Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Turbotax 2011 Edition

H&r Block Free Tax2007 Tax Return FormsH&r Block 2010Senior Income TaxFile Free State TaxFile Just State Taxes Online FreeHow To Amend A Tax ReturnFederal Tax Forms 2011File Amended Tax ReturnHow To Amend 2012 Taxes OnlineFiling Amended Tax Return 2012Help Filing 1040xFree TaxState Income Tax Address2011 1040a Tax FormsArmy One Source TaxesEz Tax ReturnIrs Gov Forms1040ez IrsBack Tax Debt1040 Ez Tax FormMy Free TaxesFree Tax Calculator 2011Free State Tax Return E-fileTurbotax 1040nrEfile ComFree Online Ez Form2012 State TaxForm 1040ezHelp Filling Out 1040x FormTax Act 2012 Login Return UserFiling 1040nr OnlinePrint Tax Form 1040xFederal Tax Form 2011Free 1040ez InstructionsHow Do I Amend My 2012 Tax ReturnH And R BlockTax Forms 1040ezFree Fillable State Tax FormsHow To File Taxes

Turbotax 2011 Edition

Turbotax 2011 edition Index Symbols 1231 property sale, Sale of property interest. Turbotax 2011 edition 401(k) plans, Elective Deferrals Excess contributions, Excess Contributions 403(b) plans, Elective Deferrals Limit for, Limit for tax-sheltered annuities. Turbotax 2011 edition 457 plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under section 457 plans. Turbotax 2011 edition 501(c)(18)(D) plans, Elective Deferrals Contributions, Section 501(c)(18)(D) contributions. Turbotax 2011 edition 501(c)(3) organizations, Student loans. Turbotax 2011 edition 529 program, Qualified tuition program (QTP). Turbotax 2011 edition 83(b) election, How to make the choice. Turbotax 2011 edition A Academic health centers Meals and lodging when teaching and research organization, Academic health center. Turbotax 2011 edition Accelerated death benefits, Accelerated Death Benefits Accident insurance, Accident or Health Plan Accidental death benefits, Accidental death benefits. Turbotax 2011 edition Accrual method taxpayers, Prepaid income. Turbotax 2011 edition Accrued leave payment At time of retirement or resignation, Accrued leave payment. Turbotax 2011 edition Disability retirement, Accrued leave payment. Turbotax 2011 edition Activity not for profit, Activity not for profit. Turbotax 2011 edition Adoption Employer assistance, Adoption Assistance Advance commissions, Miscellaneous Compensation Aircraft, Flights on employer-provided aircraft. Turbotax 2011 edition Airlines No-additional-cost services, No-Additional-Cost Services Valuation of flights on employer-provided aircraft, Flights on employer-provided aircraft. Turbotax 2011 edition Alaska Permanent Fund dividend, Alaska Permanent Fund dividend. Turbotax 2011 edition Alien status, waiver of, Waiver of alien status. Turbotax 2011 edition Aliens Nonresident, Nonresident aliens. Turbotax 2011 edition Alimony, Alimony. Turbotax 2011 edition Alternative minimum tax (AMT) Recoveries, refiguring of, Subject to alternative minimum tax. Turbotax 2011 edition Stock options, Alternative minimum tax (AMT). Turbotax 2011 edition Annuities Charitable gift, Charitable gift annuities. Turbotax 2011 edition Railroad retirement, Railroad retirement annuities. Turbotax 2011 edition Tax-sheltered, Limit for tax-sheltered annuities. Turbotax 2011 edition Archer MSAs, Archer MSA contributions. Turbotax 2011 edition , Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Turbotax 2011 edition Armed forces, Military Combat zone bonus, Veterans' benefits. Turbotax 2011 edition Disability, Disability. Turbotax 2011 edition Disability pensions, Military and Government Disability Pensions Health professions scholarship, Tuition Reduction Military action as cause of disability injuries, Terrorist attack or military action. Turbotax 2011 edition Qualified reservist distribution, Qualified reservist distribution (QRD). Turbotax 2011 edition Rehabilitative program payments, Veterans' benefits. Turbotax 2011 edition Retirement pay, Military retirement pay. Turbotax 2011 edition Veterans benefits, Veterans' benefits. Turbotax 2011 edition Assistance (see Tax help) Athletic facilities, employer-provided, Athletic Facilities Automobile (see Vehicle, employer-provided) Awards (see Damages from lawsuits) B Babysitting, Babysitting. Turbotax 2011 edition Back pay, award for, Back pay awards. Turbotax 2011 edition Backup withholding Barter exchange transactions, Backup withholding. Turbotax 2011 edition Bankruptcy Canceled debt not deemed to be income, Excluded debt. Turbotax 2011 edition Barter income, Bartering Below-market loans, Below-market loans. Turbotax 2011 edition Bequest for services, Bequest for services. Turbotax 2011 edition Bicycle, Transportation Fringe benefit, Qualified bicycle commuting. Turbotax 2011 edition Black lung benefit payments, Black lung benefit payments. Turbotax 2011 edition Bonuses, Bonuses and awards. Turbotax 2011 edition , Employee awards or bonuses. Turbotax 2011 edition Breach of contract Damages as income, Court awards and damages. Turbotax 2011 edition Bribes, Bribes. Turbotax 2011 edition Business expenses Reimbursements, Allowances and reimbursements. Turbotax 2011 edition Business income, Business and Investment Income, More information. Turbotax 2011 edition C Cafeteria plans, Cafeteria plans. Turbotax 2011 edition Campaign contributions, Campaign contributions. Turbotax 2011 edition Campus lodging, Qualified campus lodging. Turbotax 2011 edition , Moving Expense Reimbursements Cancellation of debt, Canceled Debts Cancellation of sales contracts, Canceled sales contract. Turbotax 2011 edition Capital gains Recoveries, Capital gains. Turbotax 2011 edition , Capital gains. Turbotax 2011 edition Capital gains or losses Employee stock option plans (ESOPs), Option granted at a discount. Turbotax 2011 edition Incentive stock options (ISOs), Incentive stock options (ISOs). Turbotax 2011 edition Sale of personal property, Sale of personal items. Turbotax 2011 edition Car (see Vehicle, employer-provided) Car pools, Car pools. Turbotax 2011 edition Cash or deferred arrangements (CODAs), Elective Deferrals Cash rebates, Cash rebates. Turbotax 2011 edition Casualty insurance Reimbursements from, Casualty insurance and other reimbursements. Turbotax 2011 edition Catch-up contributions, Catch-up contributions. Turbotax 2011 edition , Catch-up contributions. Turbotax 2011 edition Charitable gift annuities, Charitable gift annuities. Turbotax 2011 edition Child and Adult Care Food Program Payments to daycare providers, Food program payments to daycare providers. Turbotax 2011 edition Child support payments, Child support payments. Turbotax 2011 edition Childcare providers, Childcare providers. Turbotax 2011 edition , Food program payments to daycare providers. Turbotax 2011 edition Chronic illness, Chronically ill individual. Turbotax 2011 edition Accelerated death benefits paid to, Exclusion for chronic illness. Turbotax 2011 edition Citizens outside U. Turbotax 2011 edition S. Turbotax 2011 edition Exclusion of foreign income, Reminders Civil Rights Act of 1964, Title VII Back pay and damages for emotional distress under, Court awards and damages. Turbotax 2011 edition Clergy, Clergy Coal, Coal and iron ore. Turbotax 2011 edition Colleges and universities Faculty lodging, Faculty lodging. Turbotax 2011 edition Scholarships and fellowships, Scholarships and fellowships. Turbotax 2011 edition Commissions Advance, Miscellaneous Compensation Commuter highway vehicles, Transportation Compensation Employee, Employee Compensation Miscellaneous, Miscellaneous Compensation Unemployment, Unemployment compensation. Turbotax 2011 edition Workers', Workers' Compensation Compensatory damages, Other compensation. Turbotax 2011 edition , Court awards and damages. Turbotax 2011 edition Constructive receipt of income, Constructively received income. Turbotax 2011 edition Copyrights Infringement damages, Court awards and damages. Turbotax 2011 edition Royalties, Copyrights and patents. Turbotax 2011 edition Corporate directors, Corporate director. Turbotax 2011 edition Cost-of-living allowances, Government cost-of-living allowances. Turbotax 2011 edition Court awards, Court awards and damages. Turbotax 2011 edition (see also Damages from lawsuits) Credit card Insurance, Credit card insurance. Turbotax 2011 edition Credits Recoveries, refiguring of unused credits, Unused tax credits. Turbotax 2011 edition , Unused tax credits. Turbotax 2011 edition Currency transactions, foreign, Foreign currency transactions. Turbotax 2011 edition D Damages from lawsuits, Court awards and damages. Turbotax 2011 edition Back pay awards, Back pay awards. Turbotax 2011 edition Breach of contract, Court awards and damages. Turbotax 2011 edition Compensatory damages, Other compensation. Turbotax 2011 edition , Court awards and damages. Turbotax 2011 edition Emotional distress under Title VII, Civil Rights Act of 1964, Court awards and damages. Turbotax 2011 edition Punitive damages, Court awards and damages. Turbotax 2011 edition Daycare providers, Childcare providers. Turbotax 2011 edition (see also Childcare providers) Food program payments to, Food program payments to daycare providers. Turbotax 2011 edition De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Death benefits, Proceeds not received in installments. Turbotax 2011 edition (see also Life insurance) Accelerated, Accelerated Death Benefits Debts Canceled, Canceled Debts Excluded debt, Excluded debt. Turbotax 2011 edition Nonrecourse debts, Mortgage relief upon sale or other disposition. Turbotax 2011 edition Recourse, Mortgage relief upon sale or other disposition. Turbotax 2011 edition Stockholder's, Stockholder debt. Turbotax 2011 edition Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. Turbotax 2011 edition Deferred compensation Nonqualified plans, Nonqualified deferred compensation plans. Turbotax 2011 edition , Nonqualified deferred compensation plans of nonqualified entities. Turbotax 2011 edition Dependent care benefits, Dependent Care Benefits Depletion allowance, Depletion. Turbotax 2011 edition Differential wage payments, Differential wage payments. Turbotax 2011 edition Armed forces, Differential wage payments. Turbotax 2011 edition Directors' fees, Corporate director. Turbotax 2011 edition Disability Military, Disability. Turbotax 2011 edition Pensions, Disability Pensions Workers' compensation, Disability pension. Turbotax 2011 edition Person with, Persons with disabilities. Turbotax 2011 edition Unemployment compensation, paid as substitute for, Types of unemployment compensation. Turbotax 2011 edition Disaster relief Disaster mitigation payments, Disaster mitigation payments. Turbotax 2011 edition Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. Turbotax 2011 edition Unemployment benefits, Unemployment Benefits Mitigation payments, Reminders Payments, Disaster relief payments. Turbotax 2011 edition Discounts Employee discounts, Employee Discounts Employee stock purchase plans, Option granted at a discount. Turbotax 2011 edition Mortgage loan for early payment, Discounted mortgage loan. Turbotax 2011 edition Dividends Restricted stock, Dividends received on restricted stock. Turbotax 2011 edition Divorced taxpayers Stock options exercised