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State Income Tax Rate

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State Income Tax Rate

State income tax rate 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. State income tax rate Gross monthly rate. State income tax rate Your cost. State income tax rate Choosing a survivor annuity after retirement. State income tax rate Canceling a survivor annuity after retirement. State income tax rate Annuity starting date after 1986. State income tax rate Annuity starting date before 1987. State income tax rate 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. State income tax rate 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. State income tax rate The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. State income tax rate If the refund includes only your contributions, none of the refund is taxable. State income tax rate 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). State income tax rate 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. State income tax rate See Rollover Rules in Part II for information on how to make a rollover. State income tax rate 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. State income tax rate Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. State income tax rate 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. State income tax rate 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. State income tax rate For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. State income tax rate 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. State income tax rate 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. State income tax rate OPM will tell you how to make the choice. State income tax rate The choice for no withholding remains in effect until you change it. State income tax rate These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. State income tax rate 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. State income tax rate 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. State income tax rate 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. State income tax rate For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. State income tax rate Form CSA 1099R. State income tax rate   Form CSA 1099R is mailed to you by OPM each year. State income tax rate It will show any tax you had withheld. State income tax rate File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. State income tax rate    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. State income tax rate servicesonline. State income tax rate opm. State income tax rate gov. State income tax rate To log in, you will need your retirement CSA claim number and your personal identification number. State income tax rate Choosing no withholding on payments outside the United States. State income tax rate   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. State income tax rate   To choose no withholding if you are a U. State income tax rate S. State income tax rate citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. State income tax rate Otherwise, OPM has to withhold tax. State income tax rate For example, OPM must withhold if you provide a U. State income tax rate S. State income tax rate 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. State income tax rate S. State income tax rate home address. State income tax rate   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. State income tax rate S. State income tax rate citizen, a U. State income tax rate S. State income tax rate resident alien, or someone who left the United States to avoid tax. State income tax rate But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. State income tax rate For details, see Publication 519, U. State income tax rate S. State income tax rate Tax Guide for Aliens. State income tax rate Withholding certificate. State income tax rate   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. State income tax rate The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. State income tax rate If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. State income tax rate 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. State income tax rate C. State income tax rate calling area must call 202-606-0500). State income tax rate No special form is needed. State income tax rate You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. State income tax rate If you have TTY/TDD equipment, call 1-855–887–4957. State income tax rate If you need a PIN, call OPM's Retirement Information Office. State income tax rate You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. State income tax rate servicesonline. State income tax rate opm. State income tax rate gov. State income tax rate You will need your retirement CSA or CSF claim number and your PIN. State income tax rate Withholding from certain lump-sum payments. State income tax rate   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. State income tax rate Tax will be withheld at a 20% rate on the interest distributed. State income tax rate However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. State income tax rate If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. State income tax rate Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. State income tax rate See Rollover Rules in Part II. State income tax rate If you receive only your contributions, no tax will be withheld. State income tax rate Withholding from Thrift Savings Plan payments. State income tax rate   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. State income tax rate 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. State income tax rate  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. State income tax rate 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. State income tax rate   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. State income tax rate The above document is also available in the “Forms & Publications” section of the TSP website at www. State income tax rate tsp. State income tax rate gov. State income tax rate Estimated tax. State income tax rate   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)). State income tax rate The return must cover all 12 months. State income tax rate   You do not have to pay estimated tax for 2014 if you were a U. State income tax rate S. State income tax rate citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. State income tax rate   Publication 505 contains information that you can use to help you figure your estimated tax payments. State income tax rate 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. State income tax rate The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. State income tax rate Children. State income tax rate   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. State income tax rate   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. State income tax rate Form CSF 1099R. State income tax rate   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. State income tax rate It will show the total amount of the annuity you received in the past year. State income tax rate It also should show, separately, the survivor annuity for a child or children. State income tax rate Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. State income tax rate   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. State income tax rate    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. State income tax rate servicesonline. State income tax rate opm. State income tax rate gov. State income tax rate To log in you will need your retirement CSF claim number and personal identification number. State income tax rate    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. State income tax rate C. State income tax rate calling area must call 202-606-0500). State income tax rate You will need your CSF claim number and your social security number when you call. State income tax rate Taxable part of annuity. State income tax rate   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. State income tax rate 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. State income tax rate Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. State income tax rate 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. State income tax rate 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. State income tax rate Annuity statement. State income tax rate   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). State income tax rate You will use this information to figure the tax-free recovery of your cost. State income tax rate Annuity starting date. State income tax rate   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. State income tax rate 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. State income tax rate Gross monthly rate. State income tax rate   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. State income tax rate Your cost. State income tax rate   Your monthly annuity payment contains an amount on which you have previously paid income tax. State income tax rate This amount represents part of your contributions to the retirement plan. State income tax rate 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. State income tax rate   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. State income tax rate If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. State income tax rate (See Lump-sum credit under Alternative Annuity Option, later. State income tax rate )   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. State income tax rate You cannot claim an interest deduction for any interest payments. State income tax rate You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. State income tax rate Recovering your cost tax free. State income tax rate   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. State income tax rate 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. State income tax rate 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). State income tax rate If your annuity starting date is after November 18, 1996, you must use the Simplified Method. State income tax rate   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). State income tax rate The tax-free part is a fixed dollar amount. State income tax rate It remains the same, even if your annuity is increased. State income tax rate Generally, this rule applies as long as you receive your annuity. State income tax rate However, see Exclusion limit , later. State income tax rate Choosing a survivor annuity after retirement. State income tax rate    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. State income tax rate   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. State income tax rate To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. State income tax rate Figure the expected return as of the date the reduced annuity begins. State income tax rate For details on the General Rule, see Publication 939. State income tax rate Canceling a survivor annuity after retirement. State income tax rate   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. State income tax rate The increased annuity does not change the cost recovery you figured at the annuity starting date. State income tax rate The tax-free part of each annuity payment remains the same. State income tax rate    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. State income tax rate C. State income tax rate calling area must call 202-606-0500). State income tax rate Exclusion limit. State income tax rate   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. State income tax rate Annuity starting date after 1986. State income tax rate   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. State income tax rate Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. State income tax rate Example. State income tax rate Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. State income tax rate If your cost is $12,000, the exclusion ends after 10 years (120 months). State income tax rate Thereafter, your entire annuity is generally fully taxable. State income tax rate Annuity starting date before 1987. State income tax rate   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. State income tax rate If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. State income tax rate The total exclusion may be more than your cost. State income tax rate Deduction of unrecovered cost. State income tax rate   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. State income tax rate 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). State income tax rate If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. State income tax rate 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. State income tax rate (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. State income tax rate ) 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. State income tax rate The Simplified Method does not apply if your annuity starting date is before July 2, 1986. State income tax rate 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. State income tax rate This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. State income tax rate 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. State income tax rate Worksheet A. State income tax rate   Use Worksheet A. State income tax rate Simplified Method (near the end of this publication), to figure your taxable annuity. State income tax rate Be sure to keep the completed worksheet. State income tax rate It will help you figure your taxable amounts for later years. State income tax rate 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. State income tax rate However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. State income tax rate Line 2. State income tax rate   See Your cost , earlier, for an explanation of your cost in the plan. State income tax rate 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. State income tax rate Line 3. State income tax rate   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. State income tax rate 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. State income tax rate If your annuity starting date is before 1998, use Table 1. State income tax rate Line 6. State income tax rate   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. State income tax rate 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. State income tax rate Example. State income tax rate Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. State income tax rate 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. State income tax rate He must use the Simplified Method to figure the tax-free part of his annuity benefits. State income tax rate Bill's monthly annuity benefit is $1,000. State income tax rate He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. State income tax rate At his annuity starting date, he was 65 and Kathy was 57. State income tax rate Bill's completed Worksheet A is shown later. State income tax rate 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). State income tax rate Bill keeps a copy of the completed worksheet for his records. State income tax rate It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. State income tax rate Bill's tax-free monthly amount is $100. State income tax rate (See line 4 of the worksheet. State income tax rate ) 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. State income tax rate 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. State income tax rate 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. State income tax rate 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. State income tax rate 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. State income tax rate 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. State income tax rate 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. State income tax rate Figuring this percentage is complex and requires the use of actuarial tables. State income tax rate For these tables and other information about using the General Rule, see Publication 939. State income tax rate 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. State income tax rate Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. State income tax rate After your cost was recovered, all payments became fully taxable. State income tax rate You cannot use another rule to again exclude amounts from income. State income tax rate The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. State income tax rate Worksheet A. State income tax rate Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. State income tax rate 1. State income tax rate Enter the total pension or annuity payments received this year. State income tax rate Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. State income tax rate $ 8,000 2. State income tax rate Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. State income tax rate See Your cost in Part II, Rules for Retirees, earlier 2. State income tax rate 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). State income tax rate Otherwise, go to line 3. State income tax rate   3. State income tax rate Enter the appropriate number from Table 1 below. State income tax rate 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. State income tax rate 3. State income tax rate 310 4. State income tax rate Divide line 2 by the number on line 3 4. State income tax rate 100 5. State income tax rate Multiply line 4 by the number of months for which this year's payments were made. State income tax rate If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. State income tax rate Otherwise, go to line 6 5. State income tax rate 800 6. State income tax rate Enter any amounts previously recovered tax free in years after 1986. State income tax rate This is the amount shown on line 10 of your worksheet for last year 6. State income tax rate 0 7. State income tax rate Subtract line 6 from line 2 7. State income tax rate 31,000 8. State income tax rate Enter the smaller of line 5 or line 7 8. State income tax rate 800 9. State income tax rate Taxable amount for year. State income tax rate Subtract line 8 from line 1. State income tax rate Enter the result, but not less than zero. State income tax rate Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. State income tax rate If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. State income tax rate If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. State income tax rate 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. State income tax rate $7,200 10. State income tax rate Was your annuity starting date before 1987?   Yes. State income tax rate Do not complete the rest of this worksheet. State income tax rate    No. State income tax rate Add lines 6 and 8. State income tax rate This is the amount you have recovered tax free through 2013. State income tax rate You will need this number if you need to fill out this worksheet next year 10. State income tax rate 800 11. State income tax rate Balance of cost to be recovered. State income tax rate Subtract line 10 from line 2. State income tax rate If zero, you will not have to complete this worksheet next year. State income tax rate The payments you receive next year will generally be fully taxable 11. State income tax rate $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. State income tax rate Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. State income tax rate If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. State income tax rate You are eligible to make this choice if you meet all of the following requirements. State income tax rate You are retiring, but not on disability. State income tax rate You have a life-threatening illness or other critical medical condition. State income tax rate You do not have a former spouse entitled to court ordered benefits based on your service. State income tax rate 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. State income tax rate Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. State income tax rate The tax-free part represents part of your cost. State income tax rate The taxable part represents part of the earnings on your annuity contract. State income tax rate 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. State income tax rate Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. State income tax rate Your taxable amount may therefore be more than the lump-sum payment you receive. State income tax rate 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. State income tax rate 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. State income tax rate See Rollover Rules , later, for information on how to make a rollover. State income tax rate OPM can make a direct rollover only up to the amount of the lump-sum payment. State income tax rate Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. State income tax rate 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. State income tax rate 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. State income tax rate For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. State income tax rate Worksheet B. State income tax rate   Use Worksheet B. State income tax rate Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. State income tax rate Be sure to keep the completed worksheet for your records. State income tax rate   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. State income tax rate Lump-sum credit. State income tax rate   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). State income tax rate 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. State income tax rate Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. State income tax rate Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. State income tax rate 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. State income tax rate Present value of your annuity contract. State income tax rate   The present value of your annuity contract is figured using actuarial tables provided by the IRS. State income tax rate 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. State income tax rate Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. State income tax rate , NW Washington, DC 20224-0002 Example. State income tax rate David Brown retired from the federal government in 2013, one month after his 55th birthday. State income tax rate 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. State income tax rate The present value of his annuity contract was $155,000. State income tax rate The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. State income tax rate 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. State income tax rate See Reduced Annuity , later. State income tax rate Worksheet B. State income tax rate Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . State income tax rate  1. State income tax rate Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. State income tax rate $ 31,000 2. State income tax rate Enter the present value of your annuity contract 2. State income tax rate 155,000 3. State income tax rate Divide line 1 by line 2 3. State income tax rate . State income tax rate 20 4. State income tax rate Tax-free amount. State income tax rate Multiply line 1 by line 3. State income tax rate (Caution: Do not include this amount on line 6 of Worksheet A in this publication. State income tax rate ) 4. State income tax rate $6,200 5. State income tax rate Taxable amount (net cost in the plan). State income tax rate Subtract line 4 from line 1. State income tax rate Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. State income tax rate Also, enter this amount on line 2 of Worksheet A in this publication. State income tax rate 5. State income tax rate $24,800   Lump-sum payment in installments. State income tax rate   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. State income tax rate You will receive the first installment after you make the choice upon retirement. State income tax rate The second installment will be paid to you, with interest, in the next calendar year. State income tax rate (Exceptions to the installment rule are provided for cases of critical medical need. State income tax rate )   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. State income tax rate If the payment has a tax-free part, you must treat the taxable part as received first. State income tax rate How to report. State income tax rate   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. State income tax rate 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. State income tax rate    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. State income tax rate 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. State income tax rate These annuity payments each will have a tax-free and a taxable part. State income tax rate To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). State income tax rate For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. State income tax rate 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. State income tax rate Enter as your net cost on line 2 the amount from Worksheet B, line 5. State income tax rate 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. State income tax rate Example. State income tax rate The facts are the same as in the example for David Brown in the preceding discussion. State income tax rate In addition, David received 10 annuity payments in 2013 of $1,200 each. State income tax rate Using Worksheet A, he figures the taxable part of his annuity payments. State income tax rate He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. State income tax rate His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). State income tax rate He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. State income tax rate David's filled-in Worksheet A is shown on the next page. State income tax rate Worksheet A. State income tax rate Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . State income tax rate 1. State income tax rate Enter the total pension or annuity payments received this year. State income tax rate Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. State income tax rate $ 12,000 2. State income tax rate Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. State income tax rate See Your cost in Part II, Rules for Retirees, earlier 2. State income tax rate 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). State income tax rate Otherwise, go to line 3. State income tax rate   3. State income tax rate Enter the appropriate number from Table 1 below. State income tax rate 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. State income tax rate 3. State income tax rate 360 4. State income tax rate Divide line 2 by the number on line 3 4. State income tax rate 68. State income tax rate 89 5. State income tax rate Multiply line 4 by the number of months for which this year's payments were made. State income tax rate If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. State income tax rate Otherwise, go to line 6 5. State income tax rate 688. State income tax rate 90 6. State income tax rate Enter any amounts previously recovered tax free in years after 1986. State income tax rate This is the amount shown on line 10 of your worksheet for last year 6. State income tax rate 0 7. State income tax rate Subtract line 6 from line 2 7. State income tax rate 24,800 8. State income tax rate Enter the smaller of line 5 or line 7 8. State income tax rate 688. State income tax rate 90 9. State income tax rate Taxable amount for year. State income tax rate Subtract line 8 from line 1. State income tax rate Enter the result, but not less than zero. State income tax rate Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. State income tax rate If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. State income tax rate If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. State income tax rate 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. State income tax rate $11,311. State income tax rate 10 10. State income tax rate Was your annuity starting date before 1987?   Yes. State income tax rate Do not complete the rest of this worksheet. State income tax rate    No. State income tax rate Add lines 6 and 8. State income tax rate This is the amount you have recovered tax free through 2013. State income tax rate You will need this number if you need to fill out this worksheet next year 10. State income tax rate 688. State income tax rate 90 11. State income tax rate Balance of cost to be recovered. State income tax rate Subtract line 10 from line 2. State income tax rate If zero, you will not have to complete this worksheet next year. State income tax rate The payments you receive next year will generally be fully taxable 11. State income tax rate $24,111. State income tax rate 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. State income tax rate Reemployment after choosing the alternative annuity option. State income tax rate 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. State income tax rate 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. State income tax rate Annuity starting date before November 19, 1996. State income tax rate   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. State income tax rate 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. State income tax rate 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. State income tax rate 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. State income tax rate The gift may be taxable for gift tax purposes. State income tax rate The value of the gift is equal to the value of the annuity. State income tax rate Joint and survivor annuity. State income tax rate   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. State income tax rate This will eliminate any gift tax liability with regard to that gift. State income tax rate   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. State income tax rate This may result in a taxable gift. State income tax rate More information. State income tax rate   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. State income tax rate 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. State income tax rate Annual leave. State income tax rate   A payment for accrued annual leave received on retirement is a salary payment. State income tax rate It is taxable as wages in the tax year you receive it. State income tax rate Voluntary contributions. State income tax rate   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. State income tax rate 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. State income tax rate Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. State income tax rate See Thrift Savings Plan , later. State income tax rate Additional annuity benefit. State income tax rate   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. State income tax rate This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. State income tax rate It does not matter that you receive only one monthly check covering both benefits. State income tax rate 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. State income tax rate   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. State income tax rate Refund of voluntary contributions. State income tax rate   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. State income tax rate 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. State income tax rate See Rollover Rules , later. State income tax rate The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. State income tax rate 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. State income tax rate For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. State income tax rate Community property laws. State income tax rate   State community property laws apply to your annuity. State income tax rate These laws will affect your income tax only if you file a return separately from your spouse. State income tax rate   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. State income tax rate 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. State income tax rate   At any time, you have only one domicile even though you may have more than one home. State income tax rate 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. State income tax rate The question of your domicile is mainly a matter of your intentions as indicated by your actions. State income tax rate   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. State income tax rate The division is based on your periods of service and domicile in community and noncommunity property states while you were married. State income tax rate   For more information, see Publication 555, Community Property. State income tax rate 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. State income tax rate The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. State income tax rate This amount is taxable as wages. State income tax rate Your annuity will continue to be taxed just as it was before. State income tax rate If you are still recovering your cost, you continue to do so. State income tax rate If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. State income tax rate 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. State income tax rate A nonresident alien is an individual who is not a citizen or a resident alien of the United States. State income tax rate Special rule for figuring your total contributions. State income tax rate   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. State income tax rate 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. State income tax rate For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. State income tax rate Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. State income tax rate   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. State income tax rate Limit on taxable amount. State income tax rate   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. State income tax rate Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. State income tax rate The numerator of the fraction is the retiree's total U. State income tax rate S. State income tax rate Government basic pay, other than tax-exempt pay for services performed outside the United States. State income tax rate The denominator is the retiree's total U. State income tax rate S. State income tax rate Government basic pay for all services. State income tax rate    Basic pay includes regular pay plus any standby differential. State income tax rate It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. State income tax rate   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. State income tax rate (For an annuity, first complete Worksheet A in this publication. State income tax rate ) Worksheet C. State income tax rate Limited Taxable Amount for Nonresident Alien 1. State income tax rate 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. State income tax rate   2. State income tax rate Enter the total U. State income tax rate S. State income tax rate Government basic pay other than tax-exempt pay for services performed outside the United States 2. State income tax rate   3. State income tax rate Enter the total U. State income tax rate S. State income tax rate Government basic pay for all services 3. State income tax rate   4. State income tax rate Divide line 2 by line 3 4. State income tax rate   5. State income tax rate Limited taxable amount. State income tax rate Multiply line 1 by line 4. State income tax rate Enter this amount on Form 1040NR, line 17b 5. State income tax rate   Example 1. State income tax rate You are a nonresident alien who performed all services for the U. State income tax rate S. State income tax rate Government abroad as a nonresident alien. State income tax rate You retired and began to receive a monthly annuity of $200. State income tax rate Your total basic pay for all services for the U. State income tax rate S. State income tax rate Government was $100,000. State income tax rate All of your basic pay was tax exempt because it was not U. State income tax rate S. State income tax rate source income. State income tax rate The taxable amount of your annuity using Worksheet A in this publication is $720. State income tax rate You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. State income tax rate Worksheet C. State income tax rate Limited Taxable Amount for Nonresident Alien — Example 1 1. State income tax rate 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. State income tax rate $ 720 2. State income tax rate Enter the total U. State income tax rate S. State income tax rate Government basic pay other than tax-exempt pay for services performed outside the United States 2. State income tax rate 0 3. State income tax rate Enter the total U. State income tax rate S. State income tax rate Government basic pay for all services 3. State income tax rate 100,000 4. State income tax rate Divide line 2 by line 3 4. State income tax rate 0 5. State income tax rate Limited taxable amount. State income tax rate Multiply line 1 by line 4. State income tax rate Enter this amount on Form 1040NR, line 17b 5. State income tax rate 0 Example 2. State income tax rate You are a nonresident alien who performed services for the U. State income tax rate S. State income tax rate Government as a nonresident alien both within the United States and abroad. State income tax rate You retired and began to receive a monthly annuity of $240. State income tax rate Your total basic pay for your services for the U. State income tax rate S. State income tax rate 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. State income tax rate The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. State income tax rate S. State income tax rate source income. State income tax rate The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. State income tax rate You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. State income tax rate Worksheet C. State income tax rate Limited Taxable Amount for Nonresident Alien — Example 2 1. State income tax rate 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. State income tax rate $ 1,980 2. State income tax rate Enter the total U. State income tax rate S. State income tax rate Government basic pay other than tax-exempt pay for services performed outside the United States 2. State income tax rate 40,000 3. State income tax rate Enter the total U. State income tax rate S. State income tax rate Government basic pay for all services 3. State income tax rate 120,000 4. State income tax rate Divide line 2 by line 3 4. State income tax rate . State income tax rate 333 5. State income tax rate Limited taxable amount. State income tax rate Multiply line 1 by line 4. State income tax rate Enter this amount on Form 1040NR, line 17b 5. State income tax rate 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. State income tax rate (However, see Roth TSP balance and Uniformed services TSP accounts, next. State income tax rate ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. State income tax rate The way that you withdraw your account balance determines when you must pay the tax. State income tax rate Roth TSP balance. State income tax rate   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. State income tax rate This means Roth TSP contributions are included in your income. State income tax rate The contribution limits are the same as the traditional TSP. State income tax rate You can elect to have part or all of your TSP contributions designated as a Roth TSP. State income tax rate Agency contributions will be part of your traditional TSP balance. State income tax rate Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. State income tax rate   Qualified distributions from your Roth TSP are not included in income. State income tax rate This applies to both your cost in the account and income earned on that account. State income tax rate 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. State income tax rate   For more information, go to the TSP website, www. State income tax rate tsp. State income tax rate gov, or the TSP Service Office. State income tax rate See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. State income tax rate Uniformed services TSP accounts. State income tax rate   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. State income tax rate However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. State income tax rate See Roth TSP balance discussed previously to get more information about Roth contributions. State income tax rate 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. State income tax rate You can get more information from the TSP website, www. State income tax rate tsp. State income tax rate gov, or the TSP Service Office. State income tax rate Direct rollover by the TSP. State income tax rate   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. State income tax rate However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. State income tax rate Also, see Rollover Rules , later. State income tax rate Direct rollover by the TSP to a Roth IRA. State income tax rate   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. State income tax rate However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. State income tax rate Also, see Rollovers to Roth IRAs for more information, later. State income tax rate Note. State income tax rate 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. State income tax rate This is because you already paid tax on those contributions. State income tax rate You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. State income tax rate TSP annuity. State income tax rate   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. State income tax rate The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. State income tax rate 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. State income tax rate See Roth TSP balance , earlier. State income tax rate This is because you already paid tax on those contributions. State income tax rate Cash withdrawals. State income tax rate   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. State income tax rate (See Rollover Rules , later. State income tax rate ) 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. State income tax rate See Lump-Sum Distributions in Publication 575 for details. State income tax rate However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. State income tax rate See Roth TSP balance , earlier. State income tax rate    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. State income tax rate   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. State income tax rate 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. State income tax rate See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. State income tax rate 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. State income tax rate See Roth TSP balance , earlier, for a discussion of those conditions. State income tax rate Tax on early distributions. State income tax rate   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. State income tax rate However, this additional tax does not apply in certain situations, including any of the following. State income tax rate You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. State income tax rate You choose to receive your account balance in monthly payments based on your life expectancy. State income tax rate You are totally and permanently disabled. State income tax rate You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). State income tax rate The earnings may be subject to the 10% tax depending on whether you met certain conditions. State income tax rate See Roth TSP balance , earlier. State income tax rate   For more information, see Tax on Early Distributions in Publication 575. State income tax rate Outstanding loan. State income tax rate   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. State income tax rate The distribution also may be subject to the additional 10% tax on early distributions. State income tax rate 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. State income tax rate See Rollover Rules , later. State income tax rate   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. State income tax rate However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. State income tax rate See Roth TSP balance , earlier. State income tax rate More information. State income tax rate   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. State income tax rate 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). State income tax rate    The above documents are also available on the TSP website at www. State income tax rate tsp. State income tax rate gov. State income tax rate Select “Forms & Publications. State income tax rate ” 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. State income tax rate You do not include the amount rolled over in your income, and you cannot take a deduction for it. State income tax rate The amount rolled over is taxed later as the new program pays that amount to you. State income tax rate 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. State income tax rate 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. State income tax rate To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. State income tax rate You can also roll over a distribution from a qualified retirement plan into a Roth IRA. State income tax rate 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. State income tax rate See Rollovers to Roth IRAs , later, for more information. State income tax rate Qualified retirement plan. State income tax rate   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. State income tax rate The CSRS, FERS, and TSP are considered qualified retirement plans. State income tax rate Distributions eligible for rollover treatment. State income tax rate   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. State income tax rate You cannot roll over any part of your CSRS or FERS annuity payments. State income tax rate   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. State income tax rate   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. State income tax rate However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. State income tax rate Direct rollover option. State income tax rate   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. State income tax rate   There is an automatic rollover requirement for mandatory distributions. State income tax rate A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. State income tax rate The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. State income tax rate 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. State income tax rate If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. State income tax rate No tax withheld. State income tax rate   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. State income tax rate 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. State income tax rate Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. State income tax rate Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. State income tax rate Payment to you option. State income tax rate   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. State income tax rate However, the full amount is treated as distributed to you even though you actually receive only 80%. State income tax rate 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. State income tax rate Rollovers to Roth IRAs are generally included in income. State income tax rate Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. State income tax rate 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. State income tax rate 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). State income tax rate Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. State income tax rate See Roth TSP balance , earlier. State income tax rate Also, see Tax on Early Distributions in Publication 575. State income tax rate Exception to withholding. State income tax rate   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. State income tax rate Partial rollovers. State income tax rate   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. State income tax rate See Lump-Sum Distributions in Publication 575. State income tax rate However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. State income tax rate Rolling over more than amount received. State income tax rate   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). State income tax rate Example. State income tax rate You left government service at age 53. State income tax rate On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
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Am I Eligible for the Child Tax Credit?

Information You Will Need:

  • Filing status and information about your dependent children (i.e., ages)
  • Basic income information and amounts for items such as tax liability and credits
  • If you have been provided a Form 8332 (or similar statement) allowing you to claim the child as a dependent, you can consider that the child lived with you for more than half of the year. Keep this in mind when answering related questions during the interview.

Estimated Completion Time: 15 minutes. However: 5 minutes of inactivity will end the interview and you will be forced to start over.

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Page Last Reviewed or Updated: 14-Feb-2014

The State Income Tax Rate

State income tax rate Publication 51 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 51 (Circular A), such as legislation enacted after it was published, go to www. State income tax rate irs. State income tax rate gov/pub51. State income tax rate What's New Social security and Medicare tax for 2014. State income tax rate  The social security tax rate is 6. State income tax rate 2% each for the employee and employer, unchanged from 2013. State income tax rate The social security wage base limit is $117,000. State income tax rate The Medicare tax rate is 1. State income tax rate 45% each for the employee and employer, unchanged from 2013. State income tax rate There is no wage base limit for Medicare tax. State income tax rate Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. State income tax rate Withholding allowance. State income tax rate  The 2014 amount for one withholding allowance on an annual basis is $3,950. State income tax rate Change of responsible party. State income tax rate  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. State income tax rate Form 8822-B must be filed within 60 days of the change. State income tax rate If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. State income tax rate For a definition of "responsible party", see the Form 8822-B instructions. State income tax rate Same-sex marriage. State income tax rate  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. State income tax rate For more information, see Revenue Ruling 2013-17, 2013-38 I. State income tax rate R. State income tax rate B. State income tax rate 201, available at www. State income tax rate irs. State income tax rate gov/irb/2013-38_IRB/ar07. State income tax rate html. State income tax rate Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. State income tax rate Notice 2013-61, 2013-44 I. State income tax rate R. State income tax rate B. State income tax rate 432, is available at www. State income tax rate irs. State income tax rate gov/irb/2013-44_IRB/ar10. State income tax rate html. State income tax rate Reminders Additional Medicare Tax withholding. State income tax rate  In addition to withholding Medicare tax at 1. State income tax rate 45%, you must withhold a 0. State income tax rate 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. State income tax rate You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. State income tax rate Additional Medicare Tax is only imposed on the employee. State income tax rate There is no employer share of Additional Medicare Tax. State income tax rate All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. State income tax rate For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. State income tax rate For more information on Additional Medicare Tax, visit IRS. State income tax rate gov and enter “Additional Medicare Tax” in the search box. State income tax rate Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. State income tax rate  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. State income tax rate Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. State income tax rate For more information, visit IRS. State income tax rate gov and enter “work opportunity tax credit” in the search box. State income tax rate Outsourcing payroll duties. State income tax rate  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. State income tax rate The employer remains responsible if the third party fails to perform any required action. State income tax rate If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. State income tax rate gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. State income tax rate COBRA premium assistance credit. State income tax rate  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. State income tax rate For more information, see COBRA premium assistance credit under Introduction. State income tax rate Compensation paid to H-2A foreign agricultural workers. State income tax rate  Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2, Wage and Tax Statement. State income tax rate Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax withholding (line 6) on Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. State income tax rate On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. State income tax rate An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. State income tax rate In that case, the worker must give the employer a completed Form W-4, Employee's Withholding Allowance Certificate. State income tax rate Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. State income tax rate These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. State income tax rate For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. State income tax rate Additional employment tax information. State income tax rate  Visit the IRS website at www. State income tax rate irs. State income tax rate gov/businesses and click on Employment Taxes under Businesses Topics. State income tax rate For employment tax information by telephone, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. State income tax rate m. State income tax rate –7:00 p. State income tax rate m. State income tax rate local time (Alaska and Hawaii follow Pacific time). State income tax rate Additionally, you can call IRS TeleTax at 1-800-829-4477 for recorded information by topic. State income tax rate Disregarded entities and qualified subchapter S subsidiaries (QSubs). State income tax rate  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. State income tax rate Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. State income tax rate See Regulations sections 1. State income tax rate 1361-4(a)(7) and 301. State income tax rate 7701-2(c)(2)(iv). State income tax rate Differential wage payments. State income tax rate  Qualified differential wage payments made by employers to individuals serving in the Armed Forces after 2008 are subject to income tax withholding but not social security, Medicare, or FUTA taxes. State income tax rate For more information, see Publication 15 (Circular E). State income tax rate Federal tax deposits must be made by electronic funds transfer. State income tax rate  You must use electronic funds transfer to make all federal tax deposits. State income tax rate Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). State income tax rate If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. State income tax rate Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. State income tax rate EFTPS is a free service provided by the Department of Treasury. State income tax rate Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. State income tax rate For more information on making federal tax deposits, see How To Deposit in section 7. State income tax rate To get more information about EFTPS or to enroll in EFTPS, visit www. State income tax rate eftps. State income tax rate gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). State income tax rate Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. State income tax rate Electronic filing and payment. State income tax rate  Now, more than ever before, businesses can enjoy the benefits of filing tax returns and paying their taxes electronically. State income tax rate Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make it easier. State income tax rate Spend less time and worry on taxes and more time running your business. State income tax rate Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. State income tax rate For e-file, visit the IRS website at www. State income tax rate irs. State income tax rate gov/efile for additional information. State income tax rate For EFTPS, visit www. State income tax rate eftps. State income tax rate gov or call EFTPS Customer Service at 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD) for additional information. State income tax rate For electronic filing of Form W-2, visit www. State income tax rate socialsecurity. State income tax rate gov/employer. State income tax rate If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. State income tax rate If a valid EIN is not provided, the return or payment will not be processed. State income tax rate This may result in penalties and delays in processing your return or payment. State income tax rate Electronic funds withdrawal (EFW). State income tax rate  If you file Form 943 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. State income tax rate However, do not use EFW to make federal tax deposits. State income tax rate For more information on paying your taxes using EFW, visit the IRS website at www. State income tax rate irs. State income tax rate gov/e-pay. State income tax rate A fee may be charged to file electronically. State income tax rate Credit or debit card payments. State income tax rate   Employers can pay the balance due shown on Form 943 by credit or debit card. State income tax rate Do not use a credit or debit card to make federal tax deposits. State income tax rate For more information on paying your taxes with a credit or debit card, visit the IRS website at www. State income tax rate irs. State income tax rate gov/e-pay. State income tax rate When you hire a new employee. State income tax rate  Ask each new employee to complete the 2014 Form W-4 or its Spanish version, Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado. State income tax rate Also, ask the employee to show you his or her social security card so that you can record the employee's name and social security number accurately. State income tax rate If the employee has lost the card or recently changed names, have the employee apply for a duplicate or corrected card. State income tax rate If the employee does not have a card, have the employee apply for one on Form SS-5, Application for a Social Security Card. State income tax rate See section 1 for more information. State income tax rate Eligibility for employment. State income tax rate  You must verify that each new employee is legally eligible to work in the United States. State income tax rate This includes completing the U. State income tax rate S. State income tax rate Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. State income tax rate You can get the form from USCIS offices or by calling 1-800-870-3676. State income tax rate Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. State income tax rate uscis. State income tax rate gov for more information. State income tax rate New hire reporting. State income tax rate   You are required to report any new employee to a designated state new-hire registry. State income tax rate A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. State income tax rate Many states accept a copy of Form W-4 with employer information added. State income tax rate Visit the Office of Child Support Enforcement's website at www. State income tax rate acf. State income tax rate hhs. State income tax rate gov/programs/cse/newhire for more information. State income tax rate Dishonored payments. State income tax rate  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. State income tax rate The penalty is $25 or 2% of the payment, whichever is more. State income tax rate However, the penalty on dishonored payments of $24. State income tax rate 99 or less is an amount equal to the payment. State income tax rate For example, a dishonored payment of $18 is charged a penalty of $18. State income tax rate Forms in Spanish. State income tax rate  You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. State income tax rate For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). State income tax rate For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. State income tax rate References in this publication to Form W-4 or Form W-9 also apply to their equivalent Spanish translations—Formulario W-4(SP) or Formulario W-9(SP). State income tax rate Information returns. State income tax rate  You may be required to file information returns to report certain types of payments made during the year. State income tax rate For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. State income tax rate For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return that you file (for example, Instructions for Form 1099-MISC). State income tax rate Generally, do not use Forms 1099 to report wages or other compensation that you paid to employees; report these amounts on Form W-2. State income tax rate See the General Instructions for Forms W-2 and W-3 for details about filing Forms W-2 and for information about required electronic filing. State income tax rate If you file 250 or more Forms W-2, you must file them electronically. State income tax rate SSA will not accept Forms W-2 and W-3 filed on any magnetic media. State income tax rate Information reporting customer service site. State income tax rate  The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. State income tax rate If you have questions related to reporting on information returns, you may call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability). State income tax rate The call site can also be reached by email at mccirp@irs. State income tax rate gov. State income tax rate Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. State income tax rate Web-based application for an employer identification number (EIN). State income tax rate  You can apply for an employer identification number (EIN) online by visiting IRS. State income tax rate gov and clicking on the Apply for an EIN Online link under Tools. State income tax rate When a crew leader furnishes workers to you. State income tax rate  Record the crew leader's name, address, and EIN. State income tax rate See sections 2 and 10. State income tax rate Change of address. State income tax rate  Use Form 8822-B to notify the IRS of an address change. State income tax rate Do not mail form 8822-B with your employment tax return. State income tax rate Ordering forms and publications. State income tax rate  You can order your 2013 and 2014 employment tax and information return forms, instructions, and publications online at www. State income tax rate irs. State income tax rate gov/businesses. State income tax rate Click on the Online Ordering for Information Returns and Employer Returns. State income tax rate You can also visit www. State income tax rate irs. State income tax rate gov/formspubs to download other forms and publications. State income tax rate Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. State income tax rate Visit the SSA's Employer W-2 Filing Instructions & Information website at  www. State income tax rate socialsecurity. State income tax rate gov/employer, to register for Business Services Online. State income tax rate You will be able to create and file “fill-in” versions of Forms W-2 with SSA and can print out completed copies of Forms W-2 for filing with state and local governments, distribution to your employees, and for your records. State income tax rate Form W-3 will be created for you based on your Forms W-2. State income tax rate Tax Questions. State income tax rate   If you have a tax question, check the information available on IRS. State income tax rate gov or call 1-800-829-4933 (businesses), 1-800-829-1040 (individuals), or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. State income tax rate m. State income tax rate –7:00 p. State income tax rate m. State income tax rate local time (Alaska and Hawaii follow Pacific time). State income tax rate We cannot answer tax questions sent to the address provided later for comments and suggestions. State income tax rate Recordkeeping. State income tax rate  Keep all records of employment taxes for at least 4 years. State income tax rate These should be available for IRS review. State income tax rate Your records should include the following information. State income tax rate Your employer identification number (EIN). State income tax rate Amounts and dates of all wage, annuity, and pension payments. State income tax rate Names, addresses, social security numbers, and occupations of employees and recipients. State income tax rate Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. State income tax rate Dates of employment for each employee. State income tax rate Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them. State income tax rate Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4(SP), W-4P, and W-4S). State income tax rate Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. State income tax rate Copies of returns filed and confirmation numbers. State income tax rate Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. State income tax rate If a crew leader furnished you with farmworkers, you must keep a record of the name, permanent mailing address, and EIN of the crew leader. State income tax rate If the crew leader has no permanent mailing address, record his or her present address. State income tax rate Private delivery services. State income tax rate  You can use certain private delivery services designated by the IRS to send tax returns and payments. State income tax rate The list includes only the following. State income tax rate DHL Express (DHL): DHL Same Day Service. State income tax rate Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. State income tax rate United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. State income tax rate M. State income tax rate , UPS Worldwide Express Plus, and UPS Worldwide Express. State income tax rate For the IRS mailing address to use if you are using a private delivery service, go to IRS. State income tax rate gov and enter "private delivery service" in the search box. State income tax rate Your private delivery service can tell you how to get written proof of the mailing date. State income tax rate Private delivery services cannot deliver items to P. State income tax rate O. State income tax rate boxes. State income