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Hr Block State Taxes

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Hr Block State Taxes

Hr block state taxes 18. Hr block state taxes   Appendix This appendix contains models of the certificates, waivers, reports, and statements discussed in Part One. Hr block state taxes Model Certificate A   STATEMENT OF SUBSEQUENT SELLER     1. Hr block state taxes                 Name, address, and employer identification number of seller in subsequent sale             2. Hr block state taxes                 Name, address, and employer identification number of the buyer in subsequent sale             3. Hr block state taxes         Date and location of subsequent sale             4. Hr block state taxes         Volume and type of taxable fuel sold               The undersigned seller (“Seller”) has received the copy of the first taxpayer's report provided with this statement in     connection with Seller's purchase of the taxable fuel described in this statement. Hr block state taxes       Under penalties of perjury, Seller declares that Seller has examined this statement, including any accompanying     schedules and statements, and, to the best of Seller's knowledge and belief, they are true, correct and complete. Hr block state taxes                   Signature and date signed                   Printed or typed name of person signing this report                   Title—   Model Certificate B   FIRST TAXPAYER'S REPORT   1. Hr block state taxes                     First Taxpayer's name, address and employer identification number     2. Hr block state taxes                     Name, address, and employer identification number of the buyer of the taxable fuel subject to tax     3. Hr block state taxes           Date and location of removal, entry, or sale       4. Hr block state taxes           Volume and type of taxable fuel removed, entered or sold     5. Hr block state taxes Check type of taxable event:         Removal from refinery         Entry into United States         Bulk transfer from terminal by unregistered position holder       Bulk transfer not received at an approved terminal       Sale within the bulk transfer/terminal system       Removal at the terminal rack         Removal or sale by the blender                   6. Hr block state taxes           Amount of federal excise tax paid on account of the removal, entry, or sale                   The undersigned taxpayer (“Taxpayer”) has not received, and will not claim, a credit with respect to, or a refund of, the tax     on the taxable fuel to which this form relates. Hr block state taxes       Under penalties of perjury, Taxpayer declares that Taxpayer has examined this statement, including any accompanying     schedules and statements, and to the best of Taxpayer's knowledge and belief, they are true, correct and complete. Hr block state taxes             Signature and date signed               Printed or typed name of person signing this report               Title     Model Certificate C   NOTIFICATION CERTIFICATE OF TAXABLE FUEL REGISTRANT                           Name, address, and employer identification number of person receiving certificate       The undersigned taxable registrant (“Registrant”) hereby certifies under penalties of perjury that Registrant is registered     by the Internal Revenue Service with registration number and that Registrant's registration has not     been revoked or suspended by the Internal Revenue Service. Hr block state taxes                 Registrant understands that the fraudulent use of this certificate may subject Registrant and all parties making such     fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes                       Signature and date signed                         Printed or typed name of person signing                         Title of person signing                         Name of Registrant                         Employer identification number                         Address of Registrant     Model Certificate D   CERTIFICATE OF PERSON BUYING GASOLINE BLENDSTOCKS FOR USE OTHER THAN IN THE PRODUCTION OF FINISHED GASOLINE     (To support tax-free sales (other than LUST) under section 4081 of the Internal Revenue Code. Hr block state taxes )                 Name, address, and employer identification number of seller       The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:       The gasoline blendstocks to which this certificate relates will not be used to produce finished gasoline. Hr block state taxes       This certificate applies to the following (complete as applicable):       If this is a single purchase certificate, check here and enter:     1. Hr block state taxes Invoice or delivery ticket number       2. Hr block state taxes (number of gallons) of(type of gasoline blendstocks)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:     1. Hr block state taxes Effective date       2. Hr block state taxes Expiration date       (period not to exceed 1 year after the effective date)       3. Hr block state taxes Type (or types) of gasoline blendstocks     4. Hr block state taxes Buyer's account or order number         Buyer will not claim a credit or refund under section 6427(h) of the Internal Revenue Code for any gasoline blendstocks     covered by this certificate. Hr block state taxes         Buyer will provide a new certificate to the seller if any information in this certificate changes. Hr block state taxes       If Buyer resells the gasoline blendstocks to which this certificate relates, Buyer will be liable for tax unless Buyer obtains a     certificate from the purchaser stating that the gasoline blendstocks will not be used to produce finished gasoline and otherwise complies with the conditions of §48. Hr block state taxes 4081-4(b)(3) of the Manufacturers and Retailers Excise Tax Regulations. Hr block state taxes       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. Hr block state taxes       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Hr block state taxes     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells gasoline blendstocks tax free. Hr block state taxes       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes             Signature and date signed               Printed or typed name of person signing               Title of person signing               Name of Buyer               Employer identification number               Address of Buyer     Model Certificate G   CERTIFICATE OF REGISTERED FEEDSTOCK USER     (To support tax-free removals and entries (other than LUST) of kerosene under section 4082 of the Internal Revenue Code. Hr block state taxes )         (Buyer) certifies the following under penalties of perjury:       Name of buyer         Buyer is a registered feedstock user with registration number . Hr block state taxes Buyer's registration has not been revoked     or suspended. Hr block state taxes         The kerosene to which this certificate applies will be used by Buyer for a feedstock purpose. Hr block state taxes                 This certificate applies to percent of Buyer's purchases from (name, address, and employer     identification number of seller) as follows (complete as applicable):       1. Hr block state taxes A single purchase on invoice or delivery ticket number . Hr block state taxes                 2. Hr block state taxes All purchases between (effective date) and (expiration date) (period not to exceed     one year after the effective date) under account or order number(s) . Hr block state taxes If this certificate applies only to Buyer's     purchases for certain locations, check here and list the locations. Hr block state taxes                                   If Buyer sells the kerosene to which this certificate relates, Buyer will be liable for tax on that sale. Hr block state taxes                 Buyer will provide a new certificate to the seller if any information in this certificate changes. Hr block state taxes                 If Buyer violates the terms of this certificate, the Internal Revenue Service may revoke the Buyer's registration. Hr block state taxes                 Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of     this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes             Printed or typed name of person signing               Title of person signing               Employer identification number               Address of Buyer               Signature and date signed     Model Certificate J   CERTIFICATE OF PERSON BUYING COMPRESSED NATURAL GAS (CNG) FOR A NONTAXABLE USE     (To support tax-free sales of CNG under section 4041 of the Internal Revenue Code. Hr block state taxes )                                         Name, address, and employer identification number of seller                   (“Buyer”) certifies the following under penalties of perjury:     Name of buyer                     The CNG to which this certificate relates will be used in a nontaxable use. Hr block state taxes       This certificate applies to the following (complete as applicable):               If this is a single purchase certificate, check here and enter:       1. Hr block state taxes Invoice or delivery ticket number       2. Hr block state taxes (Gasoline gallon equivalents)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:         1. Hr block state taxes Effective date         2. Hr block state taxes Expiration date         (period not to exceed 1 year after the effective date)         3. Hr block state taxes Buyer's account or order number       Buyer will not claim a credit or refund under section 6427 of the Internal Revenue Code for any CNG to which this certificate relates. Hr block state taxes       Buyer will provide a new certificate to the seller if any information in this certificate changes. Hr block state taxes       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. Hr block state taxes       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Hr block state taxes     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn     from a purchaser to which Buyer sells CNG tax free. Hr block state taxes       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes             Printed or typed name of person signing               Title of person signing             Employer identification number               Address of Buyer               Signature and date signed     Model Certificate K   CERTIFICATE OF PERSON BUYING KEROSENE FOR USE IN AVIATION FOR     COMMERCIAL AVIATION OR NONTAXABLE USE     (To support operator liability for tax on removals of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation pursuant to § 4081 of the Internal Revenue Code or to support a tax rate of zero under § 4041(c) pursuant to §§4041(c) and 4082. Hr block state taxes )           Name, address, and employer identification number of position holder       The undersigned aircraft operator (“Buyer”) hereby certifies the following under the penalties of perjury:       The kerosene for use in aviation to which this certificate relates is purchased (check one): for     use on a farm for farming purposes; for use in foreign trade (reciprocal benefits required for foreign registered airlines); for use in certain helicopter and fixed-wing air ambulance uses; for use other than as a fuel in the propulsion engine of an aircraft; for the exclusive use of a qualified blood collector organization; for the exclusive use of a nonprofit educational organization; for the exclusive use of a state; for use in an aircraft owned by an aircraft museum; for use in military aircraft; or for use in commercial aviation (other than foreign trade). Hr block state taxes       With respect to kerosene for use in aviation purchased after June 30, 2005, for use in commercial aviation     (other than foreign trade), Buyer's registration number is. Hr block state taxes Buyer's registration has not been suspended or revoked by the Internal Revenue Service. Hr block state taxes       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. Hr block state taxes Invoice or delivery ticket number       2. Hr block state taxes Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. Hr block state taxes Effective date       2. Hr block state taxes Expiration date (period not to exceed 1 year after the effective date)       3. Hr block state taxes Buyer's account number       Buyer agrees to provide the person liable for tax with a new certificate if any information in this certificate changes. Hr block state taxes       If the kerosene for use in aviation to which this certificate relates is being bought for use in commercial aviation     (other than foreign trade), Buyer is liable for tax on its use of the fuel and will pay that tax to the government. Hr block state taxes       If Buyer sells or uses the kerosene for use in aviation to which this certificate relates for a use other than the use     stated above, Buyer will be liable for tax. Hr block state taxes       Buyer understands that it must be prepared to establish by satisfactory evidence the purpose for which the     fuel purchased under this certificate was used. Hr block state taxes     Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. Hr block state taxes     If Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate. Hr block state taxes       The fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this certificate     to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver L WAIVER FOR USE BY ULTIMATE PURCHASERS OF KEROSENE FOR CERTAIN USES IN AVIATION (To support vendor's claim for a credit or payment under § 6427(l)(4)(C)(i) of the Internal Revenue Code. Hr block state taxes )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. Hr block state taxes The kerosene to which this waiver relates is purchased for — (check one):       1. Hr block state taxes □ Use on a farm for farming purposes,       2. Hr block state taxes □ Use in foreign trade (reciprocal benefits required for foreign registered airlines),       3. Hr block state taxes □ Use in certain helicopter and fixed-wing air ambulance uses,       4. Hr block state taxes □ The exclusive use of a qualified blood collector organization,       5. Hr block state taxes □ The exclusive use of a nonprofit educational organization,       6. Hr block state taxes □ Use in an aircraft owned by an aircraft museum,       7. Hr block state taxes □ Use in military aircraft, or       8. Hr block state taxes □ Use in commercial aviation (other than foreign trade). Hr block state taxes     B. Hr block state taxes This waiver applies to the following (complete as applicable):       This is a single purchase waiver:           1. Hr block state taxes Invoice or delivery ticket number           2. Hr block state taxes Number of gallons       This is a waiver covering all purchases under a specified account or order number:           1. Hr block state taxes Effective date           2. Hr block state taxes Expiration date (period not to exceed 1 year after the effective date)           3. Hr block state taxes Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. Hr block state taxes       If Buyer uses the kerosene for use in aviation to which this waiver relates for a use other than the use stated above, Buyer will be liable for tax. Hr block state taxes       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the kerosene for use in aviation used in a nontaxable use. Hr block state taxes       Buyer acknowledges that it has not and will not claim any credit or payment for the kerosene for use in aviation to which this waiver relates. Hr block state taxes       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate M   CERTIFICATE FOR STATE USE OR NONPROFIT EDUCATIONAL     ORGANIZATION USE     (To support vendor's claim for a credit or payment under § 6416(a)(4) of the Internal Revenue Code. Hr block state taxes )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       Buyer will use the gasoline or aviation gasoline to which this certificate relates (check one):     For the exclusive use of a state or local government; or     For the exclusive use of a nonprofit educational organization. Hr block state taxes       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. Hr block state taxes Invoice or delivery ticket number       2. Hr block state taxes Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. Hr block state taxes Effective date       2. Hr block state taxes Expiration date (period not to exceed 1 year after the effective date)       3. Hr block state taxes Buyer's account number       Buyer will provide a new certificate to the vendor if any information in this certificate changes. Hr block state taxes       Buyer understands that by signing this certificate, Buyer gives up its right to claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. Hr block state taxes       Buyer acknowledges that it has not and will not claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. Hr block state taxes       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver N   WAIVER FOR USE BY ULTIMATE PURCHASERS OF DIESEL FUEL OR     KEROSENE USED IN INTERCITY BUS TRANSPORTATION     (To support vendor's claim for a credit or payment under § 6427 of the Internal Revenue Code. Hr block state taxes )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       The diesel fuel or kerosene to which this waiver relates is purchased for use in intercity bus transportation. Hr block state taxes       This waiver applies to the following (complete as applicable):     This is a single purchase waiver:       1. Hr block state taxes Invoice or delivery ticket number       2. Hr block state taxes Number of gallons     This is a waiver covering all purchases under a specified account or order number:       1. Hr block state taxes Effective date       2. Hr block state taxes Expiration date (period not to exceed 1 year after the effective date)       3. Hr block state taxes Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. Hr block state taxes       If Buyer uses the diesel fuel or kerosene to which this waiver relates for a use other than in intercity bus transportation, Buyer will be liable for tax. Hr block state taxes       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the diesel fuel or kerosene used in intercity bus transportation. Hr block state taxes       Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this waiver relates. Hr block state taxes       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate O   CERTIFICATE FOR BIODIESEL     Certificate Identification Number:     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. Hr block state taxes )     The undersigned biodiesel producer (“Producer”) hereby certifies the following under penalties of perjury:   1. Hr block state taxes             Producer's name, address, and employer identification number (EIN)   2. Hr block state taxes             Name, address, and EIN of person buying the biodiesel from Producer   3. Hr block state taxes       Date and location of sale to buyer   4. Hr block state taxes This certificate applies to gallons of biodiesel. Hr block state taxes   5. Hr block state taxes Producer certifies that the biodiesel to which this certificate relates is:       % Agri-biodiesel (derived solely from virgin oils)       % Biodiesel other than agri-biodiesel       This certificate applies to the following sale:       Invoice or delivery ticket number       Total number of gallons of biodiesel sold under that invoice or delivery ticket number (including biodiesel not covered by this certificate)       Total number of certificates issued for that invoice or delivery ticket number   6. Hr block state taxes             Name, address, and employer identification number of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after the return of the original certificate)   7. Hr block state taxes Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the original certificate). Hr block state taxes       Producer is registered as a biodiesel producer with registration number . Hr block state taxes  Producer's registration has not been suspended or revoked by the Internal Revenue Service. Hr block state taxes       Producer certifies that the biodiesel to which this certificate relates in monoalkyl esters of long chain fatty acids derived from plant or animal matter that meets the requirements of the American Society of Testing and Materials D6751 and the registration requirements for fuels and fuel additives established by EPA under section 211 of the Clean Air Act (42 U. Hr block state taxes S. Hr block state taxes C. Hr block state taxes 7545). Hr block state taxes       Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Model Certificate P CERTIFICATE OF STATE USE (To support vendor's claim for credit or payment under section 6427 of the Internal Revenue Code. Hr block state taxes )               Name, Address, and Employer Identification Number of Vendor     The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:     A. Hr block state taxes Buyer will use the diesel fuel or kerosene to which this certificate relates for the exclusive use of a state or local government, or the District of Columbia. Hr block state taxes     B. Hr block state taxes This certificate applies to the following (complete as applicable):       1. Hr block state taxes   If this is a single purchase certificate, check here □ and enter:           a. Hr block state taxes Invoice or delivery ticket number           b. Hr block state taxes Number of gallons       2. Hr block state taxes   If this is a certificate covering all purchases under a specified account or order number, check here □  and enter:           a. Hr block state taxes Effective date           b. Hr block state taxes Expiration date   (period not to exceed 1 year after effective date)           c. Hr block state taxes Buyer's account or order number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. Hr block state taxes     ▪ If Buyer uses the diesel fuel or kerosene to which this certificate relates for a purpose other than stated in the certificate, Buyer will be liable for any tax. Hr block state taxes     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this certificate relates. Hr block state taxes     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate Q CERTIFICATE OF ULTIMATE PURCHASER OF KEROSENE FOR USE IN NONEXEMPT, NONCOMMERCIAL AVIATION (To support vendor's claim for credit or payment under section 6427(l)(4)(C)(ii) of the Internal Revenue Code. Hr block state taxes )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. Hr block state taxes The kerosene to which this certificate relates is purchased for a nonexempt use in noncommercial aviation. Hr block state taxes     B. Hr block state taxes This certificate applies to the following (complete as applicable):       1. Hr block state taxes   If this is a single purchase certificate, check here □ and enter:           a. Hr block state taxes Invoice or delivery ticket number           b. Hr block state taxes Number of gallons       2. Hr block state taxes   This is a certificate covering all purchases under a specified account or order number:           a. Hr block state taxes Effective date           b. Hr block state taxes Expiration date   (period not to exceed 1 year after effective date)           c. Hr block state taxes Buyer's account number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. Hr block state taxes     ▪ If Buyer uses the kerosene to which this certificate relates for a use other than the nontaxable use stated above, Buyer will be liable for tax. Hr block state taxes     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate R CERTIFICATE OF BUYER OF TAXABLE FUEL FOR USE BY A STATE OR NONPROFIT EDUCATIONAL ORGANIZATION (To support credit card issuer's claim for credit, refund, or payment under section 6416(a)(4)(B) or section 6427(l)(5)(D) of the Internal Revenue Code. Hr block state taxes )               Name, Address, and Employer Identification Number of Credit Card Issuer. Hr block state taxes     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. Hr block state taxes Buyer will use the taxable fuel to which this certificate relates for the exclusive use of a state; or     B. Hr block state taxes Buyer will use the gasoline to which this certificate relates for the exclusive use of a nonprofit educational organization. Hr block state taxes     C. Hr block state taxes This certificate applies to all purchases made with the credit card identified below during the period specified:           a. Hr block state taxes Effective date of certificate           b. Hr block state taxes Expiration date of certificate   (period not to exceed 2 years after effective date)           c. Hr block state taxes Buyer's account number     ▪ Buyer will provide a new certificate to the credit card issuer if any information in this certificate changes. Hr block state taxes     ▪ Buyer understands that by signing this certificate, Buyer gives up its right to claim a credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. Hr block state taxes     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. Hr block state taxes     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Statement S   STATEMENT OF BIODIESEL RESELLER     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. Hr block state taxes )     The undersigned biodiesel producer (“Reseller”) hereby certifies the following under penalties of perjury:   1. Hr block state taxes                   Reseller's name, address, and employer identification number (EIN)   2. Hr block state taxes                   Name, address, and EIN of Reseller's buyer   3. Hr block state taxes       Date and location of sale to buyer   4. Hr block state taxes Volume of biodiesel sold   5. Hr block state taxes Certificate Identification Number on the Certificate for Biodiesel       Reseller has bought the biodiesel described in the accompanying Certificate for Biodiesel and Reseller has no reason to believe that any information in the certificate is false. Hr block state taxes       Reseller has not been notified by the Internal Revenue Service that its right to provide a certificate or statement has been withdrawn. Hr block state taxes       Reseller understands that the fraudulent use of this statement may subject Reseller and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. Hr block state taxes           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Prev  Up  Next   Home   More Online Publications
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Individual Shared Responsibility Provision – Calculating the Payment

 

The individual shared responsibility provision requires you and each member of your family to either have basic health insurance coverage (also known as minimum essential coverage), qualify for an exemption, or make an individual shared responsibility payment when you file your federal income tax return. It is important to remember that choosing to make the individual shared responsibility payment instead of purchasing minimum essential coverage means you will also have to pay the entire cost of all your medical care. You won't be protected from the kind of very high medical bills that can sometimes lead to bankruptcy.

If you must make an individual shared responsibility payment with your return, the annual payment amount is the greater of a percentage of your household income or a flat dollar amount, but is capped at the national average premium for a bronze level health plan available through the Marketplace. You will owe 1/12th of the annual payment for each month you or your dependent(s) don’t have either coverage or an exemption.

For 2014, the annual payment amount is:

  • The greater of:
    • 1 percent of your household income that is above the tax return filing threshold for your filing status, or
    • Your family’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a family maximum of $285,
  • But capped at the cost of the national average premium for a bronze level health plan available through the Marketplace in 2014.

Calculating your payment requires you to know your household income and your tax return filing threshold.

  • Household income is the adjusted gross income from your tax return plus any excludible foreign earned income and tax-exempt interest you receive during the taxable year. Household income also includes the incomes of all of your dependents who are required to file tax returns.
  • Tax return filing threshold is the amount of gross income an individual of your age and with your filing status (e.g., single, married filing jointly, head of household) must make to be required to file a tax return.

2014 Federal Tax Filing Requirement Thresholds

Filing Status Age Must File a Return If Gross Income Exceeds
Single Under 65 $10,150
  65 or older $11,700
Head of Household Under 65 $13,050
  65 or older $14,600
Married Filing Jointly  Under 65 (both spouses) $20,300
  65 or older (one spouse) $21,500
  65 or older (both spouses) $22,700
Married Filing Separately  Any age $3,950
Qualifying Widow(er) with Dependent Children Under 65 $16,350
  65 or older $17,550

 

Examples

In the examples below, we assume that the payment amounts do not exceed the national average premium for bronze level coverage for the individuals involved. These examples are used only to represent the mechanics of calculating the payment and are not estimates of current or future health insurance premium costs. For information on the cost of bronze level plans, visit HealthCare.gov.

Example 1: Single individual with $40,000 income

Jim, an unmarried individual with no dependents, does not have minimum essential coverage for any month during 2014 and does not qualify for an exemption. For 2014, Jim’s household income is $40,000 and his filing threshold is $10,150.

  • To determine his payment using the income formula, subtract $10,150 (filing threshold) from $40,000 (2014 household income). The result is $29,850. One percent of $29,850 equals $298.50.
  • Jim’s flat dollar amount is $95.

Because $298.50 is greater than $95 (and is less than the national average premium for bronze level coverage for 2014), Jim’s shared responsibility payment for 2014 is $298.50, or $24.87 for each month he is uninsured (1/12 of $298.50 equals $24.87).

Jim will make his shared responsibility payment for the months he was uninsured when he files his 2014 income tax return, which is due in April 2015.

Example 2: Married couple with 2 children, $70,000 income

Eduardo and Julia are married and have two children under 18. They do not have minimum essential coverage for any family member for any month during 2014 and no one in the family qualifies for an exemption. For 2014, their household income is $70,000 and their filing threshold is $20,300.

  • To determine their payment using the income formula, subtract $20,300 (filing threshold) from $70,000 (2014 household income). The result is $49,700. One percent of $49,700 equals $497.
  • Eduardo and Julia’s flat dollar amount is $285, or $95 per adult and $47.50 per child. The total of $285 is the flat dollar amount in 2014.

Because $497 is greater than $285 (and is less than the national average premium for bronze level coverage for 2014), Eduardo and Julia’s shared responsibility payment is $497 for 2014, or $41.41 per month for each month the family is uninsured (1/12 of $497 equals $41.41).

Page Last Reviewed or Updated: 24-Mar-2014

The Hr Block State Taxes

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