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Tax Exemptions For Students

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Tax Exemptions For Students

Tax exemptions for students 12. Tax exemptions for students   Otros Ingresos Table of Contents Introduction Useful Items - You may want to see: Trueque Deudas CanceladasIntereses incluidos en una deuda cancelada. Tax exemptions for students Excepciones Anfitrión o Anfitriona Ganancias de un Seguro de VidaCónyuge sobreviviente. Tax exemptions for students Ganancias de un Contrato de Dotación Beneficios Acelerados por Fallecimiento Funcionario de Seguridad Pública Fallecido en el Cumplimiento del Deber Ingresos de Sociedades Colectivas Ingresos de Sociedad Anónima de Tipo S Recuperación de FondosRecuperaciones de Deducciones Detalladas Alquileres de Bienes Muebles ReintegrosMétodo 1. Tax exemptions for students Método 2. Tax exemptions for students RegalíasAgotamiento. Tax exemptions for students Carbón y mineral de hierro. Tax exemptions for students Venta de participación de bienes. Tax exemptions for students Parte de una futura producción vendida. Tax exemptions for students Beneficios por DesempleoTipos de compensación por desempleo. Tax exemptions for students Programa gubernamental. Tax exemptions for students Reintegro de compensación por desempleo. Tax exemptions for students Retención de impuestos. Tax exemptions for students Reintegro de beneficios. Tax exemptions for students Beneficios del Bienestar Social y Otros Beneficios de Asistencia Pública Otros IngresosAngustia emocional. Tax exemptions for students Deducción por costos relativos a una demanda por discriminación ilegal. Tax exemptions for students Medidas de ahorro de energía. Tax exemptions for students Unidad habitable. Tax exemptions for students Ingreso actual que se requiere distribuir. Tax exemptions for students Ingreso actual que no se requiere distribuir. Tax exemptions for students Cómo hacer la declaración. Tax exemptions for students Pérdidas. Tax exemptions for students Fideicomiso de un cesionario. Tax exemptions for students Remuneración para personas que no son empleados. Tax exemptions for students Director de una sociedad anónima. Tax exemptions for students Representante personal. Tax exemptions for students Administrador de una ocupación o negocio de patrimonio en quiebra. Tax exemptions for students Notario público. Tax exemptions for students Funcionario de distrito electoral. Tax exemptions for students Pagos por complejidad del cuidado. Tax exemptions for students Mantenimiento del espacio en el hogar. Tax exemptions for students Declaración de pagos sujetos a impuestos. Tax exemptions for students Loterías y rifas. Tax exemptions for students Formulario W-2G. Tax exemptions for students Cómo declarar ganancias de juegos y apuestas y mantenimiento de documentación. Tax exemptions for students Pensión o arreglo IRA heredado. Tax exemptions for students Recompensas o bonificaciones para empleados. Tax exemptions for students Premio Pulitzer, Premio Nobel y premios similares. Tax exemptions for students Pago por servicios. Tax exemptions for students Pagos del Departamento de Asuntos de Veteranos (VA). Tax exemptions for students Premios. Tax exemptions for students Indemnización por huelga y cierre patronal. Tax exemptions for students Introduction Tiene que incluir en su declaración toda partida de ingresos que reciba en forma de dinero, bienes o servicios a menos que la ley tributaria estipule lo contrario. Tax exemptions for students No obstante, algunos artículos se excluyen sólo parcialmente de los ingresos. Tax exemptions for students Este capítulo trata sobre varios tipos de ingresos y explica si éstos están sujetos a impuestos o no. Tax exemptions for students El ingreso que según la ley tributaria está sujeto a la tasasión de impuestos tiene que declararse en la declaración de impuestos y está sujeto a impuestos. Tax exemptions for students El ingreso que no está sujeto a la tasación de impuestos tal vez tenga que aparecer en la declaración de impuestos, pero no está sujeto a impuestos. Tax exemptions for students Este capítulo empieza con una explicación de las siguientes fuentes de ingreso: Trueque. Tax exemptions for students Deudas canceladas. Tax exemptions for students Fiestas de ventas en las que usted es anfitrión o anfitriona. Tax exemptions for students Fondos procedentes del seguro de vida. Tax exemptions for students Ingresos de sociedades colectivas. Tax exemptions for students Ingresos de sociedades anónimas de tipo S. Tax exemptions for students Recuperaciones de fondos (incluidos los reembolsos de impuesto estatal sobre los ingresos). Tax exemptions for students Alquileres de bienes muebles. Tax exemptions for students Reintegros. Tax exemptions for students Regalías. Tax exemptions for students Beneficios por desempleo. Tax exemptions for students Beneficios del bienestar social y otros beneficios de asistencia pública. Tax exemptions for students A continuación de estos temas, encontrará una lista de otras fuentes de ingreso. Tax exemptions for students Useful Items - You may want to see: Publicación 525 Taxable and Nontaxable Income (Ingreso sujeto a impuestos y no sujeto a impuestos), en inglés 544 Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments (Deudas canceladas, ejecuciones hipotecarias, embargo de bienes raíces y abandonos), en inglés Trueque El trueque es un intercambio de bienes o servicios. Tax exemptions for students Tiene que incluir en sus ingresos el valor justo de mercado de aquellos bienes o servicios que reciba por trueque al momento de recibirlos. Tax exemptions for students Si intercambia servicios con otra persona y ambos han llegado a un acuerdo con anticipación con respecto al valor de los servicios, ese valor se aceptará como el valor justo de mercado, a menos que se pueda demostrar que el valor es diferente. Tax exemptions for students Por lo general, debe declarar este ingreso en el Anexo C (Formulario 1040), Profit or Loss From Business (Pérdidas o ganancias de negocios), o en el Anexo C-EZ (Formulario 1040), Net Profit From Business (Utilidad neta de negocios), ambos en inglés. Tax exemptions for students Sin embargo, si el trueque implica un intercambio de algo que no sea servicios, como se indica en el Ejemplo 3 a continuación, tal vez deba usar otro formulario o anexo en su lugar. Tax exemptions for students Ejemplo 1. Tax exemptions for students Usted es abogado por cuenta propia que presta servicios legales a un cliente, una sociedad anónima pequeña. Tax exemptions for students Esta sociedad anónima le paga con acciones a cambio de sus servicios. Tax exemptions for students Tiene que incluir en sus ingresos el valor justo de mercado de las acciones en el Anexo C o en el Anexo C-EZ (Formulario 1040) en el año en que las reciba. Tax exemptions for students Ejemplo 2. Tax exemptions for students Usted trabaja por cuenta propia y es miembro de un club de trueque. Tax exemptions for students El club usa “unidades de crédito” como medio de intercambio. Tax exemptions for students El club suma unidades de crédito a su cuenta por los bienes o servicios que proporciona a otros miembros, las cuales usted puede usar para comprar bienes o servicios que ofrecen otros miembros del club de trueque. Tax exemptions for students El club resta unidades de crédito de su cuenta cuando usted recibe bienes o servicios de otros miembros. Tax exemptions for students Tiene que incluir en su ingreso el valor de las unidades de crédito que se suman a su cuenta, aun si en realidad no recibe bienes o servicios de otros miembros del club hasta un año tributario futuro. Tax exemptions for students Ejemplo 3. Tax exemptions for students Usted es propietario de un pequeño edificio de apartamentos. Tax exemptions for students A cambio del uso de un apartamento durante 6 meses sin pagar alquiler, una artista le da una obra que ella misma creó. Tax exemptions for students Tiene que declarar como ingreso de alquiler en el Anexo E (Formulario 1040), Supplemental Income and Loss (Pérdidas e ingresos suplementarios), en inglés, el valor justo de mercado de la obra de arte y la artista tiene que declarar como ingreso el valor justo de alquiler del apartamento en el Anexo C o en el Anexo C-EZ (Formulario 1040). Tax exemptions for students Formulario 1099-B por trueque. Tax exemptions for students   Si ha intercambiado bienes o servicios mediante una organización de trueques, dicha organización le debe enviar el Formulario 1099-B, Proceeds From Broker and Barter Exchange Transactions (Ingresos por transacciones de agentes de bolsa y trueque), en inglés, o una declaración de la organización de trueques parecida, a más tardar el 18 de febrero del año 2014. Tax exemptions for students Este documento debe indicar el valor de efectivo, bienes, servicios, créditos o certificado provisional que recibió como resultado de los trueques durante el año 2013. Tax exemptions for students El IRS también recibirá una copia del Formulario 1099-B. Tax exemptions for students Deudas Canceladas En la mayoría de los casos, si una deuda suya se cancela o condona, salvo si es por regalo o legado testamentario, tiene que incluir en su ingreso la cantidad cancelada. Tax exemptions for students No recibe ningún ingreso de la deuda cancelada si se le dio como regalo. Tax exemptions for students Una deuda incluye toda deuda de la cual sea responsable o que se relacione