incident to divorce, Tax form. Turbotax 2011 edition Down payment assistance, Down payment assistance. Turbotax 2011 edition E Educational assistance Employer-provided, Educational Assistance Scholarships and fellowships, Scholarships and fellowships. Turbotax 2011 edition Educational institutions Faculty lodging, Faculty lodging. Turbotax 2011 edition Elderly persons Nutrition Program for the Elderly, Nutrition Program for the Elderly. Turbotax 2011 edition Tax Counseling for the Elderly, Volunteer tax counseling. Turbotax 2011 edition Election precinct officials, Election precinct official. Turbotax 2011 edition Elective deferrals, Elective Deferrals Catch-up contributions, Catch-up contributions. Turbotax 2011 edition , Catch-up contributions. Turbotax 2011 edition Excess annual additions, Excess Annual Additions Excess contributions, Excess Contributions Excess deferrals, Excess deferrals. Turbotax 2011 edition Increased limit for last 3 years prior to retirement age, Increased limit. Turbotax 2011 edition Limit on, Elective Deferrals Reporting by employer, Reporting by employer. Turbotax 2011 edition Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. Turbotax 2011 edition Emotional distress damages, Emotional distress. Turbotax 2011 edition Employee achievement awards, Employee achievement award. Turbotax 2011 edition Employee awards or bonuses, Employee awards or bonuses. Turbotax 2011 edition Employee compensation, Employee Compensation, Inherited property not substantially vested. Turbotax 2011 edition Fringe benefits, Fringe Benefits, Special valuation rules. Turbotax 2011 edition Restricted property, Restricted Property, Inherited property not substantially vested. Turbotax 2011 edition Retirement plan contributions, Retirement Plan Contributions Stock options, Stock Options, Statutory Stock Options Employee discounts, Employee Discounts Employee stock purchase plans, Statutory Stock Options, Employee stock purchase plan. Turbotax 2011 edition Employer, foreign, Foreign Employer Employer-owned life insurance, Employer-owned life insurance contract. Turbotax 2011 edition Employer-provided Educational assistance, Educational Assistance Vehicles, Employer-provided vehicles. Turbotax 2011 edition Employment Abroad, Employment abroad. Turbotax 2011 edition Agency fees, Employment agency fees. Turbotax 2011 edition Contracts Severance pay for cancellation of, Severance pay. Turbotax 2011 edition Endowment proceeds, Endowment Contract Proceeds Energy Assistance, Payments to reduce cost of winter energy. Turbotax 2011 edition Conservation Subsidies, Energy conservation subsidies. Turbotax 2011 edition Utility rebates, Utility rebates. Turbotax 2011 edition Estate income, Estate and trust income. Turbotax 2011 edition Estimated tax Unemployment compensation, Tax withholding. Turbotax 2011 edition Excess Annual additions, Excess Annual Additions Contributions, Excess Contributions Deferrals, Excess deferrals. Turbotax 2011 edition Expected inheritance, Expected inheritance. Turbotax 2011 edition Expenses paid by another, Expenses paid by another. Turbotax 2011 edition Exxon Valdez settlement, Exxon Valdez settlement income. Turbotax 2011 edition Eligible retirement plan, Contributions to eligible retirement plan. Turbotax 2011 edition Income averaging, Income averaging. Turbotax 2011 edition Legal expenses, Legal expenses. Turbotax 2011 edition Reporting requirement-statement, Statement. Turbotax 2011 edition F Faculty lodging, Faculty lodging. Turbotax 2011 edition Fair market value (FMV), Fair market value. Turbotax 2011 edition Stock options, Grant of option. Turbotax 2011 edition Farming Qualified farm debt, cancellation of, Excluded debt. Turbotax 2011 edition Federal employees Accrued leave payment, Accrued leave payment. Turbotax 2011 edition Cost-of-living allowances, Government cost-of-living allowances. Turbotax 2011 edition Disability pensions, Military and Government Disability Pensions Thrift Savings Plan for, Elective Deferrals Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). Turbotax 2011 edition Federal income tax Refunds, Federal income tax refund. Turbotax 2011 edition Fees for services, Fees for services. Turbotax 2011 edition Financial counseling fees, Financial Counseling Fees Fellowships, Scholarships and fellowships. Turbotax 2011 edition FICA withholding Foreign employers, U. Turbotax 2011 edition S. Turbotax 2011 edition citizens working for in U. Turbotax 2011 edition S. Turbotax 2011 edition , Social security and Medicare taxes. Turbotax 2011 edition Paid by employer, Social security and Medicare taxes paid by employer. Turbotax 2011 edition Fiduciaries Fees for services, Fees for services. Turbotax 2011 edition , Personal representatives. Turbotax 2011 edition Financial counseling fees, Financial Counseling Fees (see also Retirement planning services) Fitness programs Employer-provided, Athletic Facilities Flights Employer-provided aircraft, Flights on employer-provided aircraft. Turbotax 2011 edition No-additional-cost services, No-Additional-Cost Services Food benefits Daycare providers, food program payments to, Food program payments to daycare providers. Turbotax 2011 edition Nutrition Program for the Elderly, Nutrition Program for the Elderly. Turbotax 2011 edition Foreign Currency transactions, Foreign currency transactions. Turbotax 2011 edition Employment, Foreign Employer Governments, employees of, Employees of international organizations or foreign governments. Turbotax 2011 edition Income, Reminders Service, Service-connected disability. Turbotax 2011 edition Form 1040 Excess contributions to elective deferrals, Excess Contributions Recoveries, Where to report. Turbotax 2011 edition Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040 or 1040A, Schedule B Restricted stock dividends, Stock you chose to include in your income. Turbotax 2011 edition Form 1040, Schedule A Outplacement services, deduction for, Outplacement services. Turbotax 2011 edition Repayment of commissions paid in advance, Advance commissions and other earnings. Turbotax 2011 edition Form 1040, Schedule C Bartering, Bartering Childcare providers to use, Childcare providers. Turbotax 2011 edition Personal property rental, reporting income from, Reporting business income and expenses. Turbotax 2011 edition Royalties, Royalties Form 1040, Schedule C-EZ Bartering, Bartering Childcare Providers to use, Childcare providers. Turbotax 2011 edition Personal property rental, reporting income from, Reporting business income and expenses. Turbotax 2011 edition Royalties, Royalties Form 1040, Schedule D Stock options, Sale of the stock. Turbotax 2011 edition Stock options reported on, Statutory Stock Options Form 1040, Schedule E Partner's return, Partner's return. Turbotax 2011 edition Royalties, Royalties Form 1040A Recoveries, Where to report. Turbotax 2011 edition Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040EZ Recoveries, Where to report. Turbotax 2011 edition Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1041 Estates and trusts, Estate and trust income. Turbotax 2011 edition Form 1041, Schedule K-1 Beneficiary's share of income, deductions, credits, etc. Turbotax 2011 edition , Estate and trust income. Turbotax 2011 edition Form 1065 Partnership return, Partnership return. Turbotax 2011 edition Form 1065, Schedule K-1 Partner's share of income, Schedule K-1 (Form 1065). Turbotax 2011 edition , Partnership Income Form 1098 Mortgage interest statement, Mortgage interest refund. Turbotax 2011 edition Form 1099-B Barter exchange transactions, Form 1099-B from barter exchange. Turbotax 2011 edition , Backup withholding. Turbotax 2011 edition Form 1099-C Cancellation of debt, Form 1099-C. Turbotax 2011 edition Form 1099-DIV Restricted stock dividends, Stock you chose to include in your income. Turbotax 2011 edition Form 1099-G State tax refunds, State tax refund. Turbotax 2011 edition Unemployment compensation, Unemployment Benefits Form 1099-MISC Services totaling $600 or more, Fees for services. Turbotax 2011 edition Stock options exercised incident to divorce, Tax form. Turbotax 2011 edition Form 1099-R Charitable gift annuities, Charitable gift annuities. Turbotax 2011 edition Excess annual additions, Excess Annual Additions Excess deferral amounts, Excess distributed to you. Turbotax 2011 edition Surrender of life insurance policy for cash, Surrender of policy for cash. Turbotax 2011 edition Form 1120-POL Political organizations, Campaign contributions. Turbotax 2011 edition Form 1120S S corporation return, S corporation return. Turbotax 2011 edition Form 1120S, Schedule K-1 Shareholder's share of income, credits, deductions, etc. Turbotax 2011 edition , Schedule K-1 (Form 1120S). Turbotax 2011 edition Form 2441 Child and dependent care expenses, Dependent Care Benefits Form 4255 Recapture of investment credit, Amounts Recovered for Credits Form 6251 Alternative minimum tax, Alternative minimum tax (AMT). Turbotax 2011 edition Form 8839 Adoption assistance, Adoption Assistance Form 8853 Accelerated death benefits, Form 8853. Turbotax 2011 edition Archer MSAs and long-term care insurance contracts, Archer MSA contributions. Turbotax 2011 edition Form 8919 Uncollected social security and Medicare tax on wages, Employee Compensation Form RRB-1099 Railroad retirement board payments, Form RRB-1099. Turbotax 2011 edition Form SSA-1099 Social security benefit statement, Form SSA-1099. Turbotax 2011 edition Form W-2 501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions. Turbotax 2011 edition Accrued leave payment at time of retirement or resignation, Accrued leave payment. Turbotax 2011 edition Back pay awards, Back pay awards. Turbotax 2011 edition Bonuses or awards, Bonuses and awards. Turbotax 2011 edition Elective deferrals, reporting by employer, Reporting by employer. Turbotax 2011 edition Failure to receive from employer, Employee Compensation Fringe benefits reported on, Form W-2. Turbotax 2011 edition Stock options from employers, Tax form. Turbotax 2011 edition Wage and tax statement, Employee Compensation Form W-2G Gambling winnings, Form W-2G. Turbotax 2011 edition Form W-4V Unemployment compensation, voluntary withholding request, Tax withholding. Turbotax 2011 edition Form W-9 Request for taxpayer identification number, Backup withholding. Turbotax 2011 edition Foster care, Foster care providers. Turbotax 2011 edition Foster Grandparent Program, National Senior Service Corps programs. Turbotax 2011 edition Found property, Found property. Turbotax 2011 edition Free tax services, Free help with your tax return. Turbotax 2011 edition Fringe benefits, Fringe Benefits, Special valuation rules. Turbotax 2011 edition Accident and health insurance, Accident or Health Plan Adoption, employer assistance, Adoption Assistance Athletic facilities, Athletic Facilities Commuter highway vehicles, Transportation De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Dependent care benefits, Dependent Care Benefits Educational assistance, Educational Assistance Employee discounts, Employee Discounts Faculty lodging, Faculty lodging. Turbotax 2011 edition Financial counseling fees, Financial Counseling Fees Holiday gifts, Holiday gifts. Turbotax 2011 edition Meals and lodging, Meals and Lodging Moving expenses (see Moving expenses) No-additional-cost services, No-Additional-Cost Services Parking, Transportation Retirement planning (see Retirement planning services) Transit pass, Transportation, Transit pass. Turbotax 2011 edition Tuition reduction, Tuition Reduction Valuation of, Valuation of Fringe Benefits, Special valuation rules. Turbotax 2011 edition Vehicle, Employer-provided vehicles. Turbotax 2011 edition Working condition benefits, Working Condition Benefits Frozen deposits Interest on, Interest on frozen deposits. Turbotax 2011 edition G Gambling winnings and losses, Gambling winnings. Turbotax 2011 edition Gas Royalties from, Oil, gas, and minerals. Turbotax 2011 edition Gifts, Gifts and inheritances. Turbotax 2011 edition Holiday gifts from employer, Holiday gifts. Turbotax 2011 edition Government employees (see Federal employees; State employees) Grantor trusts, Grantor trust. Turbotax 2011 edition Group-term life insurance Worksheets, Figuring the taxable cost. Turbotax 2011 edition , Worksheet 1. Turbotax 2011 edition Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Gulf oil spill, Reminders, Gulf oil spill. Turbotax 2011 edition H HAMP Home affordable modification program Pay-for-performance success payments, Home Affordable Modification Program (HAMP). Turbotax 2011 edition Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. Turbotax 2011 edition Health Flexible spending arrangement, Health flexible spending arrangement (health FSA). Turbotax 2011 edition Insurance, Accident or Health Plan Reimbursement arrangement, Health reimbursement arrangement (HRA). Turbotax 2011 edition Savings account, Health savings accounts (HSA). Turbotax 2011 edition Help (see Tax help) Highly compensated employees Excess contributions to elective deferrals, Excess Contributions Historic preservation grants, Historic preservation grants. Turbotax 2011 edition Hobby losses, Hobby losses. Turbotax 2011 edition Holding period requirement, Holding period requirement. Turbotax 2011 edition Holiday gifts, Holiday gifts. Turbotax 2011 edition Holocaust victims restitution, Holocaust victims restitution. Turbotax 2011 edition Home, sale of, Sale of home. Turbotax 2011 edition Host or hostess, Host or Hostess Hotels No-additional-cost services, No-Additional-Cost Services Housing (see Lodging) I Illegal activities, Illegal activities. Turbotax 2011 edition Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs). Turbotax 2011 edition Income Assigned, Assignment of income. Turbotax 2011 edition Business and investment, Business and Investment Income, More information. Turbotax 2011 edition Constructive receipt of, Constructively received income. Turbotax 2011 edition Estate and trust, Estate and trust income. Turbotax 2011 edition Foreign employers, Foreign Employer Illegal, Illegal activities. Turbotax 2011 edition Miscellaneous, Miscellaneous Income Other, Other Income Partnership, Partnership Income Prepaid, Prepaid income. Turbotax 2011 edition S corporation, S Corporation Income Indian fishing rights, Indian fishing rights. Turbotax 2011 edition Indian money account, Indian money account litigation settlement. Turbotax 2011 edition Individual retirement arrangements (IRAs) Deduction, Benefits may affect your IRA deduction. Turbotax 2011 edition Inherited IRA, Inherited pension or IRA. Turbotax 2011 edition Inheritance, Gifts and inheritances. Turbotax 2011 edition IRA, Inherited pension or IRA. Turbotax 2011 edition Property not substantially vested, Inherited property not substantially vested. Turbotax 2011 edition Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. Turbotax 2011 edition Insurance Credit card, Credit card insurance. Turbotax 2011 edition Health, Accident or Health Plan Life (see Life insurance) Long-term care (see Long-term care insurance) Interest Canceled debt including, Interest included in canceled debt. Turbotax 2011 edition Frozen deposits, Interest on frozen deposits. Turbotax 2011 edition Mortgage refunds, Mortgage interest refund. Turbotax 2011 edition Option on insurance, Interest option on insurance. Turbotax 2011 edition Recovery amounts, Interest on recovery. Turbotax 2011 edition Savings bond, Interest on qualified savings bonds. Turbotax 2011 edition State and local government obligations, Interest on state and local government obligations. Turbotax 2011 edition Interference with business operations Damages as income, Court awards and damages. Turbotax 2011 edition International organizations, employees of, Foreign Employer Interview expenses, Job interview expenses. Turbotax 2011 edition Investment counseling fees, Financial Counseling Fees (see also Retirement planning services) Investment income, Business and Investment Income, More information. Turbotax 2011 edition IRAs (see Individual retirement arrangements (IRAs)) Iron ore, Coal and iron ore. Turbotax 2011 edition Itemized deductions Limited, Itemized deductions limited. Turbotax 2011 edition Recoveries, Recoveries, Itemized Deduction Recoveries J Job interview expenses, Job interview expenses. Turbotax 2011 edition Joint returns Social security benefits or railroad retirement payments, Joint return. Turbotax 2011 edition Joint state/local tax return Recoveries, Joint state or local income tax return. Turbotax 2011 edition Jury duty pay, Jury duty. Turbotax 2011 edition K Kickbacks, Kickbacks. Turbotax 2011 edition L Labor unions Convention expenses, reimbursed, Reimbursed union convention expenses. Turbotax 2011 edition Dues, Union benefits and dues. Turbotax 2011 edition Strike and lockout benefits, Strike and lockout benefits. Turbotax 2011 edition Unemployment benefits paid from, Payments by a union. Turbotax 2011 edition Last day of tax year, income received on, Constructively received income. Turbotax 2011 edition Leave (see Accrued leave payment) Length-of-service awards, Employee achievement award. Turbotax 2011 edition Life insurance Employer-owned, Employer-owned life insurance contract. Turbotax 2011 edition Proceeds, Life Insurance Proceeds Surrender of policy for cash, Surrender of policy for cash. Turbotax 2011 edition Loans, Discounted mortgage loan. Turbotax 2011 edition (see also Mortgage) Below-market, Below-market loans. Turbotax 2011 edition Student, Student loans. Turbotax 2011 edition Lockout benefits, Strike and lockout benefits. Turbotax 2011 edition Lodging Campus lodging, Qualified campus lodging. Turbotax 2011 edition , Moving Expense Reimbursements Clergy, Housing Employer-paid or reimbursed, Meals and Lodging Faculty lodging, Faculty lodging. Turbotax 2011 edition Replacement housing payments, Replacement housing payments. Turbotax 2011 edition Long-term care insurance, Long-term care coverage. Turbotax 2011 edition , Long-Term Care Insurance Contracts Lotteries and raffles, Lotteries and raffles. Turbotax 2011 edition Lump-sum distributions Survivor benefits, Lump-sum payments. Turbotax 2011 edition M Manufacturer incentive payments, Manufacturer incentive payments. Turbotax 2011 edition Meals Employer-paid or reimbursed, Meals and Lodging Nutrition Program for the Elderly, Nutrition Program for the Elderly. Turbotax 2011 edition Medical Care reimbursements, Reimbursement for medical care. Turbotax 2011 edition Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Turbotax 2011 edition Medicare Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Turbotax 2011 edition Benefits, Medicare. Turbotax 2011 edition Tax paid by employer, Social security and Medicare taxes paid by employer. Turbotax 2011 edition Medicare tax (see Social security and Medicare taxes) Military (see Armed forces) Minerals Royalties from, Oil, gas, and minerals. Turbotax 2011 edition Miscellaneous Compensation, Miscellaneous Compensation Income, Miscellaneous Income Missing children, photographs of, Reminders Mortgage Assistance payment (under sec. Turbotax 2011 edition 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. Turbotax 2011 edition Discounted loan, Discounted mortgage loan. Turbotax 2011 edition Interest refund, Mortgage interest refund. Turbotax 2011 edition Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI). Turbotax 2011 edition Relief, Mortgage relief upon sale or other disposition. Turbotax 2011 edition Motor vehicle, employer-provided, Employer-provided vehicles. Turbotax 2011 edition Moving expenses Reimbursements, Allowances and reimbursements. Turbotax 2011 edition , Moving expense reimbursements. Turbotax 2011 edition MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). Turbotax 2011 edition N National Health Service Corps Scholarship Program, Tuition Reduction National Oceanic and Atmospheric Administration, Service-connected disability. Turbotax 2011 edition National Senior Service Corps, National Senior Service Corps programs. Turbotax 2011 edition No-additional-cost services, No-Additional-Cost Services No-fault car insurance Disability benefits under, Other compensation. Turbotax 2011 edition Nobel prize, Pulitzer, Nobel, and similar prizes. Turbotax 2011 edition Nonrecourse debt, Mortgage relief upon sale or other disposition. Turbotax 2011 edition Nonstatutory stock options, Nonstatutory Stock Options Nontaxable income, Introduction Not-for-profit activities, Activity not for profit. Turbotax 2011 edition Notary fees, Notary public. Turbotax 2011 edition Notes received for services, Note received for services. Turbotax 2011 edition Nutrition Program for the Elderly, Nutrition Program for the Elderly. Turbotax 2011 edition O Oil Royalties from, Oil, gas, and minerals. Turbotax 2011 edition Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). Turbotax 2011 edition Options, stock, Stock Options, Statutory Stock Options Outplacement services, Outplacement services. Turbotax 2011 edition Overseas work, Reminders P Parking fees Employer-paid or reimbursed, Transportation, Qualified parking. Turbotax 2011 edition Partner and partnership income, Partnership Income Patents Infringement damages, Court awards and damages. Turbotax 2011 edition Royalties, Copyrights and patents. Turbotax 2011 edition Peace Corps, Peace Corps. Turbotax 2011 edition Pensions Clergy, Pension. Turbotax 2011 edition Disability pensions, Disability Pensions Inherited pensions, Inherited pension or IRA. Turbotax 2011 edition Military, Military retirement pay. Turbotax 2011 edition Personal property Rental income and expense, Rents From Personal Property Sale of, Sale of personal items. Turbotax 2011 edition Personal representatives (see Fiduciaries) Prepaid income, Prepaid income. Turbotax 2011 edition Price reduced after purchase, Price reduced after purchase. Turbotax 2011 edition Prizes and awards, Bonuses and awards. Turbotax 2011 edition , Prizes and awards. Turbotax 2011 edition Achievement awards, Employee achievement award. Turbotax 2011 edition Employee awards or bonuses, Employee awards or bonuses. Turbotax 2011 edition Length-of-service awards, Employee achievement award. Turbotax 2011 edition Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes. Turbotax 2011 edition Safety achievement, Employee achievement award. Turbotax 2011 edition Scholarship prizes, Prizes. Turbotax 2011 edition Profit-sharing plan, Retirement and profit-sharing plans. Turbotax 2011 edition Public assistance benefits, Welfare and Other Public Assistance Benefits Public Health Service, Service-connected disability. Turbotax 2011 edition Public safety officers killed in line of duty, Public safety officer killed in the line of duty. Turbotax 2011 edition Public transportation passes, employer-provided, Transportation, Transit pass. Turbotax 2011 edition Publications (see Tax help) Pulitzer prize, Pulitzer, Nobel, and similar prizes. Turbotax 2011 edition Punitive damages, Court awards and damages. Turbotax 2011 edition Q Qualified joint venture, Reminders Qualified tuition program (QTP), Qualified tuition program (QTP). Turbotax 2011 edition R Raffles, Lotteries and raffles. Turbotax 2011 edition Railroad Retirement annuities, Railroad retirement annuities. Turbotax 2011 edition Retirement benefits, Social security and equivalent railroad retirement benefits. Turbotax 2011 edition Sick pay, Railroad sick pay. Turbotax 2011 edition Unemployment compensation benefits, Types of unemployment compensation. Turbotax 2011 edition Real estate Qualified real property business debt, cancellation of, Excluded debt. Turbotax 2011 edition Rebates Cash, Cash rebates. Turbotax 2011 edition Utility, Utility rebates. Turbotax 2011 edition Recovery of amounts previously deducted, Recoveries, Standard deduction for earlier years. Turbotax 2011 edition Itemized deductions, Recoveries, Itemized Deduction Recoveries Non-itemized deductions, Non-Itemized Deduction Recoveries Unused tax credits, refiguring of, Unused tax credits. Turbotax 2011 edition , Unused tax credits. Turbotax 2011 edition Refunds Federal income tax, Federal income tax refund. Turbotax 2011 edition Mortgage interest, Mortgage interest refund. Turbotax 2011 edition State tax, State tax refund. Turbotax 2011 edition Rehabilitative program payments, Veterans' benefits. Turbotax 2011 edition Reimbursements Business expenses, Allowances and reimbursements. Turbotax 2011 edition Casualty losses, Casualty insurance and other reimbursements. Turbotax 2011 edition Meals and lodging, Meals and Lodging Medical expenses, Reimbursement for medical care. Turbotax 2011 edition Moving expenses, Allowances and reimbursements. Turbotax 2011 edition , Moving expense reimbursements. Turbotax 2011 edition Related party transactions Stock option transfer, Transfer in non-arm's-length transaction. Turbotax 2011 edition Religious order members, Members of Religious Orders Rental income and expenses Personal property rental, Rents From Personal Property Reporting of, Reporting business income and expenses. Turbotax 2011 edition Repayments, Repayments, Year of deduction (or credit). Turbotax 2011 edition Repossession, Canceled sales contract. Turbotax 2011 edition Restricted property, Restricted Property, Inherited property not substantially vested. Turbotax 2011 edition Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs. Turbotax 2011 edition Retirement Settlement, Reminders Retirement planning services, Financial Counseling Fees, Retirement Planning Services Retirement plans, Military retirement pay. Turbotax 2011 edition (see also Pensions) Automatic contribution arrangements, Qualified automatic contribution arrangements. Turbotax 2011 edition Contributions, Retirement Plan Contributions, Excess Annual Additions, Statutory Stock Options Elective deferrals (see Elective deferrals) Rewards, Rewards. Turbotax 2011 edition Roth contributions, Designated Roth contributions. Turbotax 2011 edition Royalties, Royalties S S corporations, S Corporation Income Safety achievement awards, Employee achievement award. Turbotax 2011 edition Salary reduction simplified employee pension plans (see SARSEPs) Sale of home, Sale of home. Turbotax 2011 edition Sales contracts Cancellation of, Canceled sales contract. Turbotax 2011 edition SARSEPs, Elective Deferrals Excess contributions, Excess Contributions Savings bonds, Interest on qualified savings bonds. Turbotax 2011 edition Savings incentive match plans for employees (see SIMPLE plans) Scholarships and fellowships, Scholarships and fellowships. Turbotax 2011 edition Self-employed persons U. Turbotax 2011 edition S. Turbotax 2011 edition citizens working for foreign employers in U. Turbotax 2011 edition S. Turbotax 2011 edition treated as, Social security and Medicare taxes. Turbotax 2011 edition Senior Companion Program, National Senior Service Corps programs. Turbotax 2011 edition Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE). Turbotax 2011 edition Severance pay, Severance pay. Turbotax 2011 edition Outplacement services, Outplacement services. Turbotax 2011 edition Sick pay, Sick pay. Turbotax 2011 edition Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. Turbotax 2011 edition SIMPLE plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under SIMPLE plans. Turbotax 2011 edition Smallpox vaccine injuries, Smallpox vaccine injuries. Turbotax 2011 edition Social security and Medicare taxes Foreign employers, U. Turbotax 2011 edition S. Turbotax 2011 edition citizens working for in U. Turbotax 2011 edition S. Turbotax 2011 edition , Social security and Medicare taxes. Turbotax 2011 edition Paid by employer, Social security and Medicare taxes paid by employer. Turbotax 2011 edition Social security benefits, Social security and equivalent railroad retirement benefits. Turbotax 2011 edition Standard deduction Recoveries, Standard deduction limit. Turbotax 2011 edition , Standard deduction for earlier years. Turbotax 2011 edition State employees Unemployment benefits paid to, State employees. Turbotax 2011 edition State or local governments Interest on obligations of, Interest on state and local government obligations. Turbotax 2011 edition State or local taxes Refunds, State tax refund. Turbotax 2011 edition Statutory stock option holding period, Sale of the stock. Turbotax 2011 edition Stock appreciation rights, Stock appreciation rights. Turbotax 2011 edition Stock options, Stock Options, Statutory Stock Options Stock options, nonstatutory Exercise or transfer, Exercise or transfer of option. Turbotax 2011 edition Grant, Grant of option. Turbotax 2011 edition Sale, Sale of the stock. Turbotax 2011 edition Stock options, statutory Exercise, Exercise of option. Turbotax 2011 edition Grant, Grant of option. Turbotax 2011 edition Sale, Sale of the stock. Turbotax 2011 edition Stockholder debts, Stockholder debt. Turbotax 2011 edition Stolen property, Stolen property. Turbotax 2011 edition Strike benefits, Strike and lockout benefits. Turbotax 2011 edition Student loans Cancellation of debt, Student loans. Turbotax 2011 edition Substantial risk of forfeiture, Substantial risk of forfeiture. Turbotax 2011 edition Substantially vested property, Substantially vested. Turbotax 2011 edition Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits. Turbotax 2011 edition Supplemental unemployment benefits, Supplemental unemployment benefits. Turbotax 2011 edition Surviving spouse Life insurance proceeds paid to, Surviving spouse. Turbotax 2011 edition Survivor benefits, Survivor Benefits T Tables and figures Group-term life insurance (Table 1), Group-Term Life Insurance Tax benefit rule, Tax benefit rule. Turbotax 2011 edition Tax Counseling for the Elderly, Volunteer tax counseling. Turbotax 2011 edition Tax help, How To Get Tax Help Tax-sheltered annuity plans (403(b) plans), Elective Deferrals Limit for, Limit for tax-sheltered annuities. Turbotax 2011 edition Terminal illness, Exclusion for terminal illness. Turbotax 2011 edition Terrorist attacks Disability payments for injuries from, Terrorist attack or military action. Turbotax 2011 edition Victims of, tax relief, Reminders Thrift Savings Plan, Elective Deferrals Title VII, Civil Rights Act of 1964 Back pay and damages for emotional distress under, Court awards and damages. Turbotax 2011 edition Tour guides, free tours for, Free tour. Turbotax 2011 edition Trade Act of 1974 Trade readjustment allowances under, Types of unemployment compensation. Turbotax 2011 edition , Repayment of benefits. Turbotax 2011 edition Transferable property, Transferable property. Turbotax 2011 edition Transit passes, Transportation, Transit pass. Turbotax 2011 edition Travel agencies Free tour to organizer of group of tourists, Free tour. Turbotax 2011 edition Travel and transportation expenses Free tours from travel agencies, Free tour. Turbotax 2011 edition Fringe benefits, Transportation Reimbursements, Allowances and reimbursements. Turbotax 2011 edition School children, transporting of, Transporting school children. Turbotax 2011 edition Trusts Grantor trusts, Grantor trust. Turbotax 2011 edition Income, Estate and trust income. Turbotax 2011 edition Tuition program, qualified (QTP), Qualified tuition program (QTP). Turbotax 2011 edition Tuition reduction, Tuition Reduction U Unemployment compensation, Unemployment Benefits Unions (see Labor unions) Unlawful discrimination suits Deduction for costs, Deduction for costs involved in unlawful discrimination suits. Turbotax 2011 edition V VA payments, VA payments. Turbotax 2011 edition Valuation Fringe benefits, Valuation of Fringe Benefits, Special valuation rules. Turbotax 2011 edition Stock options, Nonstatutory Stock Options Vehicle Commuter highway, Commuter highway vehicle. Turbotax 2011 edition Employer-provided, Employer-provided vehicles. Turbotax 2011 edition Veterans benefits, Veterans' benefits. Turbotax 2011 edition Disability compensation, Retroactive VA determination. Turbotax 2011 edition Retroactive VA determination, Retroactive VA determination. Turbotax 2011 edition Special statute of limitations. Turbotax 2011 edition , Special statute of limitations. Turbotax 2011 edition Viatical settlements, Viatical settlement. Turbotax 2011 edition Volunteer work, Volunteers Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling. Turbotax 2011 edition Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA). Turbotax 2011 edition W W-2 form (see Form W-2) Welfare benefits, Welfare and Other Public Assistance Benefits Whistleblower, Whistleblower's award. Turbotax 2011 edition Winter energy payments, Payments to reduce cost of winter energy. Turbotax 2011 edition Withholding Barter exchange transactions, Backup withholding. Turbotax 2011 edition Unemployment compensation, Tax withholding. Turbotax 2011 edition Work-training programs, Work-training program. Turbotax 2011 edition Workers' compensation, Workers' Compensation Working condition benefits, Working Condition Benefits Worksheets Group-term life insurance (Worksheet 1), Figuring the taxable cost. Turbotax 2011 edition , Worksheet 1. Turbotax 2011 edition Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Prev  Up     Home   More Online Publications
Español

Mine Safety and Health Administration

The Mine Safety and Health Administration works to prevent mining related deaths, injuries, and illnesses through mine regulations, inspections, and training programs.

Contact the Agency or Department

Website: Mine Safety and Health Administration

Address: 1100 Wilson Boulevard
21st Floor

Arlington, VA 22209-3939

Phone Number: (202) 693-9400

Toll-free: (800) 746-1553 (Hazardous Condition Complaints)

The Turbotax 2011 Edition

Turbotax 2011 edition 1. Turbotax 2011 edition   Traditional IRAs Table of Contents What's New for 2013 What's New for 2014 Introduction Who Can Open a Traditional IRA?What Is Compensation? When Can a Traditional IRA Be Opened? How Can a Traditional IRA Be Opened?Individual Retirement Account Individual Retirement Annuity Individual Retirement Bonds Simplified Employee Pension (SEP) Employer and Employee Association Trust Accounts Required Disclosures How Much Can Be Contributed?Limit. Turbotax 2011 edition When repayment contributions can be made. Turbotax 2011 edition No deduction. Turbotax 2011 edition Reserve component. Turbotax 2011 edition Figuring your IRA deduction. Turbotax 2011 edition Reporting the repayment. Turbotax 2011 edition Example. Turbotax 2011 edition General Limit Kay Bailey Hutchison Spousal IRA Limit Filing Status Less Than Maximum Contributions More Than Maximum Contributions When Can Contributions Be Made? How Much Can You Deduct?Kay Bailey Hutchison Spousal IRA. Turbotax 2011 edition Are You Covered by an Employer Plan? Limit if Covered by Employer Plan Reporting Deductible Contributions Nondeductible Contributions Examples — Worksheet for Reduced IRA Deduction for 2013 What if You Inherit an IRA?Treating it as your own. Turbotax 2011 edition Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. Turbotax 2011 edition Trustee-to-Trustee Transfer Rollovers Transfers Incident To Divorce Converting From Any Traditional IRA Into a Roth IRA Recharacterizations When Can You Withdraw or Use Assets?Contributions Returned Before Due Date of Return When Must You Withdraw Assets? (Required Minimum Distributions)IRA Owners IRA Beneficiaries Which Table Do You Use To Determine Your Required Minimum Distribution? What Age(s) Do You Use With the Table(s)? Miscellaneous Rules for Required Minimum Distributions Are Distributions Taxable?January 2013 QCDs treated as made in 2012. Turbotax 2011 edition 2013 Reporting. Turbotax 2011 edition Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. Turbotax 2011 edition One-time transfer. Turbotax 2011 edition Testing period rules apply. Turbotax 2011 edition More information. Turbotax 2011 edition Distributions Fully or Partly Taxable Figuring the Nontaxable and Taxable Amounts Recognizing Losses on Traditional IRA Investments Other Special IRA Distribution Situations Reporting and Withholding Requirements for Taxable Amounts What Acts Result in Penalties or Additional Taxes?Prohibited Transactions Investment in Collectibles Excess Contributions Early Distributions Excess Accumulations (Insufficient Distributions) Reporting Additional Taxes What's New for 2013 Traditional IRA contribution and deduction limit. Turbotax 2011 edition  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. Turbotax 2011 edition 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. Turbotax 2011 edition For more information, see How Much Can Be Contributed? in this chapter. Turbotax 2011 edition Modified AGI limit for traditional IRA contributions increased. Turbotax 2011 edition  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. Turbotax 2011 edition 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. Turbotax 2011 edition If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Turbotax 2011 edition See How Much Can You Deduct? in this chapter. Turbotax 2011 edition Net Investment Income Tax. Turbotax 2011 edition  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). Turbotax 2011 edition However, these distributions are taken into account when determining the modified adjusted gross income threshold. Turbotax 2011 edition Distributions from a nonqualified retirement plan are included in net investment income. Turbotax 2011 edition See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Turbotax 2011 edition What's New for 2014 Modified AGI limit for traditional IRA contributions increased. Turbotax 2011 edition  For 2014, if you are 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 $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er), More than $60,000 but less than $70,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Turbotax 2011 edition If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. Turbotax 2011 edition If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. Turbotax 2011 edition Introduction This chapter discusses the original IRA. Turbotax 2011 edition In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Turbotax 2011 edition ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Turbotax 2011 edition The following are two advantages of a traditional IRA: You may be able to deduct some or all of your contributions to it, depending on your circumstances. Turbotax 2011 edition Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Turbotax 2011 edition 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. Turbotax 2011 edition You can have a traditional IRA whether or not you are covered by any other retirement plan. Turbotax 2011 edition However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. Turbotax 2011 edition See How Much Can You Deduct , later. Turbotax 2011 edition Both spouses have compensation. Turbotax 2011 edition   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. Turbotax 2011 edition You cannot both participate in the same IRA. Turbotax 2011 edition If you file a joint return, only one of you needs to have compensation. Turbotax 2011 edition What Is Compensation? Generally, compensation is what you earn from working. Turbotax 2011 edition For a summary of what compensation does and does not include, see Table 1-1. Turbotax 2011 edition Compensation includes all of the items discussed next (even if you have more than one type). Turbotax 2011 edition Wages, salaries, etc. Turbotax 2011 edition   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. Turbotax 2011 edition 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). Turbotax 2011 edition Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. Turbotax 2011 edition Commissions. Turbotax 2011 edition   An amount you receive that is a percentage of profits or sales price is compensation. Turbotax 2011 edition Self-employment income. Turbotax 2011 edition   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 deduction allowed for the deductible part of your self-employment taxes. Turbotax 2011 edition   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Turbotax 2011 edition Self-employment loss. Turbotax 2011 edition   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. Turbotax 2011 edition Alimony and separate maintenance. Turbotax 2011 edition   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. Turbotax 2011 edition Nontaxable combat pay. Turbotax 2011 edition   If you were a member of the U. Turbotax 2011 edition S. Turbotax 2011 edition Armed Forces, compensation includes any nontaxable combat pay you received. Turbotax 2011 edition This amount should be reported in box 12 of your 2013 Form W-2 with code Q. Turbotax 2011 edition Table 1-1. Turbotax 2011 edition Compensation for Purposes of an IRA Includes . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition Does not include . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition   earnings and profits from property. Turbotax 2011 edition wages, salaries, etc. Turbotax 2011 edition     interest and dividend income. Turbotax 2011 edition commissions. Turbotax 2011 edition     pension or annuity income. Turbotax 2011 edition self-employment income. Turbotax 2011 edition     deferred compensation. Turbotax 2011 edition alimony and separate maintenance. Turbotax 2011 edition     income from certain  partnerships. Turbotax 2011 edition nontaxable combat pay. Turbotax 2011 edition     any amounts you exclude from income. Turbotax 2011 edition     What Is Not Compensation? Compensation does not include any of the following items. Turbotax 2011 edition Earnings and profits from property, such as rental income, interest income, and dividend income. Turbotax 2011 edition Pension or annuity income. Turbotax 2011 edition Deferred compensation received (compensation payments postponed from a past year). Turbotax 2011 edition Income from a partnership for which you do not provide services that are a material income-producing factor. Turbotax 2011 edition Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Turbotax 2011 edition Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Turbotax 2011 edition When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Turbotax 2011 edition However, the time for making contributions for any year is limited. Turbotax 2011 edition See When Can Contributions Be Made , later. Turbotax 2011 edition How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. Turbotax 2011 edition You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Turbotax 2011 edition You can also open an IRA through your stockbroker. Turbotax 2011 edition Any IRA must meet Internal Revenue Code requirements. Turbotax 2011 edition The requirements for the various arrangements are discussed below. Turbotax 2011 edition Kinds of traditional IRAs. Turbotax 2011 edition   Your traditional IRA can be an individual retirement account or annuity. Turbotax 2011 edition It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Turbotax 2011 edition Individual Retirement Account An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. Turbotax 2011 edition The account is created by a written document. Turbotax 2011 edition The document must show that the account meets all of the following requirements. Turbotax 2011 edition The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. Turbotax 2011 edition The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. Turbotax 2011 edition However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. Turbotax 2011 edition Contributions, except for rollover contributions, must be in cash. Turbotax 2011 edition See Rollovers , later. Turbotax 2011 edition You must have a nonforfeitable right to the amount at all times. Turbotax 2011 edition Money in your account cannot be used to buy a life insurance policy. Turbotax 2011 edition Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. Turbotax 2011 edition You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. Turbotax 2011 edition See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Turbotax 2011 edition Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. Turbotax 2011 edition An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. Turbotax 2011 edition An individual retirement annuity must meet all the following requirements. Turbotax 2011 edition Your entire interest in the contract must be nonforfeitable. Turbotax 2011 edition The contract must provide that you cannot transfer any portion of it to any person other than the issuer. Turbotax 2011 edition There must be flexible premiums so that if your compensation changes, your payment can also change. Turbotax 2011 edition This provision applies to contracts issued after November 6, 1978. Turbotax 2011 edition The contract must provide that contributions cannot be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. Turbotax 2011 edition Distributions must begin by April 1 of the year following the year in which you reach age 70½. Turbotax 2011 edition See When Must You Withdraw Assets? (Required Minimum Distributions) , later. Turbotax 2011 edition Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. Turbotax 2011 edition The bonds have the following features. Turbotax 2011 edition They stop earning interest when you reach age 70½. Turbotax 2011 edition If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. Turbotax 2011 edition You cannot transfer the bonds. Turbotax 2011 edition If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. Turbotax 2011 edition See Age 59½ Rule under Early Distributions, later. Turbotax 2011 edition You can roll over redemption proceeds into IRAs. Turbotax 2011 edition Simplified Employee Pension (SEP) A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to receive such contributions. Turbotax 2011 edition Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. Turbotax 2011 edition See Publication 560 for more information about SEPs. Turbotax 2011 edition Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members. Turbotax 2011 edition The requirements for individual retirement accounts apply to these traditional IRAs. Turbotax 2011 edition Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA generally must give you a disclosure statement at least 7 days before you open your IRA. Turbotax 2011 edition However, the sponsor does not have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. Turbotax 2011 edition The disclosure statement must explain certain items in plain language. Turbotax 2011 edition For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. Turbotax 2011 edition This explanation must appear at the beginning of the disclosure statement. Turbotax 2011 edition If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. Turbotax 2011 edition The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. Turbotax 2011 edition These requirements apply to all sponsors. Turbotax 2011 edition How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Turbotax 2011 edition These limits and rules are explained below. Turbotax 2011 edition Community property laws. Turbotax 2011 edition   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. Turbotax 2011 edition This is the rule even in states with community property laws. Turbotax 2011 edition Brokers' commissions. Turbotax 2011 edition   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Turbotax 2011 edition For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. Turbotax 2011 edition Trustees' fees. Turbotax 2011 edition   Trustees' administrative fees are not subject to the contribution limit. Turbotax 2011 edition For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. Turbotax 