 is not subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . 1040 ez 2013 tax form She does not need to use Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, because their modified AGI is not within the phaseout range that applies. 1040 ez 2013 tax form Betty decides to treat her $5,500 IRA contributions as deductible. 1040 ez 2013 tax form The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. 1040 ez 2013 tax form Example 2. 1040 ez 2013 tax form For 2013, Ed and Sue file a joint return on Form 1040. 1040 ez 2013 tax form They are both 39 years old. 1040 ez 2013 tax form Ed is covered by his employer's retirement plan. 1040 ez 2013 tax form Ed's salary is $45,000. 1040 ez 2013 tax form Sue had no compensation for the year and did not contribute to an IRA. 1040 ez 2013 tax form Sue is not covered by an employer plan. 1040 ez 2013 tax form Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). 1040 ez 2013 tax form Their combined modified AGI, which includes $2,000 interest and dividend income and a large capital gain from the sale of stock, is $180,555. 1040 ez 2013 tax form Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. 1040 ez 2013 tax form He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. 1040 ez 2013 tax form Sue figures her IRA deduction as shown on Worksheet 1-2. 1040 ez 2013 tax form Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. 1040 ez 2013 tax form Worksheet 1-2. 1040 ez 2013 tax form Figuring Your Reduced IRA Deduction for 2013 (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. 1040 ez 2013 tax form ) Note. 1040 ez 2013 tax form If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. 1040 ez 2013 tax form IF you . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your  filing status is . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your modified AGI is over . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form THEN enter on  line 1 below . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. 1040 ez 2013 tax form Enter applicable amount from table above 1. 1040 ez 2013 tax form   2. 1040 ez 2013 tax form Enter your modified AGI (that of both spouses, if married filing jointly) 2. 1040 ez 2013 tax form     Note. 1040 ez 2013 tax form If line 2 is equal to or more than the amount on line 1, stop here. 1040 ez 2013 tax form  Your IRA contributions are not deductible. 1040 ez 2013 tax form See Nondeductible Contributions , earlier. 1040 ez 2013 tax form     3. 1040 ez 2013 tax form Subtract line 2 from line 1. 1040 ez 2013 tax form If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. 1040 ez 2013 tax form You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. 1040 ez 2013 tax form   4. 1040 ez 2013 tax form Multiply line 3 by the percentage below that applies to you. 1040 ez 2013 tax form If the result is not a multiple of $10, round it to the next highest multiple of $10. 1040 ez 2013 tax form (For example, $611. 1040 ez 2013 tax form 40 is rounded to $620. 1040 ez 2013 tax form ) However, if the result is less than $200, enter $200. 1040 ez 2013 tax form         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. 1040 ez 2013 tax form 5% (. 1040 ez 2013 tax form 275) (by 32. 1040 ez 2013 tax form 5% (. 1040 ez 2013 tax form 325) if you are age 50 or older). 1040 ez 2013 tax form All others, multiply line 3 by 55% (. 1040 ez 2013 tax form 55) (by 65% (. 1040 ez 2013 tax form 65) if you are age 50 or older). 1040 ez 2013 tax form 4. 1040 ez 2013 tax form   5. 1040 ez 2013 tax form Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). 1040 ez 2013 tax form If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. 1040 ez 2013 tax form If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. 1040 ez 2013 tax form   6. 1040 ez 2013 tax form Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). 1040 ez 2013 tax form If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. 1040 ez 2013 tax form 6. 1040 ez 2013 tax form   7. 1040 ez 2013 tax form IRA deduction. 1040 ez 2013 tax form Compare lines 4, 5, and 6. 1040 ez 2013 tax form Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. 1040 ez 2013 tax form If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. 1040 ez 2013 tax form   8. 1040 ez 2013 tax form Nondeductible contribution. 1040 ez 2013 tax form Subtract line 7 from line 5 or 6, whichever is smaller. 1040 ez 2013 tax form  Enter the result here and on line 1 of your Form 8606 8. 1040 ez 2013 tax form   Worksheet 1-2. 1040 ez 2013 tax form Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. 1040 ez 2013 tax form ) Note. 1040 ez 2013 tax form If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. 1040 ez 2013 tax form IF you . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your  filing status is . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your modified AGI is over . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form THEN enter on  line 1 below . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. 1040 ez 2013 tax form Enter applicable amount from table above 1. 1040 ez 2013 tax form 115,000 2. 1040 ez 2013 tax form Enter your modified AGI (that of both spouses, if married filing jointly) 2. 1040 ez 2013 tax form 96,555   Note. 1040 ez 2013 tax form If line 2 is equal to or more than the amount on line 1, stop here. 1040 ez 2013 tax form  Your IRA contributions are not deductible. 1040 ez 2013 tax form See Nondeductible Contributions , earlier. 1040 ez 2013 tax form     3. 1040 ez 2013 tax form Subtract line 2 from line 1. 1040 ez 2013 tax form If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. 