con bienes suyos. Tax exemptions for students Si la deuda no es comercial, declare la cantidad cancelada en la línea 21 del Formulario 1040. Tax exemptions for students Si es una deuda comercial, declare la cantidad en el Anexo C (Formulario 1040) o en el Anexo C-EZ (Formulario 1040) (o en el Anexo F (Formulario 1040), Profit or Loss From Farming (Pérdidas o ganancias por actividades agrícolas), en inglés, si la deuda es una deuda agrícola y usted es granjero). Tax exemptions for students Formulario 1099-C. Tax exemptions for students   Si tiene una deuda de $600 o más y una agencia del gobierno federal, institución financiera o cooperativa de crédito la cancela o la condona, usted recibirá el Formulario 1099-C, Cancellation of Debt (Cancelación de la deuda), en inglés. Tax exemptions for students La cantidad de la deuda cancelada aparece en el recuadro 2. Tax exemptions for students Intereses incluidos en una deuda cancelada. Tax exemptions for students   Si el pago de algunos intereses se condona y se suma a la cantidad de deuda cancelada en el recuadro 2, la cantidad de intereses también aparecerá en el recuadro 3. Tax exemptions for students El tener que incluir la parte de los intereses de la deuda cancelada en su ingreso depende de si los intereses serían deducibles cuando usted los pagó. Tax exemptions for students Consulte Deuda deducible más adelante, bajo Excepciones . Tax exemptions for students   Si los intereses no se pueden deducir (por ejemplo, interés sobre un préstamo personal), incluya en sus ingresos la cantidad del recuadro 2 del Formulario 1099-C. Tax exemptions for students Si los intereses sí se pueden deducir (por ejemplo, intereses sobre un préstamo comercial), incluya en sus ingresos la cantidad neta de la deuda cancelada (la cantidad que aparece en el recuadro 2 menos la cantidad de intereses que aparece en el recuadro 3). Tax exemptions for students Préstamo hipotecario con descuento. Tax exemptions for students   Si su institución financiera ofrece un descuento por el pago anticipado de su préstamo hipotecario, la cantidad del descuento se considera deuda cancelada. Tax exemptions for students Tiene que incluir la cantidad cancelada en sus ingresos. Tax exemptions for students Exoneración del pago hipotecario al momento de la venta u otra enajenación. Tax exemptions for students   Si es personalmente responsable del pago de una hipoteca (deuda con recurso) y queda exonerado del pago de la hipoteca al enajenar la propiedad, puede obtener una pérdida o ganancia hasta el valor justo de mercado de la propiedad. Tax exemptions for students A medida que la eliminación de la hipoteca sobrepase el valor justo de mercado de la propiedad, se considerará ingreso proveniente de la eliminación de deudas a menos que reúna los requisitos para ser excluida, los cuales se indican en el tema titulado Deuda excluida , más adelante. Tax exemptions for students Declare todo ingreso proveniente de la eliminación de deudas no comerciales que no reúna los requisitos para ser excluido como otros ingresos en la línea 21 del Formulario 1040. Tax exemptions for students    Quizás pueda excluir una parte de la exoneración del pago hipotecario sobre su residencia principal. Tax exemptions for students Vea Deuda excluida , más adelante. Tax exemptions for students   Si no es personalmente responsable del pago de una hipoteca (deuda sin recurso) y queda exonerado del pago de la hipoteca al enajenar la propiedad (por ejemplo, a través de una ejecución hipotecaria), esa exoneración se incluye en la cantidad que usted realiza. Tax exemptions for students Es posible que tenga una ganancia sujeta a impuestos si la cantidad que usted obtiene excede de la base ajustada de la propiedad. Tax exemptions for students Declare toda ganancia sobre propiedad no comercial como ganancia de capital. Tax exemptions for students   Vea la Publicación 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (Deudas canceladas, ejecuciones hipotecarias, embargo de bienes raíces y abandonos), en inglés, para más información. Tax exemptions for students Deuda de accionistas. Tax exemptions for students   Si es accionista de una sociedad anónima y ésta cancela o condona su deuda con ella, la deuda cancelada se considera una distribución implícita que generalmente es ingreso de dividendos para usted. Tax exemptions for students Para más información, vea la Publicación 542, Corporations (Sociedades anónimas), en inglés. Tax exemptions for students   Si es accionista de una sociedad anónima y cancela una deuda que a usted le debe la sociedad anónima, generalmente no recibe (realiza) ingreso. Tax exemptions for students Esto se debe a que la deuda cancelada se considera una aportación al capital de la sociedad anónima por un monto equivalente a la cantidad del capital de la deuda que usted canceló. Tax exemptions for students Reintegro de deuda cancelada. Tax exemptions for students   Si incluye una cantidad cancelada en sus ingresos y luego paga el saldo adeudado, posiblemente pueda solicitar un reembolso para el año en que dicha cantidad se incluyó en los ingresos. Tax exemptions for students Puede solicitar un reembolso en el Formulario 1040X, Amended U. Tax exemptions for students S. Tax exemptions for students Individual Income Tax Return (Declaración enmendada del impuesto estadounidense sobre los ingresos personales), en inglés, si la ley de prescripción para solicitar reembolsos está vigente. Tax exemptions for students Generalmente, el plazo de prescripción no vence sino hasta 3 años después de la fecha de vencimiento de la declaración original. Tax exemptions for students Excepciones Existen varias excepciones a la inclusión de deuda cancelada en los ingresos. Tax exemptions for students Éstas se explican a continuación. Tax exemptions for students Préstamos para estudiantes. Tax exemptions for students   Ciertos préstamos para estudiantes incluyen una disposición que establece que se cancelará la totalidad o parte de la deuda en la que se ha incurrido por asistir a la institución educativa calificada a condición de que usted trabaje durante determinado período de tiempo en ciertas profesiones con una amplia gama de empleadores. Tax exemptions for students   No se considera que tiene ingresos si su préstamo para estudiantes se cancela después de que haya aceptado esta disposición y prestado los servicios requeridos. Tax exemptions for students Para satisfacer las condiciones, el préstamo tiene que haber sido otorgado por: El gobierno federal, un gobierno estatal o local, o una agencia, organismo o subdivisión de éstos; Una sociedad anónima de beneficios públicos exenta de impuestos que haya asumido el control de un hospital estatal, de condado o municipal y cuyos empleados se consideren empleados públicos según la ley estatal o Una institución de enseñanza superior: Según un acuerdo firmado con una entidad descrita en los puntos (1) o (2) que proporcionó fondos a la institución para otorgar el préstamo o Como parte de un programa de la institución designada para motivar a sus estudiantes a desempeñar ocupaciones con necesidades subatendidas y bajo el cual los servicios se prestan por los estudiantes ( o ex estudiantes) para o bajo la dirección de una entidad gubernamental o una organización que no está sujeta a impuestos tal conforme a la sección 501(c)(3). Tax exemptions for students   Un préstamo para refinanciar un préstamo para estudiantes calificado también reunirá los requisitos si lo otorga una institución de enseñanza superior o una organización exenta de impuestos que reúne los requisitos dentro de un programa diseñado conforme al punto (3)(b) anterior. Tax exemptions for students Asistencia para el reintegro de préstamos de estudios. Tax exemptions for students   No están sujetos a impuestos los reintegros de préstamos de estudios otorgados por el National Health Service Corps Loan Repayment Program (Programa de Reintegro de Préstamos del Cuerpo Nacional de Servicios de Salud (NHSC, por sus siglas en inglés)) por un programa estatal de reintegro de préstamos de estudios que reúna los requisitos para recibir fondos conforme a la Public Health Service Act (Ley sobre el Servicio de Salud Pública) o por cualquier otro programa estatal para el reintegro de préstamos o la condonación de préstamos si dicho programa está destinado a aumentar la disponibilidad de servicios de salud en zonas subatendidas o que carecen de profesionales de salud. Tax exemptions for students    La disposición relacionada con “cualquier otro programa estatal para el reintegro de préstamos o la condonación de préstamos” se agregó a la exclusión de fondos de préstamo recibidos en años tributarios que hayan comenzado después del 31 de diciembre de 2008. Tax exemptions for students Si incluyó estos fondos en los ingresos del año 2010, 2011 ó 2012, debe presentar una declaración de impuestos enmendada para excluir dichos ingresos. Tax exemptions for students Vea el Formulario 1040X y sus Instrucciones para más detalles sobre cómo presentarlo. Tax exemptions for students Deuda deducible. Tax exemptions for students   No tiene ingreso de la cancelación de una deuda si se puede deducir el pago de la deuda. Tax exemptions for students Esta excepción se aplica sólo si se usa el método contable a base de efectivo. Tax exemptions for students Para obtener más información, consulte el capítulo 5 de la Publicación 334, Tax Guide For Small Business (Guía tributaria para pequeños negocios), en inglés. Tax exemptions for students Precio reducido después de la compra. Tax exemptions for students   En la mayoría de los casos, si el vendedor reduce la cantidad que usted adeuda por bienes que usted compró, no tiene ingreso resultante de la reducción. Tax exemptions for students La reducción de la deuda se trata como un ajuste al precio de compra y reduce su base en los bienes. Tax exemptions for students Deuda excluida. Tax exemptions for students   No incluya en su ingreso bruto una deuda cancelada en las siguientes situaciones: La deuda se cancela en un caso de bancarrota conforme al Título 11 del Código de los Estados Unidos. Tax exemptions for students Consulte la Publicación 908, Bankruptcy Tax Guide (Guía tributaria sobre bancarrotas), en inglés. Tax exemptions for students La deuda se cancela cuando usted es clasificado como insolvente. Tax exemptions for students Sin embargo, no puede excluir cantidad alguna de la deuda cancelada que sea mayor que la cantidad que lo clasifica como insolvente. Tax exemptions for students Consulte la Publicación 908, en inglés. Tax exemptions for students La deuda es una deuda agrícola calificada y la cancela una persona calificada. Tax exemptions for students Consulte el capítulo 3 de la Publicación 225, Farmer's Tax Guide (Guía tributaria para agricultores), en inglés. Tax exemptions for students La deuda es una deuda comercial de bienes raíces calificada. Tax exemptions for students Consulte el capítulo 5 de la Publicación 334, en inglés. Tax exemptions for students La cancelación es un regalo (donación). Tax exemptions for students La deuda es una deuda calificada sobre la residencia principal. Tax exemptions for students Para más información, vea la Publicación 525, en inglés. Tax exemptions for students Anfitrión o Anfitriona Si usted es anfitrión de una fiesta o evento donde se hacen ventas, todo regalo o propina que reciba por organizar el evento se considera un pago por ayudar a un vendedor directo a hacer ventas. Tax exemptions for students Tiene que declarar dicho regalo o propina como ingresos al valor justo de mercado. Tax exemptions for students Los gastos de bolsillo relacionados con la fiesta están sujetos al límite del 50% correspondiente a gastos de comida y entretenimiento. Tax exemptions for students Dichos gastos son deducibles como deducciones detalladas misceláneas sujetos al límite del 2% del ingreso bruto ajustado (AGI, por sus siglas en inglés) en el Anexo A (Formulario 1040), pero solamente hasta el monto del ingreso que usted reciba por organizar la fiesta. Tax exemptions for students Para más información sobre el límite del 50% para gastos de comida y entretenimiento, vea el capítulo 26 . Tax exemptions for students Ganancias de un Seguro de Vida Las ganancias de un seguro de vida que recibe debido a la muerte del asegurado no están sujetas a impuestos, a menos que la póliza se le haya cedido a usted a cambio de un precio. Tax exemptions for students Esto es aplicable aun si los pagos se efectuaron conforme a una póliza de seguro médico o de accidente o un contrato de dotación. Tax exemptions for students Sin embargo, podrían estar sujetos a impuestos los ingresos de intereses recibidos como parte de un pago de ganancias de seguro de vida. Tax exemptions for students Pagos no recibidos a plazos. Tax exemptions for students   Si recibe beneficios por fallecimiento en una suma global o de otro modo que no sea a intervalos regulares, incluya en su ingreso sólo los beneficios cuya cantidad sea mayor que la cantidad que se le debe pagar al momento de la muerte del asegurado. Tax exemptions for students Si los beneficios por pagar al momento de la muerte del asegurado no están especificados, incluirá en su ingreso los que sean mayores al valor actual pagadero de éstos en la fecha de la muerte del asegurado. Tax exemptions for students Pagos recibidos a plazos. Tax exemptions for students   Si recibe pagos de un seguro de vida a plazos, puede excluir de su ingreso una parte de cada pago. Tax exemptions for students   Para determinar la parte excluida, divida la cantidad mantenida por la compañía de seguros (normalmente la suma global total por pagar en la fecha del fallecimiento de la persona asegurada) por el número de plazos por pagar. Tax exemptions for students Toda cantidad que quede como excedente después de calcular la parte excluida tiene que ser incluida en sus ingresos como intereses. Tax exemptions for students Cónyuge sobreviviente. Tax exemptions for students   Si su cónyuge falleció antes del 23 de octubre de 1986 y los pagos de un seguro recibidos por usted debido a la muerte de su cónyuge se reciben a plazos, puede excluir hasta $1,000 al año de los intereses incluidos en los plazos. Tax exemptions for students Si se vuelve a casar, puede continuar declarando la exclusión. Tax exemptions for students Rescate de póliza a cambio de efectivo. Tax exemptions for students   Si rescata una póliza de seguro de vida a cambio de efectivo, tiene que incluir en los ingresos todo pago mayor que el costo de la póliza de seguro de vida. Tax exemptions for students En la mayoría de los casos, el costo (o inversión en el contrato) es el total de las primas que usted pagó por la póliza de seguro de vida, menos las primas reembolsadas, descuentos, dividendos o préstamos no reembolsados que no se incluyeron en su ingreso. Tax exemptions for students    Debe recibir un Formulario 1099-R en el que aparezca el total de los pagos y la parte sujeta a impuestos. Tax exemptions for students Declare estas cantidades en las líneas 16a y 16b del Formulario 1040 o en las líneas 12a y 12b del Formulario 1040A. Tax exemptions for students Información adicional. Tax exemptions for students   Para más información, consulte Life Insurance Proceeds (Ganancias de un seguro de vida) en la Publicación 525, en inglés. Tax exemptions for students Ganancias de un Contrato de Dotación Un contrato de dotación es una póliza según la cual usted recibe una cantidad especificada de dinero en una fecha determinada, a menos que fallezca antes de esa fecha, en cuyo caso, el dinero se paga a su beneficiario designado. Tax exemptions for students Las ganancias de un contrato de dotación que se le hagan en una suma global en la fecha de vencimiento están sujetas a impuestos sólo si la cantidad de las ganancias es mayor que el costo de la póliza. Tax exemptions for students Para determinar el costo, reste toda cantidad que haya recibido previamente conforme al contrato, y que se haya excluido de su ingreso, de las primas totales (u otra consideración) pagadas por el contrato. Tax exemptions for students Incluya en sus ingresos la parte del pago de suma global que sea mayor que el costo. Tax exemptions for students Beneficios Acelerados por Fallecimiento Ciertas cantidades pagadas como beneficios acelerados por fallecimiento conforme a un contrato de seguro de vida o una liquidación de tipo viático antes del fallecimiento del asegurado se excluyen de los ingresos si el asegurado padece de una enfermedad crónica o mortal. Tax exemptions for students Acuerdos viáticos. Tax exemptions for students   Es la venta o asignación de cualquier parte del beneficio por fallecimiento conforme a un contrato de seguro de vida a un proveedor de acuerdos viáticos. Tax exemptions for students Un proveedor de acuerdos viáticos es una persona que ejerce regularmente la actividad de comprar o asumir la asignación de contratos de seguro de vida de personas aseguradas en vida que padecen una enfermedad crónica o mortal y que satisface los requisitos de la sección 101(g)(2)(B) del Código de Impuestos Internos. Tax exemptions for students Exclusión por enfermedad mortal. Tax exemptions for students    Los beneficios acelerados por fallecimiento son totalmente excluibles si el asegurado es una persona que padece una enfermedad mortal. Tax exemptions for students Ésta es una persona cuyo médico ha certificado que tiene una enfermedad o condición física que se espera razonablemente que resulte en su muerte dentro de un período de 24 meses a partir de la fecha de la certificación. Tax exemptions for students Exclusión por enfermedad crónica. Tax exemptions for students    Si el asegurado es una persona con una enfermedad crónica pero no está desahuciado, los beneficios acelerados por fallecimiento pagados en base a los costos en los que se ha incurrido por servicios de cuidado a largo plazo son totalmente excluibles. Tax exemptions for students Los beneficios acelerados por fallecimiento pagados por día o de otra forma periódica son excluibles hasta un límite. Tax exemptions for students Este límite corresponde al total de los beneficios acelerados por fallecimiento y a los pagos periódicos recibidos de contratos de seguro de cuidados a largo plazo. Tax exemptions for students Para obtener información sobre el límite y las definiciones de persona con enfermedad crónica, servicios calificados del cuidado a largo plazo y contratos de seguro de cuidados a largo plazo, consulte Long-Term Care Insurance Contracts (Contratos de seguro de cuidado a largo plazo) bajo Sickness and Injury Benefits (Beneficios por enfermedad y lesiones) en la Publicación 525, en inglés. Tax exemptions for students Excepción. Tax exemptions for students   La exclusión no corresponde a ninguna cantidad pagada a una persona (excepto al asegurado) que tenga una participación asegurable en la vida del asegurado, porque dicho asegurado: Es director, funcionario o empleado de dicha persona o Tiene una participación económica en el negocio de dicha persona. Tax exemptions for students Formulario 8853. Tax exemptions for students   Para reclamar una exclusión por concepto de beneficios acelerados por fallecimiento que se efectúen a diario o de otra forma periódica, tiene que presentar junto con su declaración el Formulario 8853, Archer MSAs and Long-Term Care Insurance Contracts (Cuentas Archer MSA de ahorros médicos y contratos del seguro de cuidado a largo plazo), en inglés. Tax exemptions for students No tiene que presentar el Formulario 8853 para excluir beneficios acelerados por fallecimiento pagados basándose en gastos reales en los que usted haya incurrido. Tax exemptions for students Funcionario de Seguridad Pública Fallecido en el Cumplimiento del Deber Si es sobreviviente de un funcionario de seguridad pública que falleció en el cumplimiento del deber, tal vez pueda excluir de los ingresos ciertas cantidades que reciba. Tax exemptions for students Para este propósito, el término “funcionario de seguridad pública” incluye a los funcionarios encargados de mantener el orden público, bomberos, capellanes, miembros de brigadas de rescate y miembros de servicios de ambulancia. Tax exemptions for students Consulte la Publicación 559, Survivors, Executors, and Administrators (Sobrevivientes, albaceas y administradores), en inglés, para más información. Tax exemptions for students Ingresos de Sociedades Colectivas Una sociedad colectiva generalmente no es una entidad sujeta a impuestos. Tax exemptions for students El ingreso, ganancias, pérdidas, deducciones y créditos de una sociedad colectiva se traspasan a los socios de acuerdo con la parte distributiva de los mismos para cada socio. Tax exemptions for students Anexo K-1 (Formulario 1065). Tax exemptions for students    Aunque una sociedad colectiva generalmente no paga impuestos, ésta tiene que presentar una declaración informativa en el Formulario 1065, U. Tax exemptions for students S. Tax exemptions for students Return of Partnership Income (Declaración de impuestos estadounidenses sobre los ingresos de sociedades colectivas), en inglés, y enviar el Anexo K-1 (Formulario 1065) a cada socio. Tax exemptions for students Además, la sociedad colectiva enviará a cada socio una copia de las Partner's Instructions for Schedule K-1 (Instrucciones para el Anexo K-1 (Formulario 1065) del socio), en inglés, para ayudarlos a declarar su participación de los ingresos, deducciones, créditos y partidas que reciben trato tributario preferencial de la sociedad colectiva. Tax exemptions for students Guarde el Anexo K-1 (Formulario 1065) para sus registros. Tax exemptions for students Adjúntelo al Formulario 1040 a menos que usted esté específicamente requerido hacerlo. Tax exemptions for students Para obtener más información sobre las sociedades colectivas, consulte la Publicación 541, Partnerships (Sociedades colectivas), en inglés. Tax exemptions for students Empresa conjunta que reúne los requisitos. Tax exemptions for students   Si usted y su cónyuge cada uno tienen una participación material como socios únicos de un negocio de posesión y operación conjunta, y presentan una declaración conjunta para el año tributario, pueden optar conjuntamente que se les considere empresa conjunta que reúne los requisitos en vez de sociedad colectiva. Tax exemptions for students Para optar por este trato, tienen que dividir todo elemento que corresponda a ingresos, ganancias, pérdidas, deducciones o créditos atribuibles a la empresa entre usted y su cónyuge conforme a la participación de cada uno en la empresa. Tax exemptions for students Para más información sobre cómo optar por este trato y qué anexos debe presentar, vea las instrucciones para su declaración de impuestos individual. Tax exemptions for students Ingresos de Sociedad Anónima de Tipo S En la mayoría de los casos, una sociedad anónima de tipo S no paga impuestos sobre sus ingresos. Tax exemptions for students En lugar de ello, los ingresos, pérdidas, deducciones y créditos de la sociedad anónima se traspasan a los accionistas de acuerdo con la participación prorrateada de cada accionista. Tax exemptions for students Anexo K-1 (Formulario 1120S). Tax exemptions for students   Una sociedad anónima de tipo S tiene que presentar una declaración en el Formulario 1120S, U. Tax exemptions for students S. Tax exemptions for students Income Tax Return for an S Corporation (Declaración del impuesto estadounidense sobre el ingreso de una sociedad anónima de tipo S), en inglés, y enviar el Anexo K-1 (Formulario 1120S), en inglés, a cada accionista. Tax exemptions for students Además, la sociedad anónima de tipo S enviará a cada accionista una copia de las Shareholder's Instructions for Schedule K-1 (Instrucciones para el Anexo K-1 (Formulario 1120S) del accionista), en inglés, para ayudarlo a declarar su participación en los ingresos, pérdidas, créditos y deducciones de la sociedad anónima de tipo S. Tax exemptions for students Guarde el Anexo K-1 (Formulario 1120S) para sus registros. Tax exemptions for students Adjúntelo al Formulario 1040, a menos que usted esté específicamente requerido hacerlo. Tax exemptions for students Para más información sobre las sociedades anónimas de tipo S y sus accionistas, consulte las Instrucciones para el Formulario 1120S. Tax exemptions for students Recuperación de Fondos Una recuperación es un reembolso de una cantidad que usted dedujo o declaró como crédito en un año anterior. Tax exemptions for students Las recuperaciones más comunes son devoluciones, reembolsos y descuentos de deducciones detalladas en el Anexo A (Formulario 1040). Tax exemptions for students También puede tener recuperaciones de deducciones no detalladas (como pagos por deudas incobrables deducidas previamente) y recuperaciones de conceptos por los cuales previamente reclamó un crédito tributario. Tax exemptions for students Regla de beneficios tributarios. Tax exemptions for students   Tiene que incluir en su ingreso una recuperación en el año en que la recibe hasta la cantidad en que la deducción o el crédito que declaró por la cantidad recuperada redujo su impuesto en el año anterior. Tax exemptions for students Para este propósito, se considera que todo aumento a una cantidad trasladada al año actual que resultara de la deducción o del crédito ha reducido su impuesto en el año anterior. Tax exemptions for students Para más información, vea la Publicación 525, en inglés. Tax exemptions for students Reembolso de impuestos federales sobre los ingresos. Tax exemptions for students   Los reembolsos de los impuestos federales sobre los ingresos no se incluyen en sus ingresos porque nunca son permisibles como una deducción de los ingresos. Tax exemptions for students Reembolso de impuestos estatales sobre los ingresos. Tax exemptions for students   Si recibió un reembolso de impuestos estatales o locales sobre los ingresos (crédito o cantidad neta de deudas) en el año 2013, por lo general tiene que incluirlo en el ingreso si dedujo el impuesto en un año anterior. Tax exemptions for students El pagador debe enviarle el Formulario 1099-G, Certain Government Payments (Ciertos pagos del gobierno), en inglés, para el 31 de enero del año 2014. Tax exemptions for students El IRS también recibirá una copia del Formulario 1099-G. Tax exemptions for students Si presenta el Formulario 1040, use la State and Local Income Tax Refund Worksheet (Hoja de trabajo para reembolsos del impuesto estatal y local sobre el ingreso), en inglés, en las instrucciones del Formulario 1040 del año 2013 para la línea 10 para calcular la cantidad (si la hay) que se debe incluir en su ingreso. Tax exemptions for students Vea la Publicación 525, en inglés, para saber cuándo tiene que usar otra hoja de trabajo. Tax exemptions for students   Si pudo optar por deducir para un año tributario cualquiera de los siguientes: Impuestos estatales o locales sobre los ingresos o Impuestos estatales o locales sobre ventas generales, entonces el reembolso máximo que tal vez tenga que incluir en los ingresos se limita al impuesto excedente que optó por deducir ese año sobre el impuesto que no dedujo ese año. Tax exemptions for students Para ver ejemplos, consulte la Publicación 525, en inglés. Tax exemptions for students Reembolso de intereses hipotecarios. Tax exemptions for students    Si recibió un reembolso o un crédito en el año 2013 de intereses hipotecarios que pagó en un año anterior, la cantidad debe aparecer en el recuadro 3 del Formulario 1098, Mortgage Interest Statement (Declaración de intereses hipotecarios), en inglés. Tax exemptions for students No reste la cantidad del reembolso de los intereses que pagó en el año 2013. Tax exemptions for students Tal vez tenga que incluirla en su ingreso según las reglas que se explican en los siguientes párrafos. Tax exemptions for students Intereses sobre la recuperación. Tax exemptions for students   Los intereses sobre todas las cantidades que usted recupere se tienen que declarar como ingresos de intereses en el año en que los reciba. Tax exemptions for students Por ejemplo, declare todos los intereses que reciba en reembolsos de impuestos estatales o locales sobre los ingresos en la línea 8a del Formulario 1040. Tax exemptions for students Recuperación y gastos en el mismo año. Tax exemptions for students   Si el reembolso u otra recuperación y los gastos se producen en el mismo año, la recuperación reduce la deducción o el crédito y no se declara como ingreso. Tax exemptions for students Recuperación de 2 años o más. Tax exemptions for students   Si recibe un reembolso u otra recuperación por las cantidades que pagó durante 2 años o más distintos, debe asignar, a prorrateo, la cantidad recuperada entre los años en que pagó estas cantidades. Tax exemptions for students Esta asignación es necesaria para determinar la cantidad de recuperación de algún año anterior y para determinar la cantidad, si la hay, de la deducción permisible correspondiente a esta partida en el año actual. Tax exemptions for students Para obtener información sobre cómo calcular la asignación, consulte Recoveries (Recuperaciones) en la Publicación 525, en inglés. Tax exemptions for students Recuperaciones de Deducciones Detalladas Si recupera alguna cantidad que dedujo en un año anterior en el Anexo A (Formulario 1040), por lo general tiene que incluir en los ingresos la cantidad total de la recuperación en el año en que la recibe. Tax exemptions for students Dónde hacer la declaración. Tax exemptions for students   Anote su reembolso de impuestos estatales o locales sobre el ingreso en la línea 10 del Formulario 1040 y el total de todas las demás recuperaciones como otros ingresos en la línea 21 del Formulario 1040. Tax exemptions for students No puede usar el Formulario 1040A ni el Formulario 1040EZ. Tax exemptions for students Límite de deducción estándar. Tax exemptions for students   Por lo general, puede declarar la deducción estándar si no detalla las deducciones. Tax exemptions for students Sólo las deducciones detalladas mayores que la deducción estándar están sujetas a la regla de recuperación (a menos que a usted se le exija detallar sus deducciones). Tax exemptions for students Si las deducciones en la declaración del año anterior no fueron mayores que los ingresos de ese año, incluya en los ingresos del año actual la cantidad menor entre: Sus recuperaciones o La cantidad en que sus deducciones detalladas excedieron del límite de la deducción estándar. Tax exemptions for students Ejemplo. Tax exemptions for students Para el año 2012, usted presentó una declaración conjunta. Tax exemptions for students Su ingreso sujeto a impuestos fue $60,000 y no tenía derecho a crédito tributario alguno. Tax exemptions for students Su deducción estándar fue $11,900 y había detallado deducciones de $14,000. Tax exemptions for students En el año 2013, recibió las siguientes recuperaciones por las cantidades deducidas en la declaración del año 2012: Gastos médicos $200 Reembolso de impuestos estatales y locales sobre los ingresos 400 Reembolso de intereses hipotecarios 325 Total de recuperaciones $925 Ninguna de las recuperaciones fue mayor que las deducciones declaradas para el año 2012. Tax exemptions for students La diferencia entre los impuestos sobre el ingreso estatales y locales deducidos y el impuesto local general sobre ventas fue mayor que $400. Tax exemptions for students El total de las recuperaciones fue menor que la cantidad por la cual las deducciones detalladas excedieron de la deducción estándar ($14,000 − 11,900 = $2,100); por lo tanto, tiene que incluir en su ingreso el total de las recuperaciones para el año 2013. Tax exemptions for students Declare el reembolso de impuestos sobre el ingreso estatales o locales de $400 en la línea 10 del Formulario 1040 y el saldo de las recuperaciones, $525, en la línea 21 del Formulario 1040. Tax exemptions for students Deducción estándar para años anteriores. Tax exemptions for students   Para determinar si las cantidades recuperadas en el año 2013 se tienen que incluir en su ingreso, tiene que saber cuál es la deducción estándar para su estado civil para efectos de la declaración del año en que se declaró la deducción. Tax exemptions for students Vea las instrucciones de su declaración de impuestos de años anteriores para encontrar la deducción estándar para su estado civil para dicho año anterior. Tax exemptions for students Ejemplo. Tax exemptions for students Usted presentó una declaración conjunta en el Formulario 1040 para el año 2012 con ingresos sujetos a impuestos de $45,000. Tax exemptions for students Sus deducciones detalladas fueron $12,350. Tax exemptions for students La deducción estándar que pudo haber declarado fue $11,900. Tax exemptions for students En el año 2013, recuperó $2,100 de sus deducciones detalladas del año 2012. Tax exemptions for students Ninguna de las recuperaciones fue mayor que las deducciones reales para el año 2012. Tax exemptions for students Incluya en sus ingresos del año 2013 $450 de las recuperaciones. Tax exemptions for students Ésta es la menor de las recuperaciones ($2,100) o la cantidad por la cual las deducciones detalladas superaban la deducción estándar ($12,350 − 11,900 = $450). Tax exemptions for students Recuperación limitada a la cantidad de la deducción. Tax exemptions for students   No incluya en los ingresos ninguna cantidad de recuperación que sea mayor que la cantidad que usted dedujo en el año anterior. Tax exemptions for students La cantidad que se incluye en los ingresos se limita a la menor de las siguientes cantidades: La cantidad deducida en el Anexo A del Formulario 1040 o La cantidad recuperada. Tax exemptions for students Ejemplo. Tax exemptions for students En el año 2012, usted pagó $1,700 en gastos médicos. Tax exemptions for students De dicha cantidad, restó $1,500, o sea, el 7. Tax exemptions for students 5% de sus ingresos brutos ajustados. Tax exemptions for students Reclamó una deducción de $200 por gastos médicos. Tax exemptions for students En 2013, recibió un reembolso de $500 de su seguro médico por sus gastos del año 2012. Tax exemptions for students La única parte del reembolso de $500 que se tiene que incluir en los ingresos correspondientes al año 2013 es $200, o sea, la cantidad que fue deducida. Tax exemptions for students Otras recuperaciones. Tax exemptions for students   Consulte Recoveries (Recuperaciones) en la Publicación 525, en inglés, si: Tiene recuperaciones de partidas que no sean deducciones detalladas o Recibió recuperación de una partida por la cual reclamó un crédito tributario (que no sea el crédito por inversiones ni el crédito por impuestos extranjeros) en un año anterior. Tax exemptions for students Alquileres de Bienes Muebles Si alquila bienes muebles, como equipos o vehículos, la forma en que usted declara sus ingresos y gastos, en la mayoría de los casos, se determina conforme a lo siguiente: Si la actividad de alquiler es un negocio o no y Si la actividad de alquiler se realiza con o sin fines de lucro. Tax exemptions for students En la mayoría de los casos, si su propósito principal es obtener ingresos o ganancias y usted participa en forma continua y regular en la actividad de alquiler, la actividad de alquiler es un negocio. Tax exemptions for students Consulte la Publicación 535, Business Expenses (Gastos de negocio), en inglés, para obtener detalles sobre la deducción de gastos por actividades comerciales y actividades sin fines de lucro. Tax exemptions for students Cómo declarar ingresos y gastos de negocio. Tax exemptions for students    Si se dedica al negocio de alquilar bienes muebles, declare sus ingresos y gastos en el Anexo C o en el Anexo C-EZ (Formulario 1040). Tax exemptions for students Las instrucciones del formulario contienen información sobre cómo completarlos. Tax exemptions for students Cómo declarar ingresos no comerciales. Tax exemptions for students   Si no se dedica al negocio de alquilar bienes muebles, declare los ingresos de alquiler en la línea 21 del Formulario 1040. Tax exemptions for students Indique el tipo y la cantidad del ingreso en la línea de puntos junto a la línea 21. Tax exemptions for students Cómo declarar gastos no comerciales. Tax exemptions for students   Si alquila bienes muebles para obtener ganancias, incluya sus gastos de alquiler en la cantidad total que se anota en la línea 36 del Formulario 1040. Tax exemptions for students También anote la cantidad y las letras “PPR” en la línea de puntos junto a la línea 36. Tax exemptions for students   Si no alquila bienes muebles para obtener ganancias, las deducciones son limitadas y no puede declarar una pérdida para compensar otro ingreso. Tax exemptions for students Consulte Actividad sin fines de lucro , más adelante, bajo Otros Ingresos . Tax exemptions for students Reintegros Si tuvo que reintegrar una cantidad incluida en sus ingresos de un año anterior, tal vez pueda deducir la cantidad reintegrada de los ingresos del año en que la reintegró. Tax exemptions for students O bien, si la cantidad que reintegró es superior a $3,000, tal vez pueda reclamar un crédito contra su impuesto para el año en que la reintegró. Tax exemptions for students Por lo general, puede reclamar una deducción o un crédito sólo si el reintegro reúne los requisitos como gasto o pérdida en los que ha incurrido en su ocupación o negocio o en una transacción con fines de lucro. Tax exemptions for students Tipo de deducción. Tax exemptions for students   El tipo de deducción que le es permitido en el año del reintegro depende del tipo de ingreso que haya incluido en el año anterior. Tax exemptions for students Normalmente, deduce el reintegro en el mismo formulario o anexo en que lo declaró previamente como ingreso. Tax exemptions for students Por ejemplo, si lo declaró como ingreso del trabajo por cuenta propia, dedúzcalo como gastos de negocio en el Anexo C, en el Anexo C-EZ (Formulario 1040) o en el Anexo F (Formulario 1040). Tax exemptions for students Si lo declaró como ganancias de capital, dedúzcalo como pérdida de capital según se explica en las Instrucciones del Anexo D (Formulario 1040). Tax exemptions for students Si lo declaró como salarios, compensación por desempleo u otros ingresos no comerciales, dedúzcalo como deducción detallada miscelánea en el Anexo A (Formulario 1040). Tax exemptions for students Beneficios del Seguro Social reintegrados. Tax exemptions for students   Si reintegró beneficios del Seguro Social o beneficios equivalentes de la jubilación ferroviaria, vea Reintegro de beneficios en el capítulo 11. Tax exemptions for students Reintegro de $3,000 o menos. Tax exemptions for students   Si la cantidad que reintegró fue $3,000 o menos, dedúzcala de sus ingresos en el año en que la reintegró. Tax exemptions for students Si la tiene que deducir como deducción detallada miscelánea, anótela en la línea 23 del Anexo A (Formulario 1040). Tax exemptions for students Reintegro superior a $3,000. Tax exemptions for students   Si la cantidad que reintegró fue superior a $3,000, puede deducir el reintegro (como se explica bajo Tipo de deducción , anteriormente). Tax exemptions for students Sin embargo, a cambio de esto puede reclamar un crédito tributario para el año de reembolso si incluyó el ingreso conforme a una reclamación de derecho. Tax exemptions for students Esto significa que en el momento en que incluyó el ingreso, parecía que tenía un derecho sin restricción a éste. Tax exemptions for students Si reúne los requisitos para esta opción, calcule el impuesto bajo ambos métodos y compare los resultados. Tax exemptions for students Use el método (deducción o crédito) que genere menos impuesto. Tax exemptions for students Cuando determine si la cantidad que reintegró fue mayor que o menos de $3,000, considere el monto total que reintegra en la declaración. Tax exemptions for students Cada instancia de reintegro no se considera por separado. Tax exemptions for students Método 1. Tax exemptions for students   Calcule su impuesto para el año 2013 declarando una deducción por la cantidad reintegrada. Tax exemptions for students Si la tiene que deducir como deducción detallada miscelánea, anótela en la línea 28 del Anexo A (Formulario 1040). Tax exemptions for students Método 2. Tax exemptions for students   Calcule su impuesto para el año 2013 reclamando un crédito por la cantidad reintegrada. Tax exemptions for students Siga estos pasos: Calcule su impuesto para el año 2013 sin deducir la cantidad reintegrada. Tax exemptions for students Vuelva a calcular su impuesto del año anterior sin incluir en el ingreso la cantidad que reintegró en el año 2013. Tax exemptions for students Reste el impuesto en el punto (2) del impuesto que aparece en su declaración para el año anterior. Tax exemptions for students Éste es el crédito. Tax exemptions for students Reste el resultado en el punto (3) del impuesto para el año 2013 calculado sin la deducción (el paso 1). Tax exemptions for students   Si el método 1 genera menos impuesto, deduzca la cantidad reintegrada. Tax exemptions for students Si el método 2 genera menos impuesto, reclame el crédito calculado en el punto (3) anteriormente, en la línea 71 del Formulario 1040, sumando la cantidad del crédito al monto de todo crédito que aparezca en esta línea y anote “I. Tax exemptions for students R. Tax exemptions for students C. Tax exemptions for students 1341” (sección 1341 del Código de Impuestos Internos) en la columna a la derecha junto a la línea 71. Tax exemptions for students   Un ejemplo de este cálculo se puede encontrar en la Publicación 525, en inglés. Tax exemptions for students Salarios reintegrados sujetos a los impuestos del Seguro Social y del Medicare. Tax exemptions for students   Si usted tuvo que reintegrar una cantidad que incluyó en sus salarios o remuneración en un año anterior sobre los cuales pagó impuestos del Seguro Social, Medicare o impuestos conforme a la Ley Tributaria de Jubilación de Empleados Ferroviarios (RRTA, por sus siglas en inglés) del nivel 1, pídale a su empleador que le reembolse la cantidad pagada en exceso a usted. Tax exemptions for students Si el empleador se niega a reembolsarle los impuestos, pídale un documento escrito en donde se muestre la cantidad recaudada en exceso. Tax exemptions for students Esto le servirá como documento de apoyo para su reclamación. Tax exemptions for students Presente una reclamación para reembolso utilizando el Formulario 843, Claim for Refund and Request for Abatement (Reclamación para reembolso y reducción de impuestos), en inglés. Tax exemptions for students Salarios reintegrados sujetos al Impuesto Adicional del Medicare. Tax exemptions for students   Los empleadores no pueden realizar ajustes ni presentar reclamaciones para reembolsos de la retención del Impuesto Adicional del Medicare cuando hay un reintegro de salarios recibidos por un empleado en un año anterior debido a que el empleado determina su responsabilidad del Impuesto Adicional del Medicare basándose en la declaración de impuestos sobre los ingresos del año anterior de él o ella. Tax exemptions for students Si usted tuvo que reintegrar una cantidad que incluyó en sus salarios o remuneración en un año anterior y sobre los cuales pagó el Impuesto Adicional del Medicare, quizás pueda recuperar dicho Impuesto Adicional del Medicare que pagó sobre esa cantidad. Tax exemptions for students Para recuperar el Impuesto Adicional del Medicare sobre los salarios o remuneración reintegrados, tiene que presentar el Formulario 1040X, Amended U. Tax exemptions for students S. Tax exemptions for students Individual Income Tax Return (Declaración enmendada del impuesto federal estadounidense sobre el ingreso personal), en inglés, para el año anterior en el cual los salarios o remuneración fueron recibidos originalmente. Tax exemptions for students Vea las Instrucciones para el Formulario 1040X, disponibles en inglés. Tax exemptions for students Regalías Las regalías de derechos de autor, patentes y de propiedades de petróleo, gas y minerales están sujetas a impuestos como ingreso ordinario. Tax exemptions for students En la mayoría de los casos, usted declara las regalías en la Parte I del Anexo E (Formulario 1040). Tax exemptions for students Sin embargo, si tiene intereses operativos petrolíferos, de gas o minerales o si su ocupación es escritor, inventor, artista, etc. Tax exemptions for students , por cuenta propia, declare los ingresos y gastos en el Anexo C o en el Anexo C-EZ (Formulario 1040). Tax exemptions for students Derechos de autor y patentes. Tax exemptions for students   Las regalías provenientes de derechos de autor sobre obras literarias, musicales o artísticas y propiedades similares, o de patentes sobre inventos, son cantidades que recibe por el derecho de usar su obra durante un período determinado. Tax exemptions for students Las regalías generalmente se basan en la cantidad de unidades vendidas, por ejemplo, la cantidad de libros, boletos para un espectáculo o equipos vendidos. Tax exemptions for students Propiedades de petróleo, gas y minerales. Tax exemptions for students   Los ingresos por regalías de propiedades de petróleo, gas o minerales son la cantidad que recibe cuando se extraen recursos naturales de su propiedad. Tax exemptions for students Las regalías se basan en unidades, como barriles, toneladas, etc. Tax exemptions for students , y las recibe de una persona o compañía que le alquila la propiedad. Tax exemptions for students Agotamiento. Tax exemptions for students   Si posee participación económica en yacimientos minerales o en pozos de petróleo o de gas, puede recuperar su inversión a través del descuento por agotamiento. Tax exemptions for students Para obtener más información sobre este tema, consulte el capítulo 9 de la Publicación 535, en inglés. Tax exemptions for students Carbón y mineral de hierro. Tax exemptions for students   En ciertas circunstancias, puede tratar las cantidades que recibe de la enajenación de carbón y mineral de hierro como pagos de la venta de un bien de capital, en lugar de ingresos por regalías. Tax exemptions for students Para obtener más información sobre pérdidas o ganancias provenientes de la venta de carbón y mineral de hierro, consulte la Publicación 544, en inglés. Tax exemptions for students Venta de participación de bienes. Tax exemptions for students   Si vende su participación entera en derechos de petróleo, gas o minerales, la cantidad que reciba se considera pago de la venta de bienes utilizados en una ocupación o negocio conforme a la sección 1231 y no ingresos por regalías. Tax exemptions for students En ciertas circunstancias, la venta está sujeta a un trato de pérdidas o ganancias de capital según se explica en las Instrucciones del Anexo D (Formulario 1040). Tax exemptions for students Para obtener más información sobre las ventas de bienes conforme a la sección 1231, consulte el capítulo 3 de la Publicación 544, en inglés. Tax exemptions for students   Si retiene una regalía, una regalía predominante o una participación de utilidad neta en una propiedad mineral durante la vida útil de dicha propiedad, significa que ha alquilado o subalquilado la propiedad y todo el dinero en efectivo que reciba por la asignación de otras participaciones en la propiedad se considera ingreso ordinario sujeto a descuento por agotamiento. Tax exemptions for students Parte de una futura producción vendida. Tax exemptions for students   Si es propietario de una propiedad mineral, pero vende una parte de la producción futura, en la mayoría de los casos, se trata el dinero que recibe del comprador al momento de la venta como préstamo del comprador. Tax exemptions for students No lo incluya en su ingreso ni declare un agotamiento basado en el mismo. Tax exemptions for students   Cuando se inicie la producción, incluya en su ingreso todos los pagos, deduzca todos los gastos de producción y deduzca el agotamiento de esa cantidad para obtener su ingreso sujeto a impuestos proveniente de la propiedad. Tax exemptions for students Beneficios por Desempleo El tratamiento tributario de los beneficios por desempleo recibidos depende del tipo de programa que pague dichos beneficios. Tax exemptions for students Compensación por desempleo. Tax exemptions for students    Tiene que incluir en sus ingresos toda compensación por desempleo que haya recibido. Tax exemptions for students Debe recibir un Formulario 1099-G. Tax exemptions for students En el recuadro 1 de dicho formulario, debe aparecer la cantidad total de compensación por desempleo que se le pagó. Tax exemptions for students En la mayoría de los casos, la compensación por desempleo se anota en la línea 19 del Formulario 1040, la línea 13 del Formulario 1040A o la línea 3 del Formulario 1040EZ. Tax exemptions for students Tipos de compensación por desempleo. Tax exemptions for students   La compensación por desempleo generalmente incluye todas las cantidades recibidas según una ley de compensación por desempleo de los Estados Unidos o de un estado. Tax exemptions for students Ésta incluye los siguientes beneficios: Beneficios pagados por un estado o el Distrito de Columbia provenientes del Fondo Fiduciario Federal para el Desempleo. Tax exemptions for students Beneficios del seguro estatal por desempleo. Tax exemptions for students Beneficios de compensación por desempleo para empleados ferroviarios. Tax exemptions for students Pagos por incapacidad de un programa gubernamental en sustitución de la compensación por desempleo. Tax exemptions for students (Las cantidades recibidas como compensación del seguro obrero por lesiones o enfermedad no se consideran compensación por desempleo. Tax exemptions for students Consulte el capítulo 5 para obtener más información). Tax exemptions for students Asignaciones por reajuste comercial según la Trade Act of 1974 (Ley de Comercio de 1974). Tax exemptions for students Ayuda para el desempleo según la Robert T. Tax exemptions for students Stafford Disaster Relief and Emergency Assistance Act (Ley Robert T. Tax exemptions for students Stafford de Alivio en Caso de Desastres y Ayuda en Emergencias). Tax exemptions for students Ayuda para el desempleo según el Airline Deregulation Act of 1974 Program (Programa de la Ley de Desregulación de las Aerolíneas de 1974). Tax exemptions for students Programa gubernamental. Tax exemptions for students   Si aporta a un programa gubernamental de compensación por desempleo y sus aportes no se pueden deducir, las cantidades que reciba bajo el programa no se incluyen como compensación por desempleo hasta que recupere esos aportes. Tax exemptions for students Si dedujo todos los aportes hechos al programa, la totalidad de la cantidad recibida bajo el programa se incluye en los ingresos. Tax exemptions for students Reintegro de compensación por desempleo. Tax exemptions for students   Si en el año 2013 reintegró la compensación por desempleo que recibió en el año 2013, reste la cantidad que reintegró de la cantidad total que recibió y anote la diferencia en la línea 19 del Formulario 1040, la línea 13 del Formulario 1040A o la línea 3 del Formulario 1040EZ. Tax exemptions for students En la línea de puntos junto a su anotación, escriba “Repaid” (Reintegrado) y la cantidad que reintegró. Tax exemptions for students Si reintegró en el año 2013 la compensación por desempleo que incluyó en ingreso en un año anterior, puede deducir la cantidad reintegrada en la línea 23 del Anexo A (Formulario 1040) si detalla deducciones. Tax exemptions for students Si la cantidad es mayor que $3,000, consulte Reintegros , anteriormente. Tax exemptions for students Retención de impuestos. Tax exemptions for students   Puede optar por que le retengan el impuesto federal sobre el ingreso de su compensación por desempleo. Tax exemptions for students Para optar por esta opción, complete el Formulario W-4V, Voluntary Withholding Request (Solicitud de retención voluntaria), y entréguelo a la oficina pagadora. Tax exemptions for students Se le retendrá un impuesto del 10% del pago. Tax exemptions for students    Si opta por que no le retengan impuesto de su compensación por desempleo, es posible que sea responsable de pagar impuesto estimado. Tax exemptions for students Si no paga suficientes impuestos mediante la retención o pagos de impuesto estimado, o ambos, puede estar sujeto a una multa. Tax exemptions for students Para más información sobre el impuesto estimado, consulte el capítulo 4 . Tax exemptions for students Beneficios suplementarios de desempleo. Tax exemptions for students   Los beneficios recibidos de un fondo financiado por el empleador (al que los empleados no aportaron) no se consideran compensación por desempleo. Tax exemptions for students Éstos están sujetos a impuestos como salario y están sujetos a la retención del impuesto sobre el ingreso. Tax exemptions for students Es posible que estén sujetos a los impuestos del Seguro Social y Medicare. Tax exemptions for students Para obtener más información, consulte Supplemental Unemployment Benefits (Beneficios suplementarios de desempleo) en la sección 5 de la Publicación 15-A, Employer's Supplemental Tax Guide (Guía tributaria suplementaria para empleadores), en inglés. Tax exemptions for students Declare estos pagos en la línea 7 del Formulario 1040 o del Formulario 1040A, o en la línea 1 del Formulario 1040EZ. Tax exemptions for students Reintegro de beneficios. Tax exemptions for students   Tal vez tenga que reintegrar algunos de sus beneficios suplementarios de desempleo para tener derecho a descuentos de reajustes comerciales según la Ley de Comercio de 1974. Tax exemptions for students Si reintegra dichos beneficios durante el mismo año en el cual los recibe, reste del total de los beneficios la cantidad del reintegro. Tax exemptions for students Si reintegra los beneficios en un año posterior, tiene que incluir en su ingreso la cantidad total de los beneficios recibidos en ese año. Tax exemptions for students   Deduzca el reintegro en el año posterior como ajuste al ingreso bruto en el Formulario 1040. Tax exemptions for students (No puede usar el Formulario 1040A ni el Formulario 1040EZ). Tax exemptions for students Incluya el reintegro en la línea 36 del Formulario 1040 y anote “ Sub-Pay TRA ” (TRA de Subpago) y la cantidad en la línea de puntos junto a la línea 36. Tax exemptions for students Si la cantidad que reintegra en un año posterior es más de $3,000, tal vez pueda reclamar un crédito para su impuesto del año posterior, en lugar de deducir la cantidad reintegrada. Tax exemptions for students Para detalles consulte la sección Reintegros , anteriormente. Tax exemptions for students Fondo privado de desempleo. Tax exemptions for students   Los pagos de beneficios por desempleo de un fondo privado (no sindical) al que aporta de manera voluntaria están sujetos a impuestos sólo si las cantidades que recibe son mayores a los pagos totales que realiza al fondo. Tax exemptions for students Declare la cantidad sujeta a impuestos en la línea 21 del Formulario 1040. Tax exemptions for students Pagos por un sindicato. Tax exemptions for students   Los beneficios que recibe como miembro desempleado de un sindicato provenientes de cuotas sindicales regulares se incluyen en su ingreso en la línea 21 del Formulario 1040. Tax exemptions for students No obstante, si aporta a un fondo sindical especial y sus pagos al fondo no son deducibles, los beneficios por desempleo que usted reciba del fondo se pueden incluir en su ingreso solamente en la medida en que sean mayores que sus aportes. Tax exemptions for students Salario anual garantizado. Tax exemptions for students   Los pagos que reciba de su empleador durante períodos de desempleo, conforme a un acuerdo sindical que le garantice el pago completo durante el año, están sujetos a impuestos como salario. Tax exemptions for students Inclúyalos en la línea 7 del Formulario 1040 o del Formulario 1040A, o en la línea 1 del Formulario 1040EZ. Tax exemptions for students Empleados estatales. Tax exemptions for students   El estado puede efectuar pagos similares a la compensación por desempleo del estado a sus empleados que no estén cubiertos por la ley de compensación por desempleo de dicho estado. Tax exemptions for students Aunque los pagos están sujetos a impuestos en su totalidad, no los declare como compensación por desempleo. Tax exemptions for students Declare estos pagos en la línea 21 del Formulario 1040. Tax exemptions for students Beneficios del Bienestar Social y Otros Beneficios de Asistencia Pública No incluya en su ingreso beneficios pagados por el gobierno de un fondo público de bienestar social basados en necesidad, tales como pagos efectuados a una persona ciega conforme a una ley estatal de asistencia pública. Tax exemptions for students Los pagos de un fondo estatal para víctimas de delitos no se deben incluir en los ingresos de las víctimas si se efectúan por bienestar social. Tax exemptions for students No deduzca gastos médicos que se reembolsen a través de ese tipo de fondo. Tax exemptions for students En sus ingresos tiene que incluir todos los pagos de bienestar social que sean por compensación por servicios o que se obtengan de manera fraudulenta. Tax exemptions for students Pagos de ayuda para el reempleo de personas que se ven afectadas por ajustes comerciales. Tax exemptions for students   Los pagos de ayuda para el reempleo de personas que se ven afectadas por ajustes comerciales (RTAA, por sus siglas en ingles) que usted recibió de una agencia estatal tienen que incluirse en sus ingresos. Tax exemptions for students El estado tiene que enviarle el Formulario 1099-G para informarle de qué cantidad debe incluir como ingreso. Tax exemptions for students Dicha cantidad se debe anotar en la línea 21 del Formulario 1040. Tax exemptions for students Personas incapacitadas. Tax exemptions for students   Si tiene una incapacidad, tiene que incluir en su ingreso la compensación recibida a cambio de los servicios que haya prestado, a menos que la compensación se excluya de otro modo. Tax exemptions for students Sin embargo, no incluya en su ingreso el valor de bienes, servicios y dinero en efectivo que reciba, no por sus servicios, sino por su capacitación y rehabilitación porque tiene una incapacidad. Tax exemptions for students Las cantidades excluibles incluyen pagos por transporte y cuidado proporcionado por un asistente, como los servicios de un intérprete para sordos, servicios de un lector para ciegos y para ayudar a personas con discapacidad intelectual a hacer su trabajo. Tax exemptions for students Subvenciones de asistencia en caso de desastre. Tax exemptions for students    No incluya en su ingreso las subvenciones recibidas después de un desastre conforme a la Robert T. Tax exemptions for students Stafford Disaster Relief and Emergency Assistance Act (Ley Robert T. Tax exemptions for students Stafford de Alivio en Caso de Desastres y Ayuda en Emergencias) si los pagos de subvenciones se realizaron para ayudarlo a satisfacer gastos necesarios o necesidades urgentes como gastos médicos, dentales, de vivienda, de bienes muebles, de transporte, cuidado de menores o funerarios. Tax exemptions for students No deduzca gastos por pérdidas fortuitas ni gastos médicos que sean específicamente reembolsados por estas subvenciones como ayuda por desastres. Tax exemptions for students Si ha deducido una pérdida por hecho fortuito por la pérdida de su residencia personal y recibe posteriormente una subvención de ayuda por desastres por la pérdida de dicha residencia, es posible que tenga que incluir la totalidad o parte de la subvención en los ingresos sujetos a impuestos. Tax exemptions for students Vea Recuperación de Fondos , anteriormente. Tax exemptions for students Los pagos de asistencia por desempleo conforme a la Ley se consideran compensación por desempleo sujeta a impuestos. Tax exemptions for students Consulte Compensación por desempleo , anteriormente, bajo Beneficios por Desempleo . Tax exemptions for students Pagos de asistencia en caso de desastres. Tax exemptions for students   Puede excluir de su ingreso toda cantidad que reciba en forma de pago calificado de asistencia en caso de desastres. Tax exemptions for students Un pago calificado de asistencia en caso de desastres es una cantidad que recibe: Para reembolsar o pagar gastos personales, familiares, de vivienda o funerarios razonables y necesarios ocasionados por un desastre calificado; Para reembolsar o pagar gastos razonables y necesarios en los que haya incurrido por la reparación o rehabilitación de su vivienda o la reparación o reemplazo de su contenido, siempre que esto se deba a un desastre calificado; De una persona encargada del suministro o venta de transporte como transportista habitual, debido a la muerte o lesiones corporales ocurridas como resultado de un desastre calificado o De un gobierno, agencia u organismo federal, estatal o local con respecto a un desastre calificado con el propósito de promover el bienestar social general. Tax exemptions for students Sólo puede excluir esta cantidad siempre que los gastos que ésta cubre no los pague un seguro u otro medio. Tax exemptions for students La exclusión no es aplicable si fue participante o conspirador en una acción terrorista o representante de un participante o conspirador. Tax exemptions for students   Un desastre calificado es: Un desastre originado por una acción terrorista o militar; Una zona de desastre declarada como tal por el gobierno federal o Un desastre originado por un accidente que involucra a un transportista común, u originado por otro hecho, que el Secretario del Tesoro o su delegado declara como catástrofe. Tax exemptions for students   Para las cantidades pagadas bajo el punto (4), un desastre que reúne los requisitos si una autoridad federal, estatal o local determina que dicho desastre justifica la asistencia por parte de un gobierno, agencia u organismo federal, estatal o local. Tax exemptions for students Pagos para la mitigación de desastres. Tax exemptions for students   También puede excluir de su ingreso todo monto que reciba por concepto de pago calificado de mitigación de desastres. Tax exemptions for students Los pagos calificados para la mitigación de desastres también se pagan en su mayoría durante el período inmediatamente después de los daños a la propiedad debidos a un desastre natural. Tax exemptions for students Sin embargo, los pagos de mitigación de desastres se utilizan para mitigar (reducir la seriedad de) daños potenciales de futuros desastres naturales. Tax exemptions for students Le son pagados a través de gobiernos estatales y locales conforme a las disposiciones de la Robert T. Tax exemptions for students Stafford Disaster Relief and Emergency Assistance Act (Ley Robert T. Tax exemptions for students Stafford de Alivio en Caso de Desastres y Ayuda en Emergencias) o la National Flood Insurance Act (Ley Nacional de Seguro contra Inundaciones). Tax exemptions for students   Usted no puede aumentar la base original ni la base ajustada de su propiedad debido a mejoras hechas con pagos para la mitigación de desastres no sujetos a impuestos. Tax exemptions for students Programa de modificación de préstamos hipotecarios (HAMP). Tax exemptions for students   Si recibe pagos de Pay-for-Performance Success Payments (Pago de incentivo a condición de que el prestatario efectúe puntualmente los pagos mensuales de una hipoteca) conforme al Home Affordable Modification Program (Programa de modificación asequible de hipotecas residenciales o HAMP, por sus siglas en inglés), dichos pagos no están sujetos a impuestos. Tax exemptions for students Pagos de asistencia hipotecaria conforme a la sección 235 de la Ley Nacional de Vivienda. Tax exemptions for students   Los pagos realizados conforme a la sección 235 de la National Housing Act (Ley Nacional de Vivienda) para asistencia hipotecaria no se incluyen en los ingresos del propietario. Tax exemptions for students Los intereses pagados por el propietario bajo el programa de asistencia hipotecaria no se pueden deducir. Tax exemptions for students Medicare. Tax exemptions for students   Los beneficios del seguro Medicare recibidos conforme al Título XVIII de la Ley del Seguro Social no se incluyen en el ingreso bruto de los individuos por los cuales se pagan. Tax exemptions for students Esto incluye beneficios básicos (parte A (Beneficios del Seguro Hospitalario para Ancianos)) y suplementarios (parte B (Beneficios Suplementarios del Seguro Médico para Ancianos)). Tax exemptions for students Beneficios del seguro por vejez, sobrevivientes e incapacidad (OASDI). Tax exemptions for students   Por lo general, los pagos del seguro por vejez, sobrevivientes e incapacidad (OASDI, por sus siglas en inglés), conforme a la sección 202 del Título II de la Ley del Seguro Social no se incluyen en el ingreso bruto de los individuos que reciben el pago. Tax exemptions for students Esto corresponde a los beneficios de seguros por vejez y beneficios de seguros para cónyuges, hijos, viudos, madres y padres, además del pago en suma global por fallecimiento. Tax exemptions for students Programa de Nutrición para Ancianos. Tax exemptions for students    Los beneficios de alimentos que usted recibe bajo el Programa de Nutrición para Ancianos no están sujetos a impuestos. Tax exemptions for students Si prepara y sirve comidas gratuitas para el programa, incluya en sus ingresos como salario el pago en efectivo que recibe, aun si también reúne los requisitos para recibir beneficios para alimentos. Tax exemptions for students Pagos para la reducción del costo de energía en invierno. Tax exemptions for students   Los pagos efectuados por un estado a personas calificadas para reducir el costo del uso de energía en invierno no están sujetos a impuestos. Tax exemptions for students Otros Ingresos A continuación aparecen otros temas breves. Tax exemptions for students Estos temas, sobre otros ingresos, están referidos en publicaciones que provee
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The Tax Exemptions For Students

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