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Amending Your Tax Return

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Amending Your Tax Return

Amending your tax return Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. Amending your tax return A pension is generally a series of payments made to you after you retire from work. Amending your tax return Pension payments are made regularly and are for past services with an employer. Amending your tax return An annuity is a series of payments under a contract. Amending your tax return You can buy the contract alone or you can buy it with the help of your employer. Amending your tax return Annuity payments are made regularly for more than one full year. Amending your tax return Note. Amending your tax return Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. Amending your tax return Types of pensions and annuities. Amending your tax return   Particular types of pensions and annuities include: Fixed period annuities. Amending your tax return You receive definite amounts at regular intervals for a definite length of time. Amending your tax return Annuities for a single life. Amending your tax return You receive definite amounts at regular intervals for life. Amending your tax return The payments end at death. Amending your tax return Joint and survivor annuities. Amending your tax return The first annuitant receives a definite amount at regular intervals for life. Amending your tax return After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Amending your tax return The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Amending your tax return Variable annuities. Amending your tax return You receive payments that may vary in amount for a definite length of time or for life. Amending your tax return The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. Amending your tax return Disability pensions. Amending your tax return You are under minimum retirement age and receive payments because you retired on disability. Amending your tax return If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. Amending your tax return If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. Amending your tax return A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries. Amending your tax return This plan must meet Internal Revenue Code requirements. Amending your tax return It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. Amending your tax return However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. Amending your tax return A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Amending your tax return A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. Amending your tax return   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. Amending your tax return A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. Amending your tax return It does not qualify for most of the tax benefits of a qualified plan. Amending your tax return Annuity worksheets. Amending your tax return   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. Amending your tax return Request for a ruling. Amending your tax return   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. Amending your tax return This is treated as a request for a ruling. Amending your tax return See Requesting a Ruling on Taxation of Annuity near the end of this publication. Amending your tax return Withholding tax and estimated tax. Amending your tax return   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. Amending your tax return If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. Amending your tax return Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. Amending your tax return Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Amending your tax return These payments are also known as amounts received as an annuity. Amending your tax return If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. Amending your tax return In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. Amending your tax return The amount of each payment that is more than the part that represents your net cost is taxable. Amending your tax return Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. Amending your tax return These terms are explained in the following discussions. Amending your tax return Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. Amending your tax return First, find your net cost of the contract as of the annuity starting date (defined later). Amending your tax return To find this amount, you must first figure the total premiums, contributions, or other amounts paid. Amending your tax return This includes the amounts your employer contributed if you were required to include these amounts in income. Amending your tax return It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). Amending your tax return From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. Amending your tax return Any additional premiums paid for double indemnity or disability benefits. Amending your tax return Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). Amending your tax return The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. Amending your tax return Example. Amending your tax return On January 1 you completed all your payments required under an annuity contract providing for monthly payments starting on August 1, for the period beginning July 1. Amending your tax return The annuity starting date is July 1. Amending your tax return This is the date you use in figuring your investment in the contract and your expected return (discussed later). Amending your tax return Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. Amending your tax return Foreign employment. Amending your tax return   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. Amending your tax return The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. Amending your tax return Foreign employment contributions while a nonresident alien. Amending your tax return   In determining your cost, special rules apply if you are a U. Amending your tax return S. Amending your tax return citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. Amending your tax return Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if they had been paid as cash compensation when the services were performed. Amending your tax return Death benefit exclusion. Amending your tax return   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. Amending your tax return The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. Amending your tax return How to adjust your total cost. Amending your tax return   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. Amending your tax return Add it to the cost or unrecovered cost of the annuity at the annuity starting date. Amending your tax return See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. Amending your tax return Net cost. Amending your tax return   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. Amending your tax return This is the unrecovered investment in the contract as of the annuity starting date. Amending your tax return If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. Amending your tax return Refund feature. Amending