1040 ez 2013 tax form You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. 1040 ez 2013 tax form 18,445 4. 1040 ez 2013 tax form Multiply line 3 by the percentage below that applies to you. 1040 ez 2013 tax form If the result is not a multiple of $10, round it to the next highest multiple of $10. 1040 ez 2013 tax form (For example, $611. 1040 ez 2013 tax form 40 is rounded to $620. 1040 ez 2013 tax form ) However, if the result is less than $200, enter $200. 1040 ez 2013 tax form         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. 1040 ez 2013 tax form 5% (. 1040 ez 2013 tax form 275) (by 32. 1040 ez 2013 tax form 5% (. 1040 ez 2013 tax form 325) if you are age 50 or older). 1040 ez 2013 tax form All others, multiply line 3 by 55% (. 1040 ez 2013 tax form 55) (by 65% (. 1040 ez 2013 tax form 65) if you are age 50 or older). 1040 ez 2013 tax form 4. 1040 ez 2013 tax form 5,080 5. 1040 ez 2013 tax form Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). 1040 ez 2013 tax form If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. 1040 ez 2013 tax form If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. 1040 ez 2013 tax form 59,000 6. 1040 ez 2013 tax form Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). 1040 ez 2013 tax form If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. 1040 ez 2013 tax form 6. 1040 ez 2013 tax form 5,500 7. 1040 ez 2013 tax form IRA deduction. 1040 ez 2013 tax form Compare lines 4, 5, and 6. 1040 ez 2013 tax form Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. 1040 ez 2013 tax form If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. 1040 ez 2013 tax form 5,080 8. 1040 ez 2013 tax form Nondeductible contribution. 1040 ez 2013 tax form Subtract line 7 from line 5 or 6, whichever is smaller. 1040 ez 2013 tax form  Enter the result here and on line 1 of your Form 8606 8. 1040 ez 2013 tax form 420 Worksheet 1-2. 1040 ez 2013 tax form Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. 1040 ez 2013 tax form ) Note. 1040 ez 2013 tax form If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. 1040 ez 2013 tax form IF you . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your  filing status is . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form AND your modified AGI is over . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form THEN enter on  line 1 below . 1040 ez 2013 tax form . 1040 ez 2013 tax form . 1040 ez 2013 tax form       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. 1040 ez 2013 tax form Enter applicable amount from table above 1. 1040 ez 2013 tax form 188,000 2. 1040 ez 2013 tax form Enter your modified AGI (that of both spouses, if married filing jointly) 2. 1040 ez 2013 tax form 180,555   Note. 1040 ez 2013 tax form If line 2 is equal to or more than the amount on line 1, stop here. 1040 ez 2013 tax form  Your IRA contributions are not deductible. 1040 ez 2013 tax form See Nondeductible Contributions , earlier. 1040 ez 2013 tax form     3. 1040 ez 2013 tax form Subtract line 2 from line 1. 1040 ez 2013 tax form If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. 1040 ez 2013 tax form You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. 1040 ez 2013 tax form 7,445 4. 1040 ez 2013 tax form Multiply line 3 by the percentage below that applies to you. 1040 ez 2013 tax form If the result is not a multiple of $10, round it to the next highest multiple of $10. 1040 ez 2013 tax form (For example, $611. 1040 ez 2013 tax form 40 is rounded to $620. 1040 ez 2013 tax form ) However, if the result is less than $200, enter $200. 1040 ez 2013 tax form         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. 1040 ez 2013 tax form 5% (. 1040 ez 2013 tax form 275) (by 32. 1040 ez 2013 tax form 5% (. 1040 ez 2013 tax form 325) if you are age 50 or older). 1040 ez 2013 tax form All others, multiply line 3 by 55% (. 1040 ez 2013 tax form 55) (by 65% (. 1040 ez 2013 tax form 65) if you are age 50 or older). 1040 ez 2013 tax form 4. 1040 ez 2013 tax form 4,100 5. 1040 ez 2013 tax form Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). 1040 ez 2013 tax form If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. 1040 ez 2013 tax form If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. 1040 ez 2013 tax form 39,500 6. 1040 ez 2013 tax form Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). 1040 ez 2013 tax form If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. 1040 ez 2013 tax form 6. 1040 ez 2013 tax form 5,500 7. 1040 ez 2013 tax form IRA deduction. 1040 ez 2013 tax form Compare lines 4, 5, and 6. 1040 ez 2013 tax form Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. 1040 ez 2013 tax form If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. 1040 ez 2013 tax form 4,100 8. 1040 ez 2013 tax form Nondeductible contribution. 1040 ez 2013 tax form Subtract line 7 from line 5 or 6, whichever is smaller. 1040 ez 2013 tax form  Enter the result here and on line 1 of your Form 8606 8. 1040 ez 2013 tax form 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. 1040 ez 2013 tax form A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. 1040 ez 2013 tax form Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. 1040 ez 2013 tax form Inherited from spouse. 1040 ez 2013 tax form   If you inherit a traditional IRA from your spouse, you generally have the following three choices. 1040 ez 2013 tax form You can: Treat it as your own IRA by designating yourself as the account owner. 1040 ez 2013 tax form Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (s