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How To File Back Taxes For Free

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How To File Back Taxes For Free

How to file back taxes for free Publication 908 - Introductory Material Table of Contents Future Developments What's New Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 908, such as legislation enacted after it was published, go to www. How to file back taxes for free irs. How to file back taxes for free gov/pub908. How to file back taxes for free What's New Expiration of provision for catch-up contributions for IRC section 401(k) participants whose employer filed bankruptcy. How to file back taxes for free  The Pension Protection Act of 2006, P. How to file back taxes for free L. How to file back taxes for free 109-280, previously allowed additional contributions of up to $7,000 in a traditional or Roth IRA for employees who participated in an IRC section 401(k) plan of an employer that filed bankruptcy in an earlier year. How to file back taxes for free This provision was not extended for tax years beginning on or after January 1, 2010. How to file back taxes for free Automatic 6-month extension of time to file a bankruptcy estate return now available for individuals in Chapter 7 or 11 bankruptcy. How to file back taxes for free  Beginning June 24, 2011, the IRS clarified in T. How to file back taxes for free D. How to file back taxes for free 9531 that there is available an automatic 6-month extension of time to file a bankruptcy estate income tax return for individuals in Chapter 7 or Chapter 11 bankruptcy proceedings upon filing a required application. How to file back taxes for free The previous extension of time to file a bankruptcy estate return was 5 months. How to file back taxes for free Reminders The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. How to file back taxes for free  The changes to the U. How to file back taxes for free S. How to file back taxes for free Bankruptcy Code enacted by BAPCA are incorporated throughout this publication. How to file back taxes for free Debtors filing under chapters 7, 11, 12, and 13 of the Bankruptcy Code must file all applicable federal, state, and local tax returns that become due after a case commences. How to file back taxes for free Failure to file tax returns timely or obtain an extension can cause a bankruptcy case to be converted to another chapter or dismissed. How to file back taxes for free In chapter 13 cases, the debtor must file all required tax returns for tax periods ending within 4 years of the filing of the bankruptcy petition. How to file back taxes for free Photographs of missing children. How to file back taxes for free  The IRS is a proud partner with the National Center for Missing and Exploited Children. How to file back taxes for free Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to file back taxes for free You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How to file back taxes for free Introduction This publication is not intended to cover bankruptcy law in general, or to provide detailed discussions of the tax rules for the more complex corporate bankruptcy reorganizations or other highly technical transactions. How to file back taxes for free Additionally, this publication is not updated on an annual basis and may not reflect recent developments in bankruptcy or tax law. How to file back taxes for free If you need more guidance on the bankruptcy or tax laws applicable to your case, you should seek professional advice. How to file back taxes for free This publication explains the basic federal income tax aspects of bankruptcy. How to file back taxes for free A fundamental goal of the bankruptcy laws enacted by Congress is to give an honest debtor a financial “fresh start”. How to file back taxes for free This is accomplished through the bankruptcy discharge, which is a permanent injunction (court ordered prohibition) against the collection of certain debts as a personal liability of the debtor. How to file back taxes for free Bankruptcy proceedings begin with the filing of either a voluntary petition in the United States Bankruptcy Court, or in certain cases an involuntary petition filed by creditors. How to file back taxes for free This filing creates the bankruptcy estate. How to file back taxes for free The bankruptcy estate generally consists of all of the assets the individual or entity owns on the date the bankruptcy petition was filed. How to file back taxes for free The bankruptcy estate is treated as a separate taxable entity for individuals filing bankruptcy petitions under chapter 7 or 11 of the Bankruptcy Code, discussed later. How to file back taxes for free The tax obligations of taxable bankruptcy estates are discussed later under Individuals in Chapter 7 or 11. How to file back taxes for free Generally, when a debt owed to another person or entity is canceled, the amount canceled or forgiven is considered income that is taxed to the person owing the debt. How to file back taxes for free If a debt is canceled under a bankruptcy proceeding, the amount canceled is not income. How to file back taxes for free However, the canceled debt reduces other tax benefits to which the debtor would otherwise be entitled. How to file back taxes for free See Debt Cancellation, later. How to file back taxes for free Useful Items - You may want to see: Publication 225 Farmer's Tax Guide 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 538 Accounting Periods and Methods 544 Sales and Other Dispositions of Assets 551 Basis of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) SS-4 Application for Employer Identification Number, and separate instructions 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) 1040 U. How to file back taxes for free S. How to file back taxes for free Individual Income Tax Return, and separate instructions Schedule SE (Form 1040) Self-Employment Tax 1040X Amended U. How to file back taxes for free S. How to file back taxes for free Individual Income Tax Return, and separate instructions 1041 U. How to file back taxes for free S. How to file back taxes for free Income Tax Return for Estates and Trusts, and separate instructions 1041-ES Estimated Income Tax for Estates and Trusts 1041-V Payment Voucher 4506 Request for Copy of Tax Return 4506-T Request for Transcript of Tax Return 4852 Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How to file back taxes for free 4868 Application for Automatic Extension of Time To File U. How to file back taxes for free S. How to file back taxes for free Individual Income Tax Return 7004 Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns See How To Get Tax Help, later, for information about getting these publications and forms. How to file back taxes for free Prev  Up  Next   Home   More Online Publications
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How to file back taxes for free Publication 575 - Main Content Table of Contents General InformationPension. How to file back taxes for free Annuity. How to file back taxes for free Qualified employee plan. How to file back taxes for free Qualified employee annuity. How to file back taxes for free Designated Roth account. How to file back taxes for free Tax-sheltered annuity plan. How to file back taxes for free Fixed-period annuities. How to file back taxes for free Annuities for a single life. How to file back taxes for free Joint and survivor annuities. How to file back taxes for free Variable annuities. How to file back taxes for free Disability pensions. How to file back taxes for free Variable Annuities Section 457 Deferred Compensation Plans Disability Pensions Insurance Premiums for Retired Public Safety Officers Railroad Retirement Benefits Withholding Tax and Estimated Tax Cost (Investment in the Contract)Foreign employment contributions while a nonresident alien. How to file back taxes for free Taxation of Periodic PaymentsPeriod of participation. How to file back taxes for free Fully Taxable Payments Partly Taxable Payments Taxation of Nonperiodic PaymentsFiguring the Taxable Amount Loans Treated as Distributions Transfers of Annuity Contracts Lump-Sum Distributions RolloversExceptions. How to file back taxes for free No tax withheld. How to file back taxes for free Partial rollovers. How to file back taxes for free Frozen deposits. How to file back taxes for free Reasonable period of time. How to file back taxes for free 20% Mandatory withholding. How to file back taxes for free How to report. How to file back taxes for free How to report. How to file back taxes for free Special rule for Roth IRAs and designated Roth accounts. How to file back taxes for free Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and BeneficiariesGuaranteed payments. How to file back taxes for free How To Get Tax HelpLow Income Taxpayer Clinics General Information Definitions. How to file back taxes for free   Some of the terms used in this publication are defined in the following paragraphs. How to file back taxes for free Pension. How to file back taxes for free   A pension is generally a series of definitely determinable payments made to you after you retire from work. How to file back taxes for free Pension payments are made regularly and are based on such factors as years of service and prior compensation. How to file back taxes for free Annuity. How to file back taxes for free   An annuity is a series of payments under a contract made at regular intervals over a period of more than one full year. How to file back taxes for free They can be either fixed (under which you receive a definite amount) or variable (not fixed). How to file back taxes for free You can buy the contract alone or with the help of your employer. How to file back taxes for free Qualified employee plan. How to file back taxes for free   A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries and that meets Internal Revenue Code requirements. How to file back taxes for free It qualifies for special tax benefits, such as tax deferral for employer contributions and capital gain treatment or the 10-year tax option for lump-sum distributions (if participants qualify). How to file back taxes for free To determine whether your plan is a qualified plan, check with your employer or the plan administrator. How to file back taxes for free Qualified employee annuity. How to file back taxes for free   A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. How to file back taxes for free Designated Roth account. How to file back taxes for free   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. How to file back taxes for free Elective deferrals that are designated as Roth contributions are included in your income. How to file back taxes for free However, qualified distributions (explained later) are not included in your income. How to file back taxes for free You should check with your plan administrator to determine if your plan will accept designated Roth contributions. How to file back taxes for free Tax-sheltered annuity plan. How to file back taxes for free   A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. How to file back taxes for free Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants. How to file back taxes for free Types of pensions and annuities. How to file back taxes for free   Pensions and annuities include the following types. How to file back taxes for free Fixed-period annuities. How to file back taxes for free   You receive definite amounts at regular intervals for a specified length of time. How to file back taxes for free Annuities for a single life. How to file back taxes for free   You receive definite amounts at regular intervals for life. How to file back taxes for free The payments end at death. How to file back taxes for free Joint and survivor annuities. How to file back taxes for free   The first annuitant receives a definite amount at regular intervals for life. How to file back taxes for free After he or she dies, a second annuitant receives a definite amount at regular intervals for life. How to file back taxes for free The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. How to file back taxes for free Variable annuities. How to file back taxes for free   You receive payments that may vary in amount for a specified length of time or for life. How to file back taxes for free The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund. How to file back taxes for free Disability pensions. How to file back taxes for free   You receive disability payments because you retired on disability and have not reached minimum retirement age. How to file back taxes for free More than one program. How to file back taxes for free   You may receive employee plan benefits from more than one program under a single trust or plan of your employer. How to file back taxes for free If you participate in more than one program, you may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. How to file back taxes for free Also, you may be considered to have received more than one pension or annuity. How to file back taxes for free Your former employer or the plan administrator should be able to tell you if you have more than one contract. How to file back taxes for free Example. How to file back taxes for free Your employer set up a noncontributory profit-sharing plan for its employees. How to file back taxes for free The plan provides that the amount held in the account of each participant will be paid when that participant retires. How to file back taxes for free Your employer also set up a contributory defined benefit pension plan for its employees providing for the payment of a lifetime pension to each participant after retirement. How to file back taxes for free The amount of any distribution from the profit-sharing plan depends on the contributions (including allocated forfeitures) made for the participant and the earnings from those contributions. How to file back taxes for free Under the pension plan, however, a formula determines the amount of the pension benefits. How to file back taxes for free The amount of contributions is the amount necessary to provide that pension. How to file back taxes for free Each plan is a separate program and a separate contract. How to file back taxes for free If you get benefits from these plans, you must account for each separately, even though the benefits from both may be included in the same check. How to file back taxes for free Distributions from a designated Roth account are treated separately from other distributions from the plan. How to file back taxes for free Qualified domestic relations order (QDRO). How to file back taxes for free   A QDRO is a judgment, decree, or order relating to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of a participant in a retirement plan. How to file back taxes for free The QDRO must contain certain specific information, such as the name and last known mailing address of the participant and each alternate payee, and the amount or percentage of the participant's benefits to be paid to each alternate payee. How to file back taxes for free A QDRO may not award an amount or form of benefit that is not available under the plan. How to file back taxes for free   A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if he or she were a plan participant. How to file back taxes for free The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. How to file back taxes for free The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. How to file back taxes for free The denominator is the present value of all benefits payable to the participant. How to file back taxes for free   A distribution that is paid to a child or other dependent under a QDRO is taxed to the plan participant. How to file back taxes for free Variable Annuities The tax rules in this publication apply both to annuities that provide fixed payments and to annuities that provide payments that vary in amount based on investment results or other factors. How to file back taxes for free For example, they apply to commercial variable annuity contracts, whether bought by an employee retirement plan for its participants or bought directly from the issuer by an individual investor. How to file back taxes for free Under these contracts, the owner can generally allocate the purchase payments among several types of investment portfolios or mutual funds and the contract value is determined by the performance of those investments. How to file back taxes for free The earnings are not taxed until distributed either in a withdrawal or in annuity payments. How to file back taxes for free The taxable part of a distribution is treated as ordinary income. How to file back taxes for free Net investment income tax. How to file back taxes for free   Beginning in 2013, annuities under a nonqualified plan are included in calculating your net investment income for the net investment income tax (NIIT). How to file back taxes for free For information see the Instructions for Form 8960, Net Investment Income Tax — Individuals, Estates and Trusts. How to file back taxes for free For information on the tax treatment of a transfer or exchange of a variable annuity contract, see Transfers of Annuity Contracts under Taxation of Nonperiodic Payments, later. How to file back taxes for free Withdrawals. How to file back taxes for free   If you withdraw funds before your annuity starting date and your annuity is under a qualified retirement plan, a ratable part of the amount withdrawn is tax free. How to file back taxes for free The tax-free part is based on the ratio of your cost (investment in the contract) to your account balance under the plan. How to file back taxes for free   If your annuity is under a nonqualified plan (including a contract you bought directly from the issuer), the amount withdrawn is allocated first to earnings (the taxable part) and then to your cost (the tax-free part). How to file back taxes for free However, if you bought your annuity contract before August 14, 1982, a different allocation applies to the investment before that date and the earnings on that investment. How to file back taxes for free To the extent the amount withdrawn does not exceed that investment and earnings, it is allocated first to your cost (the tax-free part) and then to earnings (the taxable part). How to file back taxes for free   If you withdraw funds (other than as an annuity) on or after your annuity starting date, the entire amount withdrawn is generally taxable. How to file back taxes for free   The amount you receive in a full surrender of your annuity contract at any time is tax free to the extent of any cost that you have not previously recovered tax free. How to file back taxes for free The rest is taxable. How to file back taxes for free   For more information on the tax treatment of withdrawals, see Taxation of Nonperiodic Payments , later. How to file back taxes for free If you withdraw funds from your annuity before you reach age 59½, also see Tax on Early Distributions under Special Additional Taxes, later. How to file back taxes for free Annuity payments. How to file back taxes for free   If you receive annuity payments under a variable annuity plan or contract, you recover your cost tax free under either the Simplified Method or the General Rule, as explained under Taxation of Periodic Payments , later. How to file back taxes for free For a variable annuity paid under a qualified plan, you generally must use the Simplified Method. How to file back taxes for free For a variable annuity paid under a nonqualified plan (including a contract you bought directly from the issuer), you must use a special computation under the General Rule. How to file back taxes for free For more information, see