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Irs Tax Forms 2012 1040a

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Irs Tax Forms 2012 1040a

Irs tax forms 2012 1040a Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. Irs tax forms 2012 1040a Gross monthly rate. Irs tax forms 2012 1040a Your cost. Irs tax forms 2012 1040a Choosing a survivor annuity after retirement. Irs tax forms 2012 1040a Canceling a survivor annuity after retirement. Irs tax forms 2012 1040a Annuity starting date after 1986. Irs tax forms 2012 1040a Annuity starting date before 1987. Irs tax forms 2012 1040a Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. Irs tax forms 2012 1040a Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. Irs tax forms 2012 1040a The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Irs tax forms 2012 1040a If the refund includes only your contributions, none of the refund is taxable. Irs tax forms 2012 1040a If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). Irs tax forms 2012 1040a If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Irs tax forms 2012 1040a See Rollover Rules in Part II for information on how to make a rollover. Irs tax forms 2012 1040a Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. Irs tax forms 2012 1040a Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Irs tax forms 2012 1040a If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Irs tax forms 2012 1040a If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. Irs tax forms 2012 1040a For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Irs tax forms 2012 1040a A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. Irs tax forms 2012 1040a Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. Irs tax forms 2012 1040a OPM will tell you how to make the choice. Irs tax forms 2012 1040a The choice for no withholding remains in effect until you change it. Irs tax forms 2012 1040a These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Irs tax forms 2012 1040a If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. Irs tax forms 2012 1040a You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. Irs tax forms 2012 1040a Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. Irs tax forms 2012 1040a For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Irs tax forms 2012 1040a Form CSA 1099R. Irs tax forms 2012 1040a   Form CSA 1099R is mailed to you by OPM each year. Irs tax forms 2012 1040a It will show any tax you had withheld. Irs tax forms 2012 1040a File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Irs tax forms 2012 1040a    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Irs tax forms 2012 1040a servicesonline. Irs tax forms 2012 1040a opm. Irs tax forms 2012 1040a gov. Irs tax forms 2012 1040a To log in, you will need your retirement CSA claim number and your personal identification number. Irs tax forms 2012 1040a Choosing no withholding on payments outside the United States. Irs tax forms 2012 1040a   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Irs tax forms 2012 1040a   To choose no withholding if you are a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Irs tax forms 2012 1040a Otherwise, OPM has to withhold tax. Irs tax forms 2012 1040a For example, OPM must withhold if you provide a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a home address. Irs tax forms 2012 1040a   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen, a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a resident alien, or someone who left the United States to avoid tax. Irs tax forms 2012 1040a But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Irs tax forms 2012 1040a For details, see Publication 519, U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Tax Guide for Aliens. Irs tax forms 2012 1040a Withholding certificate. Irs tax forms 2012 1040a   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. Irs tax forms 2012 1040a The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Irs tax forms 2012 1040a If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Irs tax forms 2012 1040a To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Irs tax forms 2012 1040a C. Irs tax forms 2012 1040a calling area must call 202-606-0500). Irs tax forms 2012 1040a No special form is needed. Irs tax forms 2012 1040a You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Irs tax forms 2012 1040a If you have TTY/TDD equipment, call 1-855–887–4957. Irs tax forms 2012 1040a If you need a PIN, call OPM's Retirement Information Office. Irs tax forms 2012 1040a You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Irs tax forms 2012 1040a servicesonline. Irs tax forms 2012 1040a opm. Irs tax forms 2012 1040a gov. Irs tax forms 2012 1040a You will need your retirement CSA or CSF claim number and your PIN. Irs tax forms 2012 1040a Withholding from certain lump-sum payments. Irs tax forms 2012 1040a   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. Irs tax forms 2012 1040a Tax will be withheld at a 20% rate on the interest distributed. Irs tax forms 2012 1040a However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Irs tax forms 2012 1040a If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Irs tax forms 2012 1040a Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Irs tax forms 2012 1040a See Rollover Rules in Part II. Irs tax forms 2012 1040a If you receive only your contributions, no tax will be withheld. Irs tax forms 2012 1040a Withholding from Thrift Savings Plan payments. Irs tax forms 2012 1040a   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Irs tax forms 2012 1040a The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. Irs tax forms 2012 1040a  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Irs tax forms 2012 1040a By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. Irs tax forms 2012 1040a   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. Irs tax forms 2012 1040a The above document is also available in the “Forms & Publications” section of the TSP website at www. Irs tax forms 2012 1040a tsp. Irs tax forms 2012 1040a gov. Irs tax forms 2012 1040a Estimated tax. Irs tax forms 2012 1040a   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). Irs tax forms 2012 1040a The return must cover all 12 months. Irs tax forms 2012 1040a   You do not have to pay estimated tax for 2014 if you were a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Irs tax forms 2012 1040a   Publication 505 contains information that you can use to help you figure your estimated tax payments. Irs tax forms 2012 1040a Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. Irs tax forms 2012 1040a The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Irs tax forms 2012 1040a Children. Irs tax forms 2012 1040a   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. Irs tax forms 2012 1040a   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. Irs tax forms 2012 1040a Form CSF 1099R. Irs tax forms 2012 1040a   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Irs tax forms 2012 1040a It will show the total amount of the annuity you received in the past year. Irs tax forms 2012 1040a It also should show, separately, the survivor annuity for a child or children. Irs tax forms 2012 1040a Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Irs tax forms 2012 1040a   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. Irs tax forms 2012 1040a    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Irs tax forms 2012 1040a servicesonline. Irs tax forms 2012 1040a opm. Irs tax forms 2012 1040a gov. Irs tax forms 2012 1040a To log in you will need your retirement CSF claim number and personal identification number. Irs tax forms 2012 1040a    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Irs tax forms 2012 1040a C. Irs tax forms 2012 1040a calling area must call 202-606-0500). Irs tax forms 2012 1040a You will need your CSF claim number and your social security number when you call. Irs tax forms 2012 1040a Taxable part of annuity. Irs tax forms 2012 1040a   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. Irs tax forms 2012 1040a To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. Irs tax forms 2012 1040a Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Irs tax forms 2012 1040a If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. Irs tax forms 2012 1040a However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. Irs tax forms 2012 1040a Annuity statement. Irs tax forms 2012 1040a   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). Irs tax forms 2012 1040a You will use this information to figure the tax-free recovery of your cost. Irs tax forms 2012 1040a Annuity starting date. Irs tax forms 2012 1040a   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. Irs tax forms 2012 1040a If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. Irs tax forms 2012 1040a Gross monthly rate. Irs tax forms 2012 1040a   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. Irs tax forms 2012 1040a Your cost. Irs tax forms 2012 1040a   Your monthly annuity payment contains an amount on which you have previously paid income tax. Irs tax forms 2012 1040a This amount represents part of your contributions to the retirement plan. Irs tax forms 2012 1040a Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. Irs tax forms 2012 1040a   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Irs tax forms 2012 1040a If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Irs tax forms 2012 1040a (See Lump-sum credit under Alternative Annuity Option, later. Irs tax forms 2012 1040a )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. Irs tax forms 2012 1040a You cannot claim an interest deduction for any interest payments. Irs tax forms 2012 1040a You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Irs tax forms 2012 1040a Recovering your cost tax free. Irs tax forms 2012 1040a   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Irs tax forms 2012 1040a If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. Irs tax forms 2012 1040a If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). Irs tax forms 2012 1040a If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Irs tax forms 2012 1040a   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). Irs tax forms 2012 1040a The tax-free part is a fixed dollar amount. Irs tax forms 2012 1040a It remains the same, even if your annuity is increased. Irs tax forms 2012 1040a Generally, this rule applies as long as you receive your annuity. Irs tax forms 2012 1040a However, see Exclusion limit , later. Irs tax forms 2012 1040a Choosing a survivor annuity after retirement. Irs tax forms 2012 1040a    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. Irs tax forms 2012 1040a   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. Irs tax forms 2012 1040a To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Irs tax forms 2012 1040a Figure the expected return as of the date the reduced annuity begins. Irs tax forms 2012 1040a For details on the General Rule, see Publication 939. Irs tax forms 2012 1040a Canceling a survivor annuity after retirement. Irs tax forms 2012 1040a   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. Irs tax forms 2012 1040a The increased annuity does not change the cost recovery you figured at the annuity starting date. Irs tax forms 2012 1040a The tax-free part of each annuity payment remains the same. Irs tax forms 2012 1040a    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Irs tax forms 2012 1040a C. Irs tax forms 2012 1040a calling area must call 202-606-0500). Irs tax forms 2012 1040a Exclusion limit. Irs tax forms 2012 1040a   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Irs tax forms 2012 1040a Annuity starting date after 1986. Irs tax forms 2012 1040a   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. Irs tax forms 2012 1040a Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Irs tax forms 2012 1040a Example. Irs tax forms 2012 1040a Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Irs tax forms 2012 1040a If your cost is $12,000, the exclusion ends after 10 years (120 months). Irs tax forms 2012 1040a Thereafter, your entire annuity is generally fully taxable. Irs tax forms 2012 1040a Annuity starting date before 1987. Irs tax forms 2012 1040a   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. Irs tax forms 2012 1040a If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Irs tax forms 2012 1040a The total exclusion may be more than your cost. Irs tax forms 2012 1040a Deduction of unrecovered cost. Irs tax forms 2012 1040a   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. Irs tax forms 2012 1040a The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). Irs tax forms 2012 1040a If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Irs tax forms 2012 1040a Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. Irs tax forms 2012 1040a (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Irs tax forms 2012 1040a ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. Irs tax forms 2012 1040a The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Irs tax forms 2012 1040a Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. Irs tax forms 2012 1040a This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Irs tax forms 2012 1040a If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. Irs tax forms 2012 1040a Worksheet A. Irs tax forms 2012 1040a   Use Worksheet A. Irs tax forms 2012 1040a Simplified Method (near the end of this publication), to figure your taxable annuity. Irs tax forms 2012 1040a Be sure to keep the completed worksheet. Irs tax forms 2012 1040a It will help you figure your taxable amounts for later years. Irs tax forms 2012 1040a Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. Irs tax forms 2012 1040a However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Irs tax forms 2012 1040a Line 2. Irs tax forms 2012 1040a   See Your cost , earlier, for an explanation of your cost in the plan. Irs tax forms 2012 1040a If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. Irs tax forms 2012 1040a Line 3. Irs tax forms 2012 1040a   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Irs tax forms 2012 1040a If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. Irs tax forms 2012 1040a If your annuity starting date is before 1998, use Table 1. Irs tax forms 2012 1040a Line 6. Irs tax forms 2012 1040a   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. Irs tax forms 2012 1040a If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. Irs tax forms 2012 1040a Example. Irs tax forms 2012 1040a Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Irs tax forms 2012 1040a His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. Irs tax forms 2012 1040a He must use the Simplified Method to figure the tax-free part of his annuity benefits. Irs tax forms 2012 1040a Bill's monthly annuity benefit is $1,000. Irs tax forms 2012 1040a He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Irs tax forms 2012 1040a At his annuity starting date, he was 65 and Kathy was 57. Irs tax forms 2012 1040a Bill's completed Worksheet A is shown later. Irs tax forms 2012 1040a To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). Irs tax forms 2012 1040a Bill keeps a copy of the completed worksheet for his records. Irs tax forms 2012 1040a It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Irs tax forms 2012 1040a Bill's tax-free monthly amount is $100. Irs tax forms 2012 1040a (See line 4 of the worksheet. Irs tax forms 2012 1040a ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. Irs tax forms 2012 1040a If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. Irs tax forms 2012 1040a If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. Irs tax forms 2012 1040a General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. Irs tax forms 2012 1040a If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. Irs tax forms 2012 1040a If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. Irs tax forms 2012 1040a Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. Irs tax forms 2012 1040a Figuring this percentage is complex and requires the use of actuarial tables. Irs tax forms 2012 1040a For these tables and other information about using the General Rule, see Publication 939. Irs tax forms 2012 1040a Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. Irs tax forms 2012 1040a Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Irs tax forms 2012 1040a After your cost was recovered, all payments became fully taxable. Irs tax forms 2012 1040a You cannot use another rule to again exclude amounts from income. Irs tax forms 2012 1040a The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Irs tax forms 2012 1040a Worksheet A. Irs tax forms 2012 1040a Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Irs tax forms 2012 1040a 1. Irs tax forms 2012 1040a Enter the total pension or annuity payments received this year. Irs tax forms 2012 1040a Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Irs tax forms 2012 1040a $ 8,000 2. Irs tax forms 2012 1040a Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Irs tax forms 2012 1040a See Your cost in Part II, Rules for Retirees, earlier 2. Irs tax forms 2012 1040a 31,000 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Irs tax forms 2012 1040a Otherwise, go to line 3. Irs tax forms 2012 1040a   3. Irs tax forms 2012 1040a Enter the appropriate number from Table 1 below. Irs tax forms 2012 1040a But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Irs tax forms 2012 1040a 3. Irs tax forms 2012 1040a 310 4. Irs tax forms 2012 1040a Divide line 2 by the number on line 3 4. Irs tax forms 2012 1040a 100 5. Irs tax forms 2012 1040a Multiply line 4 by the number of months for which this year's payments were made. Irs tax forms 2012 1040a If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Irs tax forms 2012 1040a Otherwise, go to line 6 5. Irs tax forms 2012 1040a 800 6. Irs tax forms 2012 1040a Enter any amounts previously recovered tax free in years after 1986. Irs tax forms 2012 1040a This is the amount shown on line 10 of your worksheet for last year 6. Irs tax forms 2012 1040a 0 7. Irs tax forms 2012 1040a Subtract line 6 from line 2 7. Irs tax forms 2012 1040a 31,000 8. Irs tax forms 2012 1040a Enter the smaller of line 5 or line 7 8. Irs tax forms 2012 1040a 800 9. Irs tax forms 2012 1040a Taxable amount for year. Irs tax forms 2012 1040a Subtract line 8 from line 1. Irs tax forms 2012 1040a Enter the result, but not less than zero. Irs tax forms 2012 1040a Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Irs tax forms 2012 1040a If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Irs tax forms 2012 1040a If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Irs tax forms 2012 1040a If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Irs tax forms 2012 1040a $7,200 10. Irs tax forms 2012 1040a Was your annuity starting date before 1987?   Yes. Irs tax forms 2012 1040a Do not complete the rest of this worksheet. Irs tax forms 2012 1040a    No. Irs tax forms 2012 1040a Add lines 6 and 8. Irs tax forms 2012 1040a This is the amount you have recovered tax free through 2013. Irs tax forms 2012 1040a You will need this number if you need to fill out this worksheet next year 10. Irs tax forms 2012 1040a 800 11. Irs tax forms 2012 1040a Balance of cost to be recovered. Irs tax forms 2012 1040a Subtract line 10 from line 2. Irs tax forms 2012 1040a If zero, you will not have to complete this worksheet next year. Irs tax forms 2012 1040a The payments you receive next year will generally be fully taxable 11. Irs tax forms 2012 1040a $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Irs tax forms 2012 1040a Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Irs tax forms 2012 1040a If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Irs tax forms 2012 1040a You are eligible to make this choice if you meet all of the following requirements. Irs tax forms 2012 1040a You are retiring, but not on disability. Irs tax forms 2012 1040a You have a life-threatening illness or other critical medical condition. Irs tax forms 2012 1040a You do not have a former spouse entitled to court ordered benefits based on your service. Irs tax forms 2012 1040a If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. Irs tax forms 2012 1040a Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Irs tax forms 2012 1040a The tax-free part represents part of your cost. Irs tax forms 2012 1040a The taxable part represents part of the earnings on your annuity contract. Irs tax forms 2012 1040a Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. Irs tax forms 2012 1040a Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Irs tax forms 2012 1040a Your taxable amount may therefore be more than the lump-sum payment you receive. Irs tax forms 2012 1040a You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. Irs tax forms 2012 1040a If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Irs tax forms 2012 1040a See Rollover Rules , later, for information on how to make a rollover. Irs tax forms 2012 1040a OPM can make a direct rollover only up to the amount of the lump-sum payment. Irs tax forms 2012 1040a Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Irs tax forms 2012 1040a The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Irs tax forms 2012 1040a It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. Irs tax forms 2012 1040a For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Irs tax forms 2012 1040a Worksheet B. Irs tax forms 2012 1040a   Use Worksheet B. Irs tax forms 2012 1040a Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Irs tax forms 2012 1040a Be sure to keep the completed worksheet for your records. Irs tax forms 2012 1040a   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Irs tax forms 2012 1040a Lump-sum credit. Irs tax forms 2012 1040a   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Irs tax forms 2012 1040a However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. Irs tax forms 2012 1040a Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Irs tax forms 2012 1040a Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Irs tax forms 2012 1040a You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. Irs tax forms 2012 1040a Present value of your annuity contract. Irs tax forms 2012 1040a   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Irs tax forms 2012 1040a If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. Irs tax forms 2012 1040a Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Irs tax forms 2012 1040a , NW Washington, DC 20224-0002 Example. Irs tax forms 2012 1040a David Brown retired from the federal government in 2013, one month after his 55th birthday. Irs tax forms 2012 1040a He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. Irs tax forms 2012 1040a The present value of his annuity contract was $155,000. Irs tax forms 2012 1040a The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Irs tax forms 2012 1040a The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. Irs tax forms 2012 1040a See Reduced Annuity , later. Irs tax forms 2012 1040a Worksheet B. Irs tax forms 2012 1040a Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Irs tax forms 2012 1040a  1. Irs tax forms 2012 1040a Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Irs tax forms 2012 1040a $ 31,000 2. Irs tax forms 2012 1040a Enter the present value of your annuity contract 2. Irs tax forms 2012 1040a 155,000 3. Irs tax forms 2012 1040a Divide line 1 by line 2 3. Irs tax forms 2012 1040a . Irs tax forms 2012 1040a 20 4. Irs tax forms 2012 1040a Tax-free amount. Irs tax forms 2012 1040a Multiply line 1 by line 3. Irs tax forms 2012 1040a (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Irs tax forms 2012 1040a ) 4. Irs tax forms 2012 1040a $6,200 5. Irs tax forms 2012 1040a Taxable amount (net cost in the plan). Irs tax forms 2012 1040a Subtract line 4 from line 1. Irs tax forms 2012 1040a Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Irs tax forms 2012 1040a Also, enter this amount on line 2 of Worksheet A in this publication. Irs tax forms 2012 1040a 5. Irs tax forms 2012 1040a $24,800   Lump-sum payment in installments. Irs tax forms 2012 1040a   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Irs tax forms 2012 1040a You will receive the first installment after you make the choice upon retirement. Irs tax forms 2012 1040a The second installment will be paid to you, with interest, in the next calendar year. Irs tax forms 2012 1040a (Exceptions to the installment rule are provided for cases of critical medical need. Irs tax forms 2012 1040a )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. Irs tax forms 2012 1040a If the payment has a tax-free part, you must treat the taxable part as received first. Irs tax forms 2012 1040a How to report. Irs tax forms 2012 1040a   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Irs tax forms 