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Tax Return Amendment

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Tax Return Amendment

Tax return amendment Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. Tax return amendment Proc. Tax return amendment 2012-23 Table of Contents SECTION 1. Tax return amendment PURPOSE SECTION 2. Tax return amendment BACKGROUND SECTION 3. Tax return amendment SCOPE SECTION 4. Tax return amendment APPLICATION. Tax return amendment 01 Limitations on Depreciation Deductions for Certain Automobiles. Tax return amendment . Tax return amendment 02 Inclusions in Income of Lessees of Passenger Automobiles. Tax return amendment SECTION 5. Tax return amendment EFFECTIVE DATE SECTION 6. Tax return amendment DRAFTING INFORMATION SECTION 1. Tax return amendment PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. Tax return amendment The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Tax return amendment SECTION 2. Tax return amendment BACKGROUND . Tax return amendment 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Tax return amendment For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Tax return amendment The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Tax return amendment This change reflects the higher rate of price inflation for trucks and vans since 1988. Tax return amendment . Tax return amendment 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. Tax return amendment L. Tax return amendment No. Tax return amendment 111-312, 124 Stat. Tax return amendment 3296 (Dec. Tax return amendment 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. Tax return amendment Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Tax return amendment . Tax return amendment 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Tax return amendment Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Tax return amendment Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). Tax return amendment Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Tax return amendment This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Tax return amendment . Tax return amendment 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Tax return amendment The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Tax return amendment Under § 1. Tax return amendment 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Tax return amendment One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Tax return amendment Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Tax return amendment SECTION 3. Tax return amendment SCOPE . Tax return amendment 01 The limitations on depreciation deductions in section 4. Tax return amendment 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. Tax return amendment . Tax return amendment 02 The tables in section 4. Tax return amendment 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. Tax return amendment Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Tax return amendment See Rev. Tax return amendment Proc. Tax return amendment 2007-30, 2007-1 C. Tax return amendment B. Tax return amendment 1104, for passenger automobiles first leased during calendar year 2007; Rev. Tax return amendment Proc. Tax return amendment 2008-22, 2008-1 C. Tax return amendment B. Tax return amendment 658, for passenger automobiles first leased during calendar year 2008; Rev. Tax return amendment Proc. Tax return amendment 2009-24, 2009-17 I. Tax return amendment R. Tax return amendment B. Tax return amendment 885, for passenger automobiles first leased during calendar year 2009; Rev. Tax return amendment Proc. Tax return amendment 2010-18, 2010-9 I. Tax return amendment R. Tax return amendment B. Tax return amendment 427, as amplified and modified by section 4. Tax return amendment 03 of Rev. Tax return amendment Proc. Tax return amendment 2011-21, 2011-12 I. Tax return amendment R. Tax return amendment B. Tax return amendment 560, for passenger automobiles first leased during calendar year 2010; and Rev. Tax return amendment Proc. Tax return amendment 2011-21, for passenger automobiles first leased during calendar year 2011. Tax return amendment SECTION 4. Tax return amendment APPLICATION . Tax return amendment 01 Limitations on Depreciation Deductions for Certain Automobiles. Tax return amendment (1) Amount of the inflation adjustment. Tax return amendment (a) Passenger automobiles (other than trucks or vans). Tax return amendment Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Tax return amendment Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Tax return amendment The new car component of the CPI was 115. Tax return amendment 2 for October 1987 and 143. Tax return amendment 419 for October 2011. Tax return amendment The October 2011 index exceeded the October 1987 index by 28. Tax return amendment 219. Tax return amendment Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. Tax return amendment 5 percent (28. Tax return amendment 219/115. Tax return amendment 2 x 100%). Tax return amendment The dollar limitations in § 280F(a) are multiplied by a factor of 0. Tax return amendment 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. Tax return amendment This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. Tax return amendment (b) Trucks and vans. Tax return amendment To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. Tax return amendment The new truck component of the CPI was 112. Tax return amendment 4 for October 1987 and 146. Tax return amendment 607 for October 2011. Tax return amendment The October 2011 index exceeded the October 1987 index by 34. Tax return amendment 207. Tax return amendment Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. Tax return amendment 43 percent (34. Tax return amendment 207/112. Tax return amendment 4 x 100%). Tax return amendment The dollar limitations in § 280F(a) are multiplied by a factor of 0. Tax return amendment 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Tax return amendment This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. Tax return amendment (2) Amount of the limitation. Tax return amendment Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. Tax return amendment Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. Tax return amendment Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. Tax return amendment REV. Tax return amendment PROC. Tax return amendment 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Tax return amendment PROC. Tax return amendment 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. Tax return amendment PROC. Tax return amendment 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Tax return amendment PROC. Tax return amendment 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . Tax return amendment 02 Inclusions in Income of Lessees of Passenger Automobiles. Tax return amendment A taxpayer must follow the procedures in § 1. Tax return amendment 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. Tax return amendment In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Tax return amendment REV. Tax return amendment PROC. Tax return amendment 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. Tax return amendment PROC. Tax return amendment 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. Tax return amendment EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. Tax return amendment SECTION 6. Tax return amendment DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Tax return amendment Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Tax return amendment For further information regarding this revenue procedure, contact Mr. Tax return amendment Harvey at (202) 622-4930 (not a toll-free call). Tax return amendment Prev  Up  Next   Home   More Internal Revenue Bulletins
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The Tax Return Amendment

Tax return amendment Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. Tax return amendment A pension is generally a series of payments made to you after you retire from work. Tax return amendment Pension payments are made regularly and are for past services with an employer. Tax return amendment An annuity is a series of payments under a contract. Tax return amendment You can buy the contract alone or you can buy it with the help of your employer. Tax return amendment Annuity payments are made regularly for more than one full year. Tax return amendment Note. Tax return amendment Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. Tax return amendment Types of pensions and annuities. Tax return amendment   Particular types of pensions and annuities include: Fixed period annuities. Tax return amendment You receive definite amounts at regular intervals for a definite length of time. Tax return amendment Annuities for a single life. Tax return amendment You receive definite amounts at regular intervals for life. Tax return amendment The payments end at death. Tax return amendment Joint and survivor annuities. Tax return amendment The first annuitant receives a definite amount at regular intervals for life. Tax return amendment After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Tax return amendment The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Tax return amendment Variable annuities. Tax return amendment You receive payments that may vary in amount for a definite length of time or for life. Tax return amendment The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. Tax return amendment Disability pensions. Tax return amendment You are under minimum retirement age and receive payments because you retired on disability. Tax return amendment If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. Tax return amendment If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. Tax return amendment A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries. Tax return amendment This plan must meet Internal Revenue Code requirements. Tax return amendment It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. Tax return amendment However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. Tax return amendment A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Tax return amendment A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. Tax return amendment   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. Tax return amendment A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. Tax return amendment It does not qualify for most of the tax benefits of a qualified plan. Tax return amendment Annuity worksheets. Tax return amendment   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. Tax return amendment Request for a ruling. Tax return amendment   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. Tax return amendment This is treated as a request for a ruling. Tax return amendment See Requesting a Ruling on Taxation of Annuity near the end of this publication. Tax return amendment Withholding tax and estimated tax. Tax return amendment   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. Tax return amendment If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. Tax return amendment Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. Tax return amendment Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Tax return amendment These payments are also known as amounts received as an annuity. Tax return amendment If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. Tax return amendment In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. Tax return amendment The amount of each payment that is more than the part that represents your net cost is taxable. Tax return amendment Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. Tax return amendment These terms are explained in the following discussions. Tax return amendment Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. Tax return amendment First, find your net cost of the contract as of the annuity starting date (defined later). Tax return amendment To find this amount, you must first figure the total premiums, contributions, or other amounts paid. Tax return amendment This includes the amounts your employer contributed if you were required to include these amounts in income. Tax return amendment It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). Tax return amendment From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. Tax return amendment Any additional premiums paid for double indemnity or disability benefits. Tax return amendment Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). Tax return amendment The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. Tax return amendment Example. Tax return amendment On January 1 you completed all your payments required under an annuity contract providing for monthly payments starting on August 1, for the period beginning July 1. Tax return amendment The annuity starting date is July 1. Tax return amendment This is the date you use in figuring your investment in the contract and your expected return (discussed later). Tax return amendment Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. Tax return amendment Foreign employment. Tax return amendment   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. Tax return amendment The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. Tax return amendment Foreign employment contributions while a nonresident alien. Tax return amendment   In determining your cost, special rules apply if you are a U. Tax return amendment S. Tax return amendment citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. Tax return amendment Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if they had been paid as cash compensation when the services were performed. Tax return amendment Death benefit exclusion. Tax return amendment   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. Tax return amendment The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. Tax return amendment How to adjust your total cost. Tax return amendment   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. Tax return amendment Add it to the cost or unrecovered cost of the annuity at the annuity starting date. Tax return amendment See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. Tax return amendment Net cost. Tax return amendment   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. Tax return amendment This is the unrecovered investment in the contract as of the annuity starting date. Tax return amendment If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. Tax return amendment Refund feature. Tax return amendment   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. Tax return amendment Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. Tax return amendment   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. Tax return amendment Zero value of refund feature. Tax return amendment   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. Tax return amendment   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). Tax return amendment   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. Tax return amendment Examples. Tax return amendment The first example shows how to figure the value of the refund feature when there is only one beneficiary. Tax return amendment Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. Tax return amendment In both examples, the taxpayer elects to use Tables V through VIII. Tax return amendment If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. Tax return amendment Example 1. Tax return amendment At age 65, Barbara bought for $21,053 an annuity with a refund feature. Tax return amendment She will get $100 a month for life. Tax return amendment Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. Tax return amendment In this case, the contract cost and the total guaranteed return are the same ($21,053). Tax return amendment Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. Tax return amendment 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. Tax return amendment For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). Tax return amendment In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. Tax return amendment Example 2. Tax return amendment John died while still employed. Tax return amendment His widow, Eleanor, age 48, receives $171 a month for the rest of her life. Tax return amendment John's son, Elmer, age 9, receives $50 a month until he reaches age 18. Tax return amendment John's contributions to the retirement fund totaled $7,559. Tax return amendment 45, with interest on those contributions of $1,602. Tax return amendment 53. Tax return amendment The guarantee or total refund feature of the contract is $9,161. Tax return amendment 98 ($7,559. Tax return amendment 45 plus $1,602. Tax return amendment 53). Tax return amendment The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. Tax return amendment 9 $71,614. Tax return amendment 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. Tax return amendment 0 5,400. Tax return amendment 00   3) Total expected return   $77,014. Tax return amendment 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. Tax return amendment 45   2) Guaranteed amount (contributions of $7,559. Tax return amendment 45 plus interest of $1,602. Tax return amendment 53) $9,161. Tax return amendment 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. Tax return amendment 00   4) Net guaranteed amount $3,761. Tax return amendment 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. Tax return amendment 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. Tax return amendment 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Tax return amendment See the discussion of expected return, later in this publication. Tax return amendment Free IRS help. Tax return amendment   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. Tax return amendment Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Tax return amendment The following discussions explain how to figure the expected return with each type of annuity. Tax return amendment A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. Tax return amendment Fixed period annuity. Tax return amendment   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. Tax return amendment It is the total amount you will get beginning at the annuity starting date. Tax return amendment You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). Tax return amendment To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. Tax return amendment Single life annuity. Tax return amendment   If you are to get annuity payments for the rest of your life, find your expected return as follows. Tax return amendment You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. Tax return amendment These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). Tax return amendment   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. Tax return amendment See Adjustments to Tables I, II, V, VI, and VIA following Table I. Tax return amendment Example. Tax return amendment Henry bought an annuity contract that will give him an annuity of $500 a month for his life. Tax return amendment If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. Tax return amendment 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. Tax return amendment 2 multiple by +. Tax return amendment 1. Tax return amendment His expected return would then be $115,800 ($6,000 × 19. Tax return amendment 3). Tax return amendment Annuity for shorter of life or specified period. Tax return amendment   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. Tax return amendment To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. Tax return amendment Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. Tax return amendment Example. Tax return amendment Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. Tax return amendment She was age 65 at her birthday nearest the annuity starting date. Tax return amendment She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. Tax return amendment 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. Tax return amendment See Special Elections, later. Tax return amendment Joint and survivor annuities. Tax return amendment   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. Tax return amendment To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. Tax return amendment If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. Tax return amendment See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. Tax return amendment Example. Tax return amendment John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. Tax return amendment At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. Tax return amendment The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. Tax return amendment 0 Expected return $132,000 Different payments to survivor. Tax return amendment   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. Tax return amendment Example 1. Tax return amendment Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. Tax return amendment If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. Tax return amendment 0 Multiple for Gerald, age 70 (from Table V)   16. Tax return amendment 0 Difference: Multiple applicable to Mary   6. Tax return amendment 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. Tax return amendment 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. Tax return amendment 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. Tax return amendment Your husband died while still employed. Tax return amendment Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. Tax return amendment Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. Tax return amendment You were 50 years old at the annuity starting date. Tax return amendment Marie was 16 and Jean was 14. Tax return amendment Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. Tax return amendment 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. Tax return amendment 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. Tax return amendment 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. Tax return amendment Computation Under the General Rule Note. Tax return amendment Variable annuities use a different computation for determining the exclusion amounts. Tax return amendment See Variable annuities later. Tax return amendment Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. Tax return amendment   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. Tax return amendment See Death benefit exclusion , earlier. Tax return amendment Step 2. Tax return amendment   Figure your expected return. Tax return amendment Step 3. Tax return amendment   Divide Step 1 by Step 2 and round to three decimal places. Tax return amendment This will give you the exclusion percentage. Tax return amendment Step 4. Tax return amendment   Multiply the exclusion percentage by the first regular periodic payment. Tax return amendment The result is the tax-free part of each pension or annuity payment. Tax return amendment   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. Tax return amendment However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. Tax return amendment   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. Tax return amendment Step 5. Tax return amendment   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. Tax return amendment This will give you the tax-free part of the total payment for the year. Tax return amendment    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. Tax return amendment This fractional amount is multiplied by your exclusion percentage to get the tax-free part. Tax return amendment Step 6. Tax return amendment   Subtract the tax-free part from the total payment you received. Tax return amendment The rest is the taxable part of your pension or annuity. Tax return amendment Example 1. Tax return amendment You purchased an annuity with an investment in the contract of $10,800. Tax return amendment Under its terms, the annuity will pay you $100 a month for life. Tax return amendment The multiple for your age (age 65) is 20. Tax return amendment 0 as shown in Table V. Tax return amendment Your expected return is $24,000 (20 × 12 × $100). Tax return amendment Your cost of $10,800, divided by your expected return of $24,000, equals 45. Tax return amendment 0%. Tax return amendment This is the percentage you will not have to include in income. Tax return amendment Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. Tax return amendment If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). Tax return amendment Example 2. Tax return amendment Gerald bought a joint and survivor annuity. Tax return amendment Gerald's investment in the contract is $62,712 and the expected return is $121,200. Tax return amendment The exclusion percentage is 51. Tax return amendment 7% ($62,712 ÷ $121,200). Tax return amendment Gerald will receive $500 a month ($6,000 a year). Tax return amendment Each year, until his net cost is recovered, $3,102 (51. Tax return amendment 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. Tax return amendment If Gerald dies, his wife will receive $350 a month ($4,200 a year). Tax return amendment If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. Tax return amendment 7%). Tax return amendment Each year, until the entire net cost is recovered, his wife will receive $2,171. Tax return amendment 40 (51. Tax return amendment 7% of her payments received of $4,200) tax free. Tax return amendment She will include $2,028. Tax return amendment 60 ($4,200 − $2,171. Tax return amendment 40) in her income tax return. Tax return amendment Example 3. Tax return amendment Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. Tax return amendment Your two daughters each receive annual annuities of $1,800 until they reach age 18. Tax return amendment Your husband contributed $25,576 to the plan. Tax return amendment You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. Tax return amendment Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. Tax return amendment The exclusion percentage of 18. Tax return amendment 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. Tax return amendment Each full year $864 (18. Tax return amendment 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. Tax return amendment Each year, until age 18, $324 (18. Tax return amendment 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. Tax return amendment Part-year payments. Tax return amendment   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. Tax return amendment   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. Tax return amendment For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. Tax return amendment   If you received a fractional payment, follow Step 5, discussed earlier. Tax return amendment This gives you the tax-free part of your total payment. Tax return amendment Example. Tax return amendment On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. Tax return amendment The applicable multiple from Table V is 23. Tax return amendment 3 (age 61). Tax return amendment Her expected return is $34,950 ($125 × 12 × 23. Tax return amendment 3). Tax return amendment Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. Tax return amendment 1%. Tax return amendment Each payment received will consist of 63. Tax return amendment 1% return of cost and 36. Tax return amendment 9% taxable income, until her net cost of the contract is fully recovered. Tax return amendment During the first year, Mary received three payments of $125, or $375, of which $236. Tax return amendment 63 (63. Tax return amendment 1% × $375) is a return of cost. Tax return amendment The remaining $138. Tax return amendment 37 is included in income. Tax return amendment Increase in annuity payments. Tax return amendment   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. Tax return amendment All increases in the installment payments are fully taxable. Tax return amendment   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. Tax return amendment 72-5(a)(5) of the regulations. Tax return amendment Example. Tax return amendment Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. Tax return amendment In figuring the taxable part, Joe elects to use Tables V through VIII. Tax return amendment The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. Tax return amendment His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. Tax return amendment 0 × $1,764 annual payment). Tax return amendment The exclusion percentage is $7,938 ÷ $35,280, or 22. Tax return amendment 5%. Tax return amendment During the year he received 11 monthly payments of $147, or $1,617. Tax return amendment Of this amount, 22. Tax return amendment 5% × $147 × 11 ($363. Tax return amendment 83) is tax free as a return of cost and the balance of $1,253. Tax return amendment 17 is taxable. Tax return amendment Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). Tax return amendment The tax-free part is still only 22. Tax return amendment 5% of the annuity payments as of the annuity starting date (22. Tax return amendment 5% × $147 × 12 = $396. Tax return amendment 90 for a full year). Tax return amendment The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. Tax return amendment Variable annuities. Tax return amendment   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. Tax return amendment   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. Tax return amendment If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. Tax return amendment Example. Tax return amendment Frank purchased a variable annuity at age 65. Tax return amendment The total cost of the contract was $12,000. Tax return amendment The annuity starting date is January 1 of the year of purchase. Tax return amendment His annuity will be paid, starting July 1, in variable annual installments for his life. Tax return amendment The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. Tax return amendment   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. Tax return amendment Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. Tax return amendment The result is added to the previously figured periodic tax-free part. Tax return amendment The sum is the amount of each future payment that will be tax free. Tax return amendment Example. Tax return amendment Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. Tax return amendment Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. Tax return amendment Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. Tax return amendment 00 Amount received in second year 500. Tax return amendment 00 Difference $100. Tax return amendment 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. Tax return amendment 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. Tax return amendment 4) $5. Tax return amendment 43 Revised annual tax-free part for third and later years ($600 + $5. Tax return amendment 43) $605. Tax return amendment 43 Amount taxable in third year ($1,200 − $605. Tax return amendment 43) $594. Tax return amendment 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. Tax return amendment 72–4(d)(3) of the Income Tax Regulations. Tax return amendment The statement must also show the following information: The annuity starting date and your age on that date. Tax return amendment The first day of the first period for which you received an annuity payment in the current year. Tax return amendment Your investment in the contract as originally figured. Tax return amendment The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. Tax return amendment Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. Tax return amendment Exclusion limited to net cost. Tax return amendment   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). Tax return amendment This is the unrecovered investment in the contract as of the annuity starting date. Tax return amendment   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Tax return amendment This deduction is not subject to the 2%-of-adjusted-gross-income limit. Tax return amendment Example 1. Tax return amendment Your annuity starting date is after 1986. Tax return amendment Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. Tax return amendment There is no refund feature. Tax return amendment Your monthly annuity payment is $833. Tax return amendment 33. Tax return amendment Your exclusion ratio is 12% and you exclude $100 a month. Tax return amendment Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. Tax return amendment Thereafter, your annuity payments are fully taxable. Tax return amendment Example 2. Tax return amendment The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. Tax return amendment The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. Tax return amendment The exclusion ratio is 10. Tax return amendment 8%, and your monthly exclusion is $90. Tax return amendment After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). Tax return amendment An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. Tax return amendment Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. Tax return amendment Exclusion not limited to net cost. Tax return amendment   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. Tax return amendment If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. Tax return amendment The total exclusion may be more than your investment in the contract. Tax return amendment How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. Tax return amendment Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. Tax return amendment These tables correspond to the old Tables I through IV. Tax return amendment In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. Tax return amendment If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. Tax return amendment However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). Tax return amendment Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. Tax return amendment Contributions made both before July 1986 and after June 1986. Tax return amendment   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. Tax return amendment (See the examples below. Tax return amendment )    Making the election. Tax return amendment Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. Tax return amendment 72–6 of the Income Tax Regulations. Tax return amendment ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. Tax return amendment   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. Tax return amendment You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. Tax return amendment    Advantages of election. Tax return amendment In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. Tax return amendment    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. Tax return amendment If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. Tax return amendment   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. Tax return amendment Example 1. Tax return amendment Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. Tax return amendment Payment of the $42,000 contribution is guaranteed under a refund feature. Tax return amendment Bill is 55 years old as of the annuity starting date. Tax return amendment For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. Tax return amendment       Pre- July 1986   Post- June 1986 A. Tax return amendment Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. Tax return amendment of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. Tax return amendment Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. Tax return amendment Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. Tax return amendment 7   28. Tax return amendment 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. Tax return amendment Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . Tax return amendment 079   . Tax return amendment 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). Tax return amendment The taxable part of his annuity is $22,080 ($24,000 minus $1,920). Tax return amendment If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). Tax return amendment Example 2. Tax return amendment Al is age 62 at his nearest birthday to the annuity starting date. Tax return amendment Al's wife is age 60 at her nearest birthday to the annuity starting date. Tax return amendment The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. Tax return amendment The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. Tax return amendment Al makes the election described in Example 1 . Tax return amendment For purposes of this example, assume the refund feature adjustment is zero. Tax return amendment If an adjustment is required, IRS will figure the amount. Tax return amendment See Requesting a Ruling on Taxation of Annuity near the end of this publication. Tax return amendment       Pre-  July 1986   Post-  June 1986 A. Tax return amendment Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. Tax return amendment Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. Tax return amendment Expected return         1) Multiple for both annuitants from Tables II and VI 25. Tax return amendment 4   28. Tax return amendment 8   2) Multiple for first annuitant from Tables I and V 16. Tax return amendment 9   22. Tax return amendment 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. Tax return amendment 5   6. Tax return amendment 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. Tax return amendment Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . Tax return amendment 209   . Tax return amendment 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). Tax return amendment The taxable part of his annuity is $9,216 ($12,000 − $2,784). Tax return amendment The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. Tax return amendment After Al's death, his widow will apply the same exclusion percentages (20. Tax return amendment 9% and 2. Tax return amendment 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. Tax return amendment Annuity received after June 30, 1986. Tax return amendment   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. Tax return amendment Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. Tax return amendment    Make the election by attaching the following statement to your income tax return. Tax return amendment    “I elect, under section 1. Tax return amendment 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. Tax return amendment ”   The statement must also include your name, address, and social security number. Tax return amendment   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. Tax return amendment Disqualifying form of payment or settlement. Tax return amendment   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. Tax return amendment See regulations section 1. Tax return amendment 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. Tax return amendment You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. Tax return amendment Worksheets for Determining Taxable Annuity Worksheets I and II. Tax return amendment   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. Tax return amendment 72–6(d)(6) Election. Tax return amendment Worksheet I For Determining Taxable Annuity Under Regulations Section 1. Tax return amendment 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. Tax return amendment   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Tax return amendment )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Tax return amendment If not, the IRS will calculate the refund feature percentage. Tax return amendment             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Tax return amendment   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. Tax return amendment   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. Tax return amendment   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Tax return amendment     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. Tax return amendment 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. Tax return amendment   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Tax return amendment )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Tax return amendment If not, the IRS will calculate the refund feature percentage. Tax return amendment             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Tax return amendment   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. Tax return amendment   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. Tax return amendment Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. Tax return amendment   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Tax return amendment   Actuarial Tables Please click here for the text description of the image. Tax return amendment Actuarial Tables Please click here for the text description of the image. Tax return amendment Actuarial Tables Please click here for the text description of the image. Tax return amendment Actuarial tables Please click here for the text description of the image. 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Tax return amendment Actuarial tables Requesting a Ruling on Taxation of Annuity If you are a retiree, or the survivor of an employee or retiree, you may ask the Internal Revenue Service to help you determine the taxation of your annuity. Tax return amendment If you make this request, you are asking for a ruling. Tax return amendment User fee. Tax return amendment   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. Tax return amendment You should call the IRS for the proper fee. Tax return amendment A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. Tax return amendment Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. Tax return amendment O. Tax return amendment Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. Tax return amendment When to make the request. Tax return amendment   Please note that requests sent between February 1 and April 15 may experience some delay. Tax return amendment We process requests in the order received, and we will reply to your request as soon as we can process it. Tax return amendment If you do not receive your ruling by the required filing date, you may use Form 4868, Application for Automatic Extension of Time To File U. Tax return amendment S. Tax return amendment Individual Income Tax Return, to get an extension of time to file. Tax return amendment Information you must furnish. Tax return amendment   You must furnish the information listed below so the IRS can comply with your request. Tax return amendment Failure to furnish the information will result in a delay in processing your request. Tax return amendment Please send only copies of the following documents, as the IRS retains all material sent for its records: A letter explaining the question(s) you wish to have resolved or the information you need from the ruling. Tax return amendment Copies of any documents showing distributions, annuity rates, and annuity options available to you. Tax return amendment A copy of any Form 1099–R you received since your annuity began. Tax return amendment A statement indicating whether you have filed your return for the year for which you are making the request. Tax return amendment If you have requested an extension of time to file that return, please indicate the extension date. Tax return amendment Your daytime phone number. Tax return amendment Your current mailing address. Tax return amendment A power of attorney if someone other than you, an attorney, a certified public accountant, or an enrolled agent is signing this request. Tax return amendment Form 2848, Power of Attorney and Declaration of Representative, may be used for this purpose. Tax return amendment A completed Tax Information Sheet (or facsimile) shown on the next page. Tax return amendment Sign and date the Disclosure and Perjury Statement (or facsimile) at the end of the tax information sheet. Tax return amendment This statement must be signed by the retiree or the survivor annuitant. Tax return amendment It cannot be signed by a representative. Tax return amendment Tax Information Sheet Please click here for the text description of the image. Tax return amendment Tax Information Sheet Please click here for the text description of the image. Tax return amendment Tax Information Sheet (continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Tax return amendment Free help with your tax return. Tax return amendment   You can get free help preparing your return nationwide from IRS-certified volunteers. Tax return amendment The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Tax return amendment The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Tax return amendment Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Tax return amendment In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Tax return amendment To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Tax return amendment gov, download the IRS2Go app, or call 1-800-906-9887. Tax return amendment   As part of the TCE program, AARP offers the Tax-Aide counseling program. Tax return amendment To find the nearest AARP Tax-Aide site, visit AARP's website at www. Tax return amendment aarp. Tax return amendment org/money/taxaide or call 1-888-227-7669. Tax return amendment For more information on these programs, go to IRS. Tax return amendment gov and enter “VITA” in the search box. Tax return amendment Internet. Tax return amendment    IRS. Tax return amendment gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Tax return amendment Download the free IRS2Go app from the iTunes app store or from Google Play. Tax return amendment Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Tax return amendment Check the status of your 2013 refund with the Where's My Refund? application on IRS. Tax return amendment gov or download the IRS2Go app and select the Refund Status option. Tax return amendment The IRS issues more than 9 out of 10 refunds in less than 21 days. Tax return amendment Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Tax return amendment You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Tax return amendment The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Tax return amendment Use the Interactive Tax Assistant (ITA) to research your tax questions. Tax return amendment No need to wait on the phone or stand in line. Tax return amendment The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Tax return amendment When you reach the response screen, you can print the entire interview and the final response for your records. Tax return amendment New subject areas are added on a regular basis. Tax return amendment  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Tax return amendment gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Tax return amendment You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Tax return amendment The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Tax return amendment When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Tax return amendment Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Tax return amendment You can also ask the IRS to mail a return or an account transcript to you. Tax return amendment Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Tax return amendment gov or by calling 1-800-908-9946. Tax return amendment Tax return and tax account transcripts are generally available for the current year and the past three years. Tax return amendment Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Tax return amendment Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Tax return amendment If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Tax return amendment Check the status of your amended return using Where's My Amended Return? Go to IRS. Tax return amendment gov and enter Where's My Amended Return? in the search box. Tax return amendment You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Tax return amendment It can take up to 3 weeks from the date you mailed it to show up in our system. Tax return amendment Make a payment using one of several safe and convenient electronic payment options available on IRS. Tax return amendment gov. Tax return amendment Select the Payment tab on the front page of IRS. Tax return amendment gov for more information. Tax return amendment Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Tax return amendment Figure your income tax withholding with the IRS Withholding Calculator on IRS. Tax return amendment gov. Tax return amendment Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Tax return amendment Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Tax return amendment gov. Tax return amendment Request an Electronic Filing PIN by going to IRS. Tax return amendment gov and entering Electronic Filing PIN in the search box. Tax return amendment Download forms, instructions and publications, including accessible versions for people with disabilities. Tax return amendment Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Tax return amendment gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Tax return amendment An employee can answer questions about your tax account or help you set up a payment plan. Tax return amendment Before you visit, check the Office Locator on IRS. Tax return amendment gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Tax return amendment If you have a special need, such as a disability, you can request an appointment. Tax return amendment Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Tax return amendment Apply for an Employer Identification Number (EIN). Tax return amendment Go to IRS. Tax return amendment gov and enter Apply for an EIN in the search box. Tax return amendment Read the Internal Revenue Code, regulations, or other official guidance. Tax return amendment Read Internal Revenue Bulletins. Tax return amendment Sign up to receive local and national tax news and more by email. Tax return amendment Just click on “subscriptions” above the search box on IRS. Tax return amendment gov and choose from a variety of options. Tax return amendment    Phone. Tax return amendment You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Tax return amendment Download the free IRS2Go app from the iTunes app store or from Google Play. Tax return amendment Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Tax return amendment gov, or download the IRS2Go app. Tax return amendment Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Tax return amendment The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Tax return amendment Mos