Variable annuities in Publication 939 under Computation Under the General Rule. How to file back taxes for free Death benefits. How to file back taxes for free    If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. How to file back taxes for free If you choose to receive an annuity, the payments are subject to tax as described above. How to file back taxes for free If the contract provides a joint and survivor annuity and the primary annuitant had received annuity payments before death, you figure the tax-free part of annuity payments you receive as the survivor in the same way the primary annuitant did. How to file back taxes for free See Survivors and Beneficiaries , later. How to file back taxes for free Section 457 Deferred Compensation Plans If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. How to file back taxes for free If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. How to file back taxes for free You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. How to file back taxes for free You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. How to file back taxes for free Your 457(b) plan may have a designated Roth account option. How to file back taxes for free If so, you may be able to roll over amounts to the designated Roth account or make contributions. How to file back taxes for free Elective deferrals to a designated Roth account are included in your income. How to file back taxes for free Qualified distributions (explained later) are not included in your income. How to file back taxes for free See the Designated Roth accounts discussion under Taxation of Periodic Payments, later. How to file back taxes for free This publication covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. How to file back taxes for free For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525. How to file back taxes for free Is your plan eligible?   To find out if your plan is an eligible plan, check with your employer. How to file back taxes for free Plans that are not eligible section 457 plans include the following: Bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plans. How to file back taxes for free Nonelective deferred compensation plans for nonemployees (independent contractors). How to file back taxes for free Deferred compensation plans maintained by churches. How to file back taxes for free Length of service award plans for bona fide volunteer firefighters and emergency medical personnel. How to file back taxes for free An exception applies if the total amount paid to a volunteer exceeds $3,000 for any year of service. How to file back taxes for free Disability Pensions If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. How to file back taxes for free You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. How to file back taxes for free Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. How to file back taxes for free You may be entitled to a tax credit if you were permanently and totally disabled when you retired. How to file back taxes for free For information on this credit, see Publication 524. How to file back taxes for free Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. How to file back taxes for free Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. How to file back taxes for free Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. How to file back taxes for free For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. How to file back taxes for free Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. How to file back taxes for free The premiums can be for coverage for you, your spouse, or dependents. How to file back taxes for free The distribution must be made directly from the plan to the insurance provider. How to file back taxes for free You can exclude from income the smaller of the amount of the insurance premiums or $3,000. How to file back taxes for free You can only make this election for amounts that would otherwise be included in your income. How to file back taxes for free The amount excluded from your income cannot be used to claim a medical expense deduction. How to file back taxes for free An eligible retirement plan is a governmental plan that is: a qualified trust, a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. How to file back taxes for free If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. How to file back taxes for free The amount shown in box 2a of Form 1099-R does not reflect this exclusion. How to file back taxes for free Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to file back taxes for free Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. How to file back taxes for free Enter “PSO” next to the appropriate line on which you report the taxable amount. How to file back taxes for free If you are retired on disability and reporting your disability pension on line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to the applicable line. How to file back taxes for free Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. How to file back taxes for free These categories are treated differently for income tax purposes. How to file back taxes for free The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. How to file back taxes for free This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and you treat it for tax purposes like social security benefits. How to file back taxes for free If you received, repaid, or had tax withheld from the SSEB portion of tier 1 benefits during 2013, you will receive Form RRB-1099, Payments by the Railroad Retirement Board (or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, if you are a nonresident alien) from the U. How to file back taxes for free S. How to file back taxes for free Railroad Retirement Board (RRB). How to file back taxes for free For more information about the tax treatment of the SSEB portion of tier 1 benefits and Forms RRB-1099 and RRB-1042S, see Publication 915. How to file back taxes for free The second category contains the rest of the tier 1 railroad retirement benefits, called the non-social security equivalent benefit (NSSEB). How to file back taxes for free It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. How to file back taxes for free Treat this category of benefits, shown on Form RRB-1099-R, as an amount received from a qualified employee plan. How to file back taxes for free This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. How to file back taxes for free (The NSSEB and tier 2 benefits, less certain repayments, are combined into one amount called the Contributory Amount Paid on Form RRB-1099-R. How to file back taxes for free ) Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. How to file back taxes for free See Taxation of Periodic Payments , later, for information on how to report your benefits and how to recover the employee contributions tax free. How to file back taxes for free Form RRB-1099-R is used for U. How to file back taxes for free S. How to file back taxes for free citizens, resident aliens, and nonresident aliens. How to file back taxes for free Nonresident aliens. How to file back taxes for free   A nonresident alien is an individual who is not a citizen or a resident alien of the United States. How to file back taxes for free Nonresident aliens are subject to mandatory U. How to file back taxes for free S. How to file back taxes for free tax withholding unless exempt under a tax treaty between the United States and their country of legal residency. How to file back taxes for free A tax treaty exemption may reduce or eliminate tax withholding from railroad retirement benefits. How to file back taxes for free See Tax withholding next for more information. How to file back taxes for free   If you are a nonresident alien and your tax withholding rate changed or your country of legal residence changed during the year, you may receive more than one Form RRB-1042S or Form RRB-1099-R. How to file back taxes for free To determine your total benefits paid or repaid and total tax withheld for the year, you should add the amounts shown on all forms you received for that year. How to file back taxes for free For information on filing requirements for aliens, see Publication 519, U. How to file back taxes for free S. How to file back taxes for free Tax Guide for Aliens. How to file back taxes for free For information on tax treaties between the United States and other countries that may reduce or eliminate U. How to file back taxes for free S. How to file back taxes for free tax on your benefits, see Publication 901, U. How to file back taxes for free S. How to file back taxes for free Tax Treaties. How to file back taxes for free Tax withholding. How to file back taxes for free   To request or change your income tax withholding from SSEB payments, U. How to file back taxes for free S. How to file back taxes for free citizens should contact the IRS for Form W-4V, Voluntary Withholding Request, and file it with the RRB. How to file back taxes for free To elect, revoke, or change your income tax withholding from NSSEB, tier 2, VDB, and supplemental annuity payments received, use Form RRB W-4P, Withholding Certificate for Railroad Retirement Payments. How to file back taxes for free If you are a nonresident alien or a U. How to file back taxes for free S. How to file back taxes for free citizen living abroad, you should provide Form RRB-1001, Nonresident Questionnaire, to the RRB to furnish citizenship and residency information and to claim any treaty exemption from U. How to file back taxes for free S. How to file back taxes for free tax withholding. How to file back taxes for free Nonresident U. How to file back taxes for free S. How to file back taxes for free citizens cannot elect to be exempt from withholding on payments delivered outside of the U. How to file back taxes for free S. How to file back taxes for free Help from the RRB. How to file back taxes for free   To request an RRB form or to get help with questions about an RRB benefit, you should contact your nearest RRB field office if you reside in the United States (call 1-877-772-5772 for the nearest field office) or U. How to file back taxes for free S. How to file back taxes for free consulate/Embassy if you reside outside the United States. How to file back taxes for free You can visit the RRB on the Internet at www. How to file back taxes for free rrb. How to file back taxes for free gov. How to file back taxes for free Form RRB-1099-R. How to file back taxes for free   The following discussion explains the items shown on Form RRB-1099-R. How to file back taxes for free The amounts shown on this form are before any deduction for: Federal income tax withholding, Medicare premiums, Legal process garnishment payments, Recovery of a prior year overpayment of an NSSEB, tier 2 benefit, VDB, or supplemental annuity benefit, or Recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity. How to file back taxes for free   The amounts shown on this form are after any offset for: Social Security benefits, Age reduction, Public Service pensions or public disability benefits, Dual railroad retirement entitlement under another RRB claim number, Work deductions, Legal process partition deductions, Actuarial adjustment, Annuity waiver, or Recovery of a current-year overpayment of NSSEB, tier 2, VDB, or supplemental annuity benefits. How to file back taxes for free   The amounts shown on Form RRB-1099-R do not reflect any special rules, such as capital gain treatment or the special 10-year tax option for lump-sum payments, or tax-free rollovers. How to file back taxes for free To determine if any of these rules apply to your benefits, see the discussions about them later. How to file back taxes for free   Generally, amounts shown on your Form RRB-1099-R are considered a normal distribution. How to file back taxes for free Use distribution code “7” if you are asked for a distribution code. How to file back taxes for free Distribution codes are not shown on Form RRB-1099-R. How to file back taxes for free   There are three copies of this form. How to file back taxes for free Copy B is to be included with your income tax return if federal income tax is withheld. How to file back taxes for free Copy C is for your own records. How to file back taxes for free Copy 2 is filed with your state, city, or local income tax return, when required. How to file back taxes for free See the illustrated Copy B (Form RRB-1099-R) above. How to file back taxes for free       Each beneficiary will receive his or her own Form RRB-1099-R. How to file back taxes for free If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099-R. How to file back taxes for free So that you get your form timely, make sure the RRB always has your current mailing address. How to file back taxes for free Please click here for the text description of the image. How to file back taxes for free Form RRB-1099-R Box 1—Claim Number and Payee Code. How to file back taxes for free   Your claim number is a six- or nine-digit number preceded by an alphabetical prefix. How to file back taxes for free This is the number under which the RRB paid your benefits. How to file back taxes for free Your payee code follows your claim number and is the last number in this box. How to file back taxes for free It is used by the RRB to identify you under your claim number. How to file back taxes for free In all your correspondence with the RRB, be sure to use the claim number and payee code shown in this box. How to file back taxes for free Box 2—Recipient's Identification Number. How to file back taxes for free   This is the recipient's U. How to file back taxes for free S. How to file back taxes for free taxpayer identification number. How to file back taxes for free It is the social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient. How to file back taxes for free If you are a resident or nonresident alien who must furnish a taxpayer identification number to the IRS and are not eligible to obtain an SSN, use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN. How to file back taxes for free The Instructions for Form W-7 explain how and when to apply. How to file back taxes for free Box 3—Employee Contributions. How to file back taxes for free   This is the amount of taxes withheld from the railroad employee's earnings that exceeds the amount of taxes that would have been withheld had the earnings been covered under the social security system. How to file back taxes for free This amount is the employee's cost that you use to figure the tax-free part of the NSSEB and tier 2 benefit you received (the amount shown in box 4). How to file back taxes for free (For information on how to figure the tax-free part, see Partly Taxable Payments under Taxation of Periodic Payments, later. How to file back taxes for free ) The amount shown is the total employee contribution amount, not reduced by any amounts that the RRB calculated as previously recovered. How to file back taxes for free It is the latest amount reported for 2013 and may have increased or decreased from a previous Form RRB-1099-R. How to file back taxes for free If this amount has changed, the change is retroactive. How to file back taxes for free You may need to refigure the tax-free part of your NSSEB/tier 2 benefit for 2013 and prior tax years. How to file back taxes for free If this box is blank, it means that the amount of your NSSEB and tier 2 payments shown in box 4 is fully taxable. How to file back taxes for free    If you had a previous annuity entitlement that ended and you are figuring the tax-free part of your NSSEB/tier 2 benefit for your current annuity entitlement, you should contact the RRB for confirmation of your correct employee contribution amount. How to file back taxes for free Box 4—Contributory Amount Paid. How to file back taxes for free   This is the gross amount of the NSSEB and tier 2 benefit you received in 2013, less any 2013 benefits you repaid in 2013. How to file back taxes for free (Any benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. How to file back taxes for free ) This amount is the total contributory pension paid in 2013. How to file back taxes for free It may be partly taxable and partly tax free or fully taxable. How to file back taxes for free If you determine you are eligible to compute a tax-free part as explained later in Partly Taxable Payments under Taxation of Periodic Payments, use the latest reported employee contribution amount shown in box 3 as the cost. How to file back taxes for free Box 5—Vested Dual Benefit. How to file back taxes for free   This is the gross amount of vested dual benefit (VDB) payments paid in 2013, less any 2013 VDB payments you repaid in 2013. How to file back taxes for free It is fully taxable. How to file back taxes for free VDB payments you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. How to file back taxes for free Note. How to file back taxes for free The amounts shown in boxes 4 and 5 may represent payments for 2013 and/or other years after 1983. How to file back taxes for free Box 6—Supplemental Annuity. How to file back taxes for free   This is the gross amount of supplemental annuity benefits paid in 2013, less any 2013 supplemental annuity benefits you repaid in 2013. How to file back taxes for free It is fully taxable. How to file back taxes for free Supplemental annuity benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. How to file back taxes for free Box 7—Total Gross Paid. How to file back taxes for free   This is the sum of boxes 4, 5, and 6. How to file back taxes for free The amount represents the total pension paid in 2013. How to file back taxes for free Include this amount on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to file back taxes for free Box 8—Repayments. How to file back taxes for free   This amount represents any NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit you repaid to the RRB in 2013 for years before 2013 or for unknown years. How to file back taxes for free The amount shown in this box has not been deducted from the amounts shown in boxes 4, 5, and 6. How to file back taxes for free It only includes repayments of benefits that were taxable to you. How to file back taxes for free This means it only includes repayments in 2013 of NSSEB benefits paid after 1985, tier 2 and VDB benefits paid after 1983, and supplemental annuity benefits paid in any year. How to file back taxes for free If you included the benefits in your income in the year you received them, you may be able to deduct the repaid amount. How to file back taxes for free For more information about repayments, see Repayment of benefits received in an earlier year , later. How to file back taxes for free    You may have repaid an overpayment of benefits by returning a payment, by making a payment, or by having an amount withheld from your railroad retirement annuity payment. How to file back taxes for free Box 9—Federal Income Tax Withheld. How to file back taxes for free   This is the total federal income tax withheld from your NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit. How to file back taxes for free Include this on your income tax return as tax withheld. How to file back taxes for free If you are a nonresident alien and your tax withholding rate and/or country of legal residence changed during 2013, you will receive more than one Form RRB-1099-R for 2013. How to file back taxes for free Determine the total amount of U. How to file back taxes for free S. How to file back taxes for free federal income tax withheld from your 2013 RRB NSSEB, tier 2, VDB, and supplemental annuity payments by adding the amounts in box 9 of all original 2013 Forms RRB-1099-R, or the latest corrected or duplicate Forms RRB-1099-R you receive. How to file back taxes for free Box 10—Rate of Tax. How to file back taxes for free   If you are taxed as a U. How to file back taxes for free S. How to file back taxes for free citizen or resident alien, this box does not apply to you. How to file back taxes for free If you are a nonresident alien, an entry in this box indicates the rate at which tax was withheld on the NSSEB, tier 2, VDB, and supplemental annuity payments that were paid to you in 2013. How to file back taxes for free If you are a nonresident alien whose tax was withheld at more than one rate during 2013, you will receive a separate Form RRB-1099-R for each rate change during 2013. How to file back taxes for free Box 11—Country. How to file back taxes for free   If you are taxed as a U. How to file back taxes for free S. How to file back taxes for free citizen or resident alien, this box does not apply to you. How to file back taxes for free If you are a nonresident alien, an entry in this box indicates the country of which you were a resident for tax purposes at the time you received railroad retirement payments in 2013. How to file back taxes for free If you are a nonresident alien who was a resident of more than one country during 2013, you will receive a separate Form RRB-1099-R for each country of residence during 2013. How to file back taxes for free Box 12—Medicare Premium Total. How to file back taxes for free   This is for information purposes only. How to file back taxes for free The amount shown in this box represents the total amount of Part B Medicare premiums deducted from your railroad retirement annuity payments in 2013. How to file back taxes for free Medicare premium refunds are not included in the Medicare total. How to file back taxes for free The Medicare total is normally shown on Form RRB-1099 (if you are a citizen or resident alien of the United States) or Form RRB-1042S (if you are a nonresident alien). How to file back taxes for free However, if Form RRB-1099 or Form RRB-1042S is not required for 2013, then this total will be shown on Form RRB-1099-R. How to file back taxes for free If your Medicare premiums were deducted from your social security benefits, paid by a third party, refunded to you, and/or you paid the premiums by direct billing, your Medicare total will not be shown in this box. How to file back taxes for free Repayment of benefits received in an earlier year. How to file back taxes for free   If you had to repay any railroad retirement benefits that you had included in your income in an earlier year because at that time you thought you had an unrestricted right to it, you can deduct the amount you repaid in the year in which you repaid it. How to file back taxes for free   If you repaid $3,000 or less in 2013, deduct it on Schedule A (Form 1040), line 23. How to file back taxes for free The 2%-of-adjusted-gross-income limit applies to this deduction. How to file back taxes for free You cannot take this deduction if you file Form 1040A. How to file back taxes for free    If you repaid more than $3,000 in 2013, you can either take a deduction for the amount repaid on Schedule A (Form 1040), line 28 or you can take a credit against your tax. How to file back taxes for free For more information, see Repayments in Publication 525. How to file back taxes for free Withholding Tax and Estimated Tax Your retirement plan distributions are subject to federal income tax withholding. How to file back taxes for free However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. How to file back taxes for free (These are distributions, described later under Rollovers, that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. How to file back taxes for free ) If you choose not to have tax withheld or if you do not have enough tax withheld, you may have to make estimated tax payments. How to file back taxes for free See Estimated tax , later. How to file back taxes for free The withholding rules apply to the taxable part of payments you receive from: An employer pension, annuity, profit-sharing, or stock bonus plan, Any other deferred compensation plan, A traditional individual retirement arrangement (IRA), or A commercial annuity. How to file back taxes for free For this purpose, a commercial annuity means an annuity, endowment, or life insurance contract issued by an insurance company. How to file back taxes for free There will be no withholding on any part of a distribution where it is reasonable to believe that it will not be includible in gross income. How to file back taxes for free Choosing no withholding. How to file back taxes for free   You can choose not to have income tax withheld from retirement plan payments unless they are eligible rollover distributions. How to file back taxes for free You can make this choice on Form W-4P for periodic and nonperiodic payments. How to file back taxes for free This choice generally remains in effect until you revoke it. How to file back taxes for free   The payer will ignore your choice not to have tax withheld if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer, before the payment is made, that you gave an incorrect social security number. How to file back taxes for free   To choose not to have tax withheld, a U. How to file back taxes for free S. How to file back taxes for free citizen or resident alien must give the payer a home address in the United States or its possessions. How to file back taxes for free Without that address, the payer must withhold tax. How to file back taxes for free For example, the payer has to withhold tax if the recipient has provided a U. How to file back taxes for free S. How to file back taxes for free address for a nominee, trustee, or agent to whom the benefits are delivered, but has not provided his or her own U. How to file back taxes for free S. How to file back taxes for free home address. How to file back taxes for free   If you do not give the payer a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to the payer that you are not a U. How to file back taxes for free S. How to file back taxes for free citizen, a U. How to file back taxes for free S. How to file back taxes for free resident alien, or someone who left the country to avoid tax. How to file back taxes for free But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. How to file back taxes for free This 30% rate will not apply if you are exempt or subject to a reduced rate by treaty. How to file back taxes for free For details, get Publication 519. How to file back taxes for free Periodic payments. How to file back taxes for free   Unless you choose no withholding, your annuity or similar periodic payments (other than eligible rollover distributions) will be treated like wages for withholding purposes. How to file back taxes for free Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). How to file back taxes for free You should give the payer a completed withholding certificate (Form W-4P or a similar form provided by the payer). How to file back taxes for free If you do not, tax will be withheld as if you were married and claiming three withholding allowances. How to file back taxes for free   Tax will be withheld as if you were single and were claiming no withholding allowances if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer (before any payment is made) that you gave an incorrect social security number. How to file back taxes for free   You must file a new withholding certificate to change the amount of withholding. How to file back taxes for free Nonperiodic distributions. How to file back taxes for free    Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that is not an eligible rollover distribution is 10% of the distribution. How to file back taxes for free You can also ask the payer to withhold an additional amount using Form W-4P. How to file back taxes for free The part of any loan treated as a distribution (except an offset amount to repay the loan), explained later, is subject to withholding under this rule. How to file back taxes for free Eligible rollover distribution. How to file back taxes for free    If you receive an eligible rollover distribution, 20% of it generally will be withheld for income tax. How to file back taxes for free You cannot choose not to have tax withheld from an eligible rollover distribution. How to file back taxes for free However, tax will not be withheld if you have the plan administrator pay the eligible rollover distribution directly to another qualified plan or an IRA in a direct rollover. How to file back taxes for free For more information about eligible rollover distributions, see Rollovers , later. How to file back taxes for free Estimated tax. How to file back taxes for free   Your estimated tax is the total of your expected income tax, self-employment tax, and certain other taxes for the year, minus your expected credits and withheld tax. How to file back taxes for free Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 return, or 100% of the tax shown on your 2013 return. How to file back taxes for free If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. How to file back taxes for free For more information, get Publication 505, Tax Withholding and Estimated Tax. How to file back taxes for free In figuring your withholding or estimated tax, remember that a part of your monthly social security or equivalent tier 1 railroad retirement benefits may be taxable. How to file back taxes for free See Publication 915. How to file back taxes for free You can choose to have income tax withheld from those benefits. How to file back taxes for free Use Form W-4V to make this choice. How to file back taxes for free Cost (Investment in the Contract) Distributions from your pension or annuity plan may include amounts treated as a recovery of your cost (investment in the contract). How to file back taxes for free If any part of a distribution is treated as a recovery of your cost under the rules explained in this publication, that part is tax free. How to file back taxes for free Therefore, the first step in figuring how much of a distribution is taxable is to determine the cost of your pension or annuity. How to file back taxes for free In general, your cost is your net investment in the contract as of the annuity starting date (or the date of the distribution, if earlier). How to file back taxes for free To find this amount, you must first figure the total premiums, contributions, or other amounts you paid. How to file back taxes for free This includes the amounts your employer contributed that were taxable to you when paid. How to file back taxes for free (However, see Foreign employment contributions , later. How to file back taxes for free ) It does not include amounts withheld from your pay on a tax-deferred basis (money that was taken out of your gross pay before taxes were deducted). How to file back taxes for free It also does not include amounts you contributed for health and accident benefits (including any additional premiums paid for double indemnity or disability benefits). How to file back taxes for free From this total cost you must subtract the following amounts. How to file back taxes for free Any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income and that you received by the later of the annuity starting date or the date on which you received your first payment. How to file back taxes for free Any other tax-free amounts you received under the contract or plan by the later of the dates in (1). How to file back taxes for free If you must use the Simplified Method for your annuity payments, the tax-free part of any single-sum payment received in connection with the start of the annuity payments, regardless of when you received it. How to file back taxes for free (See Simplified Method , later, for information on its required use. How to file back taxes for free ) If you use the General Rule for your annuity payments, the value of the refund feature in your annuity contract. How to file back taxes for free (See General Rule , later, for information on its use. How to file back taxes for free ) Your annuity contract has a refund feature if the annuity payments are for your life (or the lives of you and your survivor) and payments in the nature of a refund of the annuity's cost will be made to your beneficiary or estate if all annuitants die before a stated amount or a stated number of payments are made. How to file back taxes for free For more information, see Publication 939. How to file back taxes for free The tax treatment of the items described in (1) through (3) is discussed later under Taxation of Nonperiodic Payments . How to file back taxes for free Form 1099-R. How to file back taxes for free If you began receiving periodic payments of a life annuity in 2013, the payer should show your total contributions to the plan in box 9b of your 2013 Form 1099-R. How to file back taxes for free Annuity starting date defined. How to file back taxes for free   Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. How to file back taxes for free Example. How to file back taxes for free On January 1, you completed all your payments required under an annuity contract providing for monthly payments starting on August 1 for the period beginning July 1. How to file back taxes for free The annuity starting date is July 1. How to file back taxes for free This is the date you use in figuring the cost of the contract and selecting the appropriate number from Table 1 for line 3 of the Simplified Method Worksheet. How to file back taxes for free Designated Roth accounts. How to file back taxes for free   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. How to file back taxes for free Your cost will also include any in-plan Roth rollovers you included in income. How to file back taxes for free Foreign employment contributions. How to file back taxes for free   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. How to file back taxes for free The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (not including the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) but only if the contributions would be excludible from your gross income had they been paid directly to you. How to file back taxes for free Foreign employment contributions while a nonresident alien. How to file back taxes for free   In determining your cost, special rules apply if you are a U. How to file back taxes for free S. How to file back taxes for free citizen or resident alien who received distributions in 2013 from a plan to which contributions were made while you were a nonresident alien. How to file back taxes for free Your contributions and your employer's contributions are not included in your cost if the contribution: Was made based on compensation which was for services performed outside the United States while you were a nonresident alien, and Was not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if paid as cash compensation when the services were performed. How to file back taxes for free Taxation of Periodic Payments This section explains how the periodic payments you receive from a pension or annuity plan are taxed. How to file back taxes for free Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). How to file back taxes for free These payments are also known as amounts received as an annuity. How to file back taxes for free If you receive an amount from your plan that is not a periodic payment, see Taxation of Nonperiodic Payments , later. How to file back taxes for free In general, you can recover the cost of your pension or annuity tax free over the period you are to receive the payments. How to file back taxes for free The amount of each payment that is more than the part that represents your cost is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). How to file back taxes for free Designated Roth accounts. How to file back taxes for free   If you receive a qualified distribution from a designated Roth account, the distribution is not included in your gross income. How to file back taxes for free This applies to both your cost in the account and income earned on that account. How to file back taxes for free A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. How to file back taxes for free   If the distribution is not a qualified distribution, the rules discussed in this section apply. How to file back taxes for free The designated Roth account is treated as a separate contract. How to file back taxes for free Period of participation. How to file back taxes for free   The 5-tax-year period of participation is the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the plan. How to file back taxes for free Therefore, for designated Roth contributions made for 2013, the first year for which a qualified distribution can be made is 2018. How to file back taxes for free   However, if a direct rollover is made to the plan from a designated Roth account under another plan, the 5-tax-year period for the recipient plan begins with the first tax year for which the participant first had designated Roth contributions made to the other plan. How to file back taxes for free   Your 401(k), 403(b), or 457(b) plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. How to file back taxes for free This is known as an in-plan Roth rollover. How to file back taxes for free For more details, see In-plan Roth rollovers , later. How to file back taxes for free Fully Taxable Payments The pension or annuity payments that you receive are fully taxable if you have no cost in the contract because any of the following situations applies to you (however, see Insurance Premiums for Retired Public Safety Officers , earlier). How to file back taxes for free You did not pay anything or are not considered to have paid anything for your pension or annuity. How to file back taxes for free Amounts withheld from your pay on a tax-deferred basis are not considered part of the cost of the pension or annuity payment. How to file back taxes for free Your employer did not withhold contributions from your salary. How to file back taxes for free You got back all of your contributions tax free in prior years (however, see Exclusion not limited to cost under Partly Taxable Payments, later). How to file back taxes for free Report the total amount you got on Form 1040, line 16b; Form 1040A, line 12b; or on Form 1040NR, line 17b. How to file back taxes for free You should make no entry on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to file back taxes for free Deductible voluntary employee contributions. How to file back taxes for free   Distributions you receive that are based on your accumulated deductible voluntary employee contributions are generally fully taxable in the year distributed to you. How to file back taxes for free Accumulated deductible voluntary employee contributions include net earnings on the contributions. How to file back taxes for free If distributed as part of a lump sum, they do not qualify for the 10-year tax option or capital gain treatment, explained later. How to file back taxes for free Partly Taxable Payments If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. How to file back taxes for free This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. How to file back taxes for free The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). How to file back taxes for free You figure the tax-free part of the payment using one of the following methods. How to file back taxes for free Simplified Method. How to file back taxes for free You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). How to file back taxes for free You cannot use this method if your annuity is paid under a nonqualified plan. How to file back taxes for free General Rule. How to file back taxes for free You must use this method if your annuity is paid under a nonqualified plan. How to file back taxes for free You generally cannot use this method if your annuity is paid under a qualified plan. How to file back taxes for free You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. How to file back taxes for free If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. How to file back taxes for free Qualified plan annuity starting before November 19, 1996. How to file back taxes for free   If your annuity is paid under a qualified plan and your annuity starting date (defined earlier under Cost (Investment in the Contract) ) is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the Simplified Method or the General Rule. How to file back taxes for free If your annuity starting date is before July 2, 1986, you use the General Rule unless your annuity qualified for the Three-Year Rule. How to file back taxes for free If you used the Three-Year Rule (which was repealed for annuities starting after July 1, 1986), your annuity payments are generally now fully taxable. How to file back taxes for free Exclusion limit. How to file back taxes for free   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. How to file back taxes for free Once your annuity starting date is determined, it does not change. How to file back taxes for free If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. How to file back taxes for free That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. How to file back taxes for free Exclusion limited to cost. How to file back taxes for free   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. How to file back taxes for free Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. How to file back taxes for free This deduction is not subject to the 2%-of-adjusted-gross-income limit. How to file back taxes for free Example 1. How to file back taxes for free Your annuity starting date is after 1986, and you exclude $100 a month ($1,200 a year) under the Simplified Method. How to file back taxes for free The total cost of your annuity is $12,000. How to file back taxes for free Your exclusion ends when you have recovered your cost tax free, that is, after 10 years (120 months). How to file back taxes for free After that, your annuity payments are generally fully taxable. How to file back taxes for free Example 2. How to file back taxes for free The facts are the same as in Example 1, except you die (with no surviving annuitant) after the eighth year of retirement. How to file back taxes for free You have recovered tax free only $9,600 (8 × $1,200) of your cost. How to file back taxes for free An itemized deduction for your unrecovered cost of $2,400 ($12,000 – $9,600) can be taken on your final return. How to file back taxes for free Exclusion not limited to cost. How to file back taxes for free   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. How to file back taxes for free If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. How to file back taxes for free The total exclusion may be more than your cost. How to file back taxes for free Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. How to file back taxes for free For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. How to file back taxes for free For any other annuity, this number is the number of monthly annuity payments under the contract. How to file back taxes for free Who must use the Simplified Method. How to file back taxes for free   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions. How to file back taxes for free You receive your pension or annuity payments from any of the following plans. How to file back taxes for free A qualified employee plan. How to file back taxes for free A qualified employee annuity. How to file back taxes for free A tax-sheltered annuity plan (403(b) plan). How to file back taxes for free On your annuity starting date, at least one of the following conditions applies to you. How to file back taxes for free You are under age 75. How to file back taxes for free You are entitled to less than 5 years of guaranteed payments. How to file back taxes for free Guaranteed payments. How to file back taxes for free   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. How to file back taxes for free If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. How to file back taxes for free Annuity starting before November 19, 1996. How to file back taxes for free   If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. How to file back taxes for free You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed earlier under Who must use the Simplified Method . How to file back taxes for free Who cannot use the Simplified Method. How to file back taxes for free   You cannot use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. How to file back taxes for free See General Rule , later. How to file back taxes for free How to use the Simplified Method. How to file back taxes for free    Complete Worksheet A in the back of this publication to figure your taxable annuity for 2013. How to file back taxes for free Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. How to file back taxes for free   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. How to file back taxes for free How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. How to file back taxes for free For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. How to file back taxes for free    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. How to file back taxes for free Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. How to file back taxes for free Single-life annuity. How to file back taxes for free   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. How to file back taxes for free Enter on line 3 the number shown for your age on your annuity starting date. How to file back taxes for free This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. How to file back taxes for free Multiple-lives annuity. How to file back taxes for free   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. How to file back taxes for free Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. How to file back taxes for free For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. How to file back taxes for free For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. How to file back taxes for free Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. How to file back taxes for free   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. How to file back taxes for free Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. How to file back taxes for free This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. How to file back taxes for free Fixed-period annuity. How to file back taxes for free   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. How to file back taxes for free Line 6. How to file back taxes for free   The amount on line 6 should include all amounts that could have been recovered in prior years. How to file back taxes for free If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. How to file back taxes for free Example. How to file back taxes for free Bill Smith, age 65, began receiving retirement benefits in 2013 under a joint and survivor annuity. How to file back taxes for free Bill's annuity starting date is January 1, 2013. How to file back taxes for free The benefits are to be paid for the joint lives of Bill and his wife, Kathy, age 65. How to file back taxes for free Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. How to file back taxes for free Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. How to file back taxes for free Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. How to file back taxes for free Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of Worksheet A in completing line 3 of the worksheet. How to file back taxes for free His completed worksheet is shown later. How to file back taxes for free Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. How to file back taxes for free Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. How to file back taxes for free The full amount of any annuity payments received after 310 payments are paid must be included in gross income. How to file back taxes for free If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. How to file back taxes for free This deduction is not subject to the 2%-of-adjusted-gross-income limit. How to file back taxes for free Worksheet A. How to file back taxes for free Simplified Method Worksheet for Bill Smith 1. How to file back taxes for free Enter the total pension or annuity payments received this year. How to file back taxes for free Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. How to file back taxes for free $14,400 2. How to file back taxes for free Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. How to file back taxes for free * See Cost (Investment in the Contract) , earlier 2. How to file back taxes for free 31,000   Note. How to file back taxes for free If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). How to file back taxes for free Otherwise, go to line 3. How to file back taxes for free     3. How to file back taxes for free Enter the appropriate number from Table 1 below. How to file back taxes for free But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. How to file back taxes for free 310 4. How to file back taxes for free Divide line 2 by the number on line 3 4. How to file back taxes for free 100 5. How to file back taxes for free Multiply line 4 by the number of months for which this year's payments were made. How to file back taxes for free If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. How to file back taxes for free Otherwise, go to line 6 5. How to file back taxes for free 1,200 6. How to file back taxes for free Enter any amount previously recovered tax free in years after 1986. How to file back taxes for free This is the amount shown on line 10 of your worksheet for last year 6. How to file back taxes for free -0- 7. How to file back taxes for free Subtract line 6 from line 2 7. How to file back taxes for free 31,000 8. How to file back taxes for free Enter the smaller of line 5 or line 7 8. How to file back taxes for free 1,200 9. How to file back taxes for free Taxable amount for year. How to file back taxes for free Subtract line 8 from line 1. How to file back taxes for free Enter the result, but not less than zero. How to file back taxes for free Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. How to file back taxes for free Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. How to file back taxes for free If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. How to file back taxes for free $13,200 10. How to file back taxes for free Was your annuity starting date before 1987? □ Yes. How to file back taxes for free STOP. How to file back taxes for free Do not complete the rest of this worksheet. How to file back taxes for free  ☑ No. How to file back taxes for free Add lines 6 and 8. How to file back taxes for free This is the amount you have recovered tax free through 2013. How to file back taxes for free You will need this number if you need to fill out this worksheet next year 10. How to file back taxes for free 1,200 11. How to file back taxes for free Balance of cost to be recovered. How to file back taxes for free Subtract line 10 from line 2. How to file back taxes for free If zero, you will not have to complete this worksheet next year. How to file back taxes for free The payments you receive next year will generally be fully taxable 11. How to file back taxes for free $29,800         * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. How to file back taxes for free           Table 1 for Line 3 Above       AND your annuity starting date was—     IF the age at annuity starting date was. How to file back taxes for free . How to file back taxes for free . How to file back taxes for free BEFORE November 19, 1996, enter on line 3. How to file back taxes for free . How to file back taxes for free . How to file back taxes for free AFTER November 18, 1996, enter on line 3. How to file back taxes for free . How to file back taxes for free . How to file back taxes for free     55 or under 300 360     56-60 260 310     61-65 240 260     66-70 170 210     71 or older 120 160     Table 2 for Line 3 Above     IF the combined ages at  annuity starting date were. How to file back taxes for free . How to file back taxes for free . How to file back taxes for free THEN enter on line 3. How to file back taxes for free . How to file back taxes for free . How to file back taxes for free     110 or under   410     111-120   360     121-130   310     131-140   260     141 or older   210   Multiple annuitants. How to file back taxes for free   If you and one or more other annuitants receive payments at the same time, you exclude from each annuity payment a pro rata share of the monthly tax-free amount. How to file back taxes for free Figure your share by taking the following steps. How to file back taxes for free Complete your worksheet through line 4 to figure the monthly tax-free amount. How to file back taxes for free Divide the amount of your monthly payment by the total amount of the monthly payments to all annuitants. How to file back taxes for free Multiply the amount on line 4 of your worksheet by the amount figured in (2) above. How to file back taxes for free The result is your share of the monthly tax-free amount. How to file back taxes for free   Replace the amount on line 4 of the worksheet with the result in (3) above. How to file back taxes for free Enter that amount on line 4 of your worksheet each year. How to file back taxes for free General Rule Under the General Rule, you determine the tax-free part of each annuity payment based on the ratio of the cost of the contract to the total expected return. How to file back taxes for free Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. How to file back taxes for free To figure it, you must use life expectancy (actuarial) tables prescribed by the IRS. How to file back taxes for free Who must use the General Rule. How to file back taxes for free   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. How to file back taxes for free Annuity starting before November 19, 1996. How to file back taxes for free   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. How to file back taxes for free You also had to use it for any fixed-period annuity. How to file back taxes for free If you did not have to use the General Rule, you could have chosen to use it. How to file back taxes for free If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. How to file back taxes for free   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. How to file back taxes for free Who cannot use the General Rule. How to file back taxes for free   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. How to file back taxes for free See Simplified Method , earlier. How to file back taxes for free More information. How to file back taxes for free   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. How to file back taxes for free Taxation of Nonperiodic Payments This section of the publication explains how any nonperiodic distributions you receive under a pension or annuity plan are taxed. How to file back taxes for free Nonperiodic distributions are also known as amounts not received as an annuity. How to file back taxes for free They include all payments other than periodic payments and corrective distributions. How to file back taxes for free For example, the following items are treated as nonperiodic distributions. How to file back taxes for free Cash withdrawals. How to file back taxes for free Distributions of current earnings (dividends) on your investment. How to file back taxes for free However, do not include these distributions in your income to the extent the insurer keeps them to pay premiums or other consideration for the contract. How to file back taxes for free Certain loans. How to file back taxes for free See Loans Treated as Distributions , later. How to file back taxes for free The value of annuity contracts transferred without full and adequate consideration. How to file back taxes for free See Transfers of Annuity Contracts , later. How to file back taxes for free Corrective distributions of excess plan contributions. How to file back taxes for free   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. How to file back taxes for free To correct an excess, your plan may distribute it to you (along with any income earned on the excess). How to file back taxes for free Although the plan reports the corrective distributions on Form 1099-R, the distribution is not treated as a nonperiodic distribution from the plan. How to file back taxes for free It is not subject to the allocation rules explained in the following discussion, it cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. How to file back taxes for free    If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099-R should have the code “8,” “B,” “P,” or “E” in box 7. How to file back taxes for free   For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. How to file back taxes for free Figuring the Taxable Amount How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. How to file back taxes for free If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. How to file back taxes for free If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. How to file back taxes for free You may be able to roll over the taxable amount of a nonperiodic distribution from a qualified retirement plan into another qualified retirement plan or a traditional IRA tax free. How to file back taxes for free See Rollovers, later. How to file back taxes for free If you do not make a tax-free rollover and the distribution qualifies as a lump-sum distribution, you may be able to elect an optional method of figuring the tax on the taxable amount. How to file back taxes for free See Lump-Sum Distributions, later. How to file back taxes for free Annuity starting date. How to file back taxes for free   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. How to file back taxes for free Distributions of employer securities. How to file back taxes for free    If you receive a distribution of employer securities from a qualified retirement plan, you may be able to defer the tax on the net unrealized appreciation (NUA) in the securities. How to file back taxes for free The NUA is the net increase in the securities' value while they were in the trust. How to file back taxes for free This tax deferral applies to distributions of the employer corporation's stocks, bonds, registered debentures, and debentures with interest coupons attached. How to file back taxes for free   If the distribution is a lump-sum distribution, tax is deferred on all of the NUA unless you choose to include it in your income for the year of the distribution. How to file back taxes for free    A lump-sum distribution for this purpose is the distribution or payment of a plan participant's entire balance (within a single tax year) from all of the employer's qualified plans of one kind (pension, profit-sharing, or stock bonus plans), but only if paid: Because of the plan participant's death, After the participant reaches age 59½, Because the participant, if an employee, separates from service, or After the participant, if a self-employed individual, becomes totally and permanently disabled. How to file back taxes for free    If you choose to include NUA in your income for the year of the distribution and the participant was born before January 2, 1936, you may be able to figure the tax on the NUA using the optional methods described und