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File Amended Return Online

File amended return online 17. File amended return online   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. File amended return online  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. File amended return online 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. File amended return online For more information, see How Much Can Be Contributed? later. File amended return online Roth IRA contribution limit. File amended return online  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. File amended return online If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. File amended return online However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. File amended return online For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. File amended return online Modified AGI limit for traditional IRA contributions increased. File amended return online  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. File amended return online 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. File amended return online If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. File amended return online See How Much Can You Deduct , later. File amended return online Modified AGI limit for Roth IRA contributions increased. File amended return online  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. File amended return online Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. File amended return online You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. File amended return online Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. File amended return online You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. File amended return online Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. File amended return online You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. File amended return online See Can You Contribute to a Roth IRA , later. File amended return online Net Investment Income Tax. File amended return online   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). File amended return online However, these distributions are taken into account when determining the modified adjusted gross income threshold. File amended return online Distributions from a nonqualified retirement plan are included in net investment income. File amended return online See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. File amended return online Name change. File amended return online  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. File amended return online There are no changes to the rules regarding these IRAs. File amended return online See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. File amended return online Reminders 2014 limits. File amended return online   You can find information about the 2014 contribution and AGI limits in Publication 590. File amended return online Contributions to both traditional and Roth IRAs. File amended return online   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. File amended return online Statement of required minimum distribution. File amended return online  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. File amended return online The report or offer must include the date by which the amount must be distributed. File amended return online The report is due January 31 of the year in which the minimum distribution is required. File amended return online It can be provided with the year-end fair market value statement that you normally get each year. File amended return online No report is required for IRAs of owners who have died. File amended return online IRA interest. File amended return online  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. File amended return online Tax on your traditional IRA is generally deferred until you take a distribution. File amended return online Do not report this interest on your tax return as tax-exempt interest. File amended return online Form 8606. File amended return online   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. File amended return online The term “50 or older” is used several times in this chapter. File amended return online It refers to an IRA owner who is age 50 or older by the end of the tax year. File amended return online Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. File amended return online This chapter discusses the following topics. File amended return online The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). File amended return online The Roth IRA, which features nondeductible contributions and tax-free distributions. File amended return online Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. File amended return online For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. File amended return online For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. File amended return online Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. File amended return online ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. File amended return online Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. File amended return online 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. File amended return online What is compensation?   Generally, compensation is what you earn from working. File amended return online Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. File amended return online 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). File amended return online   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. File amended return online   Compensation also includes commissions and taxable alimony and separate maintenance payments. File amended return online Self-employment income. File amended return online   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 deductible part of your self-employment tax. File amended return online   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. File amended return online Nontaxable combat pay. File amended return online   For IRA purposes, if you were a member of the U. File amended return online S. File amended return online Armed Forces, your compensation includes any nontaxable combat pay you receive. File amended return online What is not compensation?   Compensation does not include any of the following items. File amended return online Earnings and profits from property, such as rental income, interest income, and dividend income. File amended return online Pension or annuity income. File amended return online Deferred compensation received (compensation payments postponed from a past year). File amended return online Income from a partnership for which you do not provide services that are a material income-producing factor. File amended return online Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. File amended return online Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. File amended return online When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. File amended return online However, the time for making contributions for any year is limited. File amended return online See When Can Contributions Be Made , later. File amended return online You can open different kinds of IRAs with a variety of organizations. File amended return online You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. File amended return online You can also open an IRA through your stockbroker. File amended return online Any IRA must meet Internal Revenue Code requirements. File amended return online Kinds of traditional IRAs. File amended return online   Your traditional IRA can be an individual retirement account or annuity. File amended return online It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. File amended return online How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. File amended return online These limits and other rules are explained below. File amended return online Community property laws. File amended return online   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. File amended return online This is the rule even in states with community property laws. File amended return online Brokers' commissions. File amended return online   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. File amended return online Trustees' fees. File amended return online   Trustees' administrative fees are not subject to the contribution limit. File amended return online Qualified reservist repayments. File amended return online   If you are (or 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 you received. File amended return online 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. File amended return online 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 similar arrangement. File amended return online   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. File amended return online Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. File amended return online (See Roth IRAs, later. File amended return online ) General limit. File amended return online   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. File amended return online $5,500 ($6,500 if you are 50 or older). File amended return online Your taxable compensation (defined earlier) for the year. File amended return online 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. File amended return online (See Nondeductible Contributions , later. File amended return online ) Qualified reservist repayments do not affect this limit. File amended return online Example 1. File amended return online Betty, who is 34 years old and single, earned $24,000 in 2013. File amended return online Her IRA contributions for 2013 are limited to $5,500. File amended return online Example 2. File amended return online John, an unmarried college student working part time, earned $3,500 in 2013. File amended return online His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. File amended return online Kay Bailey Hutchison Spousal IRA limit. File amended return online   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 amounts. File amended return online $5,500 ($6,500 if you are 50 or older). File amended return online The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. File amended return online Your spouse's IRA contribution for the year to a traditional IRA. File amended return online Any contribution for the year to a Roth IRA on behalf of your spouse. File amended return online 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 50 or older, or $13,000 if both of you are 50 or older). File amended return online 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). File amended return online Contributions must be in the form of money (cash, check, or money order). File amended return online Property cannot be contributed. File amended return online Contributions must be made by due date. File amended return online   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. File amended return online Age 70½ rule. File amended return online   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. File amended return online   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. File amended return online If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. File amended return online Designating year for which contribution is made. File amended return online   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. File amended return online 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). File amended return online Filing before a contribution is made. File amended return online   You can file your return claiming a traditional IRA contribution before the contribution is actually made. File amended return online Generally, the contribution must be made by the due date of your return, not including extensions. File amended return online Contributions not required. File amended return online   You do not have to contribute to your traditional IRA for every tax year, even if you can. File amended return online 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 it applies). File amended return online However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. File amended return online See Limit If Covered by Employer Plan , later. File amended return online You may be able to claim a credit for contributions to your traditional IRA. File amended return online For more information, see chapter 37. File amended return online Trustees' fees. File amended return online   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. File amended return online However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). File amended return online See chapter 28. File amended return online Brokers' commissions. File amended return online   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. File amended return online Full deduction. File amended return online   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 traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). File amended return online 100% of your compensation. File amended return online This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. File amended return online Kay Bailey Hutchison Spousal IRA. File amended return online   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 the following amounts. File amended return online $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). File amended return online The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. File amended return online The IRA deduction for the year of the spouse with the greater compensation. File amended return online Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. File amended return online Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. File amended return online This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. File amended return online Note. File amended return online 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. File amended return online After a divorce or legal separation, you can deduct only contributions to your own IRA. File amended return online Your deductions are subject to the rules for single individuals. File amended return online Covered by an employer retirement plan. File amended return online   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. File amended return online This is discussed later under Limit If Covered by Employer Plan . File amended return online Limits on the amount you can deduct do not affect the amount that can be contributed. File amended return online See Nondeductible Contributions , later. File amended return online 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. File amended return online The “Retirement plan” box should be checked if you were covered. File amended return online Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. File amended return online If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. File amended return online Federal judges. File amended return online   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. File amended return online For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. File amended return online These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. File amended return online Tax year. File amended return online   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. File amended return online For almost all people, the tax year is the calendar year. File amended return online Defined contribution plan. File amended return online   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. File amended return online   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. File amended return online Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. File amended return online Defined benefit plan. File amended return online   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. File amended return online 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. File amended return online   A defined benefit plan is any plan that is not a defined contribution plan. File amended return online Defined benefit plans include pension plans and annuity plans. File amended return online No vested interest. File amended return online   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. File amended return online Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. File amended return online Social security or railroad retirement. File amended return online   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. File amended return online Benefits from a previous employer's plan. File amended return online   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. File amended return online Reservists. File amended return online   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. File amended return online You are not covered by the plan if both of the following conditions are met. File amended return online 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. File amended return online You did not serve more than 90 days on active duty during the year (not counting duty for training). File amended return online Volunteer firefighters. File amended return online   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. File amended return online You are not covered by the plan if both of the following conditions are met. File amended return online 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. File amended return online Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. File amended return online Limit If Covered by Employer Plan 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. File amended return online 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. File amended return online These amounts vary depending on your filing status. File amended return online To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. File amended return online See Filing status and Modified adjusted gross income (AGI) , later. File amended return online Then use Table 17-1 or 17-2 to determine if the phaseout applies. File amended return online Social security recipients. File amended return online   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. File amended return online You received social security benefits. File amended return online You received taxable compensation. File amended return online Contributions were made to your traditional IRA. File amended return online You or your spouse was covered by an employer retirement plan. File amended return online Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. File amended return online Deduction phaseout. File amended return online   If you were 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 17-1. File amended return online Table 17-1. File amended return online Effect of Modified AGI1 on Deduction if You Are Covered by 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. File amended return online IF your filing status is. File amended return online . File amended return online . File amended return online   AND your modified AGI is. File amended return online . File amended return online . File amended return online   THEN you can take. File amended return online . File amended return online . File amended return online single   or  head of household   $59,000 or less   a full deduction. File amended return online   more than $59,000 but less than $69,000   a partial deduction. File amended return online   $69,000 or more   no deduction. File amended return online married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. File amended return online   more than $95,000 but less than $115,000   a partial deduction. File amended return online   $115,000 or more   no deduction. File amended return online married filing separately2   less than $10,000   a partial deduction. File amended return online   $10,000 or more   no deduction. File amended return online 1Modified AGI (adjusted gross income). File amended return online See Modified adjusted gross income (AGI) . File amended return online 2If 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” column). File amended return online If your spouse is covered. File amended return online   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 17-2. File amended return online Filing status. File amended return online   Your filing status depends primarily on your marital status. File amended return online 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. File amended return online If you need more information on filing status, see chapter 2. File amended return online Lived apart from spouse. File amended return online   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. File amended return online Table 17-2. File amended return online Effect of Modified AGI1 on Deduction if You Are NOT Covered by 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. File amended return online IF your filing status is. File amended return online . File amended return online . File amended return online   AND your modified AGI is. File amended return online . File amended return online . File amended return online   THEN you can take. File amended return online . File amended return online . File amended return online single, head of household, or qualifying widow(er)   any amount   a full deduction. File amended return online married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. File amended return online married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. File amended return online   more than $178,000 but less than $188,000   a partial deduction. File amended return online   $188,000 or more   no deduction. File amended return online married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. File amended return online   $10,000 or more   no deduction. File amended return online 1Modified AGI (adjusted gross income). File amended return online See Modified adjusted gross income (AGI) . File amended return online 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. File amended return online Modified adjusted gross income (AGI). File amended return online   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. File amended return online If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. File amended return online You may be able to use Worksheet 17-1 to figure your modified AGI. File amended return online    Do not assume that your modified AGI is the same as your compensation. File amended return online Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. File amended return online Form 1040. File amended return online   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. File amended return online IRA deduction. File amended return online Student loan interest deduction. File amended return online Tuition and fees deduction. File amended return online Domestic production activities deduction. File amended return online Foreign earned income exclusion. File amended return online Foreign housing exclusion or deduction. File amended return online Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. File amended return online S. File amended return online Savings Bonds Issued After 1989. File amended return online Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. File amended return online This is your modified AGI. File amended return online Form 1040A. File amended return online   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. File amended return online IRA deduction. File amended return online Student loan interest deduction. File amended return online Tuition and fees deduction. File amended return online Exclusion of qualified savings bond interest shown on Form 8815. File amended return online This is your modified AGI. File amended return online Both contributions for 2013 and distributions in 2013. File amended return online   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. File amended return online You received distributions in 2013 from one or more traditional IRAs. File amended return online You made contributions to a traditional IRA for 2013. File amended return online Some of those contributions may be nondeductible contributions. File amended return online If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. File amended return online To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. File amended return online   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. File amended return online    How to figure your reduced IRA deduction. File amended return online   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. File amended return online Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. File amended return online Worksheet 17-1. File amended return online Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. File amended return online 1. File amended return online Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. File amended return online   2. File amended return online Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. File amended return online   3. File amended return online Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. File amended return online   4. File amended return online Enter any domestic production activities deduction from Form 1040, line 35 4. File amended return online   5. File amended return online Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. File amended return online   6. File amended return online Enter any foreign housing deduction from Form 2555, line 50 6. File amended return online   7. File amended return online Enter any excludable savings bond interest from Form 8815, line 14 7. File amended return online   8. File amended return online Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. File amended return online   9. File amended return online Add lines 1 through 8. File amended return online This is your Modified AGI for traditional IRA purposes 9. File amended return online   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. File amended return online If you file Form 1040A, enter your IRA deduction on line 17. File amended return online You cannot deduct IRA contributions on Form 1040EZ. File amended return online Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. File amended return online The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. File amended return online Example. File amended return online Mike is 28 years old and single. File amended return online In 2013, he was covered by a retirement plan at work. File amended return online His salary was $57,312. File amended return online His modified AGI was $70,000. File amended return online Mike made a $5,500 IRA contribution for 2013. File amended return online Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. File amended return online He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. File amended return online Form 8606. File amended return online   To designate contributions as nondeductible, you must file Form 8606. File amended return online   You do not have to designate a contribution as nondeductible until you file your tax return. File amended return online When you file, you can even designate otherwise deductible contributions as nondeductible. File amended return online   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. File amended return online 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. File amended return online In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. File amended return online See Form 8606 under Distributions Fully or Partly Taxable, later. File amended return online Failure to report nondeductible contributions. File amended return online   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. File amended return online All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. File amended return online Penalty for overstatement. File amended return online   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. File amended return online Penalty for failure to file Form 8606. File amended return online   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. File amended return online    Tax on earnings on nondeductible contributions. File amended return online   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. File amended return online See When Can You Withdraw or Use IRA Assets , later. File amended return online Cost basis. File amended return online   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. File amended return online Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. File amended return online Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. File amended return online A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. File amended return online Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. File amended return online Inherited from spouse. File amended return online   If you inherit a traditional IRA from your spouse, you generally have the following three choices. File amended return online You can: Treat it as your own IRA by designating yourself as the account owner. File amended return online 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 (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). File amended return online Treat yourself as the beneficiary rather than treating the IRA as your own. File amended return online Treating it as your own. File amended return online   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. File amended return online You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. File amended return online   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. File amended return online Inherited from someone other than spouse. File amended return online   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. File amended return online This means that you cannot make any contributions to the IRA. File amended return online It also means you cannot roll over any amounts into or out of the inherited IRA. File amended return online However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. File amended return online For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. File amended return online Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. File amended return online You can make the following kinds of transfers. File amended return online Transfers from one trustee to another. File amended return online Rollovers. File amended return online Transfers incident to a divorce. File amended return online Transfers to Roth IRAs. File amended return online   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. File amended return online You can also move assets from a qualified retirement plan to a Roth IRA. File amended return online See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. File amended return online Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. File amended return online Because there is no distribution to you, the transfer is tax free. File amended return online Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . File amended return online For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. File amended return online Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. File amended return online The contribution to the second retirement plan is called a “rollover contribution. File amended return online ” Note. File amended return online An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. File amended return online Kinds of rollovers to a traditional IRA. File amended return online   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). File amended return online Treatment of rollovers. File amended return online   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . File amended return online Kinds of rollovers from a traditional IRA. File amended return online   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. File amended return online These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). File amended return online The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). File amended return online Qualified plans may, but are not required to, accept such rollovers. File amended return online Time limit for making a rollover contribution. File amended return online   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. File amended return online The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. File amended return online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File amended return online Extension of rollover period. File amended return online   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. File amended return online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File amended return online More information. File amended return online   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File amended return online Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. File amended return online Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. File amended return online Waiting period between rollovers. File amended return online   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. File amended return online You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. File amended return online   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. File amended return online Example. File amended return online You have two traditional IRAs, IRA-1 and IRA-2. File amended return online You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). File amended return online You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. File amended return online However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. File amended return online This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. File amended return online Exception. File amended return online   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File amended return online Partial rollovers. File amended return online   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. File amended return online The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). File amended return online The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . File amended return online Required distributions. File amended return online   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. File amended return online Inherited IRAs. File amended return online   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. File amended return online See Treating it as your own , earlier. File amended return online Not inherited from spouse. File amended return online   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. File amended return online You must withdraw the IRA assets within a certain period. File amended return online For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. File amended return online Reporting rollovers from IRAs. File amended return online   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. File amended return online   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. File amended return online If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. File amended return online If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. File amended return online Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. File amended return online See your tax return instructions. File amended return online   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. File amended return online Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). File amended return online A qualified plan is one that meets the requirements of the Internal Revenue Code. File amended return online Eligible rollover distribution. File amended return online   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. File amended return online A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). File amended return online A hardship distribution. File amended return online Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. File amended return online Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. File amended return online A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. File amended return online Dividends on employer securities. File amended return online The cost of life insurance coverage. File amended return online Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. File amended return online To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. File amended return online See Form 8606 under Distributions Fully or Partly Taxable, later. File amended return online Rollover by nonspouse beneficiary. File amended return online   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. File amended return online The IRA is treated as an inherited IRA. File amended return online For more information about inherited IRAs, see Inherited IRAs , earlier. File amended return online Reporting rollovers from employer plans. File amended return online    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. File amended return online This amount should be shown in box 1 of Form 1099-R. File amended return online From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. File amended return online From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. File amended return online Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. File amended return online Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. File amended return online Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. File amended return online The transfer is tax free. File amended return online For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File amended return online Converting From Any Traditional IRA to a Roth IRA Allowable conversions. File amended return online   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. File amended return online The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. File amended return online If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. File amended return online However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. File amended return online Required distributions. File amended return online   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). File amended return online Income. File amended return online   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. File amended return online These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. File amended return online   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. File amended return online   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. File amended return online   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. File amended return online See chapter 4. File amended return online Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. File amended return online This is called recharacterizing the contribution. File amended return online See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. File amended return online How to recharacterize a contribution. File amended return online   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. File amended return online If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. File amended return online If you recharacterize your contribution, you must do all three of the following. File amended return online Include in the transfer any net income allocable to the contribution. File amended return online If there was a loss, the net income you must transfer may be a negative amount. File amended return online Report the recharacterization on your tax return for the year during which the contribution was made. File amended return online Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. File amended return online No deduction allowed. File amended return online   You cannot deduct the contribution to the first IRA. File amended return online Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. File amended return online Required notifications. File amended return online   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. File amended return online You must make the notifications by the date of the transfer. File amended return online Only one notification is required if both IRAs are maintained by the same trustee. File amended return online The notification(s) must include all of the following information. File amended return online The type and amount of the contribution to the first IRA that is to be recharacterized. File amended return online The date on which the contribution was made to the first IRA and the year for which it was made. File amended return online A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. File amended return online The name of the trustee of the first IRA and the name of the trustee of the second IRA. File amended return online Any additional information needed to make the transfer. File amended return online Reporting a recharacterization. File amended return online   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. File amended return online You must treat the contribution as having been made to the second IRA. File amended return online When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. File amended return online Violation of the rules generally results in additional taxes in the year of violation. File amended return online See What Acts Result in Penalties or Additional Taxes , later. File amended return online Contributions returned before the due date of return. File amended return online   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. File amended return online If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. File amended return online You can do this if, for each contribution you withdraw, both of the following conditions apply. File amended return online You did not take a deduction for the contribution. File amended return online You withdraw any interest or other income earned on the contribution. File amended return online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. File amended return online If there was a loss, the net income earned on the contribution may be a negative amount. File amended return online Note. File amended return online To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. File amended return online Earnings includible in income. File amended return online   You must include in income any earnings on the contributions you withdraw. File amended return online Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. File amended return online Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. File amended return online Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. File amended return online    Early distributions tax. File amended return online   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. File amended return online However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. File amended return online When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. File amended return online Eventually they must be distributed. File amended return online If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. File amended return online See Excess Accumulations (Insufficient Distributions) , later. File amended return online The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. File amended return online Required minimum distribution. File amended return online   The amount that must be distributed each year is referred to as the required minimum distribution. File amended return online Required distributions not eligible for rollover. File amended return online   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. File amended return online IRA owners. File amended return online   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. File amended return online April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. File amended return online Distributions by the required beginning date. File amended return online   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). File amended return online If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. File amended return online   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. File amended return online Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. File amended return online Distributions after the required beginning date. File amended return online   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. File amended return online    Beneficiaries. File amended return online   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. File amended return online More information. File amended return online   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. File amended return online Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. File amended return online Exceptions. File amended return online   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . File amended return online    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. File amended return online Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. File amended return online Qualified charitable distributions (QCD). File amended return online   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. File amended return online Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. File amended return online See Qualified Charitable Distributions in Publication 590 for more information. File amended return online Ordinary income. File amended return online   Distributions from traditional IRAs that you include in income are taxed as ordinary income. File amended return online No special treatment. File amended return online   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. File amended return online Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. File amended return online Fully taxable. File amended return online   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. File amended return online Because you have no basis in your IRA, any distributions are fully taxable when received. File amended return online See Reporting taxable distributions on your return , later. File amended return online Partly taxable. File amended return online    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. File amended return online These nondeductible contributions are not taxed when they are distributed to you. File amended return online They are a return of your investment in your IRA. File amended return online   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. File amended return online If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). File amended return online Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. File amended return online Form 8606. File amended return online   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. File amended return online Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. File amended return online Note. File amended return online If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. File amended return online Send it to the IRS at the time and place you would otherwise file an income tax return. File amended return online Distributions reported on Form 1099-R. File amended return online   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. File amended return online , or a similar statement. File amended return online IRA distributions are shown in boxes 1 and 2a of Form 1099-R. File amended return online A number or letter code in box 7 tells you what type of distribution you received from your IRA. File amended return online Withholding. File amended return online   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. File amended return online See chapter 4. File amended return online IRA distributions delivered outside the United States. File amended return online   In general, if you are a U. File amended return online S. File amended return online citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. File amended return online Reporting taxable distributions on your return. File amended return online    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). File amended return online If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. File amended return online You cannot report distributions on Form 1040EZ. File amended return online What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. File amended return online There are additions to the regular tax for using your IRA funds in prohibited transactions. File amended return online There are also additional taxes for the following activities. File amended return online Investing in collectibles. File amended return online Making excess contributions. File amended return online Taking early distributions. File amended return online Allowing excess amounts to accumulate (failing to take required distributions). File amended return online There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. File amended return online Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. File amended return online Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). File amended return online The following are examples of prohibited transactions with a traditional IRA. File amended return online Borrowing money from it. File amended return online Selling property to it. File amended return online Receiving unreasonable compensation for managing it. File amended return online Using it as security for a loan. File amended return online Buying property for personal use (present or future) with IRA funds. File amended return online Effect on an IRA account. File amended return online   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. File amended return online Effect on you or your beneficiary. File amended return online   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. File amended return online If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. File amended return online For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. File amended return online The distribution may be subject to additional taxes or penalties. File amended return online Taxes on prohibited transactions. File amended return online   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. File amended return online In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. File amended return online More information. File amended return online   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. File amended return online Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. File amended return online You may have to pay the 10% additional tax on early distributions, discussed later. File amended return online Collectibles. File amended return online   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. File amended return online Exception. File amended return online    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. File amended return online S. File amended return online gold coins, or one-ounce silver coins minted by the Treasury Department. File amended return online It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. File amended return online Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. File amended return online For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. File amended return online Tax on excess contributions. File amended return online   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. File amended return online You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. File amended return online The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. File amended return online Excess contributions withdrawn by due date of return. File amended return online   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. File amended return online You must complete your withdrawal by the date your tax return for that year is due, including extensions. File amended return online How to treat withdrawn contributions. File amended return online   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. File amended return online No deduction was allowed for the excess contribution. File amended return online You withdraw the interest or other income earned on the excess contribution. File amended return online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. File amended return online If there was a loss, the net income you must withdraw may be a negative amount. File amended return online How to treat withdrawn interest or other income. File amended return online   You must include in your gross income the interest or other income that was earned on the excess contribution. File amended return online Report it on your return for the year in which the excess contribution was made. File amended return online Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus
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The federal government's Do Not Call (DNC) Registry allows you to permanently restrict telemarketing calls by registering your phone number at donotcall.gov or by calling 1-888-382-1222. If you receive telemarketing calls after your number has been in the national registry for three months, you can file a complaint using the same web page and toll-free number.

The Federal Trade Commission advises that it is not necessary to register cell phone numbers on the DNC Registry despite e-mail claims circulating on the Internet telling you to do so.

Placing your number on this national registry will stop most telemarketing calls, but not all of them. Calls that are still permitted include those from:

  • Political Organizations
  • Charities
  • Telephone surveyors
  • Some insurance situations
  • Organizations with which you have a relationship

How To File A Complaint About A Sales Call

If you think a sales call is in violation of the Federal Trade Commission rule and want to file a complaint, use the online resource.

A Federal Trade Commission rule defines what telemarketers can and cannot do when making a sales call. Callers must:

  • Provide the seller's name.
  • Disclose that the call is a sales call.
  • Tell you exactly what they're trying to sell.
  • Disclose the total cost and other terms of sale before you make any payment for the goods or services
  • Tell you if they don't allow refunds, exchanges or cancellations

If a prize is involved, the caller must give you the odds of winning, inform you that no purchase is necessary, and tell you how to get instructions for entering without buying anything.

It's illegal for telemarketers to:

  • Misrepresent what they're offering.
  • Call before 8 a.m. or after 9 p.m.
  • Threaten, intimidate or harass you, or call again if you ask them not to.

This FTC rule applies even when you receive a call from a telemarketer in another state or country. It also applies if you make a call to a company in another state or country in response to a mail solicitation.

The rule generally does not apply when you call to order from a catalog or in response to an ad on television or radio, or in a magazine or newspaper. It also does not apply to solicitations you receive by fax or e-mail. Be aware that certain types of businesses, including nonprofit organizations, investment brokers and advisors, banks and financial institutions, are exempt from the rule.

In addition, telemarketers are not allowed to use auto dialers to reach cell phones.

If you get a phone call from someone who says they are with your bank and/or credit company and they ask you to provide or confirm any personal information:

  • Do NOT answer any questions.
  • Hang up immediately.
  • Call your bank or credit company directly and tell them what happened.