your tax return   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. Amending your tax return Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. Amending your tax return   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. Amending your tax return Zero value of refund feature. Amending your tax return   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. Amending your tax return   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). Amending your tax return   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. Amending your tax return Examples. Amending your tax return The first example shows how to figure the value of the refund feature when there is only one beneficiary. Amending your tax return Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. Amending your tax return In both examples, the taxpayer elects to use Tables V through VIII. Amending your tax return If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. Amending your tax return Example 1. Amending your tax return At age 65, Barbara bought for $21,053 an annuity with a refund feature. Amending your tax return She will get $100 a month for life. Amending your tax return Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. Amending your tax return In this case, the contract cost and the total guaranteed return are the same ($21,053). Amending your tax return Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. Amending your tax return 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. Amending your tax return For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). Amending your tax return In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. Amending your tax return Example 2. Amending your tax return John died while still employed. Amending your tax return His widow, Eleanor, age 48, receives $171 a month for the rest of her life. Amending your tax return John's son, Elmer, age 9, receives $50 a month until he reaches age 18. Amending your tax return John's contributions to the retirement fund totaled $7,559. Amending your tax return 45, with interest on those contributions of $1,602. Amending your tax return 53. Amending your tax return The guarantee or total refund feature of the contract is $9,161. Amending your tax return 98 ($7,559. Amending your tax return 45 plus $1,602. Amending your tax return 53). Amending your tax return The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. Amending your tax return 9 $71,614. Amending your tax return 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. Amending your tax return 0 5,400. Amending your tax return 00   3) Total expected return   $77,014. Amending your tax return 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. Amending your tax return 45   2) Guaranteed amount (contributions of $7,559. Amending your tax return 45 plus interest of $1,602. Amending your tax return 53) $9,161. Amending your tax return 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. Amending your tax return 00   4) Net guaranteed amount $3,761. Amending your tax return 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. Amending your tax return 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. Amending your tax return 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Amending your tax return See the discussion of expected return, later in this publication. Amending your tax return Free IRS help. Amending your tax return   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. Amending your tax return Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Amending your tax return The following discussions explain how to figure the expected return with each type of annuity. Amending your tax return A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. Amending your tax return Fixed period annuity. Amending your tax return   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. Amending your tax return It is the total amount you will get beginning at the annuity starting date. Amending your tax return You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). Amending your tax return To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. Amending your tax return Single life annuity. Amending your tax return   If you are to get annuity payments for the rest of your life, find your expected return as follows. Amending your tax return You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. Amending your tax return These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). Amending your tax return   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. Amending your tax return See Adjustments to Tables I, II, V, VI, and VIA following Table I. Amending your tax return Example. Amending your tax return Henry bought an annuity contract that will give him an annuity of $500 a month for his life. Amending your tax return If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. Amending your tax return 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. Amending your tax return 2 multiple by +. Amending your tax return 1. Amending your tax return His expected return would then be $115,800 ($6,000 × 19. Amending your tax return 3). Amending your tax return Annuity for shorter of life or specified period. Amending your tax return   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. Amending your tax return To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. Amending your tax return Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. Amending your tax return Example. Amending your tax return Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. Amending your tax return She was age 65 at her birthday nearest the annuity starting date. Amending your tax return She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. Amending your tax return 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. Amending your tax return See Special Elections, later. Amending your tax return Joint and survivor annuities. Amending your tax return   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. Amending your tax return To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. Amending your tax return If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. Amending your tax return See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. Amending your tax return Example. Amending your tax return John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. Amending your tax return At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. Amending your tax return The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. Amending your tax return 0 Expected return $132,000 Different payments to survivor. Amending your tax return   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. Amending your tax return Example 1. Amending your tax return Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. Amending your tax return If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. Amending your tax return 0 Multiple for Gerald, age 70 (from Table V)   16. Amending your tax return 0 Difference: Multiple applicable to Mary   6. Amending your tax return 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. Amending your tax return 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. Amending your tax return 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. Amending your tax return Your husband died while still employed. Amending your tax return Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. Amending your tax return Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. Amending your tax return You were 50 years old at the annuity starting date. Amending your tax return Marie was 16 and Jean was 14. Amending your tax return Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. Amending your tax return 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. Amending your tax return 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. Amending your tax return 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. Amending your tax return Computation Under the General Rule Note. Amending your tax return Variable annuities use a different computation for determining the exclusion amounts. Amending your tax return See Variable annuities later. Amending your tax return Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. Amending your tax return   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. Amending your tax return See Death benefit exclusion , earlier. Amending your tax return Step 2. Amending your tax return   Figure your expected return. Amending your tax return Step 3. Amending your tax return   Divide Step 1 by Step 2 and round to three decimal places. Amending your tax return This will give you the exclusion percentage. Amending your tax return Step 4. Amending your tax return   Multiply the exclusion percentage by the first regular periodic payment. Amending your tax return The result is the tax-free part of each pension or annuity payment. Amending your tax return   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. Amending your tax return However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. Amending your tax return   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. Amending your tax return Step 5. Amending your tax return   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. Amending your tax return This will give you the tax-free part of the total payment for the year. Amending your tax return    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. Amending your tax return This fractional amount is multiplied by your exclusion percentage to get the tax-free part. Amending your tax return Step 6. Amending your tax return   Subtract the tax-free part from the total payment you received. Amending your tax return The rest is the taxable part of your pension or annuity. Amending your tax return Example 1. Amending your tax return You purchased an annuity with an investment in the contract of $10,800. Amending your tax return Under its terms, the annuity will pay you $100 a month for life. Amending your tax return The multiple for your age (age 65) is 20. Amending your tax return 0 as shown in Table V. Amending your tax return Your expected return is $24,000 (20 × 12 × $100). Amending your tax return Your cost of $10,800, divided by your expected return of $24,000, equals 45. Amending your tax return 0%. Amending your tax return This is the percentage you will not have to include in income. Amending your tax return Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. Amending your tax return If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). Amending your tax return Example 2. Amending your tax return Gerald bought a joint and survivor annuity. Amending your tax return Gerald's investment in the contract is $62,712 and the expected return is $121,200. Amending your tax return The exclusion percentage is 51. Amending your tax return 7% ($62,712 ÷ $121,200). Amending your tax return Gerald will receive $500 a month ($6,000 a year). Amending your tax return Each year, until his net cost is recovered, $3,102 (51. Amending your tax return 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. Amending your tax return If Gerald dies, his wife will receive $350 a month ($4,200 a year). Amending your tax return If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. Amending your tax return 7%). Amending your tax return Each year, until the entire net cost is recovered, his wife will receive $2,171. Amending your tax return 40 (51. Amending your tax return 7% of her payments received of $4,200) tax free. Amending your tax return She will include $2,028. Amending your tax return 60 ($4,200 − $2,171. Amending your tax return 40) in her income tax return. Amending your tax return Example 3. Amending your tax return Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. Amending your tax return Your two daughters each receive annual annuities of $1,800 until they reach age 18. Amending your tax return Your husband contributed $25,576 to the plan. Amending your tax return You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. Amending your tax return Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. Amending your tax return The exclusion percentage of 18. Amending your tax return 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. Amending your tax return Each full year $864 (18. Amending your tax return 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. Amending your tax return Each year, until age 18, $324 (18. Amending your tax return 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. Amending your tax return Part-year payments. Amending your tax return   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. Amending your tax return   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. Amending your tax return For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. Amending your tax return   If you received a fractional payment, follow Step 5, discussed earlier. Amending your tax return This gives you the tax-free part of your total payment. Amending your tax return Example. Amending your tax return On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. Amending your tax return The applicable multiple from Table V is 23. Amending your tax return 3 (age 61). Amending your tax return Her expected return is $34,950 ($125 × 12 × 23. Amending your tax return 3). Amending your tax return Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. Amending your tax return 1%. Amending your tax return Each payment received will consist of 63. Amending your tax return 1% return of cost and 36. Amending your tax return 9% taxable income, until her net cost of the contract is fully recovered. Amending your tax return During the first year, Mary received three payments of $125, or $375, of which $236. Amending your tax return 63 (63. Amending your tax return 1% × $375) is a return of cost. Amending your tax return The remaining $138. Amending your tax return 37 is included in income. Amending your tax return Increase in annuity payments. Amending your tax return   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. Amending your tax return All increases in the installment payments are fully taxable. Amending your tax return   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. Amending your tax return 72-5(a)(5) of the regulations. Amending your tax return