2012 1040a Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. Irs tax forms 2012 1040a    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. Irs tax forms 2012 1040a Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. Irs tax forms 2012 1040a These annuity payments each will have a tax-free and a taxable part. Irs tax forms 2012 1040a To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Irs tax forms 2012 1040a For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Irs tax forms 2012 1040a To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. Irs tax forms 2012 1040a Enter as your net cost on line 2 the amount from Worksheet B, line 5. Irs tax forms 2012 1040a Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Irs tax forms 2012 1040a Example. Irs tax forms 2012 1040a The facts are the same as in the example for David Brown in the preceding discussion. Irs tax forms 2012 1040a In addition, David received 10 annuity payments in 2013 of $1,200 each. Irs tax forms 2012 1040a Using Worksheet A, he figures the taxable part of his annuity payments. Irs tax forms 2012 1040a He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Irs tax forms 2012 1040a His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Irs tax forms 2012 1040a He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Irs tax forms 2012 1040a David's filled-in Worksheet A is shown on the next page. Irs tax forms 2012 1040a Worksheet A. Irs tax forms 2012 1040a Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Irs tax forms 2012 1040a 1. Irs tax forms 2012 1040a Enter the total pension or annuity payments received this year. Irs tax forms 2012 1040a Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Irs tax forms 2012 1040a $ 12,000 2. Irs tax forms 2012 1040a Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Irs tax forms 2012 1040a See Your cost in Part II, Rules for Retirees, earlier 2. Irs tax forms 2012 1040a 24,800 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Irs tax forms 2012 1040a Otherwise, go to line 3. Irs tax forms 2012 1040a   3. Irs tax forms 2012 1040a Enter the appropriate number from Table 1 below. Irs tax forms 2012 1040a But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Irs tax forms 2012 1040a 3. Irs tax forms 2012 1040a 360 4. Irs tax forms 2012 1040a Divide line 2 by the number on line 3 4. Irs tax forms 2012 1040a 68. Irs tax forms 2012 1040a 89 5. Irs tax forms 2012 1040a Multiply line 4 by the number of months for which this year's payments were made. Irs tax forms 2012 1040a If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Irs tax forms 2012 1040a Otherwise, go to line 6 5. Irs tax forms 2012 1040a 688. Irs tax forms 2012 1040a 90 6. Irs tax forms 2012 1040a Enter any amounts previously recovered tax free in years after 1986. Irs tax forms 2012 1040a This is the amount shown on line 10 of your worksheet for last year 6. Irs tax forms 2012 1040a 0 7. Irs tax forms 2012 1040a Subtract line 6 from line 2 7. Irs tax forms 2012 1040a 24,800 8. Irs tax forms 2012 1040a Enter the smaller of line 5 or line 7 8. Irs tax forms 2012 1040a 688. Irs tax forms 2012 1040a 90 9. Irs tax forms 2012 1040a Taxable amount for year. Irs tax forms 2012 1040a Subtract line 8 from line 1. Irs tax forms 2012 1040a Enter the result, but not less than zero. Irs tax forms 2012 1040a Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Irs tax forms 2012 1040a If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Irs tax forms 2012 1040a If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Irs tax forms 2012 1040a If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Irs tax forms 2012 1040a $11,311. Irs tax forms 2012 1040a 10 10. Irs tax forms 2012 1040a Was your annuity starting date before 1987?   Yes. Irs tax forms 2012 1040a Do not complete the rest of this worksheet. Irs tax forms 2012 1040a    No. Irs tax forms 2012 1040a Add lines 6 and 8. Irs tax forms 2012 1040a This is the amount you have recovered tax free through 2013. Irs tax forms 2012 1040a You will need this number if you need to fill out this worksheet next year 10. Irs tax forms 2012 1040a 688. Irs tax forms 2012 1040a 90 11. Irs tax forms 2012 1040a Balance of cost to be recovered. Irs tax forms 2012 1040a Subtract line 10 from line 2. Irs tax forms 2012 1040a If zero, you will not have to complete this worksheet next year. Irs tax forms 2012 1040a The payments you receive next year will generally be fully taxable 11. Irs tax forms 2012 1040a $24,111. Irs tax forms 2012 1040a 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Irs tax forms 2012 1040a Reemployment after choosing the alternative annuity option. Irs tax forms 2012 1040a If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. Irs tax forms 2012 1040a If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. Irs tax forms 2012 1040a Annuity starting date before November 19, 1996. Irs tax forms 2012 1040a   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. Irs tax forms 2012 1040a Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. Irs tax forms 2012 1040a However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Irs tax forms 2012 1040a Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. Irs tax forms 2012 1040a The gift may be taxable for gift tax purposes. Irs tax forms 2012 1040a The value of the gift is equal to the value of the annuity. Irs tax forms 2012 1040a Joint and survivor annuity. Irs tax forms 2012 1040a   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. Irs tax forms 2012 1040a This will eliminate any gift tax liability with regard to that gift. Irs tax forms 2012 1040a   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. Irs tax forms 2012 1040a This may result in a taxable gift. Irs tax forms 2012 1040a More information. Irs tax forms 2012 1040a   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. Irs tax forms 2012 1040a Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. Irs tax forms 2012 1040a Annual leave. Irs tax forms 2012 1040a   A payment for accrued annual leave received on retirement is a salary payment. Irs tax forms 2012 1040a It is taxable as wages in the tax year you receive it. Irs tax forms 2012 1040a Voluntary contributions. Irs tax forms 2012 1040a   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Irs tax forms 2012 1040a They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. Irs tax forms 2012 1040a Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Irs tax forms 2012 1040a See Thrift Savings Plan , later. Irs tax forms 2012 1040a Additional annuity benefit. Irs tax forms 2012 1040a   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. Irs tax forms 2012 1040a This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Irs tax forms 2012 1040a It does not matter that you receive only one monthly check covering both benefits. Irs tax forms 2012 1040a Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. Irs tax forms 2012 1040a   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. Irs tax forms 2012 1040a Refund of voluntary contributions. Irs tax forms 2012 1040a   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. Irs tax forms 2012 1040a If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. Irs tax forms 2012 1040a See Rollover Rules , later. Irs tax forms 2012 1040a The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Irs tax forms 2012 1040a It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. Irs tax forms 2012 1040a For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Irs tax forms 2012 1040a Community property laws. Irs tax forms 2012 1040a   State community property laws apply to your annuity. Irs tax forms 2012 1040a These laws will affect your income tax only if you file a return separately from your spouse. Irs tax forms 2012 1040a   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. Irs tax forms 2012 1040a Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. Irs tax forms 2012 1040a   At any time, you have only one domicile even though you may have more than one home. Irs tax forms 2012 1040a Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Irs tax forms 2012 1040a The question of your domicile is mainly a matter of your intentions as indicated by your actions. Irs tax forms 2012 1040a   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Irs tax forms 2012 1040a The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Irs tax forms 2012 1040a   For more information, see Publication 555, Community Property. Irs tax forms 2012 1040a Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. Irs tax forms 2012 1040a The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Irs tax forms 2012 1040a This amount is taxable as wages. Irs tax forms 2012 1040a Your annuity will continue to be taxed just as it was before. Irs tax forms 2012 1040a If you are still recovering your cost, you continue to do so. Irs tax forms 2012 1040a If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Irs tax forms 2012 1040a Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. Irs tax forms 2012 1040a A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Irs tax forms 2012 1040a Special rule for figuring your total contributions. Irs tax forms 2012 1040a   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Irs tax forms 2012 1040a You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. Irs tax forms 2012 1040a For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Irs tax forms 2012 1040a Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Irs tax forms 2012 1040a   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. Irs tax forms 2012 1040a Limit on taxable amount. Irs tax forms 2012 1040a   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. Irs tax forms 2012 1040a Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Irs tax forms 2012 1040a The numerator of the fraction is the retiree's total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay, other than tax-exempt pay for services performed outside the United States. Irs tax forms 2012 1040a The denominator is the retiree's total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay for all services. Irs tax forms 2012 1040a    Basic pay includes regular pay plus any standby differential. Irs tax forms 2012 1040a It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Irs tax forms 2012 1040a   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Irs tax forms 2012 1040a (For an annuity, first complete Worksheet A in this publication. Irs tax forms 2012 1040a ) Worksheet C. Irs tax forms 2012 1040a Limited Taxable Amount for Nonresident Alien 1. Irs tax forms 2012 1040a Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Irs tax forms 2012 1040a   2. Irs tax forms 2012 1040a Enter the total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay other than tax-exempt pay for services performed outside the United States 2. Irs tax forms 2012 1040a   3. Irs tax forms 2012 1040a Enter the total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay for all services 3. Irs tax forms 2012 1040a   4. Irs tax forms 2012 1040a Divide line 2 by line 3 4. Irs tax forms 2012 1040a   5. Irs tax forms 2012 1040a Limited taxable amount. Irs tax forms 2012 1040a Multiply line 1 by line 4. Irs tax forms 2012 1040a Enter this amount on Form 1040NR, line 17b 5. Irs tax forms 2012 1040a   Example 1. Irs tax forms 2012 1040a You are a nonresident alien who performed all services for the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government abroad as a nonresident alien. Irs tax forms 2012 1040a You retired and began to receive a monthly annuity of $200. Irs tax forms 2012 1040a Your total basic pay for all services for the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government was $100,000. Irs tax forms 2012 1040a All of your basic pay was tax exempt because it was not U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a source income. Irs tax forms 2012 1040a The taxable amount of your annuity using Worksheet A in this publication is $720. Irs tax forms 2012 1040a You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Irs tax forms 2012 1040a Worksheet C. Irs tax forms 2012 1040a Limited Taxable Amount for Nonresident Alien — Example 1 1. Irs tax forms 2012 1040a Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Irs tax forms 2012 1040a $ 720 2. Irs tax forms 2012 1040a Enter the total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay other than tax-exempt pay for services performed outside the United States 2. Irs tax forms 2012 