The File Amended Return Online

File amended return online Publication 597 - Main Content Table of Contents Application of Treaty Personal Services Pensions, Annuities, Social Security, and AlimonyRoth IRAs. File amended return online Tax-deferred plans. File amended return online Investment Income From Canadian Sources Other Income Charitable ContributionsQualified charities. File amended return online Income Tax Credits Competent Authority Assistance How To Get Tax HelpText of Treaty U. File amended return online S. File amended return online Taxation Canadian Taxation Application of Treaty The benefits of the income tax treaty are generally provided on the basis of residence for income tax purposes. File amended return online That is, a person who is recognized as a resident of the United States who has income from Canada, will often pay less income tax to Canada on that income than if no treaty was in effect. File amended return online Article IV provides definitions of residents of Canada and the United States, and provides specific criteria for applying the treaty in cases where a taxpayer is considered by both countries to be a resident. File amended return online Saving clause. File amended return online   In most instances, a treaty does not affect the right of a country to tax its own residents (including those who are U. File amended return online S. File amended return online citizens) or of the United States to tax its residents or citizens (including U. File amended return online S. File amended return online citizens who are residents of the foreign country). File amended return online This provision is known as the “saving clause. File amended return online ”   For example, an individual who is a U. File amended return online S. File amended return online citizen and a resident of Canada may have dividend income from a U. File amended return online S. File amended return online corporation. File amended return online The treaty provides a maximum rate of 15% on dividends received by a resident of Canada from sources in the United States. File amended return online Even though a resident of Canada, the individual is a U. File amended return online S. File amended return online citizen and the saving clause overrides the treaty article that limits the U. File amended return online S. File amended return online tax to 15%. File amended return online    Exceptions to the saving clause can be found in Article XXIX, paragraph 3. File amended return online Treaty-based position. File amended return online   If you take the position that any U. File amended return online S. File amended return online tax is overruled or otherwise reduced by a U. File amended return online S. File amended return online treaty (a treaty-based position), you generally must disclose that position on Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), and attach it to your return. File amended return online Personal Services A U. File amended return online S. File amended return online citizen or resident who is temporarily present in Canada during the tax year is exempt from Canadian income taxes on pay for services performed, or remittances received from the United States, if the citizen or resident qualifies under one of the treaty exemption provisions set out below. File amended return online Income from employment (Article XV). File amended return online   Income U. File amended return online S. File amended return online residents receive for the performance of dependent personal services in Canada (except as public entertainers) is exempt from Canadian tax if it is not more than $10,000 in Canadian currency for the year. File amended return online If it is more than $10,000 for the year, it is exempt only if: The residents are present in Canada for no more than 183 days in any 12-month period beginning or ending in the year concerned, and The income is not paid by, or on behalf of, a Canadian resident and is not borne by a permanent establishment in Canada. File amended return online    Whether there is a permanent establishment in Canada is determined by the rules set forth in Article V. File amended return online Example. File amended return online You are a U. File amended return online S. File amended return online resident employed under an 8-month contract with a Canadian firm to install equipment in their Montreal plant. File amended return online During the calendar year you were physically present in Canada for 179 days and were paid $16,500 (Canadian) for your services. File amended return online Although you were in Canada for not more than 183 days during the year, your income is not exempt from Canadian income tax because it was paid by a Canadian resident and was more than $10,000 (Canadian) for the year. File amended return online Pay received by a U. File amended return online S. File amended return online resident for work regularly done in more than one country as an employee on a ship, aircraft, motor vehicle, or train operated by a U. File amended return online S. File amended return online resident is exempt from Canadian tax. File amended return online Income from self-employment (Article VII). File amended return online   Income from services performed (other than those performed as an employee) are taxed in Canada if they are attributable to a permanent establishment in Canada. File amended return online This income is treated as business profits, and deductions similar to those allowed under U. File amended return online S. File amended return online law are allowable. File amended return online   If you carry on (or have carried on) business in both Canada and the United States, the business profits are attributable to each country based on the profits that the permanent establishment might be expected to make if it were a distinct and separate person engaged in the same or similar activities. File amended return online The business profits attributable to the permanent establishment include only those profits derived from assets used, risks assumed, and activities performed by the permanent establishment. File amended return online   You may be considered to have a permanent establishment if you meet certain conditions. File amended return online For more information, see Article V (Permanent Establishment) and Article VII (Business Profits). File amended return online Public entertainers (Article XVI). File amended return online   The provisions under income from employment or income from self-employment do not apply to public entertainers (such as theater, motion picture, radio, or television artistes, musicians, or athletes) from the United States who receive more than $15,000 in gross receipts in Canadian currency, including reimbursed expenses, from their entertainment activities in Canada during the calendar year. File amended return online However, this provision for public entertainers does not apply (and the other provisions will apply) to athletes participating in team sports in leagues with regularly scheduled games in both the United States and Canada. File amended return online Compensation paid by the U. File amended return online S. File amended return online Government (Article XIX). File amended return online   Wages, salaries, and similar income (other than pensions) paid to a U. File amended return online S. File amended return online citizen by the United States or any of its agencies, instrumentalities, or political subdivisions for discharging governmental functions are exempt from Canadian income tax. File amended return online   The exemption does not apply to pay for services performed in connection with any trade or business carried on for profit by the United States, or any of its agencies, instrumentalities, or political subdivisions. File amended return online Students and apprentices (Article XX). File amended return online   A full-time student, apprentice, or business trainee who is in Canada to study or acquire business experience is exempt from Canadian income tax on remittances received from any source outside Canada for maintenance, education, or training. File amended return online The recipient must be or must have been a U. File amended return online S. File amended return online resident immediately before visiting Canada. File amended return online   An apprentice or business trainee can claim this exemption only for a period of one year from the date the individual first arrived in Canada for the purpose of training. File amended return online Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and annuities from Canadian sources paid to U. File amended return online S. File amended return online residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). File amended return online Canadian pensions and annuities paid to U. File amended return online S. File amended return online residents may be taxed by the United States, but the amount of any pension included in income for U. File amended return online S. File amended return online tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident. File amended return online Pensions. File amended return online   A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. File amended return online It includes pensions paid by private employers and the government for services rendered. File amended return online   Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada. File amended return online   Pensions do not include social security benefits. File amended return online Roth IRAs. File amended return online   A distribution from a Roth IRA is exempt from Canadian tax to the extent it would be exempt from U. File amended return online S. File amended return online tax if paid to a U. File amended return online S. File amended return online resident. File amended return online In addition, you may elect to defer any tax in Canada on income accrued within the Roth IRA but not distributed by the Roth IRA. File amended return online However, you cannot defer tax on any accruals due to contributions made after you become a Canadian resident. File amended return online Tax-deferred plans. File amended return online   Generally, income that accrues in a Canadian RRSP or RRIF is subject to U. File amended return online S. File amended return online tax, even if it is not distributed. File amended return online However, a U. File amended return online S. File amended return online citizen or resident can elect to defer U. File amended return online S. File amended return online tax on income from the plan until the income is distributed. File amended return online Form 8891 is used to make the election. File amended return online Annuities. File amended return online    An annuity is a stated sum payable periodically at stated times, during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). File amended return online Annuities do not include: Non-periodic payments, or An annuity the cost of which was deductible for tax purposes. File amended return online Special rules. File amended return online    Special rules apply to pensions and annuities with respect to: Short-term assignments, Cross-border commuters, and Individuals who participate in a Canadian qualifying plan. File amended return online Generally, distributions in such cases are deemed to be earned in the country in which the plan is established, without regard to where the services were rendered. File amended return online Social security benefits. File amended return online   U. File amended return online S. File amended return online social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. File amended return online Alimony. File amended return online   Alimony and similar amounts (including child support payments) from Canadian sources paid to U. File amended return online S. File amended return online residents are exempt from Canadian tax. File amended return online For purposes of U. File amended return online S. File amended return online tax, these amounts are excluded from income to the same extent they would be excluded from income in Canada if the recipient was a Canadian resident. File amended return online Investment Income From Canadian Sources The treaty provides beneficial treatment for certain items of Canadian source income that result from an investment of capital. File amended return online Dividends (Article X). File amended return online   For Canadian source dividends received by U. File amended return online S. File amended return online residents, the Canadian income tax generally may not be more than 15%. File amended return online   A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary's voting stock. File amended return online However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. File amended return online   These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment. File amended return online Interest (Article XI). File amended return online   Generally, Canadian source interest received by U. File amended return online S. File amended return online residents is exempt from Canadian income tax. File amended return online   The exemption does not apply if the owner of the interest carries on, or has carried on, a business in Canada through a permanent establishment and the debt on which the income is paid is effectively connected with that permanent establishment. File amended return online Gains from the sale of property (Article XIII). File amended return online   Generally, gains from the sale of personal property by a U. File amended return online S. File amended return online resident having no permanent establishment in Canada are exempt from Canadian income tax. File amended return online However, the exemption from Canadian tax does not apply to gains realized by U. File amended return online S. File amended return online residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada. File amended return online   If the property subject to Canadian tax is a capital asset and was owned by the U. File amended return online S. File amended return online resident on September 26, 1980, not as part of the business property of a permanent establishment in Canada, generally the taxable gain is limited to the appreciation after 1984. File amended return online Royalties (Article XII). File amended return online   The following are exempt from Canadian tax: Copyright royalties and other like payments for the production or reproduction of any literary, dramatic, musical, or artistic work (other than payments for motion pictures and works on film, videotape, or other means of reproduction for use in connection with television, which may be taxed at 10%), Payments for the use of, or the right to use, computer software, Payments for the use of, or the right to use, any patent or any information concerning industrial, commercial, or scientific experience (but not within a rental or franchise agreement), and Payments for broadcasting as agreed to in an exchange of notes between the countries. File amended return online   This rate or exemption does not apply if the owner of the royalties carries on, or has carried on, a business in Canada through a permanent establishment and the right or property on which the income is paid is effectively connected with that permanent establishment. File amended return online   This exemption (or lower rate) does not apply to royalties to explore for or to exploit mineral deposits, timber, and other natural resources. File amended return online Other Income Generally, Canadian source income that is not specifically mentioned in the treaty, may be taxed by Canada. File amended return online Gambling losses. File amended return online   Canadian residents may deduct gambling losses in the U. File amended return online S. File amended return online against gambling winnings in the U. File amended return online S. File amended return online in the same manner as a U. File amended return online S. File amended return online resident. File amended return online Charitable Contributions United States income tax return. File amended return online   Under Article XXI, you may deduct contributions to certain qualified Canadian charitable organizations on your United States income tax return. File amended return online Besides being subject to the overall limits applicable to all your charitable contributions under U. File amended return online S. File amended return online tax law, your charitable contributions to Canadian organizations (other than contributions to a college or university at which you or a member of your family is or was enrolled) are subject to the U. File amended return online S. File amended return online percentage limits on charitable contributions, applied to your Canadian source income. File amended return online If your return does not include gross income from Canadian sources, charitable contributions to Canadian organizations are generally not deductible. File amended return online Example. File amended return online You are a U. File amended return online S. File amended return online citizen living in Canada. File amended return online You have both U. File amended return online S. File amended return online and Canadian source income. File amended return online During your tax year, you contribute to Canadian organizations that would qualify as charitable organizations under U. File amended return online S. File amended return online tax law if they were U. File amended return online S. File amended return online organizations. File amended return online To figure the maximum amount of the contribution to Canadian organizations that you can deduct on your U. File amended return online S. File amended return online income tax return, multiply your adjusted gross income from Canadian sources by the percentage limit that applies to contributions under U. File amended return online S. File amended return online income tax law. File amended return online Then include this amount on your return along with all your domestic charitable contributions, subject to the appropriate percentage limit required for contributions under U. File amended return online S. File amended return online income tax law. File amended return online The appropriate percentage limit for U. File amended return online S. File amended return online tax purposes is applied to your total adjusted gross income from all sources. File amended return online Qualified charities. File amended return online   These Canadian organizations must meet the qualifications that a U. File amended return online S. File amended return online charitable organization must meet under U. File amended return online S. File amended return online tax law. File amended return online Usually an organization will notify you if it qualifies. File amended return online For further information on charitable contributions and the U. File amended return online S. File amended return online percentage limits, see Publication 526, Charitable Contributions. File amended return online Canadian income tax return. File amended return online   Under certain conditions, contributions to qualified U. File amended return online S. File amended return online charitable organizations may also be claimed on your Canadian income tax return if you are a Canadian resident. File amended return online Income Tax Credits The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. File amended return online In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. File amended return online For detailed discussions of the U. File amended return online S. File amended return online income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals. File amended return online See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U. File amended return online S. File amended return online citizens residing in Canada. File amended return online Competent Authority Assistance Under Article XXVI, a U. File amended return online S. File amended return online citizen or resident may request assistance from the U. File amended return online S. File amended return online competent authority when the actions of Canada, the United States, or both, potentially result in double taxation or taxation contrary to the treaty. File amended return online The U. File amended return online S. File amended return online competent authority may then consult with the Canadian competent authority to determine if the double taxation or denial of treaty benefits in question can be avoided. File amended return online If the competent authorities are not able to reach agreement in a case, binding arbitration proceedings may apply. File amended return online It is important that your request for competent authority assistance be made as soon as you have been notified by either Canada or the United States of proposed adjustments that would result in denial of treaty benefits or in double taxation. File amended return online This is so that implementation of any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. File amended return online For information that you should include with your request for competent authority assistance, see Revenue Procedure 2006-54, 2006-49 IRB 1035, available at www. File amended return online irs. File amended return online gov/irb/2006-49_IRB/ar13. File amended return online html. File amended return online The request should be addressed to:  Deputy Commissioner (International) Large Business and International Division Attn: Office of Tax Treaty  Internal Revenue Service 1111 Constitution Ave. File amended return online , NW Routing: MA3-322A Washington, D. File amended return online C. File amended return online 20024 In addition to a timely request for assistance, you should take the following measures: File a timely protective claim for credit or refund of U. File amended return online S. File amended return online taxes on Form 1040X, Form 1120X, or amended Form 1041, whichever is appropriate. File amended return online This will, among other things, give you the benefit of a foreign tax credit in case you do not qualify for the treaty benefit in question. File amended return online For figuring this credit, attach either Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), or Form 1118, Foreign Tax Credit — Corporations, as appropriate. File amended return online Attach your protective claim to your request for competent authority assistance. File amended return online Take appropriate action under Canadian procedures to avoid the lapse or termination of your right of appeal under Canadian income tax law. File amended return online How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS and the Canada Revenue Agency in several ways. File amended return online Text of Treaty You can get the text of the U. File amended return online S. File amended return online —Canada income tax treaty from: Superintendent of Documents U. File amended return online S. File amended return online Government Printing Office P. File amended return online O. File amended return online Box 371954 Pittsburgh, PA 15250-7954 The treaty can also be found on the Internet at IRS. File amended return online gov. File amended return online U. File amended return online S. File amended return online Taxation During the filing season, the IRS conducts a taxpayer assistance program in Canada. File amended return online To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U. File amended return online S. File amended return online Embassy or consulate. File amended return online Mail. File amended return online For answers to technical or account questions, you can write to:   Internal Revenue Service International Section Philadelphia, PA 19255-0525 Phone. File amended return online You can call the IRS for help at (267) 941-1000 (not a toll-free call). File amended return online Canadian Taxation You can get information on Canadian taxation from the Canada Revenue Agency. File amended return online The International Tax Services Office can be contacted on 1-800-267-5177 (from anywhere in Canada and the U. File amended return online S. File amended return online ) or on the Internet at www. File amended return online cra-arc. File amended return online gc. File amended return online ca. File amended return online Prev  Up  Next   Home   More Online Publications