2011 edition Qualified reservist repayments. Turbotax 2011 edition   If you 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 (defined later under Early Distributions) you received. Turbotax 2011 edition 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. Turbotax 2011 edition 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 a similar arrangement. Turbotax 2011 edition Limit. Turbotax 2011 edition   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. Turbotax 2011 edition When repayment contributions can be made. Turbotax 2011 edition   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. Turbotax 2011 edition No deduction. Turbotax 2011 edition   You cannot deduct qualified reservist repayments. Turbotax 2011 edition Reserve component. Turbotax 2011 edition   The term “reserve component” means the: Army National Guard of the United States, Army Reserve, Naval Reserve, Marine Corps Reserve, Air National Guard of the United States, Air Force Reserve, Coast Guard Reserve, or Reserve Corps of the Public Health Service. Turbotax 2011 edition Figuring your IRA deduction. Turbotax 2011 edition   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. Turbotax 2011 edition Reporting the repayment. Turbotax 2011 edition   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. Turbotax 2011 edition Example. Turbotax 2011 edition   In 2013, your IRA contribution limit is $5,500. Turbotax 2011 edition However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. Turbotax 2011 edition You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). Turbotax 2011 edition In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. Turbotax 2011 edition   For 2013, you can contribute a total of $8,500 to your IRA. Turbotax 2011 edition This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; and a $3,000 qualified reservist repayment. Turbotax 2011 edition You contribute the maximum allowable for the year. Turbotax 2011 edition Since you are making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $5,000 ($2,000 + $3,000) on line 1 of Form 8606. Turbotax 2011 edition The qualified reservist repayment is not deductible. Turbotax 2011 edition Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Turbotax 2011 edition See chapter 2 for information about Roth IRAs. Turbotax 2011 edition General Limit For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation (defined earlier) for the year. Turbotax 2011 edition Note. Turbotax 2011 edition This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). Turbotax 2011 edition 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. Turbotax 2011 edition (See Nondeductible Contributions , later. Turbotax 2011 edition ) Qualified reservist repayments do not affect this limit. Turbotax 2011 edition Examples. Turbotax 2011 edition George, who is 34 years old and single, earns $24,000 in 2013. Turbotax 2011 edition His IRA contributions for 2013 are limited to $5,500. Turbotax 2011 edition Danny, an unmarried college student working part time, earns $3,500 in 2013. Turbotax 2011 edition His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Turbotax 2011 edition More than one IRA. Turbotax 2011 edition   If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. Turbotax 2011 edition Annuity or endowment contracts. Turbotax 2011 edition   If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. Turbotax 2011 edition If more than this amount is contributed, the annuity or endowment contract is disqualified. Turbotax 2011 edition Kay Bailey Hutchison Spousal IRA Limit 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 two amounts: $5,500 ($6,500 if you are age 50 or older), or The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. Turbotax 2011 edition Your spouse's IRA contribution for the year to a traditional IRA. Turbotax 2011 edition Any contributions for the year to a Roth IRA on behalf of your spouse. Turbotax 2011 edition 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 age 50 or older or $13,000 if both of you are age 50 or older). Turbotax 2011 edition Note. Turbotax 2011 edition This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). Turbotax 2011 edition Example. Turbotax 2011 edition Kristin, a full-time student with no taxable compensation, marries Carl during the year. Turbotax 2011 edition Neither of them was age 50 by the end of 2013. Turbotax 2011 edition For the year, Carl has taxable compensation of $30,000. Turbotax 2011 edition He plans to contribute (and deduct) $5,500 to a traditional IRA. Turbotax 2011 edition If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. Turbotax 2011 edition This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the amount of his IRA contribution ($30,000 − $5,500 = $24,500), to her own compensation (-0-) to figure her maximum contribution to a traditional IRA. Turbotax 2011 edition In her case, $5,500 is her contribution limit, because $5,500 is less than $24,500 (her compensation for purposes of figuring her contribution limit). Turbotax 2011 edition Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit , your filing status has no effect on the amount of allowable contributions to your traditional IRA. Turbotax 2011 edition However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. Turbotax 2011 edition See How Much Can You Deduct , later. Turbotax 2011 edition Example. Turbotax 2011 edition Tom and Darcy are married and both are 53. Turbotax 2011 edition They both work and each has a traditional IRA. Turbotax 2011 edition Tom earned $3,800 and Darcy earned $48,000 in 2013. Turbotax 2011 edition Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint return. Turbotax 2011 edition They can contribute up to $6,500 to Darcy's IRA. Turbotax 2011 edition If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. Turbotax 2011 edition Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you cannot contribute more after the due date of your return for that year to make up the difference. Turbotax 2011 edition Example. Turbotax 2011 edition Rafael, who is 40, earns $30,000 in 2013. Turbotax 2011 edition Although he can contribute up to $5,500 for 2013, he contributes only $3,000. Turbotax 2011 edition After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). Turbotax 2011 edition He cannot contribute $2,500 more than the limit for any later year. Turbotax 2011 edition More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. Turbotax 2011 edition However, a penalty or additional tax may apply. Turbotax 2011 edition See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. Turbotax 2011 edition 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). Turbotax 2011 edition Contributions must be in the form of money (cash, check, or money order). Turbotax 2011 edition Property cannot be contributed. Turbotax 2011 edition Although property cannot be contributed, your IRA may invest in certain property. Turbotax 2011 edition For example, your IRA may purchase shares of stock. Turbotax 2011 edition For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. Turbotax 2011 edition You may be able to transfer or roll over certain property from one retirement plan to another. Turbotax 2011 edition See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . Turbotax 2011 edition You can make a contribution to your IRA by having your income tax refund (or a portion of your refund), if any, paid directly to your traditional IRA, Roth IRA, or SEP IRA. Turbotax 2011 edition For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). Turbotax 2011 edition Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. Turbotax 2011 edition For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. Turbotax 2011 edition See Who Can Open a Traditional IRA , earlier. Turbotax 2011 edition Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. Turbotax 2011 edition Contributions can resume for any years that you qualify. Turbotax 2011 edition Contributions must be made by due date. Turbotax 2011 edition   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. Turbotax 2011 edition For most people, this means that contributions for 2013 must be made by April 15, 2014, and contributions for 2014 must be made by April 15, 2015. Turbotax 2011 edition Age 70½ rule. Turbotax 2011 edition   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Turbotax 2011 edition   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Turbotax 2011 edition If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Turbotax 2011 edition Designating year for which contribution is made. Turbotax 2011 edition   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. Turbotax 2011 edition 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). Turbotax 2011 edition Filing before a contribution is made. Turbotax 2011 edition    You can file your return claiming a traditional IRA contribution before the contribution is actually made. Turbotax 2011 edition Generally, the contribution must be made by the due date of your return, not including extensions. Turbotax 2011 edition Contributions not required. Turbotax 2011 edition   You do not have to contribute to your traditional IRA for every tax year, even if you can. Turbotax 2011 edition 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 applicable) explained earlier under How Much Can Be Contributed . Turbotax 2011 edition However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Turbotax 2011 edition See Limit if Covered by Employer Plan , later. Turbotax 2011 edition You may be able to claim a credit for contributions to your traditional IRA. Turbotax 2011 edition For more information, see chapter 4. Turbotax 2011 edition Trustees' fees. Turbotax 2011 edition   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Turbotax 2011 edition However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Turbotax 2011 edition For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. Turbotax 2011 edition Brokers' commissions. Turbotax 2011 edition   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Turbotax 2011 edition Full deduction. Turbotax 2011 edition   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 of your traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older), or 100% of your compensation. Turbotax 2011 edition   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Turbotax 2011 edition Kay Bailey Hutchison Spousal IRA. Turbotax 2011 edition   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: $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. Turbotax 2011 edition The IRA deduction for the year of the spouse with the greater compensation. Turbotax 2011 edition Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Turbotax 2011 edition Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Turbotax 2011 edition   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. Turbotax 2011 edition Note. Turbotax 2011 edition 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. Turbotax 2011 edition After a divorce or legal separation, you can deduct only the contributions to your own IRA. Turbotax 2011 edition Your deductions are subject to the rules for single individuals. Turbotax 2011 edition Covered by an employer retirement plan. Turbotax 2011 edition   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. Turbotax 2011 edition This is discussed later under Limit if Covered by Employer Plan . Turbotax 2011 edition Limits on the amount you can deduct do not affect the amount that can be contributed. Turbotax 2011 edition 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. Turbotax 2011 edition The “Retirement Plan” box should be checked if you were covered. Turbotax 2011 edition Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. Turbotax 2011 edition If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Turbotax 2011 edition Federal judges. Turbotax 2011 edition   For purposes of the IRA deduction, federal judges are covered by an employer plan. Turbotax 2011 edition For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. Turbotax 2011 edition These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Turbotax 2011 edition Tax year. Turbotax 2011 edition   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Turbotax 2011 edition For almost all people, the tax year is the calendar year. Turbotax 2011 edition Defined contribution plan. Turbotax 2011 edition   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. Turbotax 2011 edition However, also see Situations in Which You Are Not Covered , later. Turbotax 2011 edition   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Turbotax 2011 edition In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. Turbotax 2011 edition The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. Turbotax 2011 edition Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Turbotax 2011 edition Example. Turbotax 2011 edition Company A has a money purchase pension plan. Turbotax 2011 edition Its plan year is from July 1 to June 30. Turbotax 2011 edition The plan provides that contributions must be allocated as of June 30. Turbotax 2011 edition Bob, an employee, leaves Company A on December 31, 2012. Turbotax 2011 edition The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. Turbotax 2011 edition Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. Turbotax 2011 edition   A special rule applies to certain plans in which it is not possible to determine if an amount will be contributed to your account for a given plan year. Turbotax 2011 edition If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you are not covered for the tax year in which the plan year ends. Turbotax 2011 edition If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. Turbotax 2011 edition Example. Turbotax 2011 edition Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. Turbotax 2011 edition The plan year runs from July 1 to June 30. Turbotax 2011 edition Under the terms of the plan, employer contributions do not have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. Turbotax 2011 edition Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. Turbotax 2011 edition As of June 30, 2013, no contributions were made that were allocated to the June 30, 2013, plan year, and no forfeitures had been allocated within the plan year. Turbotax 2011 edition In addition, as of that date, the company was not obligated to make a contribution for such plan year and it was impossible to determine whether or not a contribution would be made for the plan year. Turbotax 2011 edition On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. Turbotax 2011 edition That contribution was made on February 15, 2014. Turbotax 2011 edition Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. Turbotax 2011 edition No vested interest. Turbotax 2011 edition   If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. Turbotax 2011 edition Defined benefit plan. Turbotax 2011 edition   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. Turbotax 2011 edition 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. Turbotax 2011 edition   A defined benefit plan is any plan that is not a defined contribution plan. Turbotax 2011 edition In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. Turbotax 2011 edition The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. Turbotax 2011 edition Defined benefit plans include pension plans and annuity plans. Turbotax 2011 edition Example. Turbotax 2011 edition Nick, an employee of Company B, is eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. Turbotax 2011 edition Nick leaves Company B on December 31, 2012. Turbotax 2011 edition Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is covered by the plan for his 2013 tax year. Turbotax 2011 edition No vested interest. Turbotax 2011 edition   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. Turbotax 2011 edition Situations in Which You Are Not Covered Unless you are covered by another employer plan, you are not covered by an employer plan if you are in one of the situations described below. Turbotax 2011 edition Social security or railroad retirement. Turbotax 2011 edition   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Turbotax 2011 edition Benefits from previous employer's plan. Turbotax 2011 edition   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Turbotax 2011 edition Reservists. Turbotax 2011 edition   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. Turbotax 2011 edition You are not covered by the plan if both of the following conditions are met. Turbotax 2011 edition 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. Turbotax 2011 edition You did not serve more than 90 days on active duty during the year (not counting duty for training). Turbotax 2011 edition Volunteer firefighters. Turbotax 2011 edition   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Turbotax 2011 edition You are not covered by the plan if both of the following conditions are met. Turbotax 2011 edition 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. Turbotax 2011 edition Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Turbotax 2011 edition Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. Turbotax 2011 edition Your deduction is also affected by how much income you had and by your filing status. Turbotax 2011 edition Your deduction may also be affected by social security benefits you received. Turbotax 2011 edition Reduced or no deduction. Turbotax 2011 edition   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. Turbotax 2011 edition   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. Turbotax 2011 edition These amounts vary depending on your filing status. Turbotax 2011 edition   To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under Deduction Phaseout . Turbotax 2011 edition Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. Turbotax 2011 edition Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, later, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. Turbotax 2011 edition You received social security benefits. Turbotax 2011 edition You received taxable compensation. Turbotax 2011 edition Contributions were made to your traditional IRA. Turbotax 2011 edition You or your spouse was covered by an employer retirement plan. Turbotax 2011 edition Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Turbotax 2011 edition Appendix B includes an example with filled-in worksheets to assist you. Turbotax 2011 edition Table 1-2. Turbotax 2011 edition Effect of Modified AGI1 on Deduction if You Are Covered by a 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. Turbotax 2011 edition IF your filing status is . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your modified adjusted gross income (modified AGI) is . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition THEN you can take . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition single or head of household $59,000 or less a full deduction. Turbotax 2011 edition more than $59,000 but less than $69,000 a partial deduction. Turbotax 2011 edition $69,000 or more no deduction. Turbotax 2011 edition married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. Turbotax 2011 edition more than $95,000 but less than $115,000 a partial deduction. Turbotax 2011 edition $115,000 or more no deduction. Turbotax 2011 edition married filing separately2 less than $10,000 a partial deduction. Turbotax 2011 edition $10,000 or more no deduction. Turbotax 2011 edition 1 Modified AGI (adjusted gross income). Turbotax 2011 edition See Modified adjusted gross income (AGI) , later. Turbotax 2011 edition  2 If 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” filing status). Turbotax 2011 edition Table 1-3. Turbotax 2011 edition Effect of Modified AGI1 on Deduction if You Are NOT Covered by a 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. Turbotax 2011 edition IF your filing status is . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your modified adjusted gross income (modified AGI) is . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition THEN you can take . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition single, head of household, or qualifying widow(er) any amount a full deduction. Turbotax 2011 edition married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. Turbotax 2011 edition married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. Turbotax 2011 edition more than $178,000 but less than $188,000 a partial deduction. Turbotax 2011 edition $188,000 or more no deduction. Turbotax 2011 edition married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. Turbotax 2011 edition $10,000 or more no deduction. Turbotax 2011 edition 1 Modified AGI (adjusted gross income). Turbotax 2011 edition See Modified adjusted gross income (AGI) , later. Turbotax 2011 edition  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. Turbotax 2011 edition For 2014, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. Turbotax 2011 edition If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. Turbotax 2011 edition Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. Turbotax 2011 edition Covered by a retirement plan. Turbotax 2011 edition   If you are 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 1-2. Turbotax 2011 edition For 2014, if you are covered by a retirement plan at work, your IRA deduction will not be reduced (phased out) unless your modified AGI is: More than $60,000 but less than $70,000 for a single individual (or head of household), More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying widow(er)), or Less than $10,000 for a married individual filing a separate return. Turbotax 2011 edition If your spouse is covered. Turbotax 2011 edition   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 1-3. Turbotax 2011 edition Filing status. Turbotax 2011 edition   Your filing status depends primarily on your marital status. Turbotax 2011 edition 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. Turbotax 2011 edition If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Turbotax 2011 edition Lived apart from spouse. Turbotax 2011 edition   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. Turbotax 2011 edition Modified adjusted gross income (AGI). Turbotax 2011 edition   You can use Worksheet 1-1 to figure your modified AGI. Turbotax 2011 edition If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 2013 and distributions in 2013 , later. Turbotax 2011 edition    Do not assume that your modified AGI is the same as your compensation. Turbotax 2011 edition Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. Turbotax 2011 edition Form 1040. Turbotax 2011 edition   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Turbotax 2011 edition IRA deduction. Turbotax 2011 edition Student loan interest deduction. Turbotax 2011 edition Tuition and fees deduction. Turbotax 2011 edition Domestic production activities deduction. Turbotax 2011 edition Foreign earned income exclusion. Turbotax 2011 edition Foreign housing exclusion or deduction. Turbotax 2011 edition Exclusion of qualified savings bond interest shown on Form 8815. Turbotax 2011 edition Exclusion of employer-provided adoption benefits shown on Form 8839. Turbotax 2011 edition This is your modified AGI. Turbotax 2011 edition Form 1040A. Turbotax 2011 edition   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. Turbotax 2011 edition IRA deduction. Turbotax 2011 edition Student loan interest deduction. Turbotax 2011 edition Tuition and fees deduction. Turbotax 2011 edition Exclusion of qualified savings bond interest shown on Form 8815. Turbotax 2011 edition This is your modified AGI. Turbotax 2011 edition Form 1040NR. Turbotax 2011 edition   If you file Form 1040NR, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Turbotax 2011 edition IRA deduction. Turbotax 2011 edition Student loan interest deduction. Turbotax 2011 edition Domestic production activities deduction. Turbotax 2011 edition Exclusion of qualified savings bond interest shown on Form 8815. Turbotax 2011 edition Exclusion of employer-provided adoption benefits shown on Form 8839. Turbotax 2011 edition This is your modified AGI. Turbotax 2011 edition Income from IRA distributions. Turbotax 2011 edition   If you received distributions in 2013 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, the distributions are fully taxable and are included in your modified AGI. Turbotax 2011 edition Both contributions for 2013 and distributions in 2013. Turbotax 2011 edition   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Turbotax 2011 edition You received distributions in 2013 from one or more traditional IRAs, You made contributions to a traditional IRA for 2013, and Some of those contributions may be nondeductible contributions. Turbotax 2011 edition (See Nondeductible Contributions and Worksheet 1-2, later. Turbotax 2011 edition ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Turbotax 2011 edition To do this, you can use Worksheet 1-5, later. Turbotax 2011 edition   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. Turbotax 2011 edition How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. Turbotax 2011 edition Figuring Your Reduced IRA Deduction for 2013. Turbotax 2011 edition The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. Turbotax 2011 edition If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. Turbotax 2011 edition Note. Turbotax 2011 edition If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Turbotax 2011 edition Worksheet 1-1. Turbotax 2011 edition Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. Turbotax 2011 edition 1. Turbotax 2011 edition Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 1. Turbotax 2011 edition   2. Turbotax 2011 edition Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. Turbotax 2011 edition   3. Turbotax 2011 edition Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Turbotax 2011 edition   4. Turbotax 2011 edition Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. Turbotax 2011 edition   5. Turbotax 2011 edition Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Turbotax 2011 edition   6. Turbotax 2011 edition Enter any foreign housing deduction from Form 2555, line 50 6. Turbotax 2011 edition   7. Turbotax 2011 edition Enter any excludable savings bond interest from Form 8815, line 14 7. Turbotax 2011 edition   8. Turbotax 2011 edition Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Turbotax 2011 edition   9. Turbotax 2011 edition Add lines 1 through 8. Turbotax 2011 edition This is your Modified AGI for traditional IRA purposes 9. Turbotax 2011 edition   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Turbotax 2011 edition If you file Form 1040A, enter your IRA deduction on line 17 of that form. Turbotax 2011 edition If you file Form 1040NR, enter your IRA deduction on line 32 of that form. Turbotax 2011 edition You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. Turbotax 2011 edition Self-employed. Turbotax 2011 edition   If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, line 28. Turbotax 2011 edition If you file Form 1040NR, enter your deduction on line 28 of that form. Turbotax 2011 edition Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. Turbotax 2011 edition The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Turbotax 2011 edition Example. Turbotax 2011 edition Tony is 29 years old and single. Turbotax 2011 edition In 2013, he was covered by a retirement plan at work. Turbotax 2011 edition His salary is $62,000. Turbotax 2011 edition His modified AGI is $70,000. Turbotax 2011 edition Tony makes a $5,500 IRA contribution for 2013. Turbotax 2011 edition Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. Turbotax 2011 edition He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. Turbotax 2011 edition Repayment of reservist distributions. Turbotax 2011 edition   Nondeductible contributions may include repayments of qualified reservist distributions. Turbotax 2011 edition For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. Turbotax 2011 edition Form 8606. Turbotax 2011 edition   To designate contributions as nondeductible, you must file Form 8606. Turbotax 2011 edition (See the filled-in Forms 8606 in this chapter. Turbotax 2011 edition )   You do not have to designate a contribution as nondeductible until you file your tax return. Turbotax 2011 edition When you file, you can even designate otherwise deductible contributions as nondeductible contributions. Turbotax 2011 edition   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Turbotax 2011 edition    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. Turbotax 2011 edition In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Turbotax 2011 edition See Form 8606 under Distributions Fully or Partly Taxable, later. Turbotax 2011 edition Failure to report nondeductible contributions. Turbotax 2011 edition   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. Turbotax 2011 edition All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Turbotax 2011 edition Penalty for overstatement. Turbotax 2011 edition   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. Turbotax 2011 edition Penalty for failure to file Form 8606. Turbotax 2011 edition   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. Turbotax 2011 edition Tax on earnings on nondeductible contributions. Turbotax 2011 edition   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. Turbotax 2011 edition Cost basis. Turbotax 2011 edition   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Turbotax 2011 edition Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Turbotax 2011 edition    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. Turbotax 2011 edition See Are Distributions Taxable, later, for more information. Turbotax 2011 edition Recordkeeping. Turbotax 2011 edition There is a recordkeeping worksheet, Appendix A. Turbotax 2011 edition Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. Turbotax 2011 edition Examples — Worksheet for Reduced IRA Deduction for 2013 The following examples illustrate the use of Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013. Turbotax 2011 edition Example 1. Turbotax 2011 edition For 2013, Tom and Betty file a joint return on Form 1040. Turbotax 2011 edition They are both 39 years old. Turbotax 2011 edition They are both employed and Tom is covered by his employer's retirement plan. Turbotax 2011 edition Tom's salary is $59,000 and Betty's is $32,555. Turbotax 2011 edition They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. Turbotax 2011 edition Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an employer plan, Tom is subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . Turbotax 2011 edition For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. Turbotax 2011 edition Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. Turbotax 2011 edition Tom can take a deduction of only $5,080. Turbotax 2011 edition He can choose to treat the $5,080 as either deductible or nondeductible contributions. Turbotax 2011 edition He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Turbotax 2011 edition He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. Turbotax 2011 edition Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. Turbotax 2011 edition Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. Turbotax 2011 edition Betty figures her IRA deduction as follows. Turbotax 2011 edition Betty can treat all or part of her contributions as either deductible or nondeductible. Turbotax 2011 edition This is because her $5,500 contribution for 2013 is not subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . Turbotax 2011 edition She does not need to use Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, because their modified AGI is not within the phaseout range that applies. Turbotax 2011 edition Betty decides to treat her $5,500 IRA contributions as deductible. Turbotax 2011 edition The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. Turbotax 2011 edition Example 2. Turbotax 2011 edition For 2013, Ed and Sue file a joint return on Form 1040. Turbotax 2011 edition They are both 39 years old. Turbotax 2011 edition Ed is covered by his employer's retirement plan. Turbotax 2011 edition Ed's salary is $45,000. Turbotax 2011 edition Sue had no compensation for the year and did not contribute to an IRA. Turbotax 2011 edition Sue is not covered by an employer plan. Turbotax 2011 edition Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). Turbotax 2011 edition Their combined modified AGI, which includes $2,000 interest and dividend income and a large capital gain from the sale of stock, is $180,555. Turbotax 2011 edition Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. Turbotax 2011 edition He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. Turbotax 2011 edition Sue figures her IRA deduction as shown on Worksheet 1-2. Turbotax 2011 edition Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. Turbotax 2011 edition Worksheet 1-2. Turbotax 2011 edition Figuring Your Reduced IRA Deduction for 2013 (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Turbotax 2011 edition ) Note. Turbotax 2011 edition If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Turbotax 2011 edition IF you . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your  filing status is . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your modified AGI is over . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition THEN enter on  line 1 below . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Turbotax 2011 edition Enter applicable amount from table above 1. Turbotax 2011 edition   2. Turbotax 2011 edition Enter your modified AGI (that of both spouses, if married filing jointly) 2. Turbotax 2011 edition     Note. Turbotax 2011 edition If line 2 is equal to or more than the amount on line 1, stop here. Turbotax 2011 edition  Your IRA contributions are not deductible. Turbotax 2011 edition See Nondeductible Contributions , earlier. Turbotax 2011 edition     3. Turbotax 2011 edition Subtract line 2 from line 1. Turbotax 2011 edition If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Turbotax 2011 edition You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Turbotax 2011 edition   4. Turbotax 2011 edition Multiply line 3 by the percentage below that applies to you. Turbotax 2011 edition If the result is not a multiple of $10, round it to the next highest multiple of $10. Turbotax 2011 edition (For example, $611. Turbotax 2011 edition 40 is rounded to $620. Turbotax 2011 edition ) However, if the result is less than $200, enter $200. Turbotax 2011 edition         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Turbotax 2011 edition 5% (. Turbotax 2011 edition 275) (by 32. Turbotax 2011 edition 5% (. Turbotax 2011 edition 325) if you are age 50 or older). Turbotax 2011 edition All others, multiply line 3 by 55% (. Turbotax 2011 edition 55) (by 65% (. Turbotax 2011 edition 65) if you are age 50 or older). Turbotax 2011 edition 4. Turbotax 2011 edition   5. Turbotax 2011 edition Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Turbotax 2011 edition If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Turbotax 2011 edition If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Turbotax 2011 edition   6. Turbotax 2011 edition Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Turbotax 2011 edition If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Turbotax 2011 edition 6. Turbotax 2011 edition   7. Turbotax 2011 edition IRA deduction. Turbotax 2011 edition Compare lines 4, 5, and 6. Turbotax 2011 edition Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Turbotax 2011 edition If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Turbotax 2011 edition   8. Turbotax 2011 edition Nondeductible contribution. Turbotax 2011 edition Subtract line 7 from line 5 or 6, whichever is smaller. Turbotax 2011 edition  Enter the result here and on line 1 of your Form 8606 8. Turbotax 2011 edition   Worksheet 1-2. Turbotax 2011 edition Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Turbotax 2011 edition ) Note. Turbotax 2011 edition If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Turbotax 2011 edition IF you . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your  filing status is . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your modified AGI is over . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition THEN enter on  line 1 below . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Turbotax 2011 edition Enter applicable amount from table above 1. Turbotax 2011 edition 115,000 2. Turbotax 2011 edition Enter your modified AGI (that of both spouses, if married filing jointly) 2. Turbotax 2011 edition 96,555   Note. Turbotax 2011 edition If line 2 is equal to or more than the amount on line 1, stop here. Turbotax 2011 edition  Your IRA contributions are not deductible. Turbotax 2011 edition See Nondeductible Contributions , earlier. Turbotax 2011 edition     3. Turbotax 2011 edition Subtract line 2 from line 1. Turbotax 2011 edition If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Turbotax 2011 edition You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Turbotax 2011 edition 18,445 4. Turbotax 2011 edition Multiply line 3 by the percentage below that applies to you. Turbotax 2011 edition If the result is not a multiple of $10, round it to the next highest multiple of $10. Turbotax 2011 edition (For example, $611. Turbotax 2011 edition 40 is rounded to $620. Turbotax 2011 edition ) However, if the result is less than $200, enter $200. Turbotax 2011 edition         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Turbotax 2011 edition 5% (. Turbotax 2011 edition 275) (by 32. Turbotax 2011 edition 5% (. Turbotax 2011 edition 325) if you are age 50 or older). Turbotax 2011 edition All others, multiply line 3 by 55% (. Turbotax 2011 edition 55) (by 65% (. Turbotax 2011 edition 65) if you are age 50 or older). Turbotax 2011 edition 4. Turbotax 2011 edition 5,080 5. Turbotax 2011 edition Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Turbotax 2011 edition If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Turbotax 2011 edition If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Turbotax 2011 edition 59,000 6. Turbotax 2011 edition Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Turbotax 2011 edition If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Turbotax 2011 edition 6. Turbotax 2011 edition 5,500 7. Turbotax 2011 edition IRA deduction. Turbotax 2011 edition Compare lines 4, 5, and 6. Turbotax 2011 edition Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Turbotax 2011 edition If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Turbotax 2011 edition 5,080 8. Turbotax 2011 edition Nondeductible contribution. Turbotax 2011 edition Subtract line 7 from line 5 or 6, whichever is smaller. Turbotax 2011 edition  Enter the result here and on line 1 of your Form 8606 8. Turbotax 2011 edition 420 Worksheet 1-2. Turbotax 2011 edition Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. Turbotax 2011 edition ) Note. Turbotax 2011 edition If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. Turbotax 2011 edition IF you . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your  filing status is . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition AND your modified AGI is over . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition THEN enter on  line 1 below . Turbotax 2011 edition . Turbotax 2011 edition . Turbotax 2011 edition       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. Turbotax 2011 edition Enter applicable amount from table above 1. Turbotax 2011 edition 188,000 2. Turbotax 2011 edition Enter your modified AGI (that of both spouses, if married filing jointly) 2. Turbotax 2011 edition 180,555   Note. Turbotax 2011 edition If line 2 is equal to or more than the amount on line 1, stop here. Turbotax 2011 edition  Your IRA contributions are not deductible. Turbotax 2011 edition See Nondeductible Contributions , earlier. Turbotax 2011 edition     3. Turbotax 2011 edition Subtract line 2 from line 1. Turbotax 2011 edition If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. Turbotax 2011 edition You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. Turbotax 2011 edition 7,445 4. Turbotax 2011 edition Multiply line 3 by the percentage below that applies to you. Turbotax 2011 edition If the result is not a multiple of $10, round it to the next highest multiple of $10. Turbotax 2011 edition (For example, $611. Turbotax 2011 edition 40 is rounded to $620. Turbotax 2011 edition ) However, if the result is less than $200, enter $200. Turbotax 2011 edition         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. Turbotax 2011 edition 5% (. Turbotax 2011 edition 275) (by 32. Turbotax 2011 edition 5% (. Turbotax 2011 edition 325) if you are age 50 or older). Turbotax 2011 edition All others, multiply line 3 by 55% (. Turbotax 2011 edition 55) (by 65% (. Turbotax 2011 edition 65) if you are age 50 or older). Turbotax 2011 edition 4. Turbotax 2011 edition 4,100 5. Turbotax 2011 edition Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). Turbotax 2011 edition If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. Turbotax 2011 edition If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. Turbotax 2011 edition 39,500 6. Turbotax 2011 edition Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). Turbotax 2011 edition If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. Turbotax 2011 edition 6. Turbotax 2011 edition 5,500 7. Turbotax 2011 edition IRA deduction. Turbotax 2011 edition Compare lines 4, 5, and 6. Turbotax 2011 edition Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. Turbotax 2011 edition If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. Turbotax 2011 edition 4,100 8. Turbotax 2011 edition Nondeductible contribution. Turbotax 2011 edition Subtract line 7 from line 5 or 6, whichever is smaller. Turbotax 2011 edition  Enter the result here and on line 1 of your Form 8606 8. Turbotax 2011 edition 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. Turbotax 2011 edition A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Turbotax 2011 edition Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Turbotax 2011 edition Inherited from spouse. Turbotax 2011 edition   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Turbotax 2011 edition You can: Treat it as your own IRA by designating yourself as the account owner. Turbotax 2011 edition 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 (s