tax rate You must use the U. State income tax rate S. State income tax rate Postal Service to mail any item to an IRS P. State income tax rate O. State income tax rate box address. State income tax rate Photographs of missing children. State income tax rate  The IRS is a proud partner with the National Center for Missing and Exploited Children. State income tax rate Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. State income tax rate You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. State income tax rate Calendar The following are important dates and responsibilities. State income tax rate See section 7 for information about depositing taxes reported on Forms 941, 943, 944, and 945. State income tax rate Also see Publication 509, Tax Calendars. State income tax rate   If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. State income tax rate A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. State income tax rate However, a statewide legal holiday does not delay the due date of federal tax deposits. State income tax rate See Deposits on Business Days Only in section 7. State income tax rate For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. State income tax rate S. State income tax rate Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. State income tax rate See Private delivery services under Reminders. State income tax rate By January 31 . State income tax rate   File Form 943. State income tax rate See section 8 for more information on Form 943. State income tax rate If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. State income tax rate Furnish each employee with a completed Form W-2. State income tax rate Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). State income tax rate File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. State income tax rate See section 10 for more information on FUTA. State income tax rate If you deposited all the FUTA tax when due, you have 10 additional calendar days to file. State income tax rate File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll federal income tax withheld in 2013. State income tax rate If you deposited all Form 945 taxes when due, you have 10 additional calendar days to file. State income tax rate By February 15. State income tax rate  Ask for a new Form W-4 or Formulario W-4(SP) from each employee who claimed exemption from federal income tax withholding last year. State income tax rate On February 16. State income tax rate  Any Form W-4 claiming exemption from withholding for the previous year has now expired. State income tax rate Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. State income tax rate If the employee does not give you a new Form W-4, withhold tax based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. State income tax rate See section 5 for more information. State income tax rate If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. State income tax rate By February 28. State income tax rate   File paper Forms 1099 and 1096. State income tax rate File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. State income tax rate S. State income tax rate Information Returns, with the IRS. State income tax rate For electronically filed returns, see By March 31 below. State income tax rate File paper Forms W-2 and W-3. State income tax rate File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the SSA. State income tax rate For electronically filed returns, see By March 31 next. State income tax rate By March 31. State income tax rate   File electronic Forms W-2 and 1099. State income tax rate File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. State income tax rate For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. State income tax rate socialsecurity. State income tax rate gov/employer. State income tax rate For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G. State income tax rate By April 30, July 31, October 31, and January 31. State income tax rate   Deposit FUTA taxes. State income tax rate Deposit FUTA tax if the undeposited amount is over $500. State income tax rate Before December 1. State income tax rate  Remind employees to submit a new Form W-4 if their marital status or withholding allowances have changed or will change for the next year. State income tax rate Introduction This publication is for employers of agricultural workers (farmworkers). State income tax rate It contains information that you may need to comply with the laws for agricultural labor (farmwork) relating to social security and Medicare taxes, FUTA tax, and withheld federal income tax (employment taxes). State income tax rate Agricultural employers report social security and Medicare taxes and withheld federal income tax on Form 943 and report FUTA tax on Form 940. State income tax rate If you have nonfarm employees, see Publication 15 (Circular E). State income tax rate If you have employees in the U. State income tax rate S. State income tax rate Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, see Publication 80 (Circular SS). State income tax rate Publication 15-A, Employer's Supplemental Tax Guide, contains more employment-related information, including information about sick pay and pension income. State income tax rate Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. State income tax rate Comments and suggestions. State income tax rate   We welcome your comments about this publication and your suggestions for future editions. State income tax rate   You can write to us at the following address:  Internal Revenue Service Tax Forms and Publications Division  1111 Constitution Ave. State income tax rate NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. State income tax rate Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. State income tax rate   You can also send us comments from www. State income tax rate irs. State income tax rate gov/formspubs. State income tax rate Click on More Information and then click on Comment on Tax Forms and Publications. State income tax rate   Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. State income tax rate COBRA premium assistance credit. State income tax rate   The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. State income tax rate COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full and part-time employees. State income tax rate Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). State income tax rate Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. State income tax rate Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. State income tax rate For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. State income tax rate   Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. State income tax rate For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. State income tax rate   An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. State income tax rate The assistance for the coverage can last up to 15 months. State income tax rate   Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. State income tax rate For more information, see Notice 2009-27, 2009-16 I. State income tax rate R. State income tax rate B. State income tax rate 838, available at www. State income tax rate irs. State income tax rate gov/irb/2009-16_irb/ar09. State income tax rate html. State income tax rate   Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. State income tax rate   The 65% of the premium not paid by the assistance eligible individual is reimbursed to the employer maintaining the group health plan. State income tax rate The reimbursement is made through a credit against the employer's employment tax liabilities. State income tax rate For information on how to claim the credit, see the Instructions for Form 943. State income tax rate The credit is treated as a deposit made on the first day of the return period. State income tax rate In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. State income tax rate In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. State income tax rate   Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. State income tax rate Information on the receipt of the assistance eligible individuals' 35% share of the premium including dates and amounts. State income tax rate In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. State income tax rate In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. State income tax rate Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. State income tax rate Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. State income tax rate A record of the social security numbers (SSNs) of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. State income tax rate   For more information, visit IRS. State income tax rate gov and enter “COBRA” in the search box. State income tax rate Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 225 Farmer's Tax Guide 535 Business Expenses 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Prev  Up  Next   Home   More Online Publications