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Irs 1040x 2011

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Irs 1040x 2011

Irs 1040x 2011 1. Irs 1040x 2011   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 1040x 2011 When repayment contributions can be made. Irs 1040x 2011 No deduction. Irs 1040x 2011 Reserve component. Irs 1040x 2011 Figuring your IRA deduction. Irs 1040x 2011 Reporting the repayment. Irs 1040x 2011 Example. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. Irs 1040x 2011 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 1040x 2011 2013 Reporting. Irs 1040x 2011 Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. Irs 1040x 2011 One-time transfer. Irs 1040x 2011 Testing period rules apply. Irs 1040x 2011 More information. Irs 1040x 2011 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 1040x 2011  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 1040x 2011 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 1040x 2011 For more information, see How Much Can Be Contributed? in this chapter. Irs 1040x 2011 Modified AGI limit for traditional IRA contributions increased. Irs 1040x 2011  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 1040x 2011 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 1040x 2011 If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs 1040x 2011 See How Much Can You Deduct? in this chapter. Irs 1040x 2011 Net Investment Income Tax. Irs 1040x 2011  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 1040x 2011 However, these distributions are taken into account when determining the modified adjusted gross income threshold. Irs 1040x 2011 Distributions from a nonqualified retirement plan are included in net investment income. Irs 1040x 2011 See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Irs 1040x 2011 What's New for 2014 Modified AGI limit for traditional IRA contributions increased. Irs 1040x 2011  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 1040x 2011 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 1040x 2011 If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs 1040x 2011 Introduction This chapter discusses the original IRA. Irs 1040x 2011 In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Irs 1040x 2011 ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Irs 1040x 2011 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 1040x 2011 Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Irs 1040x 2011 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 1040x 2011 You can have a traditional IRA whether or not you are covered by any other retirement plan. Irs 1040x 2011 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 1040x 2011 See How Much Can You Deduct , later. Irs 1040x 2011 Both spouses have compensation. Irs 1040x 2011   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. Irs 1040x 2011 You cannot both participate in the same IRA. Irs 1040x 2011 If you file a joint return, only one of you needs to have compensation. Irs 1040x 2011 What Is Compensation? Generally, compensation is what you earn from working. Irs 1040x 2011 For a summary of what compensation does and does not include, see Table 1-1. Irs 1040x 2011 Compensation includes all of the items discussed next (even if you have more than one type). Irs 1040x 2011 Wages, salaries, etc. Irs 1040x 2011   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. Irs 1040x 2011 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 1040x 2011 Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. Irs 1040x 2011 Commissions. Irs 1040x 2011   An amount you receive that is a percentage of profits or sales price is compensation. Irs 1040x 2011 Self-employment income. Irs 1040x 2011   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 1040x 2011   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Irs 1040x 2011 Self-employment loss. Irs 1040x 2011   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 1040x 2011 Alimony and separate maintenance. Irs 1040x 2011   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. Irs 1040x 2011 Nontaxable combat pay. Irs 1040x 2011   If you were a member of the U. Irs 1040x 2011 S. Irs 1040x 2011 Armed Forces, compensation includes any nontaxable combat pay you received. Irs 1040x 2011 This amount should be reported in box 12 of your 2013 Form W-2 with code Q. Irs 1040x 2011 Table 1-1. Irs 1040x 2011 Compensation for Purposes of an IRA Includes . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 Does not include . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011   earnings and profits from property. Irs 1040x 2011 wages, salaries, etc. Irs 1040x 2011     interest and dividend income. Irs 1040x 2011 commissions. Irs 1040x 2011     pension or annuity income. Irs 1040x 2011 self-employment income. Irs 1040x 2011     deferred compensation. Irs 1040x 2011 alimony and separate maintenance. Irs 1040x 2011     income from certain  partnerships. Irs 1040x 2011 nontaxable combat pay. Irs 1040x 2011     any amounts you exclude from income. Irs 1040x 2011     What Is Not Compensation? Compensation does not include any of the following items. Irs 1040x 2011 Earnings and profits from property, such as rental income, interest income, and dividend income. Irs 1040x 2011 Pension or annuity income. Irs 1040x 2011 Deferred compensation received (compensation payments postponed from a past year). Irs 1040x 2011 Income from a partnership for which you do not provide services that are a material income-producing factor. Irs 1040x 2011 Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Irs 1040x 2011 Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Irs 1040x 2011 When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Irs 1040x 2011 However, the time for making contributions for any year is limited. Irs 1040x 2011 See When Can Contributions Be Made , later. Irs 1040x 2011 How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. Irs 1040x 2011 You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Irs 1040x 2011 You can also open an IRA through your stockbroker. Irs 1040x 2011 Any IRA must meet Internal Revenue Code requirements. Irs 1040x 2011 The requirements for the various arrangements are discussed below. Irs 1040x 2011 Kinds of traditional IRAs. Irs 1040x 2011   Your traditional IRA can be an individual retirement account or annuity. Irs 1040x 2011 It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Irs 1040x 2011 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 1040x 2011 The account is created by a written document. Irs 1040x 2011 The document must show that the account meets all of the following requirements. Irs 1040x 2011 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 1040x 2011 The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. Irs 1040x 2011 However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. Irs 1040x 2011 Contributions, except for rollover contributions, must be in cash. Irs 1040x 2011 See Rollovers , later. Irs 1040x 2011 You must have a nonforfeitable right to the amount at all times. Irs 1040x 2011 Money in your account cannot be used to buy a life insurance policy. Irs 1040x 2011 Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. Irs 1040x 2011 You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. Irs 1040x 2011 See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 An individual retirement annuity must meet all the following requirements. Irs 1040x 2011 Your entire interest in the contract must be nonforfeitable. Irs 1040x 2011 The contract must provide that you cannot transfer any portion of it to any person other than the issuer. Irs 1040x 2011 There must be flexible premiums so that if your compensation changes, your payment can also change. Irs 1040x 2011 This provision applies to contracts issued after November 6, 1978. Irs 1040x 2011 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 1040x 2011 Distributions must begin by April 1 of the year following the year in which you reach age 70½. Irs 1040x 2011 See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Irs 1040x 2011 Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. Irs 1040x 2011 The bonds have the following features. Irs 1040x 2011 They stop earning interest when you reach age 70½. Irs 1040x 2011 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 1040x 2011 You cannot transfer the bonds. Irs 1040x 2011 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 1040x 2011 See Age 59½ Rule under Early Distributions, later. Irs 1040x 2011 You can roll over redemption proceeds into IRAs. Irs 1040x 2011 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 1040x 2011 Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. Irs 1040x 2011 See Publication 560 for more information about SEPs. Irs 1040x 2011 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 1040x 2011 The requirements for individual retirement accounts apply to these traditional IRAs. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 The disclosure statement must explain certain items in plain language. Irs 1040x 2011 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 1040x 2011 This explanation must appear at the beginning of the disclosure statement. Irs 1040x 2011 If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. Irs 1040x 2011 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 1040x 2011 These requirements apply to all sponsors. Irs 1040x 2011 How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Irs 1040x 2011 These limits and rules are explained below. Irs 1040x 2011 Community property laws. Irs 1040x 2011   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 1040x 2011 This is the rule even in states with community property laws. Irs 1040x 2011 Brokers' commissions. Irs 1040x 2011   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Irs 1040x 2011 For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. Irs 1040x 2011 Trustees' fees. Irs 1040x 2011   Trustees' administrative fees are not subject to the contribution limit. Irs 1040x 2011 For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. Irs 1040x 2011 Qualified reservist repayments. Irs 1040x 2011   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 1040x 2011 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 1040x 2011 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 1040x 2011 Limit. Irs 1040x 2011   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. Irs 1040x 2011 When repayment contributions can be made. Irs 1040x 2011   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. Irs 1040x 2011 No deduction. Irs 1040x 2011   You cannot deduct qualified reservist repayments. Irs 1040x 2011 Reserve component. Irs 1040x 2011   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 1040x 2011 Figuring your IRA deduction. Irs 1040x 2011   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. Irs 1040x 2011 Reporting the repayment. Irs 1040x 2011   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. Irs 1040x 2011 Example. Irs 1040x 2011   In 2013, your IRA contribution limit is $5,500. Irs 1040x 2011 However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. Irs 1040x 2011 You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). Irs 1040x 2011 In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. Irs 1040x 2011   For 2013, you can contribute a total of $8,500 to your IRA. Irs 1040x 2011 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 1040x 2011 You contribute the maximum allowable for the year. Irs 1040x 2011 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 1040x 2011 The qualified reservist repayment is not deductible. Irs 1040x 2011 Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Irs 1040x 2011 See chapter 2 for information about Roth IRAs. Irs 1040x 2011 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 1040x 2011 Note. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 (See Nondeductible Contributions , later. Irs 1040x 2011 ) Qualified reservist repayments do not affect this limit. Irs 1040x 2011 Examples. Irs 1040x 2011 George, who is 34 years old and single, earns $24,000 in 2013. Irs 1040x 2011 His IRA contributions for 2013 are limited to $5,500. Irs 1040x 2011 Danny, an unmarried college student working part time, earns $3,500 in 2013. Irs 1040x 2011 His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Irs 1040x 2011 More than one IRA. Irs 1040x 2011   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 1040x 2011 Annuity or endowment contracts. Irs 1040x 2011   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 1040x 2011 If more than this amount is contributed, the annuity or endowment contract is disqualified. Irs 1040x 2011 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 1040x 2011 Your spouse's IRA contribution for the year to a traditional IRA. Irs 1040x 2011 Any contributions for the year to a Roth IRA on behalf of your spouse. Irs 1040x 2011 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 1040x 2011 Note. Irs 1040x 2011 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 1040x 2011 Example. Irs 1040x 2011 Kristin, a full-time student with no taxable compensation, marries Carl during the year. Irs 1040x 2011 Neither of them was age 50 by the end of 2013. Irs 1040x 2011 For the year, Carl has taxable compensation of $30,000. Irs 1040x 2011 He plans to contribute (and deduct) $5,500 to a traditional IRA. Irs 1040x 2011 If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 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 1040x 2011 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 1040x 2011 See How Much Can You Deduct , later. Irs 1040x 2011 Example. Irs 1040x 2011 Tom and Darcy are married and both are 53. Irs 1040x 2011 They both work and each has a traditional IRA. Irs 1040x 2011 Tom earned $3,800 and Darcy earned $48,000 in 2013. Irs 1040x 2011 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 1040x 2011 They can contribute up to $6,500 to Darcy's IRA. Irs 1040x 2011 If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. Irs 1040x 2011 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 1040x 2011 Example. Irs 1040x 2011 Rafael, who is 40, earns $30,000 in 2013. Irs 1040x 2011 Although he can contribute up to $5,500 for 2013, he contributes only $3,000. Irs 1040x 2011 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 1040x 2011 He cannot contribute $2,500 more than the limit for any later year. Irs 1040x 2011 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 1040x 2011 However, a penalty or additional tax may apply. Irs 1040x 2011 See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. Irs 1040x 2011 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 1040x 2011 Contributions must be in the form of money (cash, check, or money order). Irs 1040x 2011 Property cannot be contributed. Irs 1040x 2011 Although property cannot be contributed, your IRA may invest in certain property. Irs 1040x 2011 For example, your IRA may purchase shares of stock. Irs 1040x 2011 For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. Irs 1040x 2011 You may be able to transfer or roll over certain property from one retirement plan to another. Irs 1040x 2011 See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . Irs 1040x 2011 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 1040x 2011 For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). Irs 1040x 2011 Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. Irs 1040x 2011 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 1040x 2011 See Who Can Open a Traditional IRA , earlier. Irs 1040x 2011 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 1040x 2011 Contributions can resume for any years that you qualify. Irs 1040x 2011 Contributions must be made by due date. Irs 1040x 2011   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 1040x 2011 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 1040x 2011 Age 70½ rule. Irs 1040x 2011   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Irs 1040x 2011   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Irs 1040x 2011 If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Irs 1040x 2011 Designating year for which contribution is made. Irs 1040x 2011   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 1040x 2011 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 1040x 2011 Filing before a contribution is made. Irs 1040x 2011    You can file your return claiming a traditional IRA contribution before the contribution is actually made. Irs 1040x 2011 Generally, the contribution must be made by the due date of your return, not including extensions. Irs 1040x 2011 Contributions not required. Irs 1040x 2011   You do not have to contribute to your traditional IRA for every tax year, even if you can. Irs 1040x 2011 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 1040x 2011 However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Irs 1040x 2011 See Limit if Covered by Employer Plan , later. Irs 1040x 2011 You may be able to claim a credit for contributions to your traditional IRA. Irs 1040x 2011 For more information, see chapter 4. Irs 1040x 2011 Trustees' fees. Irs 1040x 2011   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Irs 1040x 2011 However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Irs 1040x 2011 For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. Irs 1040x 2011 Brokers' commissions. Irs 1040x 2011   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Irs 1040x 2011 Full deduction. Irs 1040x 2011   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 1040x 2011   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Irs 1040x 2011 Kay Bailey Hutchison Spousal IRA. Irs 1040x 2011   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 1040x 2011 The IRA deduction for the year of the spouse with the greater compensation. Irs 1040x 2011 Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Irs 1040x 2011 Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Irs 1040x 2011   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. Irs 1040x 2011 Note. Irs 1040x 2011 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 1040x 2011 After a divorce or legal separation, you can deduct only the contributions to your own IRA. Irs 1040x 2011 Your deductions are subject to the rules for single individuals. Irs 1040x 2011 Covered by an employer retirement plan. Irs 1040x 2011   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 1040x 2011 This is discussed later under Limit if Covered by Employer Plan . Irs 1040x 2011 Limits on the amount you can deduct do not affect the amount that can be contributed. Irs 1040x 2011 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 1040x 2011 The “Retirement Plan” box should be checked if you were covered. Irs 1040x 2011 Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. Irs 1040x 2011 If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Irs 1040x 2011 Federal judges. Irs 1040x 2011   For purposes of the IRA deduction, federal judges are covered by an employer plan. Irs 1040x 2011 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 1040x 2011 These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Irs 1040x 2011 Tax year. Irs 1040x 2011   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Irs 1040x 2011 For almost all people, the tax year is the calendar year. Irs 1040x 2011 Defined contribution plan. Irs 1040x 2011   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 1040x 2011 However, also see Situations in Which You Are Not Covered , later. Irs 1040x 2011   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Irs 1040x 2011 In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. Irs 1040x 2011 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 1040x 2011 Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Irs 1040x 2011 Example. Irs 1040x 2011 Company A has a money purchase pension plan. Irs 1040x 2011 Its plan year is from July 1 to June 30. Irs 1040x 2011 The plan provides that contributions must be allocated as of June 30. Irs 1040x 2011 Bob, an employee, leaves Company A on December 31, 2012. Irs 1040x 2011 The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. Irs 1040x 2011 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 1040x 2011   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 1040x 2011 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 1040x 2011 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 1040x 2011 Example. Irs 1040x 2011 Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. Irs 1040x 2011 The plan year runs from July 1 to June 30. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 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 1040x 2011 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 1040x 2011 On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. Irs 1040x 2011 That contribution was made on February 15, 2014. Irs 1040x 2011 Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. Irs 1040x 2011 No vested interest. Irs 1040x 2011   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 1040x 2011 Defined benefit plan. Irs 1040x 2011   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 1040x 2011 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 1040x 2011   A defined benefit plan is any plan that is not a defined contribution plan. Irs 1040x 2011 In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. Irs 1040x 2011 The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. Irs 1040x 2011 Defined benefit plans include pension plans and annuity plans. Irs 1040x 2011 Example. Irs 1040x 2011 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 1040x 2011 Nick leaves Company B on December 31, 2012. Irs 1040x 2011 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 1040x 2011 No vested interest. Irs 1040x 2011   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 1040x 2011 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 1040x 2011 Social security or railroad retirement. Irs 1040x 2011   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Irs 1040x 2011 Benefits from previous employer's plan. Irs 1040x 2011   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Irs 1040x 2011 Reservists. Irs 1040x 2011   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 1040x 2011 You are not covered by the plan if both of the following conditions are met. Irs 1040x 2011 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 1040x 2011 You did not serve more than 90 days on active duty during the year (not counting duty for training). Irs 1040x 2011 Volunteer firefighters. Irs 1040x 2011   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 1040x 2011 You are not covered by the plan if both of the following conditions are met. Irs 1040x 2011 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 1040x 2011 Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Irs 1040x 2011 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 1040x 2011 Your deduction is also affected by how much income you had and by your filing status. Irs 1040x 2011 Your deduction may also be affected by social security benefits you received. Irs 1040x 2011 Reduced or no deduction. Irs 1040x 2011   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 1040x 2011   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 1040x 2011 These amounts vary depending on your filing status. Irs 1040x 2011   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 1040x 2011 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 1040x 2011 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 1040x 2011 You received social security benefits. Irs 1040x 2011 You received taxable compensation. Irs 1040x 2011 Contributions were made to your traditional IRA. Irs 1040x 2011 You or your spouse was covered by an employer retirement plan. Irs 1040x 2011 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 1040x 2011 Appendix B includes an example with filled-in worksheets to assist you. Irs 1040x 2011 Table 1-2. Irs 1040x 2011 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 1040x 2011 IF your filing status is . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your modified adjusted gross income (modified AGI) is . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 THEN you can take . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 single or head of household $59,000 or less a full deduction. Irs 1040x 2011 more than $59,000 but less than $69,000 a partial deduction. Irs 1040x 2011 $69,000 or more no deduction. Irs 1040x 2011 married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. Irs 1040x 2011 more than $95,000 but less than $115,000 a partial deduction. Irs 1040x 2011 $115,000 or more no deduction. Irs 1040x 2011 married filing separately2 less than $10,000 a partial deduction. Irs 1040x 2011 $10,000 or more no deduction. Irs 1040x 2011 1 Modified AGI (adjusted gross income). Irs 1040x 2011 See Modified adjusted gross income (AGI) , later. Irs 1040x 2011  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 1040x 2011 Table 1-3. Irs 1040x 2011 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 1040x 2011 IF your filing status is . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your modified adjusted gross income (modified AGI) is . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 THEN you can take . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 single, head of household, or qualifying widow(er) any amount a full deduction. Irs 1040x 2011 married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. Irs 1040x 2011 married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. Irs 1040x 2011 more than $178,000 but less than $188,000 a partial deduction. Irs 1040x 2011 $188,000 or more no deduction. Irs 1040x 2011 married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. Irs 1040x 2011 $10,000 or more no deduction. Irs 1040x 2011 1 Modified AGI (adjusted gross income). Irs 1040x 2011 See Modified adjusted gross income (AGI) , later. Irs 1040x 2011  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. Irs 1040x 2011 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 1040x 2011 If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. Irs 1040x 2011 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 1040x 2011 Covered by a retirement plan. Irs 1040x 2011   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 1040x 2011 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 1040x 2011 If your spouse is covered. Irs 1040x 2011   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 1040x 2011 Filing status. Irs 1040x 2011   Your filing status depends primarily on your marital status. Irs 1040x 2011 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 1040x 2011 If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Irs 1040x 2011 Lived apart from spouse. Irs 1040x 2011   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 1040x 2011 Modified adjusted gross income (AGI). Irs 1040x 2011   You can use Worksheet 1-1 to figure your modified AGI. Irs 1040x 2011 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 1040x 2011    Do not assume that your modified AGI is the same as your compensation. Irs 1040x 2011 Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. Irs 1040x 2011 Form 1040. Irs 1040x 2011   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 1040x 2011 IRA deduction. Irs 1040x 2011 Student loan interest deduction. Irs 1040x 2011 Tuition and fees deduction. Irs 1040x 2011 Domestic production activities deduction. Irs 1040x 2011 Foreign earned income exclusion. Irs 1040x 2011 Foreign housing exclusion or deduction. Irs 1040x 2011 Exclusion of qualified savings bond interest shown on Form 8815. Irs 1040x 2011 Exclusion of employer-provided adoption benefits shown on Form 8839. Irs 1040x 2011 This is your modified AGI. Irs 1040x 2011 Form 1040A. Irs 1040x 2011   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 1040x 2011 IRA deduction. Irs 1040x 2011 Student loan interest deduction. Irs 1040x 2011 Tuition and fees deduction. Irs 1040x 2011 Exclusion of qualified savings bond interest shown on Form 8815. Irs 1040x 2011 This is your modified AGI. Irs 1040x 2011 Form 1040NR. Irs 1040x 2011   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 1040x 2011 IRA deduction. Irs 1040x 2011 Student loan interest deduction. Irs 1040x 2011 Domestic production activities deduction. Irs 1040x 2011 Exclusion of qualified savings bond interest shown on Form 8815. Irs 1040x 2011 Exclusion of employer-provided adoption benefits shown on Form 8839. Irs 1040x 2011 This is your modified AGI. Irs 1040x 2011 Income from IRA distributions. Irs 1040x 2011   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 1040x 2011 Both contributions for 2013 and distributions in 2013. Irs 1040x 2011   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Irs 1040x 2011 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 1040x 2011 (See Nondeductible Contributions and Worksheet 1-2, later. Irs 1040x 2011 ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Irs 1040x 2011 To do this, you can use Worksheet 1-5, later. Irs 1040x 2011   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. Irs 1040x 2011 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 1040x 2011 Figuring Your Reduced IRA Deduction for 2013. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 Note. Irs 1040x 2011 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040x 2011 Worksheet 1-1. Irs 1040x 2011 Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. Irs 1040x 2011 1. Irs 1040x 2011 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 1040x 2011   2. Irs 1040x 2011 Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. Irs 1040x 2011   3. Irs 1040x 2011 Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Irs 1040x 2011   4. Irs 1040x 2011 Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. Irs 1040x 2011   5. Irs 1040x 2011 Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Irs 1040x 2011   6. Irs 1040x 2011 Enter any foreign housing deduction from Form 2555, line 50 6. Irs 1040x 2011   7. Irs 1040x 2011 Enter any excludable savings bond interest from Form 8815, line 14 7. Irs 1040x 2011   8. Irs 1040x 2011 Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Irs 1040x 2011   9. Irs 1040x 2011 Add lines 1 through 8. Irs 1040x 2011 This is your Modified AGI for traditional IRA purposes 9. Irs 1040x 2011   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Irs 1040x 2011 If you file Form 1040A, enter your IRA deduction on line 17 of that form. Irs 1040x 2011 If you file Form 1040NR, enter your IRA deduction on line 32 of that form. Irs 1040x 2011 You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. Irs 1040x 2011 Self-employed. Irs 1040x 2011   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 1040x 2011 If you file Form 1040NR, enter your deduction on line 28 of that form. Irs 1040x 2011 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 1040x 2011 The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Irs 1040x 2011 Example. Irs 1040x 2011 Tony is 29 years old and single. Irs 1040x 2011 In 2013, he was covered by a retirement plan at work. Irs 1040x 2011 His salary is $62,000. Irs 1040x 2011 His modified AGI is $70,000. Irs 1040x 2011 Tony makes a $5,500 IRA contribution for 2013. Irs 1040x 2011 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 1040x 2011 He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. Irs 1040x 2011 Repayment of reservist distributions. Irs 1040x 2011   Nondeductible contributions may include repayments of qualified reservist distributions. Irs 1040x 2011 For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. Irs 1040x 2011 Form 8606. Irs 1040x 2011   To designate contributions as nondeductible, you must file Form 8606. Irs 1040x 2011 (See the filled-in Forms 8606 in this chapter. Irs 1040x 2011 )   You do not have to designate a contribution as nondeductible until you file your tax return. Irs 1040x 2011 When you file, you can even designate otherwise deductible contributions as nondeductible contributions. Irs 1040x 2011   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Irs 1040x 2011    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 1040x 2011 In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Irs 1040x 2011 See Form 8606 under Distributions Fully or Partly Taxable, later. Irs 1040x 2011 Failure to report nondeductible contributions. Irs 1040x 2011   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. Irs 1040x 2011 All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Irs 1040x 2011 Penalty for overstatement. Irs 1040x 2011   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 1040x 2011 Penalty for failure to file Form 8606. Irs 1040x 2011   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 1040x 2011 Tax on earnings on nondeductible contributions. Irs 1040x 2011   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 1040x 2011 Cost basis. Irs 1040x 2011   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Irs 1040x 2011 Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Irs 1040x 2011    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. Irs 1040x 2011 See Are Distributions Taxable, later, for more information. Irs 1040x 2011 Recordkeeping. Irs 1040x 2011 There is a recordkeeping worksheet, Appendix A. Irs 1040x 2011 Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. Irs 1040x 2011 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 1040x 2011 Example 1. Irs 1040x 2011 For 2013, Tom and Betty file a joint return on Form 1040. Irs 1040x 2011 They are both 39 years old. Irs 1040x 2011 They are both employed and Tom is covered by his employer's retirement plan. Irs 1040x 2011 Tom's salary is $59,000 and Betty's is $32,555. Irs 1040x 2011 They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. Irs 1040x 2011 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 1040x 2011 For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. Irs 1040x 2011 Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. Irs 1040x 2011 Tom can take a deduction of only $5,080. Irs 1040x 2011 He can choose to treat the $5,080 as either deductible or nondeductible contributions. Irs 1040x 2011 He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irs 1040x 2011 He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. Irs 1040x 2011 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 1040x 2011 Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. Irs 1040x 2011 Betty figures her IRA deduction as follows. Irs 1040x 2011 Betty can treat all or part of her contributions as either deductible or nondeductible. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 Betty decides to treat her $5,500 IRA contributions as deductible. Irs 1040x 2011 The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. Irs 1040x 2011 Example 2. Irs 1040x 2011 For 2013, Ed and Sue file a joint return on Form 1040. Irs 1040x 2011 They are both 39 years old. Irs 1040x 2011 Ed is covered by his employer's retirement plan. Irs 1040x 2011 Ed's salary is $45,000. Irs 1040x 2011 Sue had no compensation for the year and did not contribute to an IRA. Irs 1040x 2011 Sue is not covered by an employer plan. Irs 1040x 2011 Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). Irs 1040x 2011 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 1040x 2011 Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. Irs 1040x 2011 He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Irs 1040x 2011 Sue figures her IRA deduction as shown on Worksheet 1-2. Irs 1040x 2011 Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. Irs 1040x 2011 Worksheet 1-2. Irs 1040x 2011 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 1040x 2011 ) Note. Irs 1040x 2011 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040x 2011 IF you . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your  filing status is . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your modified AGI is over . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 THEN enter on  line 1 below . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011       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 1040x 2011 Enter applicable amount from table above 1. Irs 1040x 2011   2. Irs 1040x 2011 Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs 1040x 2011     Note. Irs 1040x 2011 If line 2 is equal to or more than the amount on line 1, stop here. Irs 1040x 2011  Your IRA contributions are not deductible. Irs 1040x 2011 See Nondeductible Contributions , earlier. Irs 1040x 2011     3. Irs 1040x 2011 Subtract line 2 from line 1. Irs 1040x 2011 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 1040x 2011 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 1040x 2011   4. Irs 1040x 2011 Multiply line 3 by the percentage below that applies to you. Irs 1040x 2011 If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs 1040x 2011 (For example, $611. Irs 1040x 2011 40 is rounded to $620. Irs 1040x 2011 ) However, if the result is less than $200, enter $200. Irs 1040x 2011         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs 1040x 2011 5% (. Irs 1040x 2011 275) (by 32. Irs 1040x 2011 5% (. Irs 1040x 2011 325) if you are age 50 or older). Irs 1040x 2011 All others, multiply line 3 by 55% (. Irs 1040x 2011 55) (by 65% (. Irs 1040x 2011 65) if you are age 50 or older). Irs 1040x 2011 4. Irs 1040x 2011   5. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs 1040x 2011   6. Irs 1040x 2011 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 1040x 2011 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs 1040x 2011 6. Irs 1040x 2011   7. Irs 1040x 2011 IRA deduction. Irs 1040x 2011 Compare lines 4, 5, and 6. Irs 1040x 2011 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 1040x 2011 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs 1040x 2011   8. Irs 1040x 2011 Nondeductible contribution. Irs 1040x 2011 Subtract line 7 from line 5 or 6, whichever is smaller. Irs 1040x 2011  Enter the result here and on line 1 of your Form 8606 8. Irs 1040x 2011   Worksheet 1-2. Irs 1040x 2011 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 1040x 2011 ) Note. Irs 1040x 2011 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040x 2011 IF you . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your  filing status is . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your modified AGI is over . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 THEN enter on  line 1 below . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011       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 1040x 2011 Enter applicable amount from table above 1. Irs 1040x 2011 115,000 2. Irs 1040x 2011 Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs 1040x 2011 96,555   Note. Irs 1040x 2011 If line 2 is equal to or more than the amount on line 1, stop here. Irs 1040x 2011  Your IRA contributions are not deductible. Irs 1040x 2011 See Nondeductible Contributions , earlier. Irs 1040x 2011     3. Irs 1040x 2011 Subtract line 2 from line 1. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 18,445 4. Irs 1040x 2011 Multiply line 3 by the percentage below that applies to you. Irs 1040x 2011 If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs 1040x 2011 (For example, $611. Irs 1040x 2011 40 is rounded to $620. Irs 1040x 2011 ) However, if the result is less than $200, enter $200. Irs 1040x 2011         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs 1040x 2011 5% (. Irs 1040x 2011 275) (by 32. Irs 1040x 2011 5% (. Irs 1040x 2011 325) if you are age 50 or older). Irs 1040x 2011 All others, multiply line 3 by 55% (. Irs 1040x 2011 55) (by 65% (. Irs 1040x 2011 65) if you are age 50 or older). Irs 1040x 2011 4. Irs 1040x 2011 5,080 5. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs 1040x 2011 59,000 6. Irs 1040x 2011 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 1040x 2011 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs 1040x 2011 6. Irs 1040x 2011 5,500 7. Irs 1040x 2011 IRA deduction. Irs 1040x 2011 Compare lines 4, 5, and 6. Irs 1040x 2011 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 1040x 2011 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs 1040x 2011 5,080 8. Irs 1040x 2011 Nondeductible contribution. Irs 1040x 2011 Subtract line 7 from line 5 or 6, whichever is smaller. Irs 1040x 2011  Enter the result here and on line 1 of your Form 8606 8. Irs 1040x 2011 420 Worksheet 1-2. Irs 1040x 2011 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 1040x 2011 ) Note. Irs 1040x 2011 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Irs 1040x 2011 IF you . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your  filing status is . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 AND your modified AGI is over . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011 THEN enter on  line 1 below . Irs 1040x 2011 . Irs 1040x 2011 . Irs 1040x 2011       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 1040x 2011 Enter applicable amount from table above 1. Irs 1040x 2011 188,000 2. Irs 1040x 2011 Enter your modified AGI (that of both spouses, if married filing jointly) 2. Irs 1040x 2011 180,555   Note. Irs 1040x 2011 If line 2 is equal to or more than the amount on line 1, stop here. Irs 1040x 2011  Your IRA contributions are not deductible. Irs 1040x 2011 See Nondeductible Contributions , earlier. Irs 1040x 2011     3. Irs 1040x 2011 Subtract line 2 from line 1. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 7,445 4. Irs 1040x 2011 Multiply line 3 by the percentage below that applies to you. Irs 1040x 2011 If the result is not a multiple of $10, round it to the next highest multiple of $10. Irs 1040x 2011 (For example, $611. Irs 1040x 2011 40 is rounded to $620. Irs 1040x 2011 ) However, if the result is less than $200, enter $200. Irs 1040x 2011         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Irs 1040x 2011 5% (. Irs 1040x 2011 275) (by 32. Irs 1040x 2011 5% (. Irs 1040x 2011 325) if you are age 50 or older). Irs 1040x 2011 All others, multiply line 3 by 55% (. Irs 1040x 2011 55) (by 65% (. Irs 1040x 2011 65) if you are age 50 or older). Irs 1040x 2011 4. Irs 1040x 2011 4,100 5. Irs 1040x 2011 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 1040x 2011 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 1040x 2011 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Irs 1040x 2011 39,500 6. Irs 1040x 2011 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 1040x 2011 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Irs 1040x 2011 6. Irs 1040x 2011 5,500 7. Irs 1040x 2011 IRA deduction. Irs 1040x 2011 Compare lines 4, 5, and 6. Irs 1040x 2011 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 1040x 2011 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Irs 1040x 2011 4,100 8. Irs 1040x 2011 Nondeductible contribution. Irs 1040x 2011 Subtract line 7 from line 5 or 6, whichever is smaller. Irs 1040x 2011  Enter the result here and on line 1 of your Form 8606 8. Irs 1040x 2011 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. Irs 1040x 2011 A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Irs 1040x 2011 Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Irs 1040x 2011 Inherited from spouse. Irs 1040x 2011   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Irs 1040x 2011 You can: Treat it as your own IRA by designating yourself as the account owner. Irs 1040x 2011 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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Large Business and International Tax Center

The Large Business and International (LB&I) Division serves corporations, subchapter S corporations, and partnerships with assets greater than $10 million.

LB&I Programs and Resources

Abusive Tax Shelters and Transactions
The Internal Revenue Service has a comprehensive strategy in place to combat abusive tax shelters and transactions.

Coordinated Issue Papers - LB&I
Effective January 21, 2014, all LB&I coordinated issue papers are decoordinated.  See 1/21/14 Directive from LB&I Commissioner Maloy for details.

e-file for Large and Mid-Size Corporations
For tax years ending on or after December 31, 2006, corporations that have assets of $10 Million or more are required to electronically file their 1120/1102S income tax returns.  For tax years ending on or after December 31, 2007, foreign corporations with assets of $10 Million or more are required to electronically file their 1120-F income tax returns.

Industry Issue Resolution Program
The Industry Issue Resolution (IIR) Program resolves frequently disputed or burdensome tax issues. IRS solicits suggestions for issues for the program from taxpayers, representatives and associations.

LB&I Industry Director Guidance
LB&I Directives provide industry-related and administrative guidance to LB&I examiners to ensure consistent tax administration. The Directives do not establish Service position on legal issues and are not legal guidance.

Pre-Filing Agreement Program
The Pre-Filing Agreement Program is expected to reduce taxpayer burden and make more effective use of IRS resources by resolving or eliminating tax controversy earlier in the examination process.

Schedule M-3 for Reconciling Book to Tax Income
The Treasury Department and IRS are implementing Schedule M-3, “Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More”.
 

Page Last Reviewed or Updated: 18-Mar-2014

The Irs 1040x 2011

Irs 1040x 2011 Publication 584 - Main Content Table of Contents LossesCost or other basis. Irs 1040x 2011 Fair market value. Irs 1040x 2011 Exception for personal-use real property. Irs 1040x 2011 More information. Irs 1040x 2011 Comments and SuggestionsOrdering forms and publications. Irs 1040x 2011 Tax questions. Irs 1040x 2011 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Irs 1040x 2011 Losses Generally, you may deduct losses to your home, household goods, and motor vehicles on your federal income tax return. Irs 1040x 2011 However, you may not deduct a casualty or theft loss that is covered by insurance unless you filed a timely insurance claim for reimbursement. Irs 1040x 2011 Any reimbursement you receive will reduce the loss. Irs 1040x 2011 If you did not file an insurance claim, you may deduct only the part of the loss that was not covered by insurance. Irs 1040x 2011 Amount of loss. Irs 1040x 2011   You figure the amount of your loss using the following steps. Irs 1040x 2011 Determine your cost or other basis in the property before the casualty or theft. Irs 1040x 2011 Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft. Irs 1040x 2011 (The decrease in FMV is the difference between the property's value immediately before and immediately after the casualty or theft. Irs 1040x 2011 ) From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. Irs 1040x 2011 Apply the deduction limits, discussed later, to determine the amount of your deductible loss. Irs 1040x 2011 Cost or other basis. Irs 1040x 2011   Cost or other basis usually means original cost plus improvements. Irs 1040x 2011 If you did not acquire the property by purchasing it, your basis is determined as discussed in Publication 551, Basis of Assets. Irs 1040x 2011 If you inherited the property from someone who died in 2010, and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. Irs 1040x 2011 Fair market value. Irs 1040x 2011   FMV is the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts. Irs 1040x 2011 When filling out Schedules 1 through 20, you need to know the FMV of the property immediately before and immediately after the disaster, casualty, or theft. Irs 1040x 2011 Separate computations. Irs 1040x 2011   Generally, if a single casualty or theft involves more than one item of property, you must figure the loss on each item separately. Irs 1040x 2011 Then combine the losses to determine the total loss from that casualty or theft. Irs 1040x 2011 Exception for personal-use real property. Irs 1040x 2011   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. Irs 1040x 2011 Figure the loss using the smaller of the following. Irs 1040x 2011 The decrease in FMV of the entire property. Irs 1040x 2011 The adjusted basis of the entire property. Irs 1040x 2011 Deduction limits. Irs 1040x 2011   After you have figured the amount of your loss, as discussed earlier, you must figure how much of the loss you can deduct. Irs 1040x 2011 You do this on Form 4684, section A. Irs 1040x 2011 If the loss was to property for your personal use or your family's, there are two limits on the amount you can deduct for your casualty or theft loss. Irs 1040x 2011 You must reduce each casualty or theft loss by $100 ($100 rule). Irs 1040x 2011 You must further reduce the total of all your losses by 10% of your adjusted gross income (10% rule). Irs 1040x 2011 More information. Irs 1040x 2011   For more information about the deduction limits, see Publication 547. Irs 1040x 2011 When your loss is deductible. Irs 1040x 2011   You can generally deduct a casualty or disaster area loss only in the tax year in which the casualty or disaster occurred. Irs 1040x 2011 You can generally deduct a theft loss only in the year you discovered your property was stolen. Irs 1040x 2011 However, you can choose to deduct disaster area losses on your return for the year immediately before the year of the disaster if the President has declared your area a federal disaster area. Irs 1040x 2011 For details, see Disaster Area Losses in Publication 547. Irs 1040x 2011 Comments and Suggestions We welcome your comments about this publication and your suggestions for future editions. Irs 1040x 2011 You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Irs 1040x 2011 NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Irs 1040x 2011 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs 1040x 2011 You can email us at taxforms@irs. Irs 1040x 2011 gov. Irs 1040x 2011 Please put “Publications Comment” on the subject line. Irs 1040x 2011 You can also send us comments from www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/formspubs. Irs 1040x 2011 Select “Comment on Tax Forms and Publications” under “Information about. Irs 1040x 2011 ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs 1040x 2011 Ordering forms and publications. Irs 1040x 2011   Visit www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Irs 1040x 2011 Internal Revenue Service 1201 N. Irs 1040x 2011 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs 1040x 2011   If you have a tax question, check the information available on IRS. Irs 1040x 2011 gov or call 1-800-829-1040. Irs 1040x 2011 We cannot answer tax questions sent to either of the above addresses. Irs 1040x 2011 How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Irs 1040x 2011 By selecting the method that is best for you, you will have quick and easy access to tax help. Irs 1040x 2011 Free help with your return. Irs 1040x 2011   Free help in preparing your return is available nationwide from IRS-certified volunteers. Irs 1040x 2011 The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs 1040x 2011 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs 1040x 2011 To find the nearest VITA or TCE site, visit IRS. Irs 1040x 2011 gov or call 1-800-906-9887 or 1-800-829-1040. Irs 1040x 2011   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs 1040x 2011 To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Irs 1040x 2011 aarp. Irs 1040x 2011 org/money/taxaide. Irs 1040x 2011   For more information on these programs, go to IRS. Irs 1040x 2011 gov and enter keyword “VITA” in the upper right-hand corner. Irs 1040x 2011 Internet. Irs 1040x 2011 You can access the IRS website at IRS. Irs 1040x 2011 gov 24 hours a day, 7 days a week to: E-file your return. Irs 1040x 2011 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Irs 1040x 2011 Check the status of your 2011 refund. Irs 1040x 2011 Go to IRS. Irs 1040x 2011 gov and click on Where's My Refund. Irs 1040x 2011 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Irs 1040x 2011 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs 1040x 2011 Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs 1040x 2011 Download forms, including talking tax forms, instructions, and publications. Irs 1040x 2011 Order IRS products online. Irs 1040x 2011 Research your tax questions online. Irs 1040x 2011 Search publications online by topic or keyword. Irs 1040x 2011 Use the online Internal Revenue Code, regulations, or other official guidance. Irs 1040x 2011 View Internal Revenue Bulletins (IRBs) published in the last few years. Irs 1040x 2011 Figure your withholding allowances using the withholding calculator online at www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/individuals. Irs 1040x 2011 Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/individuals. Irs 1040x 2011 Sign up to receive local and national tax news by email. Irs 1040x 2011 Get information on starting and operating a small business. Irs 1040x 2011 Phone. Irs 1040x 2011 Many services are available by phone. Irs 1040x 2011   Ordering forms, instructions, and publications. Irs 1040x 2011 Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Irs 1040x 2011 You should receive your order within 10 days. Irs 1040x 2011 Asking tax questions. Irs 1040x 2011 Call the IRS with your tax questions at 1-800-829-1040. Irs 1040x 2011 Solving problems. Irs 1040x 2011 You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Irs 1040x 2011 An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Irs 1040x 2011 Call your local Taxpayer Assistance Center for an appointment. Irs 1040x 2011 To find the number, go to www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs 1040x 2011 TTY/TDD equipment. Irs 1040x 2011 If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Irs 1040x 2011 TeleTax topics. Irs 1040x 2011 Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Irs 1040x 2011 Refund information. Irs 1040x 2011 To check the status of your 2011 refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Irs 1040x 2011 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Irs 1040x 2011 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs 1040x 2011 Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs 1040x 2011 If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Irs 1040x 2011 Other refund information. Irs 1040x 2011 To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Irs 1040x 2011 Evaluating the quality of our telephone services. Irs 1040x 2011 To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Irs 1040x 2011 One method is for a second IRS representative to listen in on or record random telephone calls. Irs 1040x 2011 Another is to ask some callers to complete a short survey at the end of the call. Irs 1040x 2011 Walk-in. Irs 1040x 2011 Many products and services are available on a walk-in basis. Irs 1040x 2011   Products. Irs 1040x 2011 You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs 1040x 2011 Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Irs 1040x 2011 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Irs 1040x 2011 Services. Irs 1040x 2011 You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Irs 1040x 2011 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs 1040x 2011 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Irs 1040x 2011 No appointment is necessary—just walk in. Irs 1040x 2011 If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Irs 1040x 2011 A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Irs 1040x 2011 If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Irs 1040x 2011 All other issues will be handled without an appointment. Irs 1040x 2011 To find the number of your local office, go to  www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs 1040x 2011 Mail. Irs 1040x 2011 You can send your order for forms, instructions, and publications to the address below. Irs 1040x 2011 You should receive a response within 10 days after your request is received. Irs 1040x 2011  Internal Revenue Service 1201 N. Irs 1040x 2011 Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Irs 1040x 2011   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs 1040x 2011 Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Irs 1040x 2011 We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Irs 1040x 2011 Remember, the worst thing you can do is nothing at all. Irs 1040x 2011   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Irs 1040x 2011 You face (or your business is facing) an immediate threat of adverse action. Irs 1040x 2011 You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Irs 1040x 2011   If you qualify for our help, we’ll do everything we can to get your problem resolved. Irs 1040x 2011 You will be assigned to one advocate who will be with you at every turn. Irs 1040x 2011 We have offices in every state, the District of Columbia, and Puerto Rico. Irs 1040x 2011 Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Irs 1040x 2011 And our services are always free. Irs 1040x 2011   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Irs 1040x 2011 Our tax toolkit at www. Irs 1040x 2011 TaxpayerAdvocate. Irs 1040x 2011 irs. Irs 1040x 2011 gov can help you understand these rights. Irs 1040x 2011   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/advocate. Irs 1040x 2011 You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Irs 1040x 2011   TAS also handles large-scale or systemic problems that affect many taxpayers. Irs 1040x 2011 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/advocate. Irs 1040x 2011 Low Income Taxpayer Clinics (LITCs). Irs 1040x 2011   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Irs 1040x 2011 Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Irs 1040x 2011 These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Irs 1040x 2011 Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Irs 1040x 2011 For more information and to find a clinic near you, see the LITC page on www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Irs 1040x 2011 This publication is also available by calling 1-800-829-3676 or at your local IRS office. Irs 1040x 2011 Free tax services. Irs 1040x 2011   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Irs 1040x 2011 Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Irs 1040x 2011 The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Irs 1040x 2011 The majority of the information and services listed in this publication are available to you free of charge. Irs 1040x 2011 If there is a fee associated with a resource or service, it is listed in the publication. Irs 1040x 2011   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Irs 1040x 2011 DVD for tax products. Irs 1040x 2011 You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Irs 1040x 2011 Prior-year forms, instructions, and publications. Irs 1040x 2011 Tax Map: an electronic research tool and finding aid. Irs 1040x 2011 Tax law frequently asked questions. Irs 1040x 2011 Tax Topics from the IRS telephone response system. Irs 1040x 2011 Internal Revenue Code—Title 26 of the U. Irs 1040x 2011 S. Irs 1040x 2011 Code. Irs 1040x 2011 Links to other Internet based Tax Research Materials. Irs 1040x 2011 Fill-in, print, and save features for most tax forms. Irs 1040x 2011 Internal Revenue Bulletins. Irs 1040x 2011 Toll-free and email technical support. Irs 1040x 2011 Two releases during the year. Irs 1040x 2011  – The first release will ship the beginning of January 2012. Irs 1040x 2011  – The final release will ship the beginning of March 2012. Irs 1040x 2011 Purchase the DVD from National Technical Information Service (NTIS) at www. Irs 1040x 2011 irs. Irs 1040x 2011 gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Irs 1040x 2011 Prev  Up  Next   Home   More Online Publications