1040a 0 3. Irs tax forms 2012 1040a Enter the total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay for all services 3. Irs tax forms 2012 1040a 100,000 4. Irs tax forms 2012 1040a Divide line 2 by line 3 4. Irs tax forms 2012 1040a 0 5. Irs tax forms 2012 1040a Limited taxable amount. Irs tax forms 2012 1040a Multiply line 1 by line 4. Irs tax forms 2012 1040a Enter this amount on Form 1040NR, line 17b 5. Irs tax forms 2012 1040a 0 Example 2. Irs tax forms 2012 1040a You are a nonresident alien who performed services for the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government as a nonresident alien both within the United States and abroad. Irs tax forms 2012 1040a You retired and began to receive a monthly annuity of $240. Irs tax forms 2012 1040a Your total basic pay for your services for the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. Irs tax forms 2012 1040a The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a source income. Irs tax forms 2012 1040a The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Irs tax forms 2012 1040a You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Irs tax forms 2012 1040a Worksheet C. Irs tax forms 2012 1040a Limited Taxable Amount for Nonresident Alien — Example 2 1. Irs tax forms 2012 1040a Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Irs tax forms 2012 1040a $ 1,980 2. Irs tax forms 2012 1040a Enter the total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay other than tax-exempt pay for services performed outside the United States 2. Irs tax forms 2012 1040a 40,000 3. Irs tax forms 2012 1040a Enter the total U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government basic pay for all services 3. Irs tax forms 2012 1040a 120,000 4. Irs tax forms 2012 1040a Divide line 2 by line 3 4. Irs tax forms 2012 1040a . Irs tax forms 2012 1040a 333 5. Irs tax forms 2012 1040a Limited taxable amount. Irs tax forms 2012 1040a Multiply line 1 by line 4. Irs tax forms 2012 1040a Enter this amount on Form 1040NR, line 17b 5. Irs tax forms 2012 1040a 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Irs tax forms 2012 1040a (However, see Roth TSP balance and Uniformed services TSP accounts, next. Irs tax forms 2012 1040a ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Irs tax forms 2012 1040a The way that you withdraw your account balance determines when you must pay the tax. Irs tax forms 2012 1040a Roth TSP balance. Irs tax forms 2012 1040a   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Irs tax forms 2012 1040a This means Roth TSP contributions are included in your income. Irs tax forms 2012 1040a The contribution limits are the same as the traditional TSP. Irs tax forms 2012 1040a You can elect to have part or all of your TSP contributions designated as a Roth TSP. Irs tax forms 2012 1040a Agency contributions will be part of your traditional TSP balance. Irs tax forms 2012 1040a Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Irs tax forms 2012 1040a   Qualified distributions from your Roth TSP are not included in income. Irs tax forms 2012 1040a This applies to both your cost in the account and income earned on that account. Irs tax forms 2012 1040a A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Irs tax forms 2012 1040a   For more information, go to the TSP website, www. Irs tax forms 2012 1040a tsp. Irs tax forms 2012 1040a gov, or the TSP Service Office. Irs tax forms 2012 1040a See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Irs tax forms 2012 1040a Uniformed services TSP accounts. Irs tax forms 2012 1040a   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Irs tax forms 2012 1040a However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Irs tax forms 2012 1040a See Roth TSP balance discussed previously to get more information about Roth contributions. Irs tax forms 2012 1040a The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. Irs tax forms 2012 1040a You can get more information from the TSP website, www. Irs tax forms 2012 1040a tsp. Irs tax forms 2012 1040a gov, or the TSP Service Office. Irs tax forms 2012 1040a Direct rollover by the TSP. Irs tax forms 2012 1040a   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. Irs tax forms 2012 1040a However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Irs tax forms 2012 1040a Also, see Rollover Rules , later. Irs tax forms 2012 1040a Direct rollover by the TSP to a Roth IRA. Irs tax forms 2012 1040a   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. Irs tax forms 2012 1040a However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Irs tax forms 2012 1040a Also, see Rollovers to Roth IRAs for more information, later. Irs tax forms 2012 1040a Note. Irs tax forms 2012 1040a A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. Irs tax forms 2012 1040a This is because you already paid tax on those contributions. Irs tax forms 2012 1040a You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Irs tax forms 2012 1040a TSP annuity. Irs tax forms 2012 1040a   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. Irs tax forms 2012 1040a The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Irs tax forms 2012 1040a However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. Irs tax forms 2012 1040a See Roth TSP balance , earlier. Irs tax forms 2012 1040a This is because you already paid tax on those contributions. Irs tax forms 2012 1040a Cash withdrawals. Irs tax forms 2012 1040a   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. Irs tax forms 2012 1040a (See Rollover Rules , later. Irs tax forms 2012 1040a ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. Irs tax forms 2012 1040a See Lump-Sum Distributions in Publication 575 for details. Irs tax forms 2012 1040a However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Irs tax forms 2012 1040a See Roth TSP balance , earlier. Irs tax forms 2012 1040a    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Irs tax forms 2012 1040a   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. Irs tax forms 2012 1040a If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. Irs tax forms 2012 1040a See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Irs tax forms 2012 1040a However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. Irs tax forms 2012 1040a See Roth TSP balance , earlier, for a discussion of those conditions. Irs tax forms 2012 1040a Tax on early distributions. Irs tax forms 2012 1040a   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. Irs tax forms 2012 1040a However, this additional tax does not apply in certain situations, including any of the following. Irs tax forms 2012 1040a You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Irs tax forms 2012 1040a You choose to receive your account balance in monthly payments based on your life expectancy. Irs tax forms 2012 1040a You are totally and permanently disabled. Irs tax forms 2012 1040a You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Irs tax forms 2012 1040a The earnings may be subject to the 10% tax depending on whether you met certain conditions. Irs tax forms 2012 1040a See Roth TSP balance , earlier. Irs tax forms 2012 1040a   For more information, see Tax on Early Distributions in Publication 575. Irs tax forms 2012 1040a Outstanding loan. Irs tax forms 2012 1040a   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. Irs tax forms 2012 1040a The distribution also may be subject to the additional 10% tax on early distributions. Irs tax forms 2012 1040a However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. Irs tax forms 2012 1040a See Rollover Rules , later. Irs tax forms 2012 1040a   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. Irs tax forms 2012 1040a However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Irs tax forms 2012 1040a See Roth TSP balance , earlier. Irs tax forms 2012 1040a More information. Irs tax forms 2012 1040a   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Irs tax forms 2012 1040a Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). Irs tax forms 2012 1040a    The above documents are also available on the TSP website at www. Irs tax forms 2012 1040a tsp. Irs tax forms 2012 1040a gov. Irs tax forms 2012 1040a Select “Forms & Publications. Irs tax forms 2012 1040a ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. Irs tax forms 2012 1040a You do not include the amount rolled over in your income, and you cannot take a deduction for it. Irs tax forms 2012 1040a The amount rolled over is taxed later as the new program pays that amount to you. Irs tax forms 2012 1040a If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. Irs tax forms 2012 1040a However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. Irs tax forms 2012 1040a To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Irs tax forms 2012 1040a You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Irs tax forms 2012 1040a Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. Irs tax forms 2012 1040a See Rollovers to Roth IRAs , later, for more information. Irs tax forms 2012 1040a Qualified retirement plan. Irs tax forms 2012 1040a   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. Irs tax forms 2012 1040a The CSRS, FERS, and TSP are considered qualified retirement plans. Irs tax forms 2012 1040a Distributions eligible for rollover treatment. Irs tax forms 2012 1040a   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. Irs tax forms 2012 1040a You cannot roll over any part of your CSRS or FERS annuity payments. Irs tax forms 2012 1040a   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. Irs tax forms 2012 1040a   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Irs tax forms 2012 1040a However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Irs tax forms 2012 1040a Direct rollover option. Irs tax forms 2012 1040a   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. Irs tax forms 2012 1040a   There is an automatic rollover requirement for mandatory distributions. Irs tax forms 2012 1040a A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Irs tax forms 2012 1040a The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Irs tax forms 2012 1040a You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. Irs tax forms 2012 1040a If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Irs tax forms 2012 1040a No tax withheld. Irs tax forms 2012 1040a   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. Irs tax forms 2012 1040a However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. Irs tax forms 2012 1040a Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Irs tax forms 2012 1040a Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Irs tax forms 2012 1040a Payment to you option. Irs tax forms 2012 1040a   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. Irs tax forms 2012 1040a However, the full amount is treated as distributed to you even though you actually receive only 80%. Irs tax forms 2012 1040a You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. Irs tax forms 2012 1040a Rollovers to Roth IRAs are generally included in income. Irs tax forms 2012 1040a Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Irs tax forms 2012 1040a If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. Irs tax forms 2012 1040a However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). Irs tax forms 2012 1040a Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Irs tax forms 2012 1040a See Roth TSP balance , earlier. Irs tax forms 2012 1040a Also, see Tax on Early Distributions in Publication 575. Irs tax forms 2012 1040a Exception to withholding. Irs tax forms 2012 1040a   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Irs tax forms 2012 1040a Partial rollovers. Irs tax forms 2012 1040a   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. Irs tax forms 2012 1040a See Lump-Sum Distributions in Publication 575. Irs tax forms 2012 1040a However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Irs tax forms 2012 1040a Rolling over more than amount received. Irs tax forms 2012 1040a   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). Irs tax forms 2012 1040a Example. Irs tax forms 2012 1040a You left government service at age 53. Irs tax forms 2012 1040a On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
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The Irs Tax Forms 2012 1040a

Irs tax forms 2012 1040a Publication 516 - Main Content Table of Contents U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Tax ReturnFiling Information Foreign Bank Accounts U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Irs tax forms 2012 1040a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Tax Return Filing Information If you are a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. Irs tax forms 2012 1040a However, the special rules explained in the following discussions may apply to you. Irs tax forms 2012 1040a See also Tax Treaty Benefits, later. Irs tax forms 2012 1040a When To File and Pay Most individual tax returns cover a calendar year, January through December. Irs tax forms 2012 1040a The regular due date for these tax returns is April 15 of the following year. Irs tax forms 2012 1040a If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. Irs tax forms 2012 1040a If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. Irs tax forms 2012 1040a You must pay interest on any tax not paid by the regular due date. Irs tax forms 2012 1040a Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. Irs tax forms 2012 1040a See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. Irs tax forms 2012 1040a If your return is filed late, the postmark or delivery service date does not determine the date of filing. Irs tax forms 2012 1040a In that case, your return is considered filed when it is received by the IRS. Irs tax forms 2012 1040a Extensions You may be able to get an extension of time to file your return and pay your tax. Irs tax forms 2012 1040a Automatic 2-month extension. Irs tax forms 2012 1040a   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. Irs tax forms 2012 1040a To get this extension, you must attach a statement to your return explaining how you qualified. Irs tax forms 2012 1040a You will owe interest on any tax not paid by the regular due date of your return. Irs tax forms 2012 1040a Married taxpayers. Irs tax forms 2012 1040a   If you file a joint return, either you or your spouse can qualify for the automatic extension. Irs tax forms 2012 1040a If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. Irs tax forms 2012 1040a Additional extension. Irs tax forms 2012 1040a   You can apply for an additional extension of time to file your return by filing Form 4868. Irs tax forms 2012 1040a You must file Form 4868 by the due date for your income tax return. Irs tax forms 2012 1040a   Generally, you must file it by April 15. Irs tax forms 2012 1040a However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. Irs tax forms 2012 1040a Check the box on line 8 of Form 4868. Irs tax forms 2012 1040a Payment of tax. Irs tax forms 2012 1040a   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. Irs tax forms 2012 1040a The late-payment penalty applies if, through withholding, etc. Irs tax forms 2012 1040a , you paid less than 90% of your actual tax liability by the original due date of your income tax return. Irs tax forms 2012 1040a Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. Irs tax forms 2012 1040a Electronic filing. Irs tax forms 2012 1040a   You can file for the additional extension by phone, using your home computer, or through a tax professional. Irs tax forms 2012 1040a See Form 4868 for more information. Irs tax forms 2012 1040a Limit on additional extensions. Irs tax forms 2012 1040a   You generally cannot get a total extension of more than 6 months. Irs tax forms 2012 1040a However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. Irs tax forms 2012 1040a   For more information, see Publication 54. Irs tax forms 2012 1040a Foreign Bank Accounts You must file Form TD F 90-22. Irs tax forms 2012 1040a 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. Irs tax forms 2012 1040a This applies if the combined assets in the account(s) were more than $10,000. Irs tax forms 2012 1040a Do not include accounts in a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a military banking facility operated by a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a financial institution. Irs tax forms 2012 1040a File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. Irs tax forms 2012 1040a Do not attach it to Form 1040. Irs tax forms 2012 1040a If you are required to file Form TD F 90-22. Irs tax forms 2012 1040a 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). Irs tax forms 2012 1040a You also may be required to file Form 8938 with your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. Irs tax forms 2012 1040a For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. Irs tax forms 2012 1040a For more information, see Form 8938 and its instructions. Irs tax forms 2012 1040a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. Irs tax forms 2012 1040a If you are a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a law. Irs tax forms 2012 1040a This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). Irs tax forms 2012 1040a If you are a nonresident alien, your income from sources outside the United States is not subject to U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a tax. Irs tax forms 2012 1040a Foreign Earned Income Exclusion Employees of the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government as an employee. Irs tax forms 2012 1040a But see Other Employment, later. Irs tax forms 2012 1040a Special Situations In the following two situations, your pay is from the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government and does not qualify for the foreign earned income exclusion. Irs tax forms 2012 1040a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a agency reimbursed by foreign country. Irs tax forms 2012 1040a   If you are a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government employee paid by a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a agency to perform services in a foreign country, your pay is from the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. Irs tax forms 2012 1040a This is true even if the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a agency is reimbursed by the foreign government. Irs tax forms 2012 1040a Employees of post exchanges, etc. Irs tax forms 2012 1040a   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government, the earnings you receive are paid by the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government. Irs tax forms 2012 1040a This is true whether they are paid from appropriated or nonappropriated funds. Irs tax forms 2012 1040a These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. Irs tax forms 2012 1040a Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. Irs tax forms 2012 1040a Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. Irs tax forms 2012 1040a In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizens or green card holders. Irs tax forms 2012 1040a Consequently, if you are a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or green card holder, you will generally not be entitled to reduce your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a tax on your government pay. Irs tax forms 2012 1040a If you are neither a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. Irs tax forms 2012 1040a Review the treaty text carefully. Irs tax forms 2012 1040a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizens must always file Form 1040. Irs tax forms 2012 1040a Non-U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. Irs tax forms 2012 1040a If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. Irs tax forms 2012 1040a Most income tax treaties contain an article providing relief from double taxation. Irs tax forms 2012 1040a Many treaties contain special foreign tax credit rules for U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizens who are residents of a treaty country. Irs tax forms 2012 1040a For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. Irs tax forms 2012 1040a Allowances, Differentials, and Special Pay Most payments received by U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government civilian employees for working abroad, including pay differentials, are taxable. Irs tax forms 2012 1040a However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Irs tax forms 2012 1040a The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Irs tax forms 2012 1040a Pay differentials. Irs tax forms 2012 1040a   Pay differentials you receive as financial incentives for employment abroad are taxable. Irs tax forms 2012 1040a Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. Irs tax forms 2012 1040a   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. Irs tax forms 2012 1040a The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Irs tax forms 2012 1040a Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. Irs tax forms 2012 1040a Foreign areas allowances. Irs tax forms 2012 1040a   Certain foreign areas allowances are tax free. Irs tax forms 2012 1040a Your employer should not have included these allowances as wages on your Form W-2. Irs tax forms 2012 1040a   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. Irs tax forms 2012 1040a Title I, chapter 9, of the Foreign Service Act of 1980. Irs tax forms 2012 1040a Section 4 of the Central Intelligence Agency Act of 1949, as amended. Irs tax forms 2012 1040a Title II of the Overseas Differentials and Allowances Act. Irs tax forms 2012 1040a Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. Irs tax forms 2012 1040a These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. Irs tax forms 2012 1040a Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. Irs tax forms 2012 1040a Cost-of-living allowances. Irs tax forms 2012 1040a   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Irs tax forms 2012 1040a The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. Irs tax forms 2012 1040a Cost-of-living allowances are not included on your Form W-2. Irs tax forms 2012 1040a Federal court employees. Irs tax forms 2012 1040a   If you are a federal court employee, the preceding paragraph also applies to you. Irs tax forms 2012 1040a The cost-of-living allowance must be granted by rules similar to regulations approved by the President. Irs tax forms 2012 1040a American Institute in Taiwan. Irs tax forms 2012 1040a   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government. Irs tax forms 2012 1040a Federal reemployment payments after serving with an international organization. Irs tax forms 2012 1040a   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. Irs tax forms 2012 1040a These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. Irs tax forms 2012 1040a Allowances or reimbursements for travel and transportation expenses. Irs tax forms 2012 1040a   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. Irs tax forms 2012 1040a Lodging furnished to a principal representative of the United States. Irs tax forms 2012 1040a   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. Irs tax forms 2012 1040a However, amounts paid by the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a government for your usual costs of operating and maintaining your household are taxable. Irs tax forms 2012 1040a If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. Irs tax forms 2012 1040a Peace Corps. Irs tax forms 2012 1040a   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. Irs tax forms 2012 1040a Taxable allowances. Irs tax forms 2012 1040a   The following allowances must be included on your Form W-2 and reported on your return as wages. Irs tax forms 2012 1040a If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. Irs tax forms 2012 1040a The part of living allowances designated by the Director of the Peace Corps as basic compensation. Irs tax forms 2012 1040a This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Irs tax forms 2012 1040a Leave allowances. Irs tax forms 2012 1040a Readjustment allowances or “termination payments. Irs tax forms 2012 1040a ” Taxable allowances are considered received by you when credited to your account. Irs tax forms 2012 1040a Example. Irs tax forms 2012 1040a Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. Irs tax forms 2012 1040a Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. Irs tax forms 2012 1040a Nontaxable allowances. Irs tax forms 2012 1040a   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. Irs tax forms 2012 1040a These allowances should not be included on your Form W-2. Irs tax forms 2012 1040a These allowances are tax free whether paid by the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government or the foreign country in which you are stationed. Irs tax forms 2012 1040a Other Income Other employment. Irs tax forms 2012 1040a   If, in addition to your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. Irs tax forms 2012 1040a In addition, if your spouse is a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. Irs tax forms 2012 1040a For more information, see Publication 54. Irs tax forms 2012 1040a The tax treaty rules relating to income from personal services generally apply to income from private employment. Irs tax forms 2012 1040a As discussed above, the saving clause applies to you if you are a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). Irs tax forms 2012 1040a Sale of personal property. Irs tax forms 2012 1040a   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a dollars, the excess of the amount received in U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a dollars over the cost or other basis of the property is a capital gain. Irs tax forms 2012 1040a Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. Irs tax forms 2012 1040a However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. Irs tax forms 2012 1040a Sale of your home. Irs tax forms 2012 1040a   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. Irs tax forms 2012 1040a Losses are not deductible. Irs tax forms 2012 1040a   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Irs tax forms 2012 1040a Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. Irs tax forms 2012 1040a   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. Irs tax forms 2012 1040a   For detailed information on selling your home, see Publication 523. Irs tax forms 2012 1040a Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. Irs tax forms 2012 1040a Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. Irs tax forms 2012 1040a These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. Irs tax forms 2012 1040a Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Irs tax forms 2012 1040a Your tax home is not limited to the Embassy, consulate, or duty station. Irs tax forms 2012 1040a It includes the entire city or general area in which your principal place of employment is located. Irs tax forms 2012 1040a Traveling away from home. Irs tax forms 2012 1040a   You are traveling away from home if you meet both of the following requirements. Irs tax forms 2012 1040a Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. Irs tax forms 2012 1040a You need to get sleep or rest to meet the demands of your work while away from home. Irs tax forms 2012 1040a This requirement is not satisfied by merely napping in your car. Irs tax forms 2012 1040a You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Irs tax forms 2012 1040a Temporary assignment. Irs tax forms 2012 1040a   If your assignment or job away from your tax home is temporary, your tax home does not change. Irs tax forms 2012 1040a You are considered to be away from home for the whole period, and your travel expenses are deductible. Irs tax forms 2012 1040a Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Irs tax forms 2012 1040a   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Irs tax forms 2012 1040a An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. Irs tax forms 2012 1040a   You must determine whether your assignment is temporary or indefinite when you start work. Irs tax forms 2012 1040a If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Irs tax forms 2012 1040a Employment that is initially temporary may become indefinite due to changed circumstances. Irs tax forms 2012 1040a A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Irs tax forms 2012 1040a Exception for federal crime investigations or prosecutions. Irs tax forms 2012 1040a   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. Irs tax forms 2012 1040a This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. Irs tax forms 2012 1040a Limit on meals and entertainment. Irs tax forms 2012 1040a   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. Irs tax forms 2012 1040a However, the limit does not apply to expenses reimbursed under a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government expense allowance arrangement. Irs tax forms 2012 1040a Individuals subject to hours of service limits. Irs tax forms 2012 1040a   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. Irs tax forms 2012 1040a   Individuals subject to the Department of Transportation's “hours of service” limits include the following. Irs tax forms 2012 1040a Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Irs tax forms 2012 1040a Interstate truck operators and bus drivers who are under Department of Transportation regulations. Irs tax forms 2012 1040a Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Irs tax forms 2012 1040a Certain merchant mariners who are under Coast Guard regulations. Irs tax forms 2012 1040a Primary purpose of trip must be for business. Irs tax forms 2012 1040a   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. Irs tax forms 2012 1040a However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. Irs tax forms 2012 1040a   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. Irs tax forms 2012 1040a This applies even if you engage in business activities while there. Irs tax forms 2012 1040a However, you can deduct any expenses while at your destination that are directly related to your business. Irs tax forms 2012 1040a Expenses paid for others. Irs tax forms 2012 1040a   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. Irs tax forms 2012 1040a Home leave. Irs tax forms 2012 1040a   The Foreign Service Act requires U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. Irs tax forms 2012 1040a This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. Irs tax forms 2012 1040a   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. Irs tax forms 2012 1040a You must be able to verify these amounts in order to claim them. Irs tax forms 2012 1040a Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. Irs tax forms 2012 1040a More information. Irs tax forms 2012 1040a   See chapter 1 of Publication 463 for more information on travel expenses. Irs tax forms 2012 1040a Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. Irs tax forms 2012 1040a Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. Irs tax forms 2012 1040a They do not include expenses you have when traveling away from home overnight. Irs tax forms 2012 1040a Those expenses are deductible as travel expenses and are discussed earlier. Irs tax forms 2012 1040a Commuting. Irs tax forms 2012 1040a   You cannot deduct your transportation costs of going between your home and your regular business location. Irs tax forms 2012 1040a These costs are personal commuting expenses. Irs tax forms 2012 1040a   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. Irs tax forms 2012 1040a   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. Irs tax forms 2012 1040a More information. Irs tax forms 2012 1040a   For more information on transportation expenses, see chapter 4 of Publication 463. Irs tax forms 2012 1040a Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. Irs tax forms 2012 1040a Membership dues. Irs tax forms 2012 1040a   You can deduct membership dues you pay to professional societies that relate to your business or profession. Irs tax forms 2012 1040a Subscriptions. Irs tax forms 2012 1040a   You can deduct subscriptions to professional publications that relate to your business or profession. Irs tax forms 2012 1040a Educational expenses. Irs tax forms 2012 1040a   Generally, educational expenses are considered to be personal expenses and are not deductible. Irs tax forms 2012 1040a However, under some circumstances, educational expenses are deductible as business expenses. Irs tax forms 2012 1040a   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. Irs tax forms 2012 1040a   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. Irs tax forms 2012 1040a These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. Irs tax forms 2012 1040a   See Publication 970, Tax Benefits for Education, for more information on educational expenses. Irs tax forms 2012 1040a    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. Irs tax forms 2012 1040a However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. Irs tax forms 2012 1040a These benefits are explained in Publication 970. Irs tax forms 2012 1040a Foreign service representation expenses. Irs tax forms 2012 1040a   If you are an employee of the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. Irs tax forms 2012 1040a If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. Irs tax forms 2012 1040a You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. Irs tax forms 2012 1040a The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. Irs tax forms 2012 1040a    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. Irs tax forms 2012 1040a These rules are explained in Publication 463. Irs tax forms 2012 1040a Representation expenses. Irs tax forms 2012 1040a   These are expenses that further the interest of the United States abroad. Irs tax forms 2012 1040a They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. Irs tax forms 2012 1040a They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. Irs tax forms 2012 1040a   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. Irs tax forms 2012 1040a These regulations are available on the Internet at www. Irs tax forms 2012 1040a state. Irs tax forms 2012 1040a gov/m/a/als. Irs tax forms 2012 1040a Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. Irs tax forms 2012 1040a ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. Irs tax forms 2012 1040a Impairment-related work expenses. Irs tax forms 2012 1040a   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. Irs tax forms 2012 1040a Attendant care includes a reader for a blind person and a helper for a person with a physical disability. Irs tax forms 2012 1040a These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). Irs tax forms 2012 1040a They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. Irs tax forms 2012 1040a Loss on conversion of U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a dollars into foreign currency. Irs tax forms 2012 1040a   The conversion of U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. Irs tax forms 2012 1040a Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. Irs tax forms 2012 1040a For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). Irs tax forms 2012 1040a The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. Irs tax forms 2012 1040a You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. Irs tax forms 2012 1040a For each trip away from home, the dates you left and returned and the number of days spent on business. Irs tax forms 2012 1040a The destination or area of your travel, described by the name of the city, town, or similar designation. Irs tax forms 2012 1040a The business reason for your travel or the business benefit gained or expected to be gained from your travel. Irs tax forms 2012 1040a How to record your expenses. Irs tax forms 2012 1040a   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. Irs tax forms 2012 1040a They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. Irs tax forms 2012 1040a You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. Irs tax forms 2012 1040a   Each expense should be recorded separately in your records. Irs tax forms 2012 1040a However, some items can be totaled in reasonable categories. Irs tax forms 2012 1040a You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. Irs tax forms 2012 1040a You may record tips separately or with the cost of the service. Irs tax forms 2012 1040a    Documentary evidence generally is required to support all lodging expenses while traveling away from home. Irs tax forms 2012 1040a It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. Irs tax forms 2012 1040a Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. Irs tax forms 2012 1040a It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. Irs tax forms 2012 1040a    A canceled check by itself does not prove a business cost. Irs tax forms 2012 1040a You must have other evidence to show that the check was used for a business purpose. Irs tax forms 2012 1040a Your records must be timely. Irs tax forms 2012 1040a   Record the elements for the expense in your account book or other record at or near the time of the expense. Irs tax forms 2012 1040a A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. Irs tax forms 2012 1040a Confidential information. Irs tax forms 2012 1040a   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Irs tax forms 2012 1040a However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Irs tax forms 2012 1040a How To Report Business Expenses As a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. Irs tax forms 2012 1040a If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. Irs tax forms 2012 1040a However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. Irs tax forms 2012 1040a If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. Irs tax forms 2012 1040a Form 2106 or Form 2106-EZ. Irs tax forms 2012 1040a   You must complete Form 2106 or 2106-EZ to deduct your expenses. Irs tax forms 2012 1040a Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. Irs tax forms 2012 1040a Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). Irs tax forms 2012 1040a Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. Irs tax forms 2012 1040a Form 2106-EZ. Irs tax forms 2012 1040a   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. Irs tax forms 2012 1040a You can use Form 2106-EZ if you meet both of the following conditions. Irs tax forms 2012 1040a You are not reimbursed by your employer for any expenses. Irs tax forms 2012 1040a (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. Irs tax forms 2012 1040a ) If you claim car expenses, you use the standard mileage rate. Irs tax forms 2012 1040a Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. Irs tax forms 2012 1040a Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. Irs tax forms 2012 1040a However, you cannot deduct any expenses for which you received a tax-free allowance as a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government employee. Irs tax forms 2012 1040a To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. Irs tax forms 2012 1040a Closely related to the start of work. Irs tax forms 2012 1040a   The move must be closely related, both in time and in place, to the start of work at the new location. Irs tax forms 2012 1040a In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. Irs tax forms 2012 1040a   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. Irs tax forms 2012 1040a A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. Irs tax forms 2012 1040a Distance test. Irs tax forms 2012 1040a   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. Irs tax forms 2012 1040a If you did not have an old job location, your new job location must be at least 50 miles from your former home. Irs tax forms 2012 1040a Time test. Irs tax forms 2012 1040a   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Irs tax forms 2012 1040a Deductible moving expenses. Irs tax forms 2012 1040a   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). Irs tax forms 2012 1040a    The cost of your meals is not a deductible moving expense. Irs tax forms 2012 1040a   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. Irs tax forms 2012 1040a For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. Irs tax forms 2012 1040a Expenses must be reasonable. Irs tax forms 2012 1040a   You can deduct only those expenses that are reasonable for the circumstances of your move. Irs tax forms 2012 1040a For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Irs tax forms 2012 1040a Members of your household. Irs tax forms 2012 1040a   A member of your household includes anyone who has both your former home and new home as his or her home. Irs tax forms 2012 1040a It does not include a tenant or employee unless you can claim that person as a dependent. Irs tax forms 2012 1040a Retirees. Irs tax forms 2012 1040a   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. Irs tax forms 2012 1040a You do not have to meet the time test described earlier. Irs tax forms 2012 1040a Survivors. Irs tax forms 2012 1040a   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. Irs tax forms 2012 1040a The move must begin within 6 months after the decedent's death. Irs tax forms 2012 1040a It must be from the decedent's former home outside the United States, and that home must also have been your home. Irs tax forms 2012 1040a You do not have to meet the time test described earlier. Irs tax forms 2012 1040a How to report moving expenses. Irs tax forms 2012 1040a   Use Form 3903 to report your moving expenses and figure your allowable deduction. Irs tax forms 2012 1040a Claim the deduction as an adjustment to income on Form 1040. Irs tax forms 2012 1040a (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. Irs tax forms 2012 1040a ) Reimbursements. Irs tax forms 2012 1040a   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. Irs tax forms 2012 1040a You also must include in gross income reimbursements paid to you under a nonaccountable plan. Irs tax forms 2012 1040a However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. Irs tax forms 2012 1040a Additional information. Irs tax forms 2012 1040a   For additional information about moving expenses, see Publication 521. Irs tax forms 2012 1040a Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. Irs tax forms 2012 1040a Contributions. Irs tax forms 2012 1040a   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. Irs tax forms 2012 1040a You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. Irs tax forms 2012 1040a For more information, see Publication 526, Charitable Contributions. Irs tax forms 2012 1040a Real estate tax and home mortgage interest. Irs tax forms 2012 1040a   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. Irs tax forms 2012 1040a You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. Irs tax forms 2012 1040a Example. Irs tax forms 2012 1040a Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. Irs tax forms 2012 1040a During the year, Adam used the allowance, with other funds, to provide a home for himself. Irs tax forms 2012 1040a His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). Irs tax forms 2012 1040a Adam did not have any other expenses related to providing a home for himself. Irs tax forms 2012 1040a Adam must reduce his deductions for home mortgage interest and real estate taxes. Irs tax forms 2012 1040a He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). Irs tax forms 2012 1040a The result is 3/4. Irs tax forms 2012 1040a Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). Irs tax forms 2012 1040a He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. Irs tax forms 2012 1040a Exception to the reduction. Irs tax forms 2012 1040a   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. Irs tax forms 2012 1040a Required statement. Irs tax forms 2012 1040a   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. Irs tax forms 2012 1040a The statement must contain all of the following information. Irs tax forms 2012 1040a The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. Irs tax forms 2012 1040a The amount of otherwise deductible expenses attributable to each type of tax-free income. Irs tax forms 2012 1040a The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. Irs tax forms 2012 1040a An explanation of how you determined the amounts not directly attributable to each type of tax-free income. Irs tax forms 2012 1040a   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. Irs tax forms 2012 1040a Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a income tax liability or deduct them as an itemized deduction when figuring your taxable income. Irs tax forms 2012 1040a Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. Irs tax forms 2012 1040a Foreign tax credit. Irs tax forms 2012 1040a   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. Irs tax forms 2012 1040a If you choose to figure a credit against your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a income tax return. Irs tax forms 2012 1040a    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. Irs tax forms 2012 1040a If all your foreign income is exempt from U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a tax, you will not be able to claim a foreign tax credit. Irs tax forms 2012 1040a   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. Irs tax forms 2012 1040a Exemption from limit. Irs tax forms 2012 1040a   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. Irs tax forms 2012 1040a Your only foreign income is passive income, such as interest, dividends, and royalties. Irs tax forms 2012 1040a The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). Irs tax forms 2012 1040a The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. Irs tax forms 2012 1040a If you make the election, you can claim a foreign tax credit without filing Form 1116. Irs tax forms 2012 1040a However, you cannot carry back or carry over any unused foreign tax to or from this year. Irs tax forms 2012 1040a See the instructions for the appropriate line in the Tax and Credits section of Form 1040. Irs tax forms 2012 1040a Foreign tax deduction. Irs tax forms 2012 1040a   If you choose to deduct all foreign income taxes on your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a income tax return, itemize the deduction on Schedule A (Form 1040). Irs tax forms 2012 1040a You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. Irs tax forms 2012 1040a Example. Irs tax forms 2012 1040a Dennis and Christina are married and live and work in Country X. Irs tax forms 2012 1040a Dennis works for the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government and Christina is employed by a private company. Irs tax forms 2012 1040a They pay income tax to Country X on Christina's income only. Irs tax forms 2012 1040a Dennis and Christina file a joint tax return and exclude all of Christina's income. Irs tax forms 2012 1040a They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. Irs tax forms 2012 1040a Deduction for other foreign taxes. Irs tax forms 2012 1040a   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Irs tax forms 2012 1040a You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. Irs tax forms 2012 1040a   You can deduct real property taxes you pay that are imposed on you by a foreign country. Irs tax forms 2012 1040a You take this deduction on Schedule A (Form 1040). Irs tax forms 2012 1040a You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Irs tax forms 2012 1040a More information. Irs tax forms 2012 1040a   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. Irs tax forms 2012 1040a Local (Foreign) Tax Return As a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. Irs tax forms 2012 1040a Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. Irs tax forms 2012 1040a Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. Irs tax forms 2012 1040a Review the treaty text carefully to determine whether your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Government remuneration is taxable in the host country. Irs tax forms 2012 1040a You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). Irs tax forms 2012 1040a If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. Irs tax forms 2012 1040a If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. Irs tax forms 2012 1040a Most income tax treaties contain an article providing relief from double taxation. Irs tax forms 2012 1040a Many treaties contain special foreign tax credit rules for U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a citizens who are residents of a treaty country. Irs tax forms 2012 1040a For more information about the foreign tax credit, see Foreign Taxes, earlier. Irs tax forms 2012 1040a Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. Irs tax forms 2012 1040a For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. Irs tax forms 2012 1040a Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. Irs tax forms 2012 1040a Check with the appropriate U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Embassy for more information. Irs tax forms 2012 1040a Double Withholding If your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a income tax return on this income. Irs tax forms 2012 1040a Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. Irs tax forms 2012 1040a How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Irs tax forms 2012 1040a By selecting the method that is best for you, you will have quick and easy access to tax help. Irs tax forms 2012 1040a Free help with your tax return. Irs tax forms 2012 1040a   Free help in preparing your return is available nationwide from IRS-certified volunteers. Irs tax forms 2012 1040a The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Irs tax forms 2012 1040a The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs tax forms 2012 1040a Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs tax forms 2012 1040a Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Irs tax forms 2012 1040a To find the nearest VITA or TCE site, visit IRS. Irs tax forms 2012 1040a gov or call 1-800-906-9887 or 1-800-829-1040. Irs tax forms 2012 1040a   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs tax forms 2012 1040a To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs tax forms 2012 1040a aarp. Irs tax forms 2012 1040a org/money/taxaide or call 1-888-227-7669. Irs tax forms 2012 1040a   For more information on these programs, go to IRS. Irs tax forms 2012 1040a gov and enter “VITA” in the search box. Irs tax forms 2012 1040a Internet. Irs tax forms 2012 1040a You can access the IRS website at IRS. Irs tax forms 2012 1040a gov 24 hours a day, 7 days a week to: E-file your return. Irs tax forms 2012 1040a Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Irs tax forms 2012 1040a Check the status of your 2012 refund. Irs tax forms 2012 1040a Go to IRS. Irs tax forms 2012 1040a gov and click on Where’s My Refund. Irs tax forms 2012 1040a Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Irs tax forms 2012 1040a If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs tax forms 2012 1040a Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs tax forms 2012 1040a Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Irs tax forms 2012 1040a Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs tax forms 2012 1040a So in a change from previous filing seasons, you won't get an estimated refund date right away. Irs tax forms 2012 1040a Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Irs tax forms 2012 1040a You can obtain a free transcript online at IRS. Irs tax forms 2012 1040a gov by clicking on Order a Return or Account Transcript under “Tools. Irs tax forms 2012 1040a ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Irs tax forms 2012 1040a You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Irs tax forms 2012 1040a Download forms, including talking tax forms, instructions, and publications. Irs tax forms 2012 1040a Order IRS products. Irs tax forms 2012 1040a Research your tax questions. Irs tax forms 2012 1040a Search publications by topic or keyword. Irs tax forms 2012 1040a Use the Internal Revenue Code, regulations, or other official guidance. Irs tax forms 2012 1040a View Internal Revenue Bulletins (IRBs) published in the last few years. Irs tax forms 2012 1040a Figure your withholding allowances using the IRS Withholding Calculator at www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/individuals. Irs tax forms 2012 1040a Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Irs tax forms 2012 1040a gov by typing Alternative Minimum Tax Assistant in the search box. Irs tax forms 2012 1040a Sign up to receive local and national tax news by email. Irs tax forms 2012 1040a Get information on starting and operating a small business. Irs tax forms 2012 1040a Phone. Irs tax forms 2012 1040a Many services are available by phone. Irs tax forms 2012 1040a   Ordering forms, instructions, and publications. Irs tax forms 2012 1040a Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). Irs tax forms 2012 1040a You should receive your order within 10 days. Irs tax forms 2012 1040a Asking tax questions. Irs tax forms 2012 1040a Call the IRS with your tax questions at 1-800-829-1040. Irs tax forms 2012 1040a Solving problems. Irs tax forms 2012 1040a You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Irs tax forms 2012 1040a An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Irs tax forms 2012 1040a Call your local Taxpayer Assistance Center for an appointment. Irs tax forms 2012 1040a To find the number, go to www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs tax forms 2012 1040a TTY/TDD equipment. Irs tax forms 2012 1040a If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Irs tax forms 2012 1040a The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Irs tax forms 2012 1040a These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Irs tax forms 2012 1040a gsa. Irs tax forms 2012 1040a gov/fedrelay. Irs tax forms 2012 1040a TeleTax topics. Irs tax forms 2012 1040a Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Irs tax forms 2012 1040a Checking the status of your 2012 refund. Irs tax forms 2012 1040a To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Irs tax forms 2012 1040a Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Irs tax forms 2012 1040a If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Irs tax forms 2012 1040a Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs tax forms 2012 1040a Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs tax forms 2012 1040a Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Irs tax forms 2012 1040a Outside the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a If you are outside the United States, taxpayer assistance is available at the following U. Irs tax forms 2012 1040a S Embassies or consulate. Irs tax forms 2012 1040a Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. Irs tax forms 2012 1040a If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). Irs tax forms 2012 1040a If you are in a U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Virgin Islands) and have a tax question, you can call 1-800-829-1040. Irs tax forms 2012 1040a Evaluating the quality of our telephone services. Irs tax forms 2012 1040a To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Irs tax forms 2012 1040a One method is for a second IRS representative to listen in on or record random telephone calls. Irs tax forms 2012 1040a Another is to ask some callers to complete a short survey at the end of the call. Irs tax forms 2012 1040a Walk-in. Irs tax forms 2012 1040a Some products and services are available on a walk-in basis. Irs tax forms 2012 1040a   Products. Irs tax forms 2012 1040a You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs tax forms 2012 1040a Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs tax forms 2012 1040a Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Irs tax forms 2012 1040a Services. Irs tax forms 2012 1040a You can walk in to your local TAC most business days for personal, face-to-face tax help. Irs tax forms 2012 1040a An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs tax forms 2012 1040a If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Irs tax forms 2012 1040a No appointment is necessary—just walk in. Irs tax forms 2012 1040a Before visiting, check www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/localcontacts for hours of operation and services provided. Irs tax forms 2012 1040a If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Irs tax forms 2012 1040a You can leave a message and a representative will call you back within 2 business days. Irs tax forms 2012 1040a All other issues will be handled without an appointment. Irs tax forms 2012 1040a To call your local TAC, go to  www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs tax forms 2012 1040a Outside the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Embassies and consulates. Irs tax forms 2012 1040a Mail. Irs tax forms 2012 1040a You can send your order for forms, instructions, and publications to the address below. Irs tax forms 2012 1040a You should receive a response within 10 days after your request is received. Irs tax forms 2012 1040a  Internal Revenue Service 1201 N. Irs tax forms 2012 1040a Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a If you are outside the United States, you can get tax assistance by writing to the address below. Irs tax forms 2012 1040a  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Irs tax forms 2012 1040a   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs tax forms 2012 1040a Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Irs tax forms 2012 1040a TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Irs tax forms 2012 1040a Remember, the worst thing you can do is nothing at all. Irs tax forms 2012 1040a   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Irs tax forms 2012 1040a You face (or your business is facing) an immediate threat of adverse action. Irs tax forms 2012 1040a You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Irs tax forms 2012 1040a   If you qualify for help, they will do everything they can to get your problem resolved. Irs tax forms 2012 1040a You will be assigned to one advocate who will be with you at every turn. Irs tax forms 2012 1040a TAS has offices in every state, the District of Columbia, and Puerto Rico. Irs tax forms 2012 1040a Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Irs tax forms 2012 1040a And its services are always free. Irs tax forms 2012 1040a   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Irs tax forms 2012 1040a The TAS tax toolkit at www. Irs tax forms 2012 1040a TaxpayerAdvocate. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov can help you understand these rights. Irs tax forms 2012 1040a   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/advocate. Irs tax forms 2012 1040a You can also call the toll-free number at 1-877-777-4778. Irs tax forms 2012 1040a Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Irs tax forms 2012 1040a These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Irs tax forms 2012 1040a gsa. Irs tax forms 2012 1040a gov/fedrelay. Irs tax forms 2012 1040a   TAS also handles large-scale or systemic problems that affect many taxpayers. Irs tax forms 2012 1040a If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/advocate. Irs tax forms 2012 1040a    Outside the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Irs tax forms 2012 1040a You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. Irs tax forms 2012 1040a R. Irs tax forms 2012 1040a 00968-8000 Low Income Taxpayer Clinics (LITCs). Irs tax forms 2012 1040a   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Irs tax forms 2012 1040a Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Irs tax forms 2012 1040a These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Irs tax forms 2012 1040a Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Irs tax forms 2012 1040a For more information and to find a clinic near you, see the LITC page on www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Irs tax forms 2012 1040a This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Irs tax forms 2012 1040a Free tax services. Irs tax forms 2012 1040a   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Irs tax forms 2012 1040a Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Irs tax forms 2012 1040a The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Irs tax forms 2012 1040a The majority of the information and services listed in this publication are available to you free of charge. Irs tax forms 2012 1040a If there is a fee associated with a resource or service, it is listed in the publication. Irs tax forms 2012 1040a   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Irs tax forms 2012 1040a DVD for tax products. Irs tax forms 2012 1040a You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Irs tax forms 2012 1040a Prior-year forms, instructions, and publications. Irs tax forms 2012 1040a Tax Map: an electronic research tool and finding aid. Irs tax forms 2012 1040a Tax law frequently asked questions. Irs tax forms 2012 1040a Tax Topics from the IRS telephone response system. Irs tax forms 2012 1040a Internal Revenue Code—Title 26 of the U. Irs tax forms 2012 1040a S. Irs tax forms 2012 1040a Code. Irs tax forms 2012 1040a Links to other Internet-based tax research materials. Irs tax forms 2012 1040a Fill-in, print, and save features for most tax forms. Irs tax forms 2012 1040a Internal Revenue Bulletins. Irs tax forms 2012 1040a Toll-free and email technical support. Irs tax forms 2012 1040a Two releases during the year. Irs tax forms 2012 1040a  – The first release will ship the beginning of January 2013. Irs tax forms 2012 1040a  – The final release will ship the beginning of March 2013. Irs tax forms 2012 1040a Purchase the DVD from National Technical Information Service (NTIS) at www. Irs tax forms 2012 1040a irs. Irs tax forms 2012 1040a gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Irs tax forms 2012 1040a Prev  Up  Next   Home   More Online Publications