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Irs ez file online Publication 971 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Irs ez file online Questions & AnswersThis section answers questions commonly asked by taxpayers about innocent spouse relief. Irs ez file online . Irs ez file online What is joint and several liability? . Irs ez file online How can I get relief from joint and several liability? . Irs ez file online What are the rules for innocent spouse relief? . Irs ez file online What are erroneous items? . Irs ez file online What is an understated tax? . Irs ez file online Will I qualify for innocent spouse relief in any situation where there is an understated tax? . Irs ez file online What are the rules for separation of liability relief? . Irs ez file online Why would a request for separation of liability relief be denied? . Irs ez file online What are the rules for equitable relief? . Irs ez file online How do state community property laws affect my ability to qualify for relief? . Irs ez file online How do I request relief? . Irs ez file online When should I file Form 8857? . Irs ez file online Where should I file Form 8857? . Irs ez file online I am currently undergoing an examination of my return. Irs ez file online How do I request innocent spouse relief? . Irs ez file online What if the IRS has given me notice that it will levy my account for the tax liability and I decide to request relief? . Irs ez file online What is injured spouse relief? . Irs ez file online What is joint and several liability? When you file a joint income tax return, the law makes both you and your spouse responsible for the entire tax liability. Irs ez file online This is called joint and several liability. Irs ez file online Joint and several liability applies not only to the tax liability you show on the return but also to any additional tax liability the IRS determines to be due, even if the additional tax is due to the income, deductions, or credits of your spouse or former spouse. Irs ez file online You remain jointly and severally liable for taxes, and the IRS still can collect from you, even if you later divorce and the divorce decree states that your former spouse will be solely responsible for the tax. Irs ez file online There are three types of relief for filers of joint returns: “innocent spouse relief,” “separation of liability relief,” and “equitable relief. Irs ez file online ” Each type has different requirements. Irs ez file online They are explained separately below. Irs ez file online To qualify for innocent spouse relief, you must meet all of the following conditions. Irs ez file online You must have filed a joint return which has an understated tax. Irs ez file online The understated tax must be due to erroneous items of your spouse (or former spouse). Irs ez file online You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. Irs ez file online Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. Irs ez file online You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs ez file online You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs ez file online For example, you reported total tax on your 2008 return of $2,500. Irs ez file online IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs ez file online You have a $500 understated tax. Irs ez file online No. Irs ez file online There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs ez file online For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs ez file online You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs ez file online Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs ez file online The understated tax allocated to you is generally the amount you are responsible for. Irs ez file online To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs ez file online You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs ez file online (Under this rule, you are no longer married if you are widowed. Irs ez file online ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs ez file online In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online How can I get relief from joint and several liability? There are three types of relief for filers of joint returns: “innocent spouse relief,” “separation of liability relief,” and “equitable relief. Irs ez file online ” Each type has different requirements. Irs ez file online They are explained separately below. Irs ez file online To qualify for innocent spouse relief, you must meet all of the following conditions. Irs ez file online You must have filed a joint return which has an understated tax. Irs ez file online The understated tax must be due to erroneous items of your spouse (or former spouse). Irs ez file online You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. Irs ez file online Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. Irs ez file online You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs ez file online You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs ez file online For example, you reported total tax on your 2008 return of $2,500. Irs ez file online IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs ez file online You have a $500 understated tax. Irs ez file online No. Irs ez file online There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs ez file online For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs ez file online You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs ez file online Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs ez file online The understated tax allocated to you is generally the amount you are responsible for. Irs ez file online To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs ez file online You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs ez file online (Under this rule, you are no longer married if you are widowed. Irs ez file online ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs ez file online In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online What are the rules for innocent spouse relief? To qualify for innocent spouse relief, you must meet all of the following conditions. Irs ez file online You must have filed a joint return which has an understated tax. Irs ez file online The understated tax must be due to erroneous items of your spouse (or former spouse). Irs ez file online You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. Irs ez file online Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. Irs ez file online You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs ez file online You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs ez file online For example, you reported total tax on your 2008 return of $2,500. Irs ez file online IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs ez file online You have a $500 understated tax. Irs ez file online No. Irs ez file online There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs ez file online For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs ez file online You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs ez file online Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs ez file online The understated tax allocated to you is generally the amount you are responsible for. Irs ez file online To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs ez file online You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs ez file online (Under this rule, you are no longer married if you are widowed. Irs ez file online ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs ez file online In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online What are “erroneous items”? Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs ez file online You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs ez file online For example, you reported total tax on your 2008 return of $2,500. Irs ez file online IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs ez file online You have a $500 understated tax. Irs ez file online No. Irs ez file online There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs ez file online For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs ez file online You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs ez file online Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs ez file online The understated tax allocated to you is generally the amount you are responsible for. Irs ez file online To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs ez file online You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs ez file online (Under this rule, you are no longer married if you are widowed. Irs ez file online ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs ez file online In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online What is an “understated tax”? You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs ez file online For example, you reported total tax on your 2008 return of $2,500. Irs ez file online IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs ez file online You have a $500 understated tax. Irs ez file online No. Irs ez file online There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs ez file online For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs ez file online You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs ez file online Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs ez file online The understated tax allocated to you is generally the amount you are responsible for. Irs ez file online To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs ez file online You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs ez file online (Under this rule, you are no longer married if you are widowed. Irs ez file online ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs ez file online In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online Will I qualify for innocent spouse relief in any situation where there is an understated tax? No. Irs ez file online There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs ez file online For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs ez file online You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs ez file online Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs ez file online The understated tax allocated to you is generally the amount you are responsible for. Irs ez file online To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs ez file online You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs ez file online (Under this rule, you are no longer married if you are widowed. Irs ez file online ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs ez file online In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online What are the rules for separation of liability relief? Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs ez file online The understated tax allocated to you is generally the amount you are responsible for. Irs ez file online To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs ez file online You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs ez file online (Under this rule, you are no longer married if you are widowed. Irs ez file online ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs ez file online In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs ez file online Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online Why would a request for separation of liability relief be denied? Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs ez file online The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs ez file online The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs ez file online Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs ez file online Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online What are the rules for equitable relief? Equitable relief is only available if you meet all of the following conditions. Irs ez file online You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs ez file online You have an understated tax or underpaid tax. Irs ez file online See Note later. Irs ez file online You did not pay the tax. Irs ez file online However, see Refunds , earlier, for exceptions. Irs ez file online The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs ez file online You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs ez file online Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs ez file online You did not file or fail to file your return with the intent to commit fraud. Irs ez file online The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs ez file online For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs ez file online You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs ez file online Note. Irs ez file online Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs ez file online (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs ez file online ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or resume collecting from you. Irs ez file online The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs ez file online See Publication 594 for more information. Irs ez file online Injured spouse relief is different from innocent spouse relief. Irs ez file online When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs ez file online The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs ez file online You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs ez file online You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs ez file online You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs ez file online Note. Irs ez file online If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs ez file online . Irs ez file online How do state community property laws affect my ability to qualify for relief? Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs ez file online Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs ez file online However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs ez file online      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs ez file online You must file an additional Form 8857 if you are requesting relief for more than three years. Irs ez file online If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs ez file online If you are requesting equitable relief, see Exception for equitable relief. Irs ez file online under How To Request Relief, earlier, for when to file Form 8857. Irs ez file online If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs ez file online Use the address or fax number shown in the Instructions for Form 8857. Irs ez file online File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs ez file online Do not file it with the employee assigned to examine your return. Irs ez file online Generally, the IRS has 10 years to collect an amount you owe. Irs ez file online This is the collection statute of limitations. Irs ez file online By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs ez file online If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs ez file online But interest and penalties continue to accrue. Irs ez file online Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs ez file online This includes the time the Tax Court is considering your request. Irs ez file online After your case is resolved, the IRS can begin or
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Contact My Local Office in Mississippi

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Clarksdale  Third & Sharkey Ave.
Clarksdale, MS 38614 

Tuesdays 9:30 a.m.- 2:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)


Services Provided

(662) 627-9101
Columbus  2209 Fifth St. N.
Columbus, MS 39705 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)


Services Provided

(662) 328-6957
Gulfport  11309 Old Highway 49
Gulfport, MS 39503 

Monday-Friday - 8:30a.m - 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(228) 831-3320
Hattiesburg  701 North Main St.
Hattiesburg, MS 39401 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon. - 1:00 p.m.)


Services Provided

(601) 264-7991
Jackson  100 W. Capital St.
Jackson, MS 39269 

Monday-Friday - 8:30 a.m.- 4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**


Services Provided

(601) 292-4711
Tupelo  111 E. Troy Street
Tupelo, MS 38804 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:00 a.m. - 12:00 noon)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(662) 842-5870

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (601) 292-4800 in Jackson or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see  Tax Topic 104

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
100 W. Capitol Street, Stop 50
Jackson, MS 39269

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Irs Ez File Online

Irs ez file online 17. Irs ez file online   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. Irs ez file online  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. Irs ez file online If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. Irs ez file online For more information, see How Much Can Be Contributed? later. Irs ez file online Roth IRA contribution limit. Irs ez file online  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. Irs ez file online If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. Irs ez file online However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Irs ez file online For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. Irs ez file online Modified AGI limit for traditional IRA contributions increased. Irs ez file online  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Irs ez file online If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. Irs ez file online If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Irs ez file online See How Much Can You Deduct , later. Irs ez file online Modified AGI limit for Roth IRA contributions increased. Irs ez file online  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Irs ez file online Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Irs ez file online You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Irs ez file online Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. Irs ez file online You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Irs ez file online Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. Irs ez file online You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Irs ez file online See Can You Contribute to a Roth IRA , later. Irs ez file online Net Investment Income Tax. Irs ez file online   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). Irs ez file online However, these distributions are taken into account when determining the modified adjusted gross income threshold. Irs ez file online Distributions from a nonqualified retirement plan are included in net investment income. Irs ez file online See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. Irs ez file online Name change. Irs ez file online  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. Irs ez file online There are no changes to the rules regarding these IRAs. Irs ez file online See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. Irs ez file online Reminders 2014 limits. Irs ez file online   You can find information about the 2014 contribution and AGI limits in Publication 590. Irs ez file online Contributions to both traditional and Roth IRAs. Irs ez file online   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. Irs ez file online Statement of required minimum distribution. Irs ez file online  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. Irs ez file online The report or offer must include the date by which the amount must be distributed. Irs ez file online The report is due January 31 of the year in which the minimum distribution is required. Irs ez file online It can be provided with the year-end fair market value statement that you normally get each year. Irs ez file online No report is required for IRAs of owners who have died. Irs ez file online IRA interest. Irs ez file online  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. Irs ez file online Tax on your traditional IRA is generally deferred until you take a distribution. Irs ez file online Do not report this interest on your tax return as tax-exempt interest. Irs ez file online Form 8606. Irs ez file online   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. Irs ez file online The term “50 or older” is used several times in this chapter. Irs ez file online It refers to an IRA owner who is age 50 or older by the end of the tax year. Irs ez file online Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. Irs ez file online This chapter discusses the following topics. Irs ez file online The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). Irs ez file online The Roth IRA, which features nondeductible contributions and tax-free distributions. Irs ez file online Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. Irs ez file online For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. Irs ez file online For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. Irs ez file online Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Irs ez file online ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Irs ez file online Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Irs ez file online Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. Irs ez file online What is compensation?   Generally, compensation is what you earn from working. Irs ez file online Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. Irs ez file online The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). Irs ez file online   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. Irs ez file online   Compensation also includes commissions and taxable alimony and separate maintenance payments. Irs ez file online Self-employment income. Irs ez file online   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. Irs ez file online   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Irs ez file online Nontaxable combat pay. Irs ez file online   For IRA purposes, if you were a member of the U. Irs ez file online S. Irs ez file online Armed Forces, your compensation includes any nontaxable combat pay you receive. Irs ez file online What is not compensation?   Compensation does not include any of the following items. Irs ez file online Earnings and profits from property, such as rental income, interest income, and dividend income. Irs ez file online Pension or annuity income. Irs ez file online Deferred compensation received (compensation payments postponed from a past year). Irs ez file online Income from a partnership for which you do not provide services that are a material income-producing factor. Irs ez file online Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Irs ez file online Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Irs ez file online When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Irs ez file online However, the time for making contributions for any year is limited. Irs ez file online See When Can Contributions Be Made , later. Irs ez file online You can open different kinds of IRAs with a variety of organizations. Irs ez file online You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Irs ez file online You can also open an IRA through your stockbroker. Irs ez file online Any IRA must meet Internal Revenue Code requirements. Irs ez file online Kinds of traditional IRAs. Irs ez file online   Your traditional IRA can be an individual retirement account or annuity. Irs ez file online It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Irs ez file online How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Irs ez file online These limits and other rules are explained below. Irs ez file online Community property laws. Irs ez file online   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. Irs ez file online This is the rule even in states with community property laws. Irs ez file online Brokers' commissions. Irs ez file online   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Irs ez file online Trustees' fees. Irs ez file online   Trustees' administrative fees are not subject to the contribution limit. Irs ez file online Qualified reservist repayments. Irs ez file online   If you are (or were) a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions you received. Irs ez file online You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. Irs ez file online To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or similar arrangement. Irs ez file online   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. Irs ez file online Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Irs ez file online (See Roth IRAs, later. Irs ez file online ) General limit. Irs ez file online   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. Irs ez file online $5,500 ($6,500 if you are 50 or older). Irs ez file online Your taxable compensation (defined earlier) for the year. Irs ez file online This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. Irs ez file online (See Nondeductible Contributions , later. Irs ez file online ) Qualified reservist repayments do not affect this limit. Irs ez file online Example 1. Irs ez file online Betty, who is 34 years old and single, earned $24,000 in 2013. Irs ez file online Her IRA contributions for 2013 are limited to $5,500. Irs ez file online Example 2. Irs ez file online John, an unmarried college student working part time, earned $3,500 in 2013. Irs ez file online His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Irs ez file online Kay Bailey Hutchison Spousal IRA limit. Irs ez file online   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. Irs ez file online $5,500 ($6,500 if you are 50 or older). Irs ez file online The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. Irs ez file online Your spouse's IRA contribution for the year to a traditional IRA. Irs ez file online Any contribution for the year to a Roth IRA on behalf of your spouse. Irs ez file online This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). Irs ez file online When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). Irs ez file online Contributions must be in the form of money (cash, check, or money order). Irs ez file online Property cannot be contributed. Irs ez file online Contributions must be made by due date. Irs ez file online   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. Irs ez file online Age 70½ rule. Irs ez file online   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Irs ez file online   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Irs ez file online If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Irs ez file online Designating year for which contribution is made. Irs ez file online   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. Irs ez file online If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Irs ez file online Filing before a contribution is made. Irs ez file online   You can file your return claiming a traditional IRA contribution before the contribution is actually made. Irs ez file online Generally, the contribution must be made by the due date of your return, not including extensions. Irs ez file online Contributions not required. Irs ez file online   You do not have to contribute to your traditional IRA for every tax year, even if you can. Irs ez file online How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if it applies). Irs ez file online However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Irs ez file online See Limit If Covered by Employer Plan , later. Irs ez file online You may be able to claim a credit for contributions to your traditional IRA. Irs ez file online For more information, see chapter 37. Irs ez file online Trustees' fees. Irs ez file online   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Irs ez file online However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Irs ez file online See chapter 28. Irs ez file online Brokers' commissions. Irs ez file online   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Irs ez file online Full deduction. Irs ez file online   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). Irs ez file online 100% of your compensation. Irs ez file online This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Irs ez file online Kay Bailey Hutchison Spousal IRA. Irs ez file online   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of the following amounts. Irs ez file online $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). Irs ez file online The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. Irs ez file online The IRA deduction for the year of the spouse with the greater compensation. Irs ez file online Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Irs ez file online Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Irs ez file online This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. Irs ez file online Note. Irs ez file online If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. Irs ez file online After a divorce or legal separation, you can deduct only contributions to your own IRA. Irs ez file online Your deductions are subject to the rules for single individuals. Irs ez file online Covered by an employer retirement plan. Irs ez file online   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. Irs ez file online This is discussed later under Limit If Covered by Employer Plan . Irs ez file online Limits on the amount you can deduct do not affect the amount that can be contributed. Irs ez file online See Nondeductible Contributions , later. Irs ez file online Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. Irs ez file online The “Retirement plan” box should be checked if you were covered. Irs ez file online Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. Irs ez file online If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Irs ez file online Federal judges. Irs ez file online   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. Irs ez file online For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. Irs ez file online These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Irs ez file online Tax year. Irs ez file online   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Irs ez file online For almost all people, the tax year is the calendar year. Irs ez file online Defined contribution plan. Irs ez file online   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. Irs ez file online   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Irs ez file online Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Irs ez file online Defined benefit plan. Irs ez file online   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. Irs ez file online This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. Irs ez file online   A defined benefit plan is any plan that is not a defined contribution plan. Irs ez file online Defined benefit plans include pension plans and annuity plans. Irs ez file online No vested interest. Irs ez file online   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. Irs ez file online Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. Irs ez file online Social security or railroad retirement. Irs ez file online   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Irs ez file online Benefits from a previous employer's plan. Irs ez file online   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Irs ez file online Reservists. Irs ez file online   If the only reason you participate in a plan is because you are a member of a reserve unit of the armed forces, you may not be covered by the plan. Irs ez file online You are not covered by the plan if both of the following conditions are met. Irs ez file online The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irs ez file online You did not serve more than 90 days on active duty during the year (not counting duty for training). Irs ez file online Volunteer firefighters. Irs ez file online   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Irs ez file online You are not covered by the plan if both of the following conditions are met. Irs ez file online The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Irs ez file online Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Irs ez file online Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. Irs ez file online Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. Irs ez file online These amounts vary depending on your filing status. Irs ez file online To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. Irs ez file online See Filing status and Modified adjusted gross income (AGI) , later. Irs ez file online Then use Table 17-1 or 17-2 to determine if the phaseout applies. Irs ez file online Social security recipients. Irs ez file online   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. Irs ez file online You received social security benefits. Irs ez file online You received taxable compensation. Irs ez file online Contributions were made to your traditional IRA. Irs ez file online You or your spouse was covered by an employer retirement plan. Irs ez file online Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Irs ez file online Deduction phaseout. Irs ez file online   If you were covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI as shown in Table 17-1. Irs ez file online Table 17-1. Irs ez file online Effect of Modified AGI1 on Deduction if You Are Covered by Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Irs ez file online IF your filing status is. Irs ez file online . Irs ez file online . Irs ez file online   AND your modified AGI is. Irs ez file online . Irs ez file online . Irs ez file online   THEN you can take. Irs ez file online . Irs ez file online . Irs ez file online single   or  head of household   $59,000 or less   a full deduction. Irs ez file online   more than $59,000 but less than $69,000   a partial deduction. Irs ez file online   $69,000 or more   no deduction. Irs ez file online married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. Irs ez file online   more than $95,000 but less than $115,000   a partial deduction. Irs ez file online   $115,000 or more   no deduction. Irs ez file online married filing separately2   less than $10,000   a partial deduction. Irs ez file online   $10,000 or more   no deduction. Irs ez file online 1Modified AGI (adjusted gross income). Irs ez file online See Modified adjusted gross income (AGI) . Irs ez file online 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). Irs ez file online If your spouse is covered. Irs ez file online   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. Irs ez file online Filing status. Irs ez file online   Your filing status depends primarily on your marital status. Irs ez file online For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. Irs ez file online If you need more information on filing status, see chapter 2. Irs ez file online Lived apart from spouse. Irs ez file online   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Irs ez file online Table 17-2. Irs ez file online Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Irs ez file online IF your filing status is. Irs ez file online . Irs ez file online . Irs ez file online   AND your modified AGI is. Irs ez file online . Irs ez file online . Irs ez file online   THEN you can take. Irs ez file online . Irs ez file online . Irs ez file online single, head of household, or qualifying widow(er)   any amount   a full deduction. Irs ez file online married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. Irs ez file online married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. Irs ez file online   more than $178,000 but less than $188,000   a partial deduction. Irs ez file online   $188,000 or more   no deduction. Irs ez file online married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. Irs ez file online   $10,000 or more   no deduction. Irs ez file online 1Modified AGI (adjusted gross income). Irs ez file online See Modified adjusted gross income (AGI) . Irs ez file online 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. Irs ez file online Modified adjusted gross income (AGI). Irs ez file online   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. Irs ez file online If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. Irs ez file online You may be able to use Worksheet 17-1 to figure your modified AGI. Irs ez file online    Do not assume that your modified AGI is the same as your compensation. Irs ez file online Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. Irs ez file online Form 1040. Irs ez file online   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. Irs ez file online IRA deduction. Irs ez file online Student loan interest deduction. Irs ez file online Tuition and fees deduction. Irs ez file online Domestic production activities deduction. Irs ez file online Foreign earned income exclusion. Irs ez file online Foreign housing exclusion or deduction. Irs ez file online Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. Irs ez file online S. Irs ez file online Savings Bonds Issued After 1989. Irs ez file online Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. Irs ez file online This is your modified AGI. Irs ez file online Form 1040A. Irs ez file online   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Irs ez file online IRA deduction. Irs ez file online Student loan interest deduction. Irs ez file online Tuition and fees deduction. Irs ez file online Exclusion of qualified savings bond interest shown on Form 8815. Irs ez file online This is your modified AGI. Irs ez file online Both contributions for 2013 and distributions in 2013. Irs ez file online   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Irs ez file online You received distributions in 2013 from one or more traditional IRAs. Irs ez file online You made contributions to a traditional IRA for 2013. Irs ez file online Some of those contributions may be nondeductible contributions. Irs ez file online If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Irs ez file online To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. Irs ez file online   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. Irs ez file online    How to figure your reduced IRA deduction. Irs ez file online   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. Irs ez file online Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. Irs ez file online Worksheet 17-1. Irs ez file online Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. Irs ez file online 1. Irs ez file online Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. Irs ez file online   2. Irs ez file online Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. Irs ez file online   3. Irs ez file online Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Irs ez file online   4. Irs ez file online Enter any domestic production activities deduction from Form 1040, line 35 4. Irs ez file online   5. Irs ez file online Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Irs ez file online   6. Irs ez file online Enter any foreign housing deduction from Form 2555, line 50 6. Irs ez file online   7. Irs ez file online Enter any excludable savings bond interest from Form 8815, line 14 7. Irs ez file online   8. Irs ez file online Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Irs ez file online   9. Irs ez file online Add lines 1 through 8. Irs ez file online This is your Modified AGI for traditional IRA purposes 9. Irs ez file online   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Irs ez file online If you file Form 1040A, enter your IRA deduction on line 17. Irs ez file online You cannot deduct IRA contributions on Form 1040EZ. Irs ez file online Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. Irs ez file online The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Irs ez file online Example. Irs ez file online Mike is 28 years old and single. Irs ez file online In 2013, he was covered by a retirement plan at work. Irs ez file online His salary was $57,312. Irs ez file online His modified AGI was $70,000. Irs ez file online Mike made a $5,500 IRA contribution for 2013. Irs ez file online Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. Irs ez file online He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. Irs ez file online Form 8606. Irs ez file online   To designate contributions as nondeductible, you must file Form 8606. Irs ez file online   You do not have to designate a contribution as nondeductible until you file your tax return. Irs ez file online When you file, you can even designate otherwise deductible contributions as nondeductible. Irs ez file online   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Irs ez file online A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. Irs ez file online In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Irs ez file online See Form 8606 under Distributions Fully or Partly Taxable, later. Irs ez file online Failure to report nondeductible contributions. Irs ez file online   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. Irs ez file online All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Irs ez file online Penalty for overstatement. Irs ez file online   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. Irs ez file online Penalty for failure to file Form 8606. Irs ez file online   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Irs ez file online    Tax on earnings on nondeductible contributions. Irs ez file online   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. Irs ez file online See When Can You Withdraw or Use IRA Assets , later. Irs ez file online Cost basis. Irs ez file online   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Irs ez file online Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Irs ez file online Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. Irs ez file online A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Irs ez file online Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Irs ez file online Inherited from spouse. Irs ez file online   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Irs ez file online You can: Treat it as your own IRA by designating yourself as the account owner. Irs ez file online Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). Irs ez file online Treat yourself as the beneficiary rather than treating the IRA as your own. Irs ez file online Treating it as your own. Irs ez file online   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. Irs ez file online You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. Irs ez file online   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. Irs ez file online Inherited from someone other than spouse. Irs ez file online   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. Irs ez file online This means that you cannot make any contributions to the IRA. Irs ez file online It also means you cannot roll over any amounts into or out of the inherited IRA. Irs ez file online However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. Irs ez file online For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. Irs ez file online Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. Irs ez file online You can make the following kinds of transfers. Irs ez file online Transfers from one trustee to another. Irs ez file online Rollovers. Irs ez file online Transfers incident to a divorce. Irs ez file online Transfers to Roth IRAs. Irs ez file online   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. Irs ez file online You can also move assets from a qualified retirement plan to a Roth IRA. Irs ez file online See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. Irs ez file online Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. Irs ez file online Because there is no distribution to you, the transfer is tax free. Irs ez file online Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . Irs ez file online For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. Irs ez file online Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. Irs ez file online The contribution to the second retirement plan is called a “rollover contribution. Irs ez file online ” Note. Irs ez file online An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. Irs ez file online Kinds of rollovers to a traditional IRA. Irs ez file online   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). Irs ez file online Treatment of rollovers. Irs ez file online   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . Irs ez file online Kinds of rollovers from a traditional IRA. Irs ez file online   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. Irs ez file online These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). Irs ez file online The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). Irs ez file online Qualified plans may, but are not required to, accept such rollovers. Irs ez file online Time limit for making a rollover contribution. Irs ez file online   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. Irs ez file online The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. Irs ez file online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs ez file online Extension of rollover period. Irs ez file online   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. Irs ez file online For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs ez file online More information. Irs ez file online   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs ez file online Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. Irs ez file online Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. Irs ez file online Waiting period between rollovers. Irs ez file online   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. Irs ez file online You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. Irs ez file online   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Irs ez file online Example. Irs ez file online You have two traditional IRAs, IRA-1 and IRA-2. Irs ez file online You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). Irs ez file online You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. Irs ez file online However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. Irs ez file online This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. Irs ez file online Exception. Irs ez file online   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs ez file online Partial rollovers. Irs ez file online   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. Irs ez file online The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). Irs ez file online The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . Irs ez file online Required distributions. Irs ez file online   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. Irs ez file online Inherited IRAs. Irs ez file online   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. Irs ez file online See Treating it as your own , earlier. Irs ez file online Not inherited from spouse. Irs ez file online   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. Irs ez file online You must withdraw the IRA assets within a certain period. Irs ez file online For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Irs ez file online Reporting rollovers from IRAs. Irs ez file online   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. Irs ez file online   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. Irs ez file online If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. Irs ez file online If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. Irs ez file online Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. Irs ez file online See your tax return instructions. Irs ez file online   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. Irs ez file online Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). Irs ez file online A qualified plan is one that meets the requirements of the Internal Revenue Code. Irs ez file online Eligible rollover distribution. Irs ez file online   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. Irs ez file online A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). Irs ez file online A hardship distribution. Irs ez file online Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. Irs ez file online Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. Irs ez file online A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. Irs ez file online Dividends on employer securities. Irs ez file online The cost of life insurance coverage. Irs ez file online Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. Irs ez file online To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. Irs ez file online See Form 8606 under Distributions Fully or Partly Taxable, later. Irs ez file online Rollover by nonspouse beneficiary. Irs ez file online   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. Irs ez file online The IRA is treated as an inherited IRA. Irs ez file online For more information about inherited IRAs, see Inherited IRAs , earlier. Irs ez file online Reporting rollovers from employer plans. Irs ez file online    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. Irs ez file online This amount should be shown in box 1 of Form 1099-R. Irs ez file online From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. Irs ez file online From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. Irs ez file online Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. Irs ez file online Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. Irs ez file online Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. Irs ez file online The transfer is tax free. Irs ez file online For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs ez file online Converting From Any Traditional IRA to a Roth IRA Allowable conversions. Irs ez file online   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. Irs ez file online The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. Irs ez file online If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. Irs ez file online However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. Irs ez file online Required distributions. Irs ez file online   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). Irs ez file online Income. Irs ez file online   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. Irs ez file online These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. Irs ez file online   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. Irs ez file online   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. Irs ez file online   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Irs ez file online See chapter 4. Irs ez file online Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. Irs ez file online This is called recharacterizing the contribution. Irs ez file online See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. Irs ez file online How to recharacterize a contribution. Irs ez file online   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. Irs ez file online If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. Irs ez file online If you recharacterize your contribution, you must do all three of the following. Irs ez file online Include in the transfer any net income allocable to the contribution. Irs ez file online If there was a loss, the net income you must transfer may be a negative amount. Irs ez file online Report the recharacterization on your tax return for the year during which the contribution was made. Irs ez file online Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. Irs ez file online No deduction allowed. Irs ez file online   You cannot deduct the contribution to the first IRA. Irs ez file online Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. Irs ez file online Required notifications. Irs ez file online   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. Irs ez file online You must make the notifications by the date of the transfer. Irs ez file online Only one notification is required if both IRAs are maintained by the same trustee. Irs ez file online The notification(s) must include all of the following information. Irs ez file online The type and amount of the contribution to the first IRA that is to be recharacterized. Irs ez file online The date on which the contribution was made to the first IRA and the year for which it was made. Irs ez file online A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. Irs ez file online The name of the trustee of the first IRA and the name of the trustee of the second IRA. Irs ez file online Any additional information needed to make the transfer. Irs ez file online Reporting a recharacterization. Irs ez file online   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. Irs ez file online You must treat the contribution as having been made to the second IRA. Irs ez file online When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. Irs ez file online Violation of the rules generally results in additional taxes in the year of violation. Irs ez file online See What Acts Result in Penalties or Additional Taxes , later. Irs ez file online Contributions returned before the due date of return. Irs ez file online   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. Irs ez file online If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. Irs ez file online You can do this if, for each contribution you withdraw, both of the following conditions apply. Irs ez file online You did not take a deduction for the contribution. Irs ez file online You withdraw any interest or other income earned on the contribution. Irs ez file online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Irs ez file online If there was a loss, the net income earned on the contribution may be a negative amount. Irs ez file online Note. Irs ez file online To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. Irs ez file online Earnings includible in income. Irs ez file online   You must include in income any earnings on the contributions you withdraw. Irs ez file online Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. Irs ez file online Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. Irs ez file online Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. Irs ez file online    Early distributions tax. Irs ez file online   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. Irs ez file online However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. Irs ez file online When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. Irs ez file online Eventually they must be distributed. Irs ez file online If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. Irs ez file online See Excess Accumulations (Insufficient Distributions) , later. Irs ez file online The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. Irs ez file online Required minimum distribution. Irs ez file online   The amount that must be distributed each year is referred to as the required minimum distribution. Irs ez file online Required distributions not eligible for rollover. Irs ez file online   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. Irs ez file online IRA owners. Irs ez file online   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. Irs ez file online April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. Irs ez file online Distributions by the required beginning date. Irs ez file online   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). Irs ez file online If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. Irs ez file online   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. Irs ez file online Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. Irs ez file online Distributions after the required beginning date. Irs ez file online   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. Irs ez file online    Beneficiaries. Irs ez file online   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. Irs ez file online More information. Irs ez file online   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Irs ez file online Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. Irs ez file online Exceptions. Irs ez file online   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . Irs ez file online    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. Irs ez file online Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Irs ez file online Qualified charitable distributions (QCD). Irs ez file online   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. Irs ez file online Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. Irs ez file online See Qualified Charitable Distributions in Publication 590 for more information. Irs ez file online Ordinary income. Irs ez file online   Distributions from traditional IRAs that you include in income are taxed as ordinary income. Irs ez file online No special treatment. Irs ez file online   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. Irs ez file online Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. Irs ez file online Fully taxable. Irs ez file online   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. Irs ez file online Because you have no basis in your IRA, any distributions are fully taxable when received. Irs ez file online See Reporting taxable distributions on your return , later. Irs ez file online Partly taxable. Irs ez file online    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. Irs ez file online These nondeductible contributions are not taxed when they are distributed to you. Irs ez file online They are a return of your investment in your IRA. Irs ez file online   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. Irs ez file online If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). Irs ez file online Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. Irs ez file online Form 8606. Irs ez file online   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. Irs ez file online Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. Irs ez file online Note. Irs ez file online If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. Irs ez file online Send it to the IRS at the time and place you would otherwise file an income tax return. Irs ez file online Distributions reported on Form 1099-R. Irs ez file online   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Irs ez file online , or a similar statement. Irs ez file online IRA distributions are shown in boxes 1 and 2a of Form 1099-R. Irs ez file online A number or letter code in box 7 tells you what type of distribution you received from your IRA. Irs ez file online Withholding. Irs ez file online   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. Irs ez file online See chapter 4. Irs ez file online IRA distributions delivered outside the United States. Irs ez file online   In general, if you are a U. Irs ez file online S. Irs ez file online citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. Irs ez file online Reporting taxable distributions on your return. Irs ez file online    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). Irs ez file online If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. Irs ez file online You cannot report distributions on Form 1040EZ. Irs ez file online What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. Irs ez file online There are additions to the regular tax for using your IRA funds in prohibited transactions. Irs ez file online There are also additional taxes for the following activities. Irs ez file online Investing in collectibles. Irs ez file online Making excess contributions. Irs ez file online Taking early distributions. Irs ez file online Allowing excess amounts to accumulate (failing to take required distributions). Irs ez file online There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. Irs ez file online Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. Irs ez file online Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). Irs ez file online The following are examples of prohibited transactions with a traditional IRA. Irs ez file online Borrowing money from it. Irs ez file online Selling property to it. Irs ez file online Receiving unreasonable compensation for managing it. Irs ez file online Using it as security for a loan. Irs ez file online Buying property for personal use (present or future) with IRA funds. Irs ez file online Effect on an IRA account. Irs ez file online   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. Irs ez file online Effect on you or your beneficiary. Irs ez file online   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. Irs ez file online If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. Irs ez file online For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. Irs ez file online The distribution may be subject to additional taxes or penalties. Irs ez file online Taxes on prohibited transactions. Irs ez file online   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. Irs ez file online In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. Irs ez file online More information. Irs ez file online   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. Irs ez file online Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. Irs ez file online You may have to pay the 10% additional tax on early distributions, discussed later. Irs ez file online Collectibles. Irs ez file online   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. Irs ez file online Exception. Irs ez file online    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. Irs ez file online S. Irs ez file online gold coins, or one-ounce silver coins minted by the Treasury Department. Irs ez file online It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. Irs ez file online Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. Irs ez file online For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. Irs ez file online Tax on excess contributions. Irs ez file online   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. Irs ez file online You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. Irs ez file online The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. Irs ez file online Excess contributions withdrawn by due date of return. Irs ez file online   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. Irs ez file online You must complete your withdrawal by the date your tax return for that year is due, including extensions. Irs ez file online How to treat withdrawn contributions. Irs ez file online   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. Irs ez file online No deduction was allowed for the excess contribution. Irs ez file online You withdraw the interest or other income earned on the excess contribution. Irs ez file online You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Irs ez file online If there was a loss, the net income you must withdraw may be a negative amount. Irs ez file online How to treat withdrawn interest or other income. Irs ez file online   You must include in your gross income the interest or other income that was earned on the excess contribution. Irs ez file online Report it on your return for the year in which the excess contribution was made. Irs ez file online Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus