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When Can You Amend A Tax Return

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When Can You Amend A Tax Return

When can you amend a tax return 2. When can you amend a tax return   Filing Requirements and Required Disclosures Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Annual Information ReturnsSupporting Organization Annual Information Return Unrelated Business Income Tax ReturnEstimated tax. When can you amend a tax return Employment Tax ReturnsException. When can you amend a tax return FUTA tax exception. When can you amend a tax return FICA tax exemption election. When can you amend a tax return Revoking the election. When can you amend a tax return Definitions. When can you amend a tax return Effect on employees. When can you amend a tax return Political Organization Income Tax ReturnExempt function. When can you amend a tax return Political organization taxable income. When can you amend a tax return Separate fund. When can you amend a tax return Failure to file. When can you amend a tax return Failure to pay on time. When can you amend a tax return Reporting Requirements for a Political OrganizationForm 8871 Form 8872 Donee Information ReturnCharitable deduction property. When can you amend a tax return Publicly traded securities. When can you amend a tax return Exceptions. When can you amend a tax return Form 8283. When can you amend a tax return Information Provided to DonorsDisclosure of Quid Pro Quo Contributions Acknowledgment of Charitable Contributions of $250 or More Acknowledgment of Vehicle Contribution Qualified Intellectual Property Report of Cash Received Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting FormsAnnual Information Return Public Inspection of Exemption Application Political Organization Reporting Forms Required DisclosuresSolicitation of Nondeductible Contributions Sales of Information or Services Available Free From Government Dues Used for Lobbying or Political Activities Prohibited Tax Shelter Transactions Miscellaneous RulesOrganizational Changes and Exempt Status Introduction Most exempt organizations (including private foundations) must file various returns and reports at some time during (or following the close of) their accounting period. When can you amend a tax return Topics - This chapter discusses: Annual information returns Unrelated business income tax return Employment tax returns Political organization income tax return Reporting requirements for a political organization Donee information return Information provided to donors Report of cash received Public inspection of exemption applications, annual returns, and political organizations reporting forms Required disclosures Miscellaneous rules Useful Items - You may want to see: Publication 15 Circular E, Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 598 Tax on Unrelated Business Income of Exempt Organizations Form (and Instructions) 941 Employer's Quarterly Federal Tax Return 990 Return of Organization Exempt From Income Tax 990-EZ Short Form Return of Organization Exempt From Income Tax Schedule A (Form 990 or 990-EZ) Public Charity Status and Public Support Schedule B (Form 990, 990-EZ, or 990-PF) Schedule of Contributors Schedule C (Form 990 or 990-EZ) Political Campaign and Lobbying Activities Schedule D (Form 990) Supplemental Financial Statements Schedule E (Form 990 or 990-EZ) Schools Schedule F (Form 990) Statement of Activities Outside the United States Schedule G (Form 990 or 990-EZ) Supplemental Information Regarding Fundraising or Gaming Activities Schedule H (Form 990) Hospitals Schedule I (Form 990) Grants and Other Assistance to Organizations, Governments, and Individuals in the United States Schedule J (Form 990) Compensation Information Schedule K (Form 990) Supplemental Information on Tax-Exempt Bonds Schedule L (Form 990 or 990-EZ) Transactions With Interested Persons Schedule M (Form 990) Noncash Contributions Schedule N (Form 990 or 990-EZ) Liquidation, Termination, Dissolution, or Significant Disposition of Assets Schedule O (Form 990 or 990-EZ) Supplemental Information to Form 990 Schedule R (Form 990) Related Organizations and Unrelated Partnerships 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation 990-BL Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons 990-T Exempt Organization Business Income Tax Return 990-W Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations 1120-POL U. When can you amend a tax return S. When can you amend a tax return Income Tax Return for Certain Political Organizations 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code 5768 Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation 6069 Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes 8282 Donee Information Return 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business 8453-X Political Organization Declaration for Electronic Filing of Notice of Section 527 Status 8822-B Change of Address-Business 8868 Application for Extension of Time to File an Exempt Organization Return 8870 Information Return for Transfers Associated with Certain Personal Benefits Contracts 8871 Political Organization Notice of Section 527 Status 8872 Political Organization Report of Contributions and Expenditures 8886-T Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction 8899 Notice of Income from Donated Intellectual Property 8940 Request for Miscellaneous Determination See chapter 6 for information about getting these publications and forms. When can you amend a tax return Annual Information Returns Every organization exempt from federal income tax under section 501(a) must file an Annual Exempt Organization Return except: A church, an interchurch organization of local units of a church, a convention or association of churches, An integrated auxiliary of a church, A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs, A school below college level affiliated with a church or operated by a religious order, Church-affiliated mission societies if more than half of their activities are conducted in, or are directed at persons in, foreign countries, An exclusively religious activity of any religious order, A state institution, the income of which is excluded from gross income under section 115, A corporation described in section 501(c)(1) that is organized under an Act of Congress, an instrumentality of the United States, and is exempt from Federal income taxes, A stock bonus, pension, or profit-sharing trust that qualifies under section 401 (required to file Form 5500, Annual Return/Report of Employee Benefit Plan), A religious or apostolic organization described in section 501(d) (required to file Form 1065, U. When can you amend a tax return S. When can you amend a tax return Return of Partnership Income), A governmental unit or an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48, 1995-2 C. When can you amend a tax return B. When can you amend a tax return 418, www. When can you amend a tax return irs. When can you amend a tax return gov/pub/irs-tege/rp1995-48. When can you amend a tax return pdf, A private foundation described in section 501(c)(3) and exempt under section 501(a) (required to file Form 990-PF, Return of Private Foundation), A political organization that is a state or local committee of a political party, a political committee of a state or local candidate, a caucus or association of state or local officials, or required to report under the Federal Election Campaign Act of 1971 as a political committee, An exempt organization (other than a private foundation) that normally has annual gross receipts of $50,000 or less, or A foreign organization, or an organization located in a U. When can you amend a tax return S. When can you amend a tax return possession, that normally has annual gross receipts from sources within the United States of $50,000 or less. When can you amend a tax return Supporting Organization Annual Information Return For tax years ending after August 17, 2006, all section 509(a)(3) supporting organizations are required to file Form 990 or 990-EZ with the IRS regardless of the organization's gross receipts, unless it qualifies as one of the following: An integrated auxiliary of a church; The exclusively religious activities of a religious order; or An organization, the gross receipts of which are normally not more than $5,000, that supports a section 509(a)(3) religious order. When can you amend a tax return If the organization is described in item (3) above, then it must submit Form 990-N (e-Postcard) unless it voluntarily files Form 990 or 990-EZ. When can you amend a tax return On its annual information return, at Part I, Schedule A (Form 990 or 990-EZ) a supporting organization must: List the section 509(a)(3) organizations to which it provides support, Indicate whether it is a Type I, Type II, or Type III supporting organization, and Certify that the organization is not controlled directly or indirectly by disqualified persons (other than by foundation managers and other than one or more publicly supported organizations). When can you amend a tax return Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Small tax-exempt organizations with annual gross receipts normally $50,000 or less must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, with the IRS each year, if they choose not to file a Form 990 or 990-EZ. When can you amend a tax return Form 990-N requires the following information: The organization's legal name, and mailing address; Any name under which it operates and does business; Its Internet website address (if any); Its taxpayer identification number; The name and address of a principal officer; Organization's annual tax period; Verification that the organization's annual gross receipts are normally $50,000 or less; and Notification if the organization has terminated. When can you amend a tax return Form 990-N is due by the 15th day of the fifth month after the close of the tax year. When can you amend a tax return For tax years beginning after December 31, 2006, any organization that fails to meet its annual reporting requirement for 3 consecutive years will automatically lose its tax-exempt status. When can you amend a tax return To regain its exempt status an organization will have to reapply for recognition as a tax-exempt organization. When can you amend a tax return Exceptions. When can you amend a tax return   This filing requirement does not apply to: Churches, their integrated auxiliaries, and conventions or associations of churches; Organizations that are included in a group return; Private foundations required to file Form 990-PF; and Section 509(a)(3) supporting organizations required to file Form 990 or Form 990-EZ. When can you amend a tax return Forms 990 and 990-EZ Exempt organizations, other than private foundations, must file their annual information returns on Form 990 or 990-EZ, unless excepted from filing or allowed to submit Form 990-N, described earlier. When can you amend a tax return Generally, political organizations with gross receipts of $25,000 ($100,000 for a qualified state or local political organization (QSLPO)) or more for the tax year are required to file Form 990 or 990-EZ unless specifically excepted from filing the annual return. When can you amend a tax return The following political organizations are not required to file Form 990 or Form 990-EZ. When can you amend a tax return A state or local committee of a political party. When can you amend a tax return A political committee of a state or local candidate. When can you amend a tax return A caucus or association of state or local officials. When can you amend a tax return A political organization that is required to report as a political committee under the Federal Election Campaign Act. When can you amend a tax return A 501(c) organization that has expenditures for influencing or attempting to influence the selection, nomination, election, or appointment of any individual for a federal, state, or local public office. When can you amend a tax return Form 990-EZ. When can you amend a tax return   This is a shortened version of Form 990. When can you amend a tax return It is designed for use by small exempt organizations and nonexempt charitable trusts. When can you amend a tax return   Beginning in tax year 2010, an organization can file either Form 990 or 990-EZ if it meets the following: Its gross receipts during the year are less than $200,000. When can you amend a tax return Its total assets (line 25, column (B) of Form 990-EZ) at the end of the year are less than $500,000. When can you amend a tax return If your organization does not meet either of these conditions, you cannot file Form 990-EZ. When can you amend a tax return Instead you must file Form 990. When can you amend a tax return Group return. When can you amend a tax return   A group return on Form 990 may be filed by a central, parent, or like organization for two or more local organizations, none of which is a private foundation. When can you amend a tax return This return is in addition to the central organization's separate annual return if it must file a return. When can you amend a tax return It cannot be included in the group return. When can you amend a tax return See the instructions for Form 990 for the conditions under which this procedure may be used. When can you amend a tax return    In any year that an organization is properly included as a subordinate organization on a group return, it should not file its own Form 990. When can you amend a tax return Schedule A (Form 990 or 990-EZ). When can you amend a tax return   Organizations, other than private foundations, that are described in section 501(c)(3) and that are otherwise required to file Form 990 or 990-EZ must also complete Schedule A of that form. When can you amend a tax return Schedule B (Form 990, Form 990-EZ, or 990-PF). When can you amend a tax return   Organizations that file Form 990 or 990-EZ use this schedule to provide required information regarding their contributors. When can you amend a tax return Schedule O (Form 990). When can you amend a tax return   Organizations that file Form 990 must use this schedule to provide required additional information or if additional space is needed. When can you amend a tax return   Other schedules may be required to be filed with Form 990 or 990-EZ. When can you amend a tax return See the instructions for Form 990 or the instructions for Form 990-EZ for more information. When can you amend a tax return Report significant new or changed program services and changes to organizational documents. When can you amend a tax return    An organization should report new significant program services or significant changes in how it conducts program services, and significant changes to its organizational documents, on its Form 990 rather than in a letter to EO Determinations. When can you amend a tax return EO Determinations no longer issues letters confirming the tax-exempt status of organizations that report new services or significant changes, or changes to organizational documents. When can you amend a tax return See Miscellaneous Rules, Organization Changes and Exempt Status, later. When can you amend a tax return Form 990-PF All private foundations exempt under section 501(c)(3) must file Form 990-PF. When can you amend a tax return These organizations are discussed in chapter 3. When can you amend a tax return Electronic Filing You may be required to file Form 990, Form 990-EZ, or Form 990-PF, and related forms, schedules, and attachments electronically. When can you amend a tax return If an organization is required to file a return electronically but does not, the organization is considered to have not filed its return. When can you amend a tax return See Regulations section 301. When can you amend a tax return 6033-4 for more information. When can you amend a tax return The IRS may waive the requirement to file electronically in cases of undue hardship. When can you amend a tax return For information on filing a waiver, see Notice 2010-13, 2010-4 I. When can you amend a tax return R. When can you amend a tax return B. When can you amend a tax return 327, available at www. When can you amend a tax return irs. When can you amend a tax return gov/ir/2010-04_IRSB/ar14. When can you amend a tax return html. When can you amend a tax return Form 990. When can you amend a tax return   An organization is required to file Form 990 electronically if it files at least 250 returns during the calendar year and has total assets of $10 million or more at the end of the tax year. When can you amend a tax return Form 990-PF. When can you amend a tax return   An organization is required to file Form 990-PF electronically if it files at least 250 returns during the calendar year. When can you amend a tax return Due Date Forms 990, 990-EZ, or 990-PF must be filed by the 15th day of the fifth month after the end of your organization's accounting period. When can you amend a tax return Thus, for a calendar year taxpayer, Forms 990, 990-EZ, or 990-PF is due May 15 of the following year. When can you amend a tax return Extension of time to file. When can you amend a tax return   Use Form 8868 to request an automatic 3-month extension of time to file Forms 990, 990-EZ, or 990-PF and also to apply for an additional (not automatic) 3-month extension if needed. When can you amend a tax return   Do not apply for both the automatic 3-month extension and the additional 3-month extension at the same time. When can you amend a tax return For more information, see Form 8868 and its instructions. When can you amend a tax return   When filing Form 8868 for an automatic 3-month extension, neither a signature, nor an explanation is required. When can you amend a tax return However, when filing Form 8868 for an additional 3-month extension, both a signature and an explanation are required. When can you amend a tax return Application for exemption pending. When can you amend a tax return   An organization that claims to be exempt under section 501(a) but has not established its exempt status by the due date for filing an information return must complete and file Form 990, 990-EZ, 990–N or 990-PF (if it considers itself a private foundation), unless the organization is exempt from Form 990-series filing requirements. When can you amend a tax return If the organization's application is pending with the IRS, it must so indicate on Forms 990, 990-EZ, or 990-PF (whichever applies) by checking the application pending block at the top of page 1 of the return. When can you amend a tax return For more information on the filing requirements, see the Instructions for Forms 990, 990-EZ, and 990-PF. When can you amend a tax return State reporting requirements. When can you amend a tax return   Copies of Forms 990, 990-EZ, or 990-PF may be used to satisfy state reporting requirements. When can you amend a tax return See the instructions for those forms. When can you amend a tax return Form 8870. When can you amend a tax return   Organizations that filed a Form 990, 990-EZ, or 990-PF, and paid premiums or received transfers on certain life insurance, annuity, and endowment contracts (personal benefit contracts), must file Form 8870. When can you amend a tax return For more information, see Form 8870 and the instructions for that form. When can you amend a tax return Automatic Revocation If the organization fails to file a Form 990, 990-EZ, or 990-PF, or fails to submit a Form 990-N, as required, for 3 consecutive years, it will automatically lose its tax-exempt status by operation of law. When can you amend a tax return The list of organizations whose tax-exempt status has been automatically revoked is available on IRS. When can you amend a tax return gov. When can you amend a tax return This list (Auto-Revocation List) may be viewed and searched on Exempt Organizations Select Check. When can you amend a tax return The Auto-Revocation List includes each organization's name, Employer Identification Number (EIN) and last known address. When can you amend a tax return It also includes the effective date of the automatic revocation and the date it was posted to the list. When can you amend a tax return The IRS updates the list monthly to include additional organizations that lose their tax-exempt status. When can you amend a tax return Tax Effect of Loss of Tax-Exempt Status If your organization’s tax-exempt status is automatically revoked, you may be required to file one of the following federal income tax returns and pay any applicable income taxes: Form 1120, U. When can you amend a tax return S. When can you amend a tax return Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of your organization’s tax year, or Form 1041, U. When can you amend a tax return S. When can you amend a tax return Income Tax Return for Estates and Trusts, due by the 15th day of the 4th month after the end of your organization’s tax year. When can you amend a tax return In addition, a section 501(c)(3) organization that loses its tax-exempt status cannot receive tax-deductible contributions and will not be identified in the IRS Business Master File extract as eligible to received tax-deductible contributions, or be included in Exempt Organizations Select Check (Pub 78 database). When can you amend a tax return An organization whose exemption was automatically revoked must apply for tax exemption in order to regain its tax exemption (even if it was not originally required to apply). When can you amend a tax return In some situations, an organization may be able to obtain exemption retroactive to its date of revocation. When can you amend a tax return For more information about automatic revocation, go to IRS. When can you amend a tax return gov and select Charities & Non-Profits and then select Revoked? Reinstated? Learn More. When can you amend a tax return Penalties Penalties for failure to file. When can you amend a tax return   Generally, an exempt organization that fails to file a required return must pay a penalty of $20 a day for each day the failure continues. When can you amend a tax return The same penalty will apply if the organization does not give all the information required on the return or does not give the correct information. When can you amend a tax return Maximum penalty. When can you amend a tax return   The maximum penalty for any one return is the smaller of $10,000 or 5% of the organization's gross receipts for the year. When can you amend a tax return Organization with gross receipts over $1 million. When can you amend a tax return   For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000. When can you amend a tax return Managers. When can you amend a tax return   If the organization is subject to this penalty, the IRS may specify a date by which the return or correct information must be supplied by the organization. When can you amend a tax return Failure to comply with this demand will result in a penalty imposed upon the manager of the organization, or upon any other person responsible for filing a correct return. When can you amend a tax return The penalty is $10 a day for each day that a return is not filed after the period given for filing. When can you amend a tax return The maximum penalty imposed on all persons with respect to any one return is $5,000. When can you amend a tax return Exception for reasonable cause. When can you amend a tax return   No penalty will be imposed if reasonable cause for failure to file timely can be shown. When can you amend a tax return Unrelated Business Income Tax Return Even though your organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. When can you amend a tax return Unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. When can you amend a tax return If your organization has $1,000 or more of unrelated business income, you must file Form 990-T in addition to your required annual information return. When can you amend a tax return Estimated tax. When can you amend a tax return   Quarterly estimated tax payments are due if your organization expects to owe $500 or more in tax including unrelated business income. When can you amend a tax return Use Form 990-W to figure your organization's estimated tax payments. When can you amend a tax return Travel tour programs. When can you amend a tax return   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose to which tax exemption was granted to the organization. When can you amend a tax return   Whether travel tour activities conducted by an organization are substantially related to the organization's tax exempt purpose is determined by looking at all the relevant facts and circumstances, including, but not limited to, how a travel tour is developed, promoted, and operated. When can you amend a tax return Example. When can you amend a tax return ABC, a university alumni association, is tax exempt as an educational organization under section 501(c)(3). When can you amend a tax return As part of its activities, ABC operates a travel tour program. When can you amend a tax return The program is open to all current members of ABC and their guests. When can you amend a tax return ABC works with travel agents to schedule approximately ten tours annually to various destinations around the world. When can you amend a tax return Members of ABC pay $1,000 to XYZ Travel Agency to participate in a tour. When can you amend a tax return XYZ pays ABC a per person fee for each participant. When can you amend a tax return Although the literature advertising the tours encourages ABC members to continue their lifelong learning by joining the tours, and a faculty member of ABC's related university frequently joins the tour as a guest of the alumni association, none of the tours include any scheduled instruction or curriculum related to the destinations being visited. When can you amend a tax return The travel tours made available to ABC's members do not contribute importantly to the accomplishment of ABC's educational purpose. When can you amend a tax return Rather, ABC's program is designed to generate revenues for ABC by regularly offering its members travel services. When can you amend a tax return Therefore, ABC's tour program is an unrelated trade or business. When can you amend a tax return For additional information on unrelated business income, see Publication 598 and the Instructions for Form 990-T. When can you amend a tax return Employment Tax Returns Every employer, including an organization exempt from federal income tax, who pays wages to employees is responsible for withholding, depositing, paying, and reporting federal income tax, social security and Medicare (FICA) taxes, and federal unemployment tax (FUTA), unless that employer is specifically excepted by law from those requirements, or if the taxes clearly do not apply. When can you amend a tax return For more information, obtain a copy of Publication 15, which summarizes the responsibilities of an employer, Publication 15-A, Publication 15-B, and Form 941. When can you amend a tax return Small Business Health Care Tax Credit. When can you amend a tax return   If your small tax-exempt organization provides health care coverage for your workers you may qualify for the small business health care tax credit. When can you amend a tax return Go to IRS. When can you amend a tax return gov and select Affordable Care Act Tax Provisions for more details. When can you amend a tax return See Small Business Health Care Tax Credit at www. When can you amend a tax return irs. When can you amend a tax return gov/newsroom/article/0,,id=223666,00. When can you amend a tax return html. When can you amend a tax return Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. When can you amend a tax return   The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). When can you amend a tax return The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer's share of social security tax. When can you amend a tax return The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013. When can you amend a tax return This tax credit was extended through December 31, 2013, under the American Taxpayer Relief Act, passed on January 1, 2013. When can you amend a tax return   The credit can be as high as $6,240 for qualified tax-exempt organizations. When can you amend a tax return The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. When can you amend a tax return The amount of the credit for qualified tax-exempt organizations may not exceed the organization's employer social security tax for the period for which the credit is claimed. When can you amend a tax return   All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit. When can you amend a tax return The process for certifying veterans for this credit is the same for all employers. When can you amend a tax return For more information, see Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit and the instructions to Form 8850. When can you amend a tax return Notice 2012-13, 2012-9 I. When can you amend a tax return R. When can you amend a tax return B. When can you amend a tax return 421, also provides additional guidance on submission Form 8850. When can you amend a tax return   Organizations described in section 501(c) and exempt from taxation under section 501(a) may claim the credit for qualified veterans who begin work on or after Nov. When can you amend a tax return 22, 2011, and before January 1, 2013. When can you amend a tax return After the required certification is secured, tax-exempt employers claim the credit against the employer social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans, Form 5884-C. When can you amend a tax return File Form 5884-C after filing the related employment tax return for the employment tax period for which the credit is claimed. When can you amend a tax return It is recommended that qualified tax-exempt employers do not reduce their required deposits in anticipation of any credit as the forms are processed separately. When can you amend a tax return In addition to Form 5884-C and its instructions, tax-exempt employers should see Notice 2012-13 and the Frequently Asked Questions & Answers for more details for claiming the credit. When can you amend a tax return Trust fund recovery penalty. When can you amend a tax return   If any person required to collect, truthfully account for, and pay over any of these taxes willfully fails to satisfy any of these requirements or willfully tries in any way to evade or defeat any of them, that person will be subject to a penalty. When can you amend a tax return The penalty is equal to the tax evaded, not collected, or not accounted for and paid over. When can you amend a tax return The term person includes: An officer or employee of a corporation, or A member or employee of a partnership. When can you amend a tax return Exception. When can you amend a tax return   The penalty is not imposed on any unpaid volunteer director or member of a board of trustees of an exempt organization if the unpaid volunteer serves solely in an honorary capacity, does not participate in the day-to-day or financial operations of the organization, and does not have actual knowledge of the failure on which the penalty is imposed. When can you amend a tax return   This exception does not apply if it results in no one being liable for the penalty. When can you amend a tax return FICA and FUTA tax exceptions. When can you amend a tax return   Payments for services performed by a minister of a church in the exercise of the ministry, or a member of a religious order performing duties required by the order, are generally not subject to FICA or FUTA taxes. When can you amend a tax return FUTA tax exception. When can you amend a tax return   Payments for services performed by an employee of a religious, charitable, educational, or other organization described in section 501(c)(3) that are generally subject to FICA taxes if the payments are $100 or more for the year, are not subject to FUTA taxes. When can you amend a tax return FICA tax exemption election. When can you amend a tax return   Churches and qualified church-controlled organizations can elect exemption from employer FICA taxes by filing Form 8274. When can you amend a tax return   To elect the exemption, Form 8274 must be filed before the first date on which a quarterly employment tax return would otherwise be due from the electing organization. When can you amend a tax return The organization can make the election only if it is opposed for religious reasons to the payment of FICA taxes. When can you amend a tax return   The election applies to payments for services of current and future employees other than services performed in an unrelated trade or business. When can you amend a tax return Revoking the election. When can you amend a tax return   The election can be revoked by the IRS if the organization fails to file Form W-2, Wage and Tax Statement, for 2 years and fails to furnish certain information upon request by the IRS. When can you amend a tax return Such revocation will apply retroactively to the beginning of the 2-year period. When can you amend a tax return Definitions. When can you amend a tax return   For purposes of this election, the term church means a church, a convention or association of churches, or an elementary or secondary school that is controlled, operated, or principally supported by a church or by a convention or association of churches. When can you amend a tax return   The term qualified church-controlled organization means any church-controlled section 501(c)(3) tax-exempt organization, other than an organization that both: Offers goods, services, or facilities for sale, other than on an incidental basis, to the general public at other than a nominal charge that is substantially less than the cost of providing such goods, services, or facilities, and Normally receives more than 25% of its support from the sum of governmental sources and receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in activities that are not unrelated trades or businesses. When can you amend a tax return Effect on employees. When can you amend a tax return   If a church or qualified church-controlled organization has made an election, payment for services performed for that church or organization, other than in an unrelated trade or business, will not be subject to FICA taxes. When can you amend a tax return However, the employee, unless otherwise exempt, will be subject to self-employment tax on the income. When can you amend a tax return The tax applies to income of $108. When can you amend a tax return 28 or more for the tax year from that church or organization, and no deductions for trade or business expenses are allowed against this self-employment income. When can you amend a tax return   Schedule SE (Form 1040), Self-Employment Tax, should be attached to the employee's income tax return. When can you amend a tax return Political Organization Income Tax Return Generally, a political organization is treated as an organization exempt from tax. When can you amend a tax return Certain political organizations, however, must file an annual income tax return, Form 1120-POL, U. When can you amend a tax return S. When can you amend a tax return Income Tax Return for Certain Political Organizations, for any year they have political organization taxable income in excess of the $100 specific deduction allowed under section 527. When can you amend a tax return A political organization that has $25,000 ($100,000 for a qualified state or local political organization) or more in gross receipts for the tax year must file Form 990 or Form 990-EZ (and Schedule B of the form), unless excepted. When can you amend a tax return See Forms 990 and 990-EZ , earlier. When can you amend a tax return Political organization. When can you amend a tax return   A political organization is a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function. When can you amend a tax return Exempt function. When can you amend a tax return   An exempt function means influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any federal, state, local public office or office in a political organization, or the election of the Presidential or Vice Presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed. When can you amend a tax return It also includes certain office expenses of a holder of public office or an office in a political organization. When can you amend a tax return Certain political organizations are required to notify the IRS that they are section 527 organizations. When can you amend a tax return These organizations must use Form 8871. When can you amend a tax return Some of these section 527 organizations must use Form 8872 to file periodic reports with the IRS disclosing their contributions and expenditures. When can you amend a tax return For a discussion on these forms, see Reporting Requirements for a Political Organization, later. When can you amend a tax return Political organization taxable income. When can you amend a tax return   Political organization taxable income is the excess of: Gross income for the tax year (excluding exempt function income) minus Deductions directly connected with the earning of gross income. When can you amend a tax return To figure taxable income, allow for a $100 specific deduction, but do not allow for the net operating loss deduction, the dividends-received deduction, and other special deductions for corporations. When can you amend a tax return Exempt organization not a political organization. When can you amend a tax return   An organization exempt under section 501(c) that spends any amount for an exempt function must file Form 1120-POL for any year which it has political taxable income. When can you amend a tax return These organizations must include in gross income the lesser of: The total amount of its exempt function expenditures, or The organization's net investment income. When can you amend a tax return Separate fund. When can you amend a tax return   A section 501(c) organization can set up a separate segregated fund that will be treated as an independent political organization. When can you amend a tax return The earnings and expenditures made by the separate fund will not be attributed to the section 501(c) organization. When can you amend a tax return Section 501(c)(3) organizations are precluded from, and may suffer loss of exemption for, engaging in any political campaign on behalf of, or in opposition to, any candidate for public office. When can you amend a tax return Due date. When can you amend a tax return   Form 1120-POL is due by the 15th day of the 3rd month after the end of the tax year. When can you amend a tax return Thus, for a calendar year taxpayer, Form 1120-POL is due on March 15 of the following year. When can you amend a tax return If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day. When can you amend a tax return    Form 1120-POL is not required of an exempt organization that makes expenditures for political purposes if its gross income does not exceed its directly connected deductions by more than $100 for the tax year. When can you amend a tax return Extension of time to file. When can you amend a tax return    Use Form 7004 to request an automatic 6-month extension of time to file Form 1120-POL. When can you amend a tax return The extension will be granted if you complete Form 7004 properly, make a proper estimate of the tax (if applicable), file Form 1120-POL by the due date, and pay any tax due. When can you amend a tax return Failure to file. When can you amend a tax return   A political organization that fails to file Form 1120-POL is subject to a penalty equal to 5% of the tax due for each month (or partial month) the return is late up to a maximum of 25% of the tax due, unless the organization shows the failure was due to reasonable cause. When can you amend a tax return For more information about filing Form 1120-POL, refer to the instructions accompanying the form. When can you amend a tax return Failure to pay on time. When can you amend a tax return   An organization that does not pay the tax when due generally may have to pay a penalty of 1/2 of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. When can you amend a tax return The penalty will not be imposed if the organization can show that the failure to pay on time was due to reasonable cause. When can you amend a tax return Reporting Requirements for a Political Organization Certain political organizations are required to notify the IRS that the organization is to be treated as a section 527 political organization. When can you amend a tax return The organization is also required to periodically report certain contributions received and expenditures made by the organization. When can you amend a tax return To notify the IRS of section 527 treatment, an organization must file Form 8871. When can you amend a tax return To report contributions and expenditures, certain tax-exempt political organizations must file Form 8872. When can you amend a tax return Form 8871 A political organization must electronically file Form 8871 to notify the IRS that it is to be treated as a section 527 organization. When can you amend a tax return However, an organization is not required to file Form 8871 if: It reasonably expects its annual gross receipts to always be less than $25,000. When can you amend a tax return It is a political committee required to report under the Federal Election Campaign Act of 1971 (FECA) (2 U. When can you amend a tax return S. When can you amend a tax return C. When can you amend a tax return 431(4)). When can you amend a tax return It is a state or local candidate committee. When can you amend a tax return It is a state or local committee of a political party. When can you amend a tax return It is a section 501(c) organization that has made an “exempt function expenditure. When can you amend a tax return ” All other political organizations are required to file Form 8871. When can you amend a tax return An organization must provide on Form 8871: Its name and address (including any business address, if different) and its electronic mailing address; Its purpose; The names and addresses of its officers, highly compensated employees, contact person, custodian of records, and members of its board of directors; The name and address of, and relationship to, any related entities (within the meaning of section 168(h)(4)); and Whether it intends to claim an exemption from filing Form 8872, Form 990, or Form 990-EZ. When can you amend a tax return Employer identification number. When can you amend a tax return   If your organization needs an EIN, you can apply for one: Online—Click on the Employer ID Numbers (EINs) link at www. When can you amend a tax return IRS. When can you amend a tax return gov/businesses/small. When can you amend a tax return By telephone at 1-800-829-4933 from 7:00 a. When can you amend a tax return m. When can you amend a tax return to 10:00 p. When can you amend a tax return m. When can you amend a tax return in the organization's local time zone. When can you amend a tax return By mailing or faxing Form SS-4. When can you amend a tax return   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. When can you amend a tax return Due dates. When can you amend a tax return   The initial Form 8871 must be filed within 24 hours of the date on which the organization was established. When can you amend a tax return If there is a material change, an amended Form 8871 must be filed within 30 days of the material change. When can you amend a tax return When the organization terminates its existence, it must file a final Form 8871 within 30 days of termination. When can you amend a tax return   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. When can you amend a tax return How to file. When can you amend a tax return   An organization must file Form 8871 electronically via the IRS Internet website at www. When can you amend a tax return IRS. When can you amend a tax return gov/polorgs (Keyword: political orgs). When can you amend a tax return Form 8453-X, Political Organization Declaration for Electronic Filing of Notice of Section 527 Status. When can you amend a tax return   After electronically submitting Form 8871, the political organization must print, sign, and mail Form 8453-X to the IRS. When can you amend a tax return Upon receipt of the Form 8453-X, the IRS will send the organization a username and password that must be used to file an amended or final Form 8871 or to electronically file Form 8872. When can you amend a tax return Penalties Failure to file. When can you amend a tax return   An organization that is required to file Form 8871, but fails to do so on a timely basis, will not be treated as a tax-exempt section 527 organization for any period before the date Form 8871 is filed. When can you amend a tax return Also, the taxable income of the organization for that period will include its exempt function income (including contributions received, membership dues, and political fundraising receipts) minus any deductions directly connected with the production of that income. When can you amend a tax return   Failure to file an amended Form 8871 will cause the organization not to be treated as a tax-exempt section 527 organization. When can you amend a tax return If an organization is treated as not being a tax-exempt section 527 organization, the taxable income of the organization will be determined by considering any exempt function income and deductions during the period beginning on the date of the material change and ending on the date that the amended Form 8871 is filed. When can you amend a tax return    The tax is computed by multiplying the organization's taxable income by the highest corporate tax rate. When can you amend a tax return Fraudulent returns. When can you amend a tax return   Any individual or corporation that willfully delivers or discloses to the IRS any list, return, account, statement or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation) or imprisoned for not more than 1 year or both. When can you amend a tax return Waiver of penalties. When can you amend a tax return   The IRS may waive any additional tax assessed on an organization for failure to file Form 8871 if the failure was due to reasonable cause and not willful neglect. When can you amend a tax return Additional information. When can you amend a tax return   For more information on Form 8871, see the form and its instructions. When can you amend a tax return For a discussion on the public inspection requirements for the form, see Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms , later. When can you amend a tax return Form 8872 Every tax-exempt section 527 political organization that accepts a contribution or makes an expenditure, for an exempt function during the calendar year, must file Form 8872 except: A political organization that is not required to file Form 8871 (discussed earlier). When can you amend a tax return A political organization that is subject to tax on its income because it did not file or amend Form 8871. When can you amend a tax return A qualified state or local political organization (QSLPO), discussed below. When can you amend a tax return All other tax-exempt section 527 organizations that accept contributions or make expenditures for an exempt function are required to file Form 8872. When can you amend a tax return Qualified state or local political organization. When can you amend a tax return   A state or local political organization may be a QSLPO if: All of its political activities relate solely to state or local public office (or office in a state or local political organization). When can you amend a tax return It is subject to a state law that requires it to report (and it does report) to a state agency information about contributions and expenditures that is similar to the information that the organization would otherwise be required to report to the IRS. When can you amend a tax return The state agency and the organization make the reports publicly available. When can you amend a tax return No federal candidate or office holder: Controls or materially participates in the direction of the organization, Solicits contributions for the organization, or Directs the disbursements of the organization. When can you amend a tax return Information required on Form 8872. When can you amend a tax return   If an organization pays an individual $500 or more for the calendar year, the organization is required to disclose the individual's name, address, occupation, employer, amount of the expense, the date the expense was paid, and the purpose of the expense on Form 8872. When can you amend a tax return   If an organization receives contributions of $200 or more from one contributor for the calendar year, the organization must disclose the donor's name, address, occupation, employer, and the date the contributions were made. When can you amend a tax return   For additional information that is required, see Form 8872. When can you amend a tax return Due dates. When can you amend a tax return   The due dates for filing Form 8872 vary depending on whether the form is due for a reporting period that occurs during a calendar year in which a regularly scheduled election is held, or any other calendar year (a nonelection year). When can you amend a tax return   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. When can you amend a tax return Election year filing. When can you amend a tax return    In election years, Form 8872 must be filed on either a quarterly or a monthly basis. When can you amend a tax return Both a pre-election report and a post-election report are also required to be filed in an election year. When can you amend a tax return An election year is any year in which a regularly scheduled general election for federal office is held (an even-numbered year). When can you amend a tax return Nonelection year filing. When can you amend a tax return    In nonelection years, the form must be filed on a semiannual or monthly basis. When can you amend a tax return A complete listing of these filing periods are in the Form 8872 Instructions. When can you amend a tax return A nonelection year is any odd-numbered year. When can you amend a tax return How to file. When can you amend a tax return   Form 8872 can be filed either electronically or by mail. When can you amend a tax return However, organizations that have, or expect to have, contributions or expenditures of $50,000 or more for the year must file electronically. When can you amend a tax return    To file by mail, send Form 8872 to the:   Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027 Electronic filing. When can you amend a tax return   File electronically via the IRS internet website at www. When can you amend a tax return IRS. When can you amend a tax return gov/polorgs. When can you amend a tax return You will need a user ID and password to electronically file Form 8872. When can you amend a tax return Organizations that have completed the electronic filing of Form 8871 and submitted a completed and signed Form 8453-X will receive a username and password in the mail. When can you amend a tax return   Organizations that have completed the electronic filing of Form 8871, but have not received their user ID and password can request one by writing to the following address: Internal Revenue Service Attn: Request for 8872 Password Mail Stop 6273 Ogden, UT 84201 Lost username and password. When can you amend a tax return   If you have forgotten or misplaced the username and password issued to your organization after you filed your initial Form 8871, send a letter requesting a new username and password to the address under Electronic filing. When can you amend a tax return You can also fax your request to (801) 620-3249. When can you amend a tax return It may take 3-6 weeks for your new username and password to arrive, as they will be mailed to the organization. When can you amend a tax return Penalty A penalty will be imposed if the organization is required to file Form 8872 and it: Fails to file the form by the due date, or Files the form but fails to report all of the information required or reports incorrect information. When can you amend a tax return The penalty is 35% of the total amount of contributions and expenditures to which a failure relates. When can you amend a tax return Fraudulent returns. When can you amend a tax return   Any individual or corporation that willfully delivers or discloses any list, return, account, statement, or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned for not more than 1 year, or both. When can you amend a tax return Waiver of penalties. When can you amend a tax return   The IRS may waive any additional tax assessed on an organization for failure to file Form 8872 if the failure was due to reasonable cause and not willful neglect. When can you amend a tax return Donee Information Return Dispositions of donated property. When can you amend a tax return   If an organization receives charitable deduction property and within three years sells, exchanges, or otherwise disposes of the property, the organization must file Form 8282, Donee Information Return. When can you amend a tax return However, an organization is not required to file Form 8282 if: The property is valued at $500 or less, or The property is consumed or distributed for charitable purposes. When can you amend a tax return   Form 8282 must be filed with the IRS within 125 days after the disposition. When can you amend a tax return Additionally, a copy of Form 8282 must be given to the donor. When can you amend a tax return If the organization fails to file the required information return, penalties may apply. When can you amend a tax return Charitable deduction property. When can you amend a tax return   This is any property (other than money or publicly traded securities) for which the donee organization signed an appraisal summary or Form 8283, Noncash Charitable Contributions. When can you amend a tax return Publicly traded securities. When can you amend a tax return   These are securities for which market quotations are readily available on an established securities market as of the date of the contribution. When can you amend a tax return Appraisal summary. When can you amend a tax return   If the value of the donated property exceeds $5,000, the donor must get a qualified appraisal for contributions of property, see the Exceptions. When can you amend a tax return below. When can you amend a tax return Exceptions. When can you amend a tax return   A written appraisal is not needed if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane), if your deduction for the vehicle is limited to the gross proceeds from its sale, Intellectual property, Certain securities considered to have market quotations readily available (see Regulations section 1. When can you amend a tax return 170A-13(c)(7)(xi)(B)), Inventory and other property donated by a corporation that are qualified contributions for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A), or Any donation of stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. When can you amend a tax return   The donee organization is not a qualified appraiser for the purpose of valuing the donated property. When can you amend a tax return For more information, get Publication 561, Determining the Value of Donated Property. When can you amend a tax return Form 8283. When can you amend a tax return   For noncash donations over $5,000, the donor must attach Form 8283 to the tax return to support the charitable deduction. When can you amend a tax return The donee must sign Part IV of Section B, Form 8283 unless publicly traded securities are donated. When can you amend a tax return The person who signs for the donee must be an official authorized to sign the donee's tax or information returns, or a person specifically authorized to sign by that official. When can you amend a tax return The signature does not represent concurrence in the appraised value of the contributed property. When can you amend a tax return A signed acknowledgment represents receipt of the property described on Form 8283 on the date specified on the form. When can you amend a tax return The signature also indicates knowledge of the information reporting requirements on dispositions, as previously discussed. When can you amend a tax return A copy of Form 8283 must be given to the donee. When can you amend a tax return Information Provided to Donors In some situations, a donor must obtain certain information from a donee organization to obtain a deduction for a charitable contribution. When can you amend a tax return In other situations, the donee organization is required to provide information to the donor. When can you amend a tax return A charitable organization must give a donor a disclosure statement for a quid pro quo contribution over $75. When can you amend a tax return (See Disclosure statement. When can you amend a tax return later. When can you amend a tax return ) This is a payment a donor makes to a charity partly as a contribution and partly for goods or services. When can you amend a tax return See Quid pro quo contribution below for an example. When can you amend a tax return Failure to make the required disclosure may result in a penalty to the organization. When can you amend a tax return A donor cannot deduct a charitable contribution of $250 or more unless the donor has a written acknowledgment from the charitable organization. When can you amend a tax return In certain circumstances, an organization may be able to meet both of these requirements with the same written document. When can you amend a tax return Disclosure of Quid Pro Quo Contributions A charitable organization must provide a written disclosure statement to donors of a quid pro quo contribution over $75. When can you amend a tax return Quid pro quo contribution. When can you amend a tax return   A contribution made by a donor in exchange for goods or services is known as a quid pro quo contribution. When can you amend a tax return Your charitable organization must provide the donor a written statement informing the donor of the fair market value of the items or services it provided in exchange for the contribution. When can you amend a tax return Generally, a written statement is required for each payment, whenever the contribution portion is over $75. When can you amend a tax return Example. When can you amend a tax return If a donor gives your charity $100 and receives a concert ticket valued at $40, the donor has made a quid pro quo contribution. When can you amend a tax return In this example, the charitable part of the payment is $60. When can you amend a tax return Even though the deductible part of the payment is not more than $75, a written statement must be filed because the total payment is more than $75. When can you amend a tax return If your organization fails to disclose quid pro quo contributions, the organization may be subject to a penalty. When can you amend a tax return Disclosure statement. When can you amend a tax return   The required written disclosure statement must: Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the fair market value of goods or services provided by the charity, and Provide the donor with a good faith estimate of the fair market value of the goods or services that the donor received. When can you amend a tax return The charity must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. When can you amend a tax return If the disclosure statement is furnished in connection with a particular solicitation, it is not necessary for the organization to provide another statement when it actually receives the contribution. When can you amend a tax return   No disclosure statement is required if any of the following are true. When can you amend a tax return The goods or services given to a donor have insubstantial value as described in Revenue Procedure 90-12, 1990-1 C. When can you amend a tax return B. When can you amend a tax return 471, Revenue Procedure 90-12, and Revenue Procedure 92-49, 1992-1 C. When can you amend a tax return B. When can you amend a tax return 507 (as adjusted for inflation), Revenue Procedure 92-49. When can you amend a tax return There is no donative element involved in a particular transaction with a charity (for example, there is generally no donative element involved in a visitor's purchase from a museum gift shop). When can you amend a tax return There is only an intangible religious benefit provided to the donor. When can you amend a tax return The intangible religious benefit must be provided to the donor by an organization organized exclusively for religious purposes, and must be of a type that generally is not sold in a commercial transaction outside the donative context. When can you amend a tax return For example, a donor who, for a payment, is granted admission to a religious ceremony for which there is no admission charge is provided an intangible religious benefit. When can you amend a tax return A donor is not provided intangible religious benefits for payments made for tuition for education leading to a recognized degree, travel services, or consumer goods. When can you amend a tax return The donor makes a payment of $75 or less per year and receives only annual membership benefits that consist of: Any rights or privileges (other than the right to purchase tickets for college athletic events) that the taxpayer can exercise often during the membership period, such as free or discounted admissions or parking or preferred access to goods or services, or Admission to events that are open only to members and the cost per person of which is within the limits for low-cost articles described in Revenue Procedure 90-12 (as adjusted for inflation), Revenue Procedure 90-12. When can you amend a tax return Good faith estimate of fair market value (FMV). When can you amend a tax return   An organization can use any reasonable method to estimate the FMV of goods or services it provided to a donor, as long as it applies the method in good faith. When can you amend a tax return   The organization can estimate the FMV of goods or services that generally are not commercially available by using the FMV of similar or comparable goods or services. When can you amend a tax return Goods or services may be similar or comparable even if they do not have the unique qualities of the goods or services being valued. When can you amend a tax return Example 1. When can you amend a tax return A charity provides a 1-hour tennis lesson with a tennis professional for the first $500 payment it receives. When can you amend a tax return The tennis professional provides 1-hour lessons on a commercial basis for $100. When can you amend a tax return A good faith estimate of the lesson's FMV is $100. When can you amend a tax return Example 2. When can you amend a tax return For a payment of $50,000, a museum allows a donor to hold a private event in a room of the museum. When can you amend a tax return A good faith estimate of the FMV of the right to hold the event in the museum can be made by using the cost of renting a hotel ballroom with a capacity, amenities, and atmosphere comparable to the museum room, even though the hotel ballroom lacks the unique art displayed in the museum room. When can you amend a tax return If the hotel ballroom rents for $2,500, a good faith estimate of the FMV of the right to hold the event in the museum is $2,500. When can you amend a tax return Example 3. When can you amend a tax return For a payment of $1,000, a charity provides an evening tour of a museum conducted by a well-known artist. When can you amend a tax return The artist does not provide tours on a commercial basis. When can you amend a tax return Tours of the museum normally are free to the public. When can you amend a tax return A good faith estimate of the FMV of the evening museum tour is $0 even though it is conducted by the artist. When can you amend a tax return Penalty for failure to disclose. When can you amend a tax return   A penalty is imposed on a charity that does not make the required disclosure of a quid pro quo contribution of more than $75. When can you amend a tax return The penalty is $10 per contribution, not to exceed $5,000 per fundraising event or mailing. When can you amend a tax return The charity can avoid the penalty if it can show that the failure was due to reasonable cause. When can you amend a tax return Acknowledgment of Charitable Contributions of $250 or More A donor can deduct a charitable contribution of $250 or more only if the donor has a written acknowledgment from the charitable organization. When can you amend a tax return The donor must get the acknowledgment by the earlier of: The date the donor files the original return for the year the contribution is made, or The due date, including extensions, for filing the return. When can you amend a tax return The donor is responsible for requesting and obtaining the written acknowledgment from the donee. When can you amend a tax return A charitable organization that receives a payment made as a contribution is treated as the donee organization for this purpose even if the organization (according to the donor's instructions or otherwise) distributes the amount received to one or more charities. When can you amend a tax return Quid pro quo contribution. When can you amend a tax return   If the donee provides goods or services to the donor in exchange for the contribution (a quid pro quo contribution), the acknowledgment must include a good faith estimate of the value of the goods or services. When can you amend a tax return See Disclosure of Quid Pro Quo Contributions earlier. When can you amend a tax return Form of acknowledgment. When can you amend a tax return   Although there is no prescribed format for the written acknowledgment, it must provide enough information to substantiate the amount of the contribution. When can you amend a tax return For more information, see IRS Publication 1771, Charitable Contributions – Substantiation and Disclosure Requirements. When can you amend a tax return Cash contributions. When can you amend a tax return   To deduct a contribution of cash, a check, or other monetary gift (regardless of the amount), a donor must maintain a bank record or a written communication from the donee organization showing the donee's name, date, and amount of the contribution. When can you amend a tax return In the case of a lump-sum contribution (rather than a contribution by payroll deduction) made through the Combined Federal Campaign or a similar program such as a United Way Campaign, the written communication must include the name of the donee organization that is the ultimate recipient of the charitable contribution. When can you amend a tax return Contributions by payroll deduction. When can you amend a tax return   An organization may substantiate an employee's contribution by deduction from its payroll by: A pay stub, Form W-2, or other document showing a contribution to a donee organization, together with A pledge card or other document from the donee organization that shows its name. When can you amend a tax return   For contributions of $250 or more, the document must state that the donee organization provides no goods or services for any payroll contributions. When can you amend a tax return The amount withheld from each payment of wages to a taxpayer is treated as a separate contribution. When can you amend a tax return Acknowledgment of Vehicle Contribution If an exempt organization receives a contribution of a qualified vehicle with a claimed value of more than $500, the donee organization is required to provide a contemporaneous written acknowledgment to the donor. When can you amend a tax return The donee organization can use a completed Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, for the contemporaneous written acknowledgment. When can you amend a tax return See section 3. When can you amend a tax return 03 of Notice 2005-44 for guidance on the information that must be included in a contemporaneous written acknowledgment and the deadline for furnishing the acknowledgment to the donor. When can you amend a tax return Any donee organization that provides a contemporaneous written acknowledgment to a donor is required to report to the IRS the information contained in the acknowledgment. When can you amend a tax return The report is due by February 28 (March 31 if filing electronically) of the year following the year in which the donee organization provides the acknowledgment to the donor. When can you amend a tax return The organization must file the report on Copy A of Form 1098-C. When can you amend a tax return An organization that files Form 1098-C on paper should send it with Form 1096, Annual Summary and Transmittal of U. When can you amend a tax return S. When can you amend a tax return Information Returns. When can you amend a tax return See the Instructions for Form 1096 for the correct filing location. When can you amend a tax return An organization that is required to file 250 or more Forms 1098-C during the calendar year must file the forms electronically or magnetically. When can you amend a tax return Specifications for filing Form 1098-C electronically or magnetically can be found in Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically at www. When can you amend a tax return IRS. When can you amend a tax return gov/pub/irs-pdf/p1220. When can you amend a tax return pdf. When can you amend a tax return Acknowledgment For a contribution of a qualified vehicle with a claimed value of $500 or less, do not file Form 1098-C. When can you amend a tax return However, you can use it as the contemporaneous written acknowledgment under section 170(f)(8) by providing the donor with Copy C only. When can you amend a tax return See the Instructions for Form 1098-C. When can you amend a tax return Generally, the organization should complete Form 1098-C as the written acknowledgment to the donor and the IRS. When can you amend a tax return The contents of the acknowledgment depend upon whether the organization: Sells a qualified vehicle without any significant intervening use or material improvement, Intends to make a significant intervening use of or material improvement to a qualified vehicle prior to sale, or Sells a qualified vehicle to a needy individual at a price significantly below fair market value, or a gratuitous transfer to a needy individual in direct furtherance of a charitable purpose of the organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation. When can you amend a tax return For more information on the acknowledgment, see Notice 2005-44, 2005-25 I. When can you amend a tax return R. When can you amend a tax return B. When can you amend a tax return 1287, at www. When can you amend a tax return irs. When can you amend a tax return gov/irb/2005-25_IRB/2005-25_IRB/ar09. When can you amend a tax return html. When can you amend a tax return Material improvements or significant intervening use. When can you amend a tax return   To constitute significant intervening use, the organization must actually use the vehicle to substantially further the organization's regularly conducted activities, and the use must be significant, not incidental. When can you amend a tax return Factors in determining whether a use is a significant intervening use depend on the nature, extent, frequency, and duration. When can you amend a tax return For this purpose, use includes providing transportation on a regular basis for a significant period of time or significant use directly related to training in vehicle repair. When can you amend a tax return Use does not include the use of a vehicle to provide training in business skills, such as marketing or sales. When can you amend a tax return Examples of significant use include: Driving a vehicle every day for 1 year to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. When can you amend a tax return Driving a vehicle for 10,000 miles over a 1-year period to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. When can you amend a tax return   Material improvements include major repairs and additions that improve the condition of the vehicle in a manner that significantly increases the value. When can you amend a tax return To be a material improvement, the improvement cannot be funded by an additional payment to the organization from the donor of the vehicle. When can you amend a tax return Material improvements do not include cleaning, minor repairs, routine maintenance, painting, removal of dents or scratches, cleaning or repair of upholstery, and installation of theft deterrent devices. When can you amend a tax return Penalties. When can you amend a tax return   If your charitable organization receives contributions of used motor vehicles, boats, and airplanes valued over $500 it may be subject to a penalty if it knowingly: Fails to furnish an acknowledgement in a timely manner, showing the required information, or Furnishes a false or fraudulent acknowledgement of the contribution. When can you amend a tax return    Other penalties may apply. When can you amend a tax return See Part O in the 2012 General Instructions for Certain Information Returns. When can you amend a tax return   An acknowledgment containing a certification will be presumed to be false or fraudulent if the qualified vehicle is sold to a buyer other than a needy individual without a significant intervening use or material improvement within 6 months of the date of the contribution. When can you amend a tax return   If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value. When can you amend a tax return Vehicles sold at auction are not sold at prices significantly below fair market value, and the IRS will not treat vehicles sold at auction as qualifying for this exception. When can you amend a tax return   The penalty for a false or fraudulent acknowledgment where the donee certifies that the vehicle will not be transferred for money, other property, or services before completion of material improvements or significant intervening use or the donee certifies that the vehicle is to be transferred to a needy individual for significantly below fair market value in furtherance of the donee's charitable purpose is the larger of $5,000 or the claimed value of the vehicle multiplied by 39. When can you amend a tax return 6%. When can you amend a tax return   The penalty for an acknowledgment relating to a qualified vehicle being sold in an arm's length transaction to an unrelated party is the larger of the gross proceeds from the sale or the sales price stated in the acknowledgment multiplied by 39. When can you amend a tax return 6%. When can you amend a tax return Qualified Intellectual Property A taxpayer who contributes qualified intellectual property to a charity may be entitled to a charitable deduction, in addition to any initial deduction allowed in the year of contribution. When can you amend a tax return The additional deduction is based on a specified percentage of the qualified donee income with respect to the qualified intellectual property. When can you amend a tax return To qualify for the additional charitable deduction, the donor must provide notice to the donee at the time of the contribution that the donor intends to treat the contribution as qualified intellectual property contribution for purposes of sections 170(m) and 6050L. When can you amend a tax return Every donee organization described in section 170(c) (except a private foundation as defined in section 509(a) that is not described in section 170(b)(1)(F)) that receives or accrues net income from a charitable gift of qualified intellectual property must file Form 8899. When can you amend a tax return Form 8899. When can you amend a tax return   Form 8899, Notice of Income From Donated Intellectual Property, is used by a donee to report net income from qualified intellectual property to the donor of the property and to the IRS and is due by the last day of the first full month following the close of the donee’s tax year. When can you amend a tax return This form must be filed for each tax year of the donee in which the donated property produces net income, but only if all or part of that tax year occurs during the 10-year period beginning on the date of the contribution and that tax year does not begin after the expiration of the legal life of the donated property. When can you amend a tax return Qualified donee income. When can you amend a tax return   Qualified donee income is any net income received by or accrued to the donee that is properly allocable to the qualified intellectual property for the tax year of the donee which ends within or with the tax year of the donor. When can you amend a tax return Income is not treated as allocated to qualified intellectual property if it is received or accrued after the earlier of the expiration of the legal life of the qualified intellectual property, or the 10-year period beginning with the date of
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When can you amend a tax return Publication 575 - Main Content Table of Contents General InformationPension. When can you amend a tax return Annuity. When can you amend a tax return Qualified employee plan. When can you amend a tax return Qualified employee annuity. When can you amend a tax return Designated Roth account. When can you amend a tax return Tax-sheltered annuity plan. When can you amend a tax return Fixed-period annuities. When can you amend a tax return Annuities for a single life. When can you amend a tax return Joint and survivor annuities. When can you amend a tax return Variable annuities. When can you amend a tax return Disability pensions. When can you amend a tax return Variable Annuities Section 457 Deferred Compensation Plans Disability Pensions Insurance Premiums for Retired Public Safety Officers Railroad Retirement Benefits Withholding Tax and Estimated Tax Cost (Investment in the Contract)Foreign employment contributions while a nonresident alien. When can you amend a tax return Taxation of Periodic PaymentsPeriod of participation. When can you amend a tax return Fully Taxable Payments Partly Taxable Payments Taxation of Nonperiodic PaymentsFiguring the Taxable Amount Loans Treated as Distributions Transfers of Annuity Contracts Lump-Sum Distributions RolloversExceptions. When can you amend a tax return No tax withheld. When can you amend a tax return Partial rollovers. When can you amend a tax return Frozen deposits. When can you amend a tax return Reasonable period of time. When can you amend a tax return 20% Mandatory withholding. When can you amend a tax return How to report. When can you amend a tax return How to report. When can you amend a tax return Special rule for Roth IRAs and designated Roth accounts. When can you amend a tax return Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and BeneficiariesGuaranteed payments. When can you amend a tax return How To Get Tax HelpLow Income Taxpayer Clinics General Information Definitions. When can you amend a tax return   Some of the terms used in this publication are defined in the following paragraphs. When can you amend a tax return Pension. When can you amend a tax return   A pension is generally a series of definitely determinable payments made to you after you retire from work. When can you amend a tax return Pension payments are made regularly and are based on such factors as years of service and prior compensation. When can you amend a tax return Annuity. When can you amend a tax return   An annuity is a series of payments under a contract made at regular intervals over a period of more than one full year. When can you amend a tax return They can be either fixed (under which you receive a definite amount) or variable (not fixed). When can you amend a tax return You can buy the contract alone or with the help of your employer. When can you amend a tax return Qualified employee plan. When can you amend a tax return   A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries and that meets Internal Revenue Code requirements. When can you amend a tax return It qualifies for special tax benefits, such as tax deferral for employer contributions and capital gain treatment or the 10-year tax option for lump-sum distributions (if participants qualify). When can you amend a tax return To determine whether your plan is a qualified plan, check with your employer or the plan administrator. When can you amend a tax return Qualified employee annuity. When can you amend a tax return   A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. When can you amend a tax return Designated Roth account. When can you amend a tax return   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. When can you amend a tax return Elective deferrals that are designated as Roth contributions are included in your income. When can you amend a tax return However, qualified distributions (explained later) are not included in your income. When can you amend a tax return You should check with your plan administrator to determine if your plan will accept designated Roth contributions. When can you amend a tax return Tax-sheltered annuity plan. When can you amend a tax return   A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. When can you amend a tax return Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants. When can you amend a tax return Types of pensions and annuities. When can you amend a tax return   Pensions and annuities include the following types. When can you amend a tax return Fixed-period annuities. When can you amend a tax return   You receive definite amounts at regular intervals for a specified length of time. When can you amend a tax return Annuities for a single life. When can you amend a tax return   You receive definite amounts at regular intervals for life. When can you amend a tax return The payments end at death. When can you amend a tax return Joint and survivor annuities. When can you amend a tax return   The first annuitant receives a definite amount at regular intervals for life. When can