Example. Amending your tax return Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. Amending your tax return In figuring the taxable part, Joe elects to use Tables V through VIII. Amending your tax return The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. Amending your tax return His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. Amending your tax return 0 × $1,764 annual payment). Amending your tax return The exclusion percentage is $7,938 ÷ $35,280, or 22. Amending your tax return 5%. Amending your tax return During the year he received 11 monthly payments of $147, or $1,617. Amending your tax return Of this amount, 22. Amending your tax return 5% × $147 × 11 ($363. Amending your tax return 83) is tax free as a return of cost and the balance of $1,253. Amending your tax return 17 is taxable. Amending your tax return Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). Amending your tax return The tax-free part is still only 22. Amending your tax return 5% of the annuity payments as of the annuity starting date (22. Amending your tax return 5% × $147 × 12 = $396. Amending your tax return 90 for a full year). Amending your tax return The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. Amending your tax return Variable annuities. Amending your tax return   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. Amending your tax return   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. Amending your tax return If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. Amending your tax return Example. Amending your tax return Frank purchased a variable annuity at age 65. Amending your tax return The total cost of the contract was $12,000. Amending your tax return The annuity starting date is January 1 of the year of purchase. Amending your tax return His annuity will be paid, starting July 1, in variable annual installments for his life. Amending your tax return The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. Amending your tax return   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. Amending your tax return Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. Amending your tax return The result is added to the previously figured periodic tax-free part. Amending your tax return The sum is the amount of each future payment that will be tax free. Amending your tax return Example. Amending your tax return Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. Amending your tax return Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. Amending your tax return Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. Amending your tax return 00 Amount received in second year 500. Amending your tax return 00 Difference $100. Amending your tax return 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. Amending your tax return 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. Amending your tax return 4) $5. Amending your tax return 43 Revised annual tax-free part for third and later years ($600 + $5. Amending your tax return 43) $605. Amending your tax return 43 Amount taxable in third year ($1,200 − $605. Amending your tax return 43) $594. Amending your tax return 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. Amending your tax return 72–4(d)(3) of the Income Tax Regulations. Amending your tax return The statement must also show the following information: The annuity starting date and your age on that date. Amending your tax return The first day of the first period for which you received an annuity payment in the current year. Amending your tax return Your investment in the contract as originally figured. Amending your tax return The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. Amending your tax return Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. Amending your tax return Exclusion limited to net cost. Amending your tax return   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). Amending your tax return This is the unrecovered investment in the contract as of the annuity starting date. Amending your tax return   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Amending your tax return This deduction is not subject to the 2%-of-adjusted-gross-income limit. Amending your tax return Example 1. Amending your tax return Your annuity starting date is after 1986. Amending your tax return Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. Amending your tax return There is no refund feature. Amending your tax return Your monthly annuity payment is $833. Amending your tax return 33. Amending your tax return Your exclusion ratio is 12% and you exclude $100 a month. Amending your tax return Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. Amending your tax return Thereafter, your annuity payments are fully taxable. Amending your tax return Example 2. Amending your tax return The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. Amending your tax return The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. Amending your tax return The exclusion ratio is 10. Amending your tax return 8%, and your monthly exclusion is $90. Amending your tax return After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). Amending your tax return An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. Amending your tax return Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. Amending your tax return Exclusion not limited to net cost. Amending your tax return   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. Amending your tax return If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. Amending your tax return The total exclusion may be more than your investment in the contract. Amending your tax return How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. Amending your tax return Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. Amending your tax return These tables correspond to the old Tables I through IV. Amending your tax return In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. Amending your tax return If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. Amending your tax return However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). Amending your tax return Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. Amending your tax return Contributions made both before July 1986 and after June 1986. Amending your tax return   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. Amending your tax return (See the examples below. Amending your tax return )    Making the election. Amending your tax return Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. Amending your tax return 72–6 of the Income Tax Regulations. Amending your tax return ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. Amending your tax return   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. Amending your tax return You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. Amending your tax return    Advantages of election. Amending your tax return In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. Amending your tax return    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. Amending your tax return If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. Amending your tax return   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. Amending your tax return Example 1. Amending your tax return Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. Amending your tax return Payment of the $42,000 contribution is guaranteed under a refund feature. Amending your tax return Bill is 55 years old as of the annuity starting date. Amending your tax return For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. Amending your tax return       Pre- July 1986   Post- June 1986 A. Amending your tax return Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. Amending your tax return of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. Amending your tax return Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. Amending your tax return Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. Amending your tax return 7   28. Amending your tax return 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. Amending your tax return Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . Amending your tax return 079   . Amending your tax return 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). Amending your tax return The taxable part of his annuity is $22,080 ($24,000 minus $1,920). Amending your tax return If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). Amending your tax return Example 2. Amending your tax return Al is age 62 at his nearest birthday to the annuity starting date. Amending your tax return Al's wife is age 60 at her nearest birthday to the annuity starting date. Amending your tax return The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. Amending your tax return The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. Amending your tax return Al makes the election described in Example 1 . Amending your tax return For purposes of this example, assume the refund feature adjustment is zero. Amending your tax return If an adjustment is required, IRS will figure the amount. Amending your tax return See Requesting a Ruling on Taxation of Annuity near the end of this publication. Amending your tax return       Pre-  July 1986   Post-  June 1986 A. Amending your tax return Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. Amending your tax return Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. Amending your tax return Expected return         1) Multiple for both annuitants from Tables II and VI 25. Amending your tax return 4   28. Amending your tax return 8   2) Multiple for first annuitant from Tables I and V 16. Amending your tax return 9   22. Amending your tax return 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. Amending your tax return 5   6. Amending your tax return 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. Amending your tax return Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . Amending your tax return 209   . Amending your tax return 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). Amending your tax return The taxable part of his annuity is $9,216 ($12,000 − $2,784). Amending your tax return The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. Amending your tax return After Al's death, his widow will apply the same exclusion percentages (20. Amending your tax return 9% and 2. Amending your tax return 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. Amending your tax return Annuity received after June 30, 1986. Amending your tax return   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. Amending your tax return Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. Amending your tax return    Make the election by attaching the following statement to your income tax return. Amending your tax return    “I elect, under section 1. Amending your tax return 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. Amending your tax return ”   The statement must also include your name, address, and social security number. Amending your tax return   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. Amending your tax return Disqualifying form of payment or settlement. Amending your tax return   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. Amending your tax return See regulations section 1. Amending your tax return 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. Amending your tax return You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. Amending your tax return Worksheets for Determining Taxable Annuity Worksheets I and II. Amending your tax return   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. Amending your tax return 72–6(d)(6) Election. Amending your tax return Worksheet I For Determining Taxable Annuity Under Regulations Section 1. Amending your tax return 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. Amending your tax return   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Amending your tax return )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Amending your tax return If not, the IRS will calculate the refund feature percentage. Amending your tax return             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Amending your tax return   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. Amending your tax return   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. Amending your tax return   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Amending your tax return     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. Amending your tax return 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. Amending your tax return   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Amending your tax return )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Amending your tax return If not, the IRS will calculate the refund feature percentage. Amending your tax return             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Amending your tax return   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. Amending your tax return   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. Amending your tax return Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. Amending your tax return   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Amending your tax return   Actuarial Tables Please click here for the text description of the image. Amending your tax return Actuarial Tables Please click here for the text description of the image. Amending your tax return Actuarial Tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. 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Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Please click here for the text description of the image. Amending your tax return Actuarial tables Requesting a Ruling on Taxation of Annuity If you are a retiree, or the survivor of an employee or retiree, you may ask the Internal Revenue Service to help you determine the taxation of your annuity. Amending your tax return If you make this request, you are asking for a ruling. Amending your tax return User fee. Amending your tax return   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. Amending your tax return You should call the IRS for the proper fee. Amending your tax return A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. Amending your tax return Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. Amending your tax return O. Amending your tax return Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. Amending your tax return When to make the request. Amending your tax return   Please note that requests sent between February 1 and April 15 may experience some delay. Amending your tax return We process requests in the order received, and we will reply to your request as soon as we can process it. Amending your tax return If you do not receive your ruling by the required filing date, you may use Form 4868, Application for Automatic Extension of Time To File U. Amending your tax return S. Amending your tax return Individual Income Tax Return, to get an extension of time to file. Amending your tax return Information you must furnish. Amending your tax return   You must furnish the information listed below so the IRS can comply with your request. Amending your tax return Failure to furnish the information will result in a delay in processing your request. Amending your tax return Please send only copies of the following documents, as the IRS retains all material sent for its records: A letter explaining the question(s) you wish to have resolved or the information you need from the ruling. Amending your tax return Copies of any documents showing distributions, annuity rates, and annuity options available to you. Amending your tax return A copy of any Form 1099–R you received since your annuity began. Amending your tax return A statement indicating whether you have filed your return for the year for which you are making the request. Amending your tax return If you have requested an extension of time to file that return, please indicate the extension date. Amending your tax return Your daytime phone number. Amending your tax return Your current mailing address. Amending your tax return A power of attorney if someone other than you, an attorney, a certified public accountant, or an enrolled agent is signing this request. Amending your tax return Form 2848, Power of Attorney and Declaration of Representative, may be used for this purpose. Amending your tax return A completed Tax Information Sheet (or facsimile) shown on the next page. Amending your tax return Sign and date the Disclosure and Perjury Statement (or facsimile) at the end of the tax information sheet. Amending your tax return This statement must be signed by the retiree or the survivor annuitant. Amending your tax return It cannot be signed by a representative. Amending your tax return Tax Information Sheet Please click here for the text description of the image. Amending your tax return Tax Information Sheet Please click here for the text description of the image. Amending your tax return Tax Information Sheet (continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Amending your tax return Free help with your tax return. Amending your tax return   You can get free help preparing your return nationwide from IRS-certified volunteers. Amending your tax return The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Amending your tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amending your tax return Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Amending your tax return In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Amending your tax return To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Amending your tax return gov, download the IRS2Go app, or call 1-800-906-9887. Amending your tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Amending your tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. Amending your tax return aarp. Amending your tax return org/money/taxaide or call 1-888-227-7669. Amending your tax return For more information on these programs, go to IRS. Amending your tax return gov and enter “VITA” in the search box. Amending your tax return Internet. Amending your tax return    IRS. Amending your tax return gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Amending your tax return Download the free IRS2Go app from the iTunes app store or from Google Play. Amending your tax return Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Amending your tax return Check the status of your 2013 refund with the Where's My Refund? application on IRS. Amending your tax return gov or download the IRS2Go app and select the Refund Status option. Amending your tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. Amending your tax return Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Amending your tax return You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amending your tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Amending your tax return Use the Interactive Tax Assistant (ITA) to research your tax questions. Amending your tax return No need to wait on the phone or stand in line. Amending your tax return The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Amending your tax return When you reach the response screen, you can print the entire interview and the final response for your records. Amending your tax return New subject areas are added on a regular basis. Amending your tax return  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Amending your tax return gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Amending your tax return You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Amending your tax return The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Amending your tax return When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Amending your tax return Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Amending your tax return You can also ask the IRS to mail a return or an account transcript to you. Amending your tax return Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Amending your tax return gov or by calling 1-800-908-9946. Amending your tax return Tax return and tax account transcripts are generally available for the current year and the past three years. Amending your tax return Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Amending your tax return Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Amending your tax return If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Amending your tax return Check the status of your amended return using Where's My Amended Return? Go to IRS. Amending your tax return gov and enter Where's My Amended Return? in the search box. Amending your tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Amending your tax return It can take up to 3 weeks from the date you mailed it to show up in our system. Amending your tax return Make a payment using one of several safe and convenient electronic payment options available on IRS. Amending your tax return gov. Amending your tax return Select the Payment tab on the front page of IRS. Amending your tax return gov for more information. Amending your tax return Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Amending your tax return Figure your income tax withholding with the IRS Withholding Calculator on IRS. Amending your tax return gov. Amending your tax return Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Amending your tax return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Amending your tax return gov. Amending your tax return Request an Electronic Filing PIN by going to IRS. Amending your tax return gov and entering Electronic Filing PIN in the search box. Amending your tax return Download forms, instructions and publications, including accessible versions for people with disabilities. Amending your tax return Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Amending your tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Amending your tax return An employee can answer questions about your tax account or help you set up a payment plan. Amending your tax return Before you visit, check the Office Locator on IRS. Amending your tax return gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Amending your tax return If you have a special need, such as a disability, you can request an appointment. Amending your tax return Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Amending your tax return Apply for an Employer Identification Number (EIN). Amending your tax return Go to IRS. Amending your tax return gov and enter Apply for an EIN in the search box. Amending your tax return Read the Internal Revenue Code, regulations, or other official guidance. Amending your tax return Read Internal Revenue Bulletins. Amending your tax return Sign up to receive local and national tax news and more by email. Amending your tax return Just click on “subscriptions” above the search box on IRS. Amending your tax return gov and choose from a variety of options. Amending your tax return    Phone. Amending your tax return You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Amending your tax return Download the free IRS2Go app from the iTunes app store or from Google Play. Amending your tax return Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Amending your tax return gov, or download the IRS2Go app. Amending your tax return Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Amending your tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amending your tax return Mos
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The Amending Your Tax Return

Amending your tax return Index A Accounting methods, Accounting Methods Accrual method, Accrual method. Amending your tax return Change in accounting method Section 481(a) adjustment. Amending your tax return , Change in accounting method. Amending your tax return Mark-to-market accounting method, Mark-to-market accounting method. Amending your tax return Nonaccrual experience method, Nonaccrual experience method. Amending your tax return Percentage of completion method, Percentage of completion method. Amending your tax return Accounting periods, Accounting Periods Accumulated earnings tax, Accumulated Earnings Tax Alternative minimum tax (AMT), Alternative Minimum Tax (AMT) At-risk limits, At-Risk Limits B Backup withholding, Backup withholding. Amending your tax return Below-market loans, Below-Market Loans C Capital contributions, Capital Contributions Capital losses, Capital Losses Charitable contributions, Charitable Contributions Closely held corporation: At-risk limits, Closely held corporation. Amending your tax return Closely held corporations:, Closely held corporations. Amending your tax return Comments, Comments and suggestions. Amending your tax return Corporate preference items, Corporate Preference Items Corporations, businesses taxed as, Businesses Taxed as Corporations Credits, Credits Credits: Foreign tax, Credits General business credit, Credits Prior year minimum tax, Credits D Distributions: Money or property. Amending your tax return , Money or Property Distributions Other, Constructive Distributions Reporting, Reporting Dividends and Other Distributions Stock or stock rights, Distributions of Stock or Stock Rights To shareholders, Distributions to Shareholders Dividends-received deduction, Dividends-Received Deduction E EFTPS, Electronic Federal Tax Payment System, Electronic Federal Tax Payment System (EFTPS). Amending your tax return Electronic filing, Electronic filing. Amending your tax return Energy-efficient commercial building property deduction, Energy-Efficient Commercial Building Property Deduction Estimated tax, Estimated Tax Extraordinary dividends, Extraordinary Dividends F Figuring: NOL carryovers, Figuring the NOL Carryover Tax, Figuring Tax Foreign tax credit, Credits Form: 1096, Form 1099-DIV. Amending your tax return 1099–DIV, Form 1099-DIV. Amending your tax return 1118, Credits 1120, Which form to file. Amending your tax return 1120-W, How to figure each required installment. Amending your tax return 1120X, Refunds. Amending your tax return , NOL carryback. Amending your tax return 1138, Carryback expected. Amending your tax return 1139, Refunds. Amending your tax return , NOL carryback. Amending your tax return 2220, Form 2220. Amending your tax return 3800, Credits, Recapture Taxes 4255, Recapture Taxes 4626, Form 4626. Amending your tax return 5452, Form 5452. Amending your tax return 7004, Extension of time to file. Amending your tax return 8611, Recapture Taxes 8827, Credits 8832, Business formed after 1996. Amending your tax return 8834, Recapture Taxes 8845, Recapture Taxes 8874, Recapture Taxes 8882, Recapture Taxes 8912, Credits G Going into business, Costs of Going Into Business I Income tax returns, Income Tax Return L Loans, below-market, Below-Market Loans M Minimum tax credit, Credits N Net operating losses, Net Operating Losses Nontaxable exchange of property for stock, Property Exchanged for Stock P Paid-in capital, Paid-in capital. Amending your tax return Passive activity limits, Passive Activity Limits Paying estimated tax, How to pay estimated tax. Amending your tax return Penalties Other, Other penalties. Amending your tax return Trust fund recovery, Trust fund recovery penalty. Amending your tax return Penalties: Estimated tax, Underpayment penalty. Amending your tax return Late filing of return, Late filing of return. Amending your tax return Late payment of tax, Late payment of tax. Amending your tax return Personal service corporation: Figuring tax, Qualified personal service corporation. Amending your tax return Personal service corporations:, Personal service corporations. Amending your tax return Preference items, Corporate Preference Items Q Qualified refinery property, election to expense, Election to Expense Qualified Refinery Property Qualifying shipping activities, income from, Income From Qualifying Shipping Activities R Recapture taxes: Childcare facilities and services credit , Recapture Taxes Indian employment credit, Recapture Taxes Investment credit, Recapture Taxes Low-income housing credit, Recapture Taxes New markets credit, Recapture Taxes Qualified plug-in electric and electric vehicle credit, Recapture Taxes Recordkeeping, Recordkeeping Related persons, Related Persons Retained earnings, Accumulated Earnings Tax S Suggestions, Comments and suggestions. Amending your tax return T Tax help, How To Get Tax Help Tax rate schedule, Tax Rate Schedule Tax, figuring, Figuring Tax Taxpayer Advocate, Contacting your Taxpayer Advocate. Amending your tax return TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications