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Irs 1040 Ez Instructions

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Irs 1040 Ez Instructions

Irs 1040 ez instructions 1. Irs 1040 ez instructions   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. Irs 1040 ez instructions When repayment contributions can be made. Irs 1040 ez instructions No deduction. Irs 1040 ez instructions Reserve component. Irs 1040 ez instructions Figuring your IRA deduction. Irs 1040 ez instructions Reporting the repayment. Irs 1040 ez instructions Example. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. Irs 1040 ez instructions 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. Irs 1040 ez instructions 2013 Reporting. Irs 1040 ez instructions Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. Irs 1040 ez instructions One-time transfer. Irs 1040 ez instructions Testing period rules apply. Irs 1040 ez instructions More information. Irs 1040 ez instructions 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. Irs 1040 ez instructions  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. Irs 1040 ez instructions 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. Irs 1040 ez instructions For more information, see How Much Can Be Contributed? in this chapter. Irs 1040 ez instructions Modified AGI limit for traditional IRA contributions increased. Irs 1040 ez instructions  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. Irs 1040 ez instructions 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. Irs 1040 ez instructions If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs 1040 ez instructions See How Much Can You Deduct? in this chapter. Irs 1040 ez instructions Net Investment Income Tax. Irs 1040 ez instructions  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). Irs 1040 ez instructions However, these distributions are taken into account when determining the modified adjusted gross income threshold. Irs 1040 ez instructions Distributions from a nonqualified retirement plan are included in net investment income. Irs 1040 ez instructions See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Irs 1040 ez instructions What's New for 2014 Modified AGI limit for traditional IRA contributions increased. Irs 1040 ez instructions  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. Irs 1040 ez instructions 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. Irs 1040 ez instructions If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs 1040 ez instructions Introduction This chapter discusses the original IRA. Irs 1040 ez instructions In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Irs 1040 ez instructions ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Irs 1040 ez instructions 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. Irs 1040 ez instructions Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Irs 1040 ez instructions 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. Irs 1040 ez instructions You can have a traditional IRA whether or not you are covered by any other retirement plan. Irs 1040 ez instructions However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. Irs 1040 ez instructions See How Much Can You Deduct , later. Irs 1040 ez instructions Both spouses have compensation. Irs 1040 ez instructions   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. Irs 1040 ez instructions You cannot both participate in the same IRA. Irs 1040 ez instructions If you file a joint return, only one of you needs to have compensation. Irs 1040 ez instructions What Is Compensation? Generally, compensation is what you earn from working. Irs 1040 ez instructions For a summary of what compensation does and does not include, see Table 1-1. Irs 1040 ez instructions Compensation includes all of the items discussed next (even if you have more than one type). Irs 1040 ez instructions Wages, salaries, etc. Irs 1040 ez instructions   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. Irs 1040 ez instructions 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). Irs 1040 ez instructions Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. Irs 1040 ez instructions Commissions. Irs 1040 ez instructions   An amount you receive that is a percentage of profits or sales price is compensation. Irs 1040 ez instructions Self-employment income. Irs 1040 ez instructions   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. Irs 1040 ez instructions   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Irs 1040 ez instructions Self-employment loss. Irs 1040 ez instructions   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. Irs 1040 ez instructions Alimony and separate maintenance. Irs 1040 ez instructions   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. Irs 1040 ez instructions Nontaxable combat pay. Irs 1040 ez instructions   If you were a member of the U. Irs 1040 ez instructions S. Irs 1040 ez instructions Armed Forces, compensation includes any nontaxable combat pay you received. Irs 1040 ez instructions This amount should be reported in box 12 of your 2013 Form W-2 with code Q. Irs 1040 ez instructions Table 1-1. Irs 1040 ez instructions Compensation for Purposes of an IRA Includes . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions Does not include . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions   earnings and profits from property. Irs 1040 ez instructions wages, salaries, etc. Irs 1040 ez instructions     interest and dividend income. Irs 1040 ez instructions commissions. Irs 1040 ez instructions     pension or annuity income. Irs 1040 ez instructions self-employment income. Irs 1040 ez instructions     deferred compensation. Irs 1040 ez instructions alimony and separate maintenance. Irs 1040 ez instructions     income from certain  partnerships. Irs 1040 ez instructions nontaxable combat pay. Irs 1040 ez instructions     any amounts you exclude from income. Irs 1040 ez instructions     What Is Not Compensation? Compensation does not include any of the following items. Irs 1040 ez instructions Earnings and profits from property, such as rental income, interest income, and dividend income. Irs 1040 ez instructions Pension or annuity income. Irs 1040 ez instructions Deferred compensation received (compensation payments postponed from a past year). Irs 1040 ez instructions Income from a partnership for which you do not provide services that are a material income-producing factor. Irs 1040 ez instructions Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Irs 1040 ez instructions Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Irs 1040 ez instructions When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Irs 1040 ez instructions However, the time for making contributions for any year is limited. Irs 1040 ez instructions See When Can Contributions Be Made , later. Irs 1040 ez instructions How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. Irs 1040 ez instructions You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Irs 1040 ez instructions You can also open an IRA through your stockbroker. Irs 1040 ez instructions Any IRA must meet Internal Revenue Code requirements. Irs 1040 ez instructions The requirements for the various arrangements are discussed below. Irs 1040 ez instructions Kinds of traditional IRAs. Irs 1040 ez instructions   Your traditional IRA can be an individual retirement account or annuity. Irs 1040 ez instructions It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Irs 1040 ez instructions 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. Irs 1040 ez instructions The account is created by a written document. Irs 1040 ez instructions The document must show that the account meets all of the following requirements. Irs 1040 ez instructions 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. Irs 1040 ez instructions The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. Irs 1040 ez instructions However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. Irs 1040 ez instructions Contributions, except for rollover contributions, must be in cash. Irs 1040 ez instructions See Rollovers , later. Irs 1040 ez instructions You must have a nonforfeitable right to the amount at all times. Irs 1040 ez instructions Money in your account cannot be used to buy a life insurance policy. Irs 1040 ez instructions Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. Irs 1040 ez instructions You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. Irs 1040 ez instructions See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irs 1040 ez instructions Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. Irs 1040 ez instructions 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. Irs 1040 ez instructions An individual retirement annuity must meet all the following requirements. Irs 1040 ez instructions Your entire interest in the contract must be nonforfeitable. Irs 1040 ez instructions The contract must provide that you cannot transfer any portion of it to any person other than the issuer. Irs 1040 ez instructions There must be flexible premiums so that if your compensation changes, your payment can also change. Irs 1040 ez instructions This provision applies to contracts issued after November 6, 1978. Irs 1040 ez instructions 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. Irs 1040 ez instructions Distributions must begin by April 1 of the year following the year in which you reach age 70½. Irs 1040 ez instructions See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irs 1040 ez instructions Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. Irs 1040 ez instructions The bonds have the following features. Irs 1040 ez instructions They stop earning interest when you reach age 70½. Irs 1040 ez instructions If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. Irs 1040 ez instructions You cannot transfer the bonds. Irs 1040 ez instructions If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. Irs 1040 ez instructions See Age 59½ Rule under Early Distributions, later. Irs 1040 ez instructions You can roll over redemption proceeds into IRAs. Irs 1040 ez instructions 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. Irs 1040 ez instructions Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. Irs 1040 ez instructions See Publication 560 for more information about SEPs. Irs 1040 ez instructions 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. Irs 1040 ez instructions The requirements for individual retirement accounts apply to these traditional IRAs. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions The disclosure statement must explain certain items in plain language. Irs 1040 ez instructions 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. Irs 1040 ez instructions This explanation must appear at the beginning of the disclosure statement. Irs 1040 ez instructions If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. Irs 1040 ez instructions 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. Irs 1040 ez instructions These requirements apply to all sponsors. Irs 1040 ez instructions How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Irs 1040 ez instructions These limits and rules are explained below. Irs 1040 ez instructions Community property laws. Irs 1040 ez instructions   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. Irs 1040 ez instructions This is the rule even in states with community property laws. Irs 1040 ez instructions Brokers' commissions. Irs 1040 ez instructions   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Irs 1040 ez instructions For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. Irs 1040 ez instructions Trustees' fees. Irs 1040 ez instructions   Trustees' administrative fees are not subject to the contribution limit. Irs 1040 ez instructions For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. Irs 1040 ez instructions Qualified reservist repayments. Irs 1040 ez instructions   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. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions Limit. Irs 1040 ez instructions   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. Irs 1040 ez instructions When repayment contributions can be made. Irs 1040 ez instructions   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. Irs 1040 ez instructions No deduction. Irs 1040 ez instructions   You cannot deduct qualified reservist repayments. Irs 1040 ez instructions Reserve component. Irs 1040 ez instructions   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. Irs 1040 ez instructions Figuring your IRA deduction. Irs 1040 ez instructions   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. Irs 1040 ez instructions Reporting the repayment. Irs 1040 ez instructions   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. Irs 1040 ez instructions Example. Irs 1040 ez instructions   In 2013, your IRA contribution limit is $5,500. Irs 1040 ez instructions However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. Irs 1040 ez instructions You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). Irs 1040 ez instructions In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. Irs 1040 ez instructions   For 2013, you can contribute a total of $8,500 to your IRA. Irs 1040 ez instructions 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. Irs 1040 ez instructions You contribute the maximum allowable for the year. Irs 1040 ez instructions 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. Irs 1040 ez instructions The qualified reservist repayment is not deductible. Irs 1040 ez instructions Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Irs 1040 ez instructions See chapter 2 for information about Roth IRAs. Irs 1040 ez instructions 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. Irs 1040 ez instructions Note. Irs 1040 ez instructions 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). Irs 1040 ez instructions 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. Irs 1040 ez instructions (See Nondeductible Contributions , later. Irs 1040 ez instructions ) Qualified reservist repayments do not affect this limit. Irs 1040 ez instructions Examples. Irs 1040 ez instructions George, who is 34 years old and single, earns $24,000 in 2013. Irs 1040 ez instructions His IRA contributions for 2013 are limited to $5,500. Irs 1040 ez instructions Danny, an unmarried college student working part time, earns $3,500 in 2013. Irs 1040 ez instructions His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Irs 1040 ez instructions More than one IRA. Irs 1040 ez instructions   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. Irs 1040 ez instructions Annuity or endowment contracts. Irs 1040 ez instructions   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. Irs 1040 ez instructions If more than this amount is contributed, the annuity or endowment contract is disqualified. Irs 1040 ez instructions 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. Irs 1040 ez instructions Your spouse's IRA contribution for the year to a traditional IRA. Irs 1040 ez instructions Any contributions for the year to a Roth IRA on behalf of your spouse. Irs 1040 ez instructions 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). Irs 1040 ez instructions Note. Irs 1040 ez instructions 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). Irs 1040 ez instructions Example. Irs 1040 ez instructions Kristin, a full-time student with no taxable compensation, marries Carl during the year. Irs 1040 ez instructions Neither of them was age 50 by the end of 2013. Irs 1040 ez instructions For the year, Carl has taxable compensation of $30,000. Irs 1040 ez instructions He plans to contribute (and deduct) $5,500 to a traditional IRA. Irs 1040 ez instructions If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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). Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions See How Much Can You Deduct , later. Irs 1040 ez instructions Example. Irs 1040 ez instructions Tom and Darcy are married and both are 53. Irs 1040 ez instructions They both work and each has a traditional IRA. Irs 1040 ez instructions Tom earned $3,800 and Darcy earned $48,000 in 2013. Irs 1040 ez instructions 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. Irs 1040 ez instructions They can contribute up to $6,500 to Darcy's IRA. Irs 1040 ez instructions If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. Irs 1040 ez instructions 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. Irs 1040 ez instructions Example. Irs 1040 ez instructions Rafael, who is 40, earns $30,000 in 2013. Irs 1040 ez instructions Although he can contribute up to $5,500 for 2013, he contributes only $3,000. Irs 1040 ez instructions After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). Irs 1040 ez instructions He cannot contribute $2,500 more than the limit for any later year. Irs 1040 ez instructions 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. Irs 1040 ez instructions However, a penalty or additional tax may apply. Irs 1040 ez instructions See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. Irs 1040 ez instructions 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). Irs 1040 ez instructions Contributions must be in the form of money (cash, check, or money order). Irs 1040 ez instructions Property cannot be contributed. Irs 1040 ez instructions Although property cannot be contributed, your IRA may invest in certain property. Irs 1040 ez instructions For example, your IRA may purchase shares of stock. Irs 1040 ez instructions For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. Irs 1040 ez instructions You may be able to transfer or roll over certain property from one retirement plan to another. Irs 1040 ez instructions See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . Irs 1040 ez instructions 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. Irs 1040 ez instructions For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). Irs 1040 ez instructions Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. Irs 1040 ez instructions 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. Irs 1040 ez instructions See Who Can Open a Traditional IRA , earlier. Irs 1040 ez instructions 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. Irs 1040 ez instructions Contributions can resume for any years that you qualify. Irs 1040 ez instructions Contributions must be made by due date. Irs 1040 ez instructions   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. Irs 1040 ez instructions 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. Irs 1040 ez instructions Age 70½ rule. Irs 1040 ez instructions   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Irs 1040 ez instructions   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Irs 1040 ez instructions If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Irs 1040 ez instructions Designating year for which contribution is made. Irs 1040 ez instructions   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. Irs 1040 ez instructions 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). Irs 1040 ez instructions Filing before a contribution is made. Irs 1040 ez instructions    You can file your return claiming a traditional IRA contribution before the contribution is actually made. Irs 1040 ez instructions Generally, the contribution must be made by the due date of your return, not including extensions. Irs 1040 ez instructions Contributions not required. Irs 1040 ez instructions   You do not have to contribute to your traditional IRA for every tax year, even if you can. Irs 1040 ez instructions 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 . Irs 1040 ez instructions However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Irs 1040 ez instructions See Limit if Covered by Employer Plan , later. Irs 1040 ez instructions You may be able to claim a credit for contributions to your traditional IRA. Irs 1040 ez instructions For more information, see chapter 4. Irs 1040 ez instructions Trustees' fees. Irs 1040 ez instructions   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Irs 1040 ez instructions However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Irs 1040 ez instructions For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. Irs 1040 ez instructions Brokers' commissions. Irs 1040 ez instructions   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Irs 1040 ez instructions Full deduction. Irs 1040 ez instructions   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. Irs 1040 ez instructions   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Irs 1040 ez instructions Kay Bailey Hutchison Spousal IRA. Irs 1040 ez instructions   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. Irs 1040 ez instructions The IRA deduction for the year of the spouse with the greater compensation. Irs 1040 ez instructions Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Irs 1040 ez instructions Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Irs 1040 ez instructions   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. Irs 1040 ez instructions Note. Irs 1040 ez instructions 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. Irs 1040 ez instructions After a divorce or legal separation, you can deduct only the contributions to your own IRA. Irs 1040 ez instructions Your deductions are subject to the rules for single individuals. Irs 1040 ez instructions Covered by an employer retirement plan. Irs 1040 ez instructions   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. Irs 1040 ez instructions This is discussed later under Limit if Covered by Employer Plan . Irs 1040 ez instructions Limits on the amount you can deduct do not affect the amount that can be contributed. Irs 1040 ez instructions 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. Irs 1040 ez instructions The “Retirement Plan” box should be checked if you were covered. Irs 1040 ez instructions Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. Irs 1040 ez instructions If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Irs 1040 ez instructions Federal judges. Irs 1040 ez instructions   For purposes of the IRA deduction, federal judges are covered by an employer plan. Irs 1040 ez instructions For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. Irs 1040 ez instructions These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Irs 1040 ez instructions Tax year. Irs 1040 ez instructions   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Irs 1040 ez instructions For almost all people, the tax year is the calendar year. Irs 1040 ez instructions Defined contribution plan. Irs 1040 ez instructions   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. Irs 1040 ez instructions However, also see Situations in Which You Are Not Covered , later. Irs 1040 ez instructions   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Irs 1040 ez instructions In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. Irs 1040 ez instructions 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. Irs 1040 ez instructions Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Irs 1040 ez instructions Example. Irs 1040 ez instructions Company A has a money purchase pension plan. Irs 1040 ez instructions Its plan year is from July 1 to June 30. Irs 1040 ez instructions The plan provides that contributions must be allocated as of June 30. Irs 1040 ez instructions Bob, an employee, leaves Company A on December 31, 2012. Irs 1040 ez instructions The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. Irs 1040 ez instructions Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. Irs 1040 ez instructions   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. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions Example. Irs 1040 ez instructions Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. Irs 1040 ez instructions The plan year runs from July 1 to June 30. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. Irs 1040 ez instructions That contribution was made on February 15, 2014. Irs 1040 ez instructions Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. Irs 1040 ez instructions No vested interest. Irs 1040 ez instructions   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. Irs 1040 ez instructions Defined benefit plan. Irs 1040 ez instructions   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. Irs 1040 ez instructions 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. Irs 1040 ez instructions   A defined benefit plan is any plan that is not a defined contribution plan. Irs 1040 ez instructions In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. Irs 1040 ez instructions The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. Irs 1040 ez instructions Defined benefit plans include pension plans and annuity plans. Irs 1040 ez instructions Example. Irs 1040 ez instructions 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. Irs 1040 ez instructions Nick leaves Company B on December 31, 2012. Irs 1040 ez instructions 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. Irs 1040 ez instructions No vested interest. Irs 1040 ez instructions   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. Irs 1040 ez instructions 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. Irs 1040 ez instructions Social security or railroad retirement. Irs 1040 ez instructions   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Irs 1040 ez instructions Benefits from previous employer's plan. Irs 1040 ez instructions   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Irs 1040 ez instructions Reservists. Irs 1040 ez instructions   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. Irs 1040 ez instructions You are not covered by the plan if both of the following conditions are met. Irs 1040 ez instructions 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. Irs 1040 ez instructions You did not serve more than 90 days on active duty during the year (not counting duty for training). Irs 1040 ez instructions Volunteer firefighters. Irs 1040 ez instructions   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Irs 1040 ez instructions You are not covered by the plan if both of the following conditions are met. Irs 1040 ez instructions 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. Irs 1040 ez instructions Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Irs 1040 ez instructions 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. Irs 1040 ez instructions Your deduction is also affected by how much income you had and by your filing status. Irs 1040 ez instructions Your deduction may also be affected by social security benefits you received. Irs 1040 ez instructions Reduced or no deduction. Irs 1040 ez instructions   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. Irs 1040 ez instructions   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. Irs 1040 ez instructions These amounts vary depending on your filing status. Irs 1040 ez instructions   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 . Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions You received social security benefits. Irs 1040 ez instructions You received taxable compensation. Irs 1040 ez instructions Contributions were made to your traditional IRA. Irs 1040 ez instructions You or your spouse was covered by an employer retirement plan. Irs 1040 ez instructions 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. Irs 1040 ez instructions Appendix B includes an example with filled-in worksheets to assist you. Irs 1040 ez instructions Table 1-2. Irs 1040 ez instructions 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. Irs 1040 ez instructions IF your filing status is . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your modified adjusted gross income (modified AGI) is . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions THEN you can take . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions single or head of household $59,000 or less a full deduction. Irs 1040 ez instructions more than $59,000 but less than $69,000 a partial deduction. Irs 1040 ez instructions $69,000 or more no deduction. Irs 1040 ez instructions married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. Irs 1040 ez instructions more than $95,000 but less than $115,000 a partial deduction. Irs 1040 ez instructions $115,000 or more no deduction. Irs 1040 ez instructions married filing separately2 less than $10,000 a partial deduction. Irs 1040 ez instructions $10,000 or more no deduction. Irs 1040 ez instructions 1 Modified AGI (adjusted gross income). Irs 1040 ez instructions See Modified adjusted gross income (AGI) , later. Irs 1040 ez instructions  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). Irs 1040 ez instructions Table 1-3. Irs 1040 ez instructions 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. Irs 1040 ez instructions IF your filing status is . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your modified adjusted gross income (modified AGI) is . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions THEN you can take . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions single, head of household, or qualifying widow(er) any amount a full deduction. Irs 1040 ez instructions married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. Irs 1040 ez instructions married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. Irs 1040 ez instructions more than $178,000 but less than $188,000 a partial deduction. Irs 1040 ez instructions $188,000 or more no deduction. Irs 1040 ez instructions married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. Irs 1040 ez instructions $10,000 or more no deduction. Irs 1040 ez instructions 1 Modified AGI (adjusted gross income). Irs 1040 ez instructions See Modified adjusted gross income (AGI) , later. Irs 1040 ez instructions  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. Irs 1040 ez instructions 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. Irs 1040 ez instructions If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. Irs 1040 ez instructions 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. Irs 1040 ez instructions Covered by a retirement plan. Irs 1040 ez instructions   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. Irs 1040 ez instructions 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. Irs 1040 ez instructions If your spouse is covered. Irs 1040 ez instructions   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. Irs 1040 ez instructions Filing status. Irs 1040 ez instructions   Your filing status depends primarily on your marital status. Irs 1040 ez instructions 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. Irs 1040 ez instructions If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Irs 1040 ez instructions Lived apart from spouse. Irs 1040 ez instructions   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. Irs 1040 ez instructions Modified adjusted gross income (AGI). Irs 1040 ez instructions   You can use Worksheet 1-1 to figure your modified AGI. Irs 1040 ez instructions 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. Irs 1040 ez instructions    Do not assume that your modified AGI is the same as your compensation. Irs 1040 ez instructions Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. Irs 1040 ez instructions Form 1040. Irs 1040 ez instructions   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. Irs 1040 ez instructions IRA deduction. Irs 1040 ez instructions Student loan interest deduction. Irs 1040 ez instructions Tuition and fees deduction. Irs 1040 ez instructions Domestic production activities deduction. Irs 1040 ez instructions Foreign earned income exclusion. Irs 1040 ez instructions Foreign housing exclusion or deduction. Irs 1040 ez instructions Exclusion of qualified savings bond interest shown on Form 8815. Irs 1040 ez instructions Exclusion of employer-provided adoption benefits shown on Form 8839. Irs 1040 ez instructions This is your modified AGI. Irs 1040 ez instructions Form 1040A. Irs 1040 ez instructions   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. Irs 1040 ez instructions IRA deduction. Irs 1040 ez instructions Student loan interest deduction. Irs 1040 ez instructions Tuition and fees deduction. Irs 1040 ez instructions Exclusion of qualified savings bond interest shown on Form 8815. Irs 1040 ez instructions This is your modified AGI. Irs 1040 ez instructions Form 1040NR. Irs 1040 ez instructions   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. Irs 1040 ez instructions IRA deduction. Irs 1040 ez instructions Student loan interest deduction. Irs 1040 ez instructions Domestic production activities deduction. Irs 1040 ez instructions Exclusion of qualified savings bond interest shown on Form 8815. Irs 1040 ez instructions Exclusion of employer-provided adoption benefits shown on Form 8839. Irs 1040 ez instructions This is your modified AGI. Irs 1040 ez instructions Income from IRA distributions. Irs 1040 ez instructions   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. Irs 1040 ez instructions Both contributions for 2013 and distributions in 2013. Irs 1040 ez instructions   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Irs 1040 ez instructions 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. Irs 1040 ez instructions (See Nondeductible Contributions and Worksheet 1-2, later. Irs 1040 ez instructions ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Irs 1040 ez instructions To do this, you can use Worksheet 1-5, later. Irs 1040 ez instructions   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. Irs 1040 ez instructions 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. Irs 1040 ez instructions Figuring Your Reduced IRA Deduction for 2013. Irs 1040 ez instructions The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. Irs 1040 ez instructions If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. Irs 1040 ez instructions Note. Irs 1040 ez instructions If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040 ez instructions Worksheet 1-1. Irs 1040 ez instructions Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. Irs 1040 ez instructions 1. Irs 1040 ez instructions 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. Irs 1040 ez instructions   2. Irs 1040 ez instructions Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. Irs 1040 ez instructions   3. Irs 1040 ez instructions Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Irs 1040 ez instructions   4. Irs 1040 ez instructions Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. Irs 1040 ez instructions   5. Irs 1040 ez instructions Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Irs 1040 ez instructions   6. Irs 1040 ez instructions Enter any foreign housing deduction from Form 2555, line 50 6. Irs 1040 ez instructions   7. Irs 1040 ez instructions Enter any excludable savings bond interest from Form 8815, line 14 7. Irs 1040 ez instructions   8. Irs 1040 ez instructions Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Irs 1040 ez instructions   9. Irs 1040 ez instructions Add lines 1 through 8. Irs 1040 ez instructions This is your Modified AGI for traditional IRA purposes 9. Irs 1040 ez instructions   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Irs 1040 ez instructions If you file Form 1040A, enter your IRA deduction on line 17 of that form. Irs 1040 ez instructions If you file Form 1040NR, enter your IRA deduction on line 32 of that form. Irs 1040 ez instructions You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. Irs 1040 ez instructions Self-employed. Irs 1040 ez instructions   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. Irs 1040 ez instructions If you file Form 1040NR, enter your deduction on line 28 of that form. Irs 1040 ez instructions 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. Irs 1040 ez instructions The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Irs 1040 ez instructions Example. Irs 1040 ez instructions Tony is 29 years old and single. Irs 1040 ez instructions In 2013, he was covered by a retirement plan at work. Irs 1040 ez instructions His salary is $62,000. Irs 1040 ez instructions His modified AGI is $70,000. Irs 1040 ez instructions Tony makes a $5,500 IRA contribution for 2013. Irs 1040 ez instructions Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. Irs 1040 ez instructions He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. Irs 1040 ez instructions Repayment of reservist distributions. Irs 1040 ez instructions   Nondeductible contributions may include repayments of qualified reservist distributions. Irs 1040 ez instructions For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. Irs 1040 ez instructions Form 8606. Irs 1040 ez instructions   To designate contributions as nondeductible, you must file Form 8606. Irs 1040 ez instructions (See the filled-in Forms 8606 in this chapter. Irs 1040 ez instructions )   You do not have to designate a contribution as nondeductible until you file your tax return. Irs 1040 ez instructions When you file, you can even designate otherwise deductible contributions as nondeductible contributions. Irs 1040 ez instructions   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Irs 1040 ez instructions    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. Irs 1040 ez instructions In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Irs 1040 ez instructions See Form 8606 under Distributions Fully or Partly Taxable, later. Irs 1040 ez instructions Failure to report nondeductible contributions. Irs 1040 ez instructions   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. Irs 1040 ez instructions All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Irs 1040 ez instructions Penalty for overstatement. Irs 1040 ez instructions   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. Irs 1040 ez instructions Penalty for failure to file Form 8606. Irs 1040 ez instructions   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. Irs 1040 ez instructions Tax on earnings on nondeductible contributions. Irs 1040 ez instructions   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. Irs 1040 ez instructions Cost basis. Irs 1040 ez instructions   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Irs 1040 ez instructions Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Irs 1040 ez instructions    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. Irs 1040 ez instructions See Are Distributions Taxable, later, for more information. Irs 1040 ez instructions Recordkeeping. Irs 1040 ez instructions There is a recordkeeping worksheet, Appendix A. Irs 1040 ez instructions Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. Irs 1040 ez instructions 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. Irs 1040 ez instructions Example 1. Irs 1040 ez instructions For 2013, Tom and Betty file a joint return on Form 1040. Irs 1040 ez instructions They are both 39 years old. Irs 1040 ez instructions They are both employed and Tom is covered by his employer's retirement plan. Irs 1040 ez instructions Tom's salary is $59,000 and Betty's is $32,555. Irs 1040 ez instructions They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. Irs 1040 ez instructions 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 . Irs 1040 ez instructions For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. Irs 1040 ez instructions Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. Irs 1040 ez instructions Tom can take a deduction of only $5,080. Irs 1040 ez instructions He can choose to treat the $5,080 as either deductible or nondeductible contributions. Irs 1040 ez instructions He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irs 1040 ez instructions He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. Irs 1040 ez instructions Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. Irs 1040 ez instructions Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. Irs 1040 ez instructions Betty figures her IRA deduction as follows. Irs 1040 ez instructions Betty can treat all or part of her contributions as either deductible or nondeductible. Irs 1040 ez instructions 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 . Irs 1040 ez instructions 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. Irs 1040 ez instructions Betty decides to treat her $5,500 IRA contributions as deductible. Irs 1040 ez instructions The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. Irs 1040 ez instructions Example 2. Irs 1040 ez instructions For 2013, Ed and Sue file a joint return on Form 1040. Irs 1040 ez instructions They are both 39 years old. Irs 1040 ez instructions Ed is covered by his employer's retirement plan. Irs 1040 ez instructions Ed's salary is $45,000. Irs 1040 ez instructions Sue had no compensation for the year and did not contribute to an IRA. Irs 1040 ez instructions Sue is not covered by an employer plan. Irs 1040 ez instructions Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). Irs 1040 ez instructions 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. Irs 1040 ez instructions Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. Irs 1040 ez instructions He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irs 1040 ez instructions Sue figures her IRA deduction as shown on Worksheet 1-2. Irs 1040 ez instructions Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. Irs 1040 ez instructions Worksheet 1-2. Irs 1040 ez instructions 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. Irs 1040 ez instructions ) Note. Irs 1040 ez instructions If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040 ez instructions IF you . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your  filing status is . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your modified AGI is over . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions THEN enter on  line 1 below . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions       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. Irs 1040 ez instructions Enter applicable amount from table above 1. Irs 1040 ez instructions   2. Irs 1040 ez instructions Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs 1040 ez instructions     Note. Irs 1040 ez instructions If line 2 is equal to or more than the amount on line 1, stop here. Irs 1040 ez instructions  Your IRA contributions are not deductible. Irs 1040 ez instructions See Nondeductible Contributions , earlier. Irs 1040 ez instructions     3. Irs 1040 ez instructions Subtract line 2 from line 1. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions   4. Irs 1040 ez instructions Multiply line 3 by the percentage below that applies to you. Irs 1040 ez instructions If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs 1040 ez instructions (For example, $611. Irs 1040 ez instructions 40 is rounded to $620. Irs 1040 ez instructions ) However, if the result is less than $200, enter $200. Irs 1040 ez instructions         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs 1040 ez instructions 5% (. Irs 1040 ez instructions 275) (by 32. Irs 1040 ez instructions 5% (. Irs 1040 ez instructions 325) if you are age 50 or older). Irs 1040 ez instructions All others, multiply line 3 by 55% (. Irs 1040 ez instructions 55) (by 65% (. Irs 1040 ez instructions 65) if you are age 50 or older). Irs 1040 ez instructions 4. Irs 1040 ez instructions   5. Irs 1040 ez instructions 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). Irs 1040 ez instructions 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. Irs 1040 ez instructions If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs 1040 ez instructions   6. Irs 1040 ez instructions 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). Irs 1040 ez instructions If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs 1040 ez instructions 6. Irs 1040 ez instructions   7. Irs 1040 ez instructions IRA deduction. Irs 1040 ez instructions Compare lines 4, 5, and 6. Irs 1040 ez instructions 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. Irs 1040 ez instructions If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs 1040 ez instructions   8. Irs 1040 ez instructions Nondeductible contribution. Irs 1040 ez instructions Subtract line 7 from line 5 or 6, whichever is smaller. Irs 1040 ez instructions  Enter the result here and on line 1 of your Form 8606 8. Irs 1040 ez instructions   Worksheet 1-2. Irs 1040 ez instructions 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. Irs 1040 ez instructions ) Note. Irs 1040 ez instructions If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040 ez instructions IF you . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your  filing status is . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your modified AGI is over . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions THEN enter on  line 1 below . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions       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. Irs 1040 ez instructions Enter applicable amount from table above 1. Irs 1040 ez instructions 115,000 2. Irs 1040 ez instructions Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs 1040 ez instructions 96,555   Note. Irs 1040 ez instructions If line 2 is equal to or more than the amount on line 1, stop here. Irs 1040 ez instructions  Your IRA contributions are not deductible. Irs 1040 ez instructions See Nondeductible Contributions , earlier. Irs 1040 ez instructions     3. Irs 1040 ez instructions Subtract line 2 from line 1. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions 18,445 4. Irs 1040 ez instructions Multiply line 3 by the percentage below that applies to you. Irs 1040 ez instructions If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs 1040 ez instructions (For example, $611. Irs 1040 ez instructions 40 is rounded to $620. Irs 1040 ez instructions ) However, if the result is less than $200, enter $200. Irs 1040 ez instructions         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs 1040 ez instructions 5% (. Irs 1040 ez instructions 275) (by 32. Irs 1040 ez instructions 5% (. Irs 1040 ez instructions 325) if you are age 50 or older). Irs 1040 ez instructions All others, multiply line 3 by 55% (. Irs 1040 ez instructions 55) (by 65% (. Irs 1040 ez instructions 65) if you are age 50 or older). Irs 1040 ez instructions 4. Irs 1040 ez instructions 5,080 5. Irs 1040 ez instructions 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). Irs 1040 ez instructions 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. Irs 1040 ez instructions If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs 1040 ez instructions 59,000 6. Irs 1040 ez instructions 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). Irs 1040 ez instructions If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs 1040 ez instructions 6. Irs 1040 ez instructions 5,500 7. Irs 1040 ez instructions IRA deduction. Irs 1040 ez instructions Compare lines 4, 5, and 6. Irs 1040 ez instructions 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. Irs 1040 ez instructions If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs 1040 ez instructions 5,080 8. Irs 1040 ez instructions Nondeductible contribution. Irs 1040 ez instructions Subtract line 7 from line 5 or 6, whichever is smaller. Irs 1040 ez instructions  Enter the result here and on line 1 of your Form 8606 8. Irs 1040 ez instructions 420 Worksheet 1-2. Irs 1040 ez instructions 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. Irs 1040 ez instructions ) Note. Irs 1040 ez instructions If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040 ez instructions IF you . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your  filing status is . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions AND your modified AGI is over . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions THEN enter on  line 1 below . Irs 1040 ez instructions . Irs 1040 ez instructions . Irs 1040 ez instructions       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. Irs 1040 ez instructions Enter applicable amount from table above 1. Irs 1040 ez instructions 188,000 2. Irs 1040 ez instructions Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs 1040 ez instructions 180,555   Note. Irs 1040 ez instructions If line 2 is equal to or more than the amount on line 1, stop here. Irs 1040 ez instructions  Your IRA contributions are not deductible. Irs 1040 ez instructions See Nondeductible Contributions , earlier. Irs 1040 ez instructions     3. Irs 1040 ez instructions Subtract line 2 from line 1. Irs 1040 ez instructions 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. Irs 1040 ez instructions 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. Irs 1040 ez instructions 7,445 4. Irs 1040 ez instructions Multiply line 3 by the percentage below that applies to you. Irs 1040 ez instructions If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs 1040 ez instructions (For example, $611. Irs 1040 ez instructions 40 is rounded to $620. Irs 1040 ez instructions ) However, if the result is less than $200, enter $200. Irs 1040 ez instructions         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs 1040 ez instructions 5% (. Irs 1040 ez instructions 275) (by 32. Irs 1040 ez instructions 5% (. Irs 1040 ez instructions 325) if you are age 50 or older). Irs 1040 ez instructions All others, multiply line 3 by 55% (. Irs 1040 ez instructions 55) (by 65% (. Irs 1040 ez instructions 65) if you are age 50 or older). Irs 1040 ez instructions 4. Irs 1040 ez instructions 4,100 5. Irs 1040 ez instructions 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). Irs 1040 ez instructions 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. Irs 1040 ez instructions If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs 1040 ez instructions 39,500 6. Irs 1040 ez instructions 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). Irs 1040 ez instructions If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs 1040 ez instructions 6. Irs 1040 ez instructions 5,500 7. Irs 1040 ez instructions IRA deduction. Irs 1040 ez instructions Compare lines 4, 5, and 6. Irs 1040 ez instructions 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. Irs 1040 ez instructions If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs 1040 ez instructions 4,100 8. Irs 1040 ez instructions Nondeductible contribution. Irs 1040 ez instructions Subtract line 7 from line 5 or 6, whichever is smaller. Irs 1040 ez instructions  Enter the result here and on line 1 of your Form 8606 8. Irs 1040 ez instructions 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. Irs 1040 ez instructions A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Irs 1040 ez instructions Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Irs 1040 ez instructions Inherited from spouse. Irs 1040 ez instructions   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Irs 1040 ez instructions You can: Treat it as your own IRA by designating yourself as the account owner. Irs 1040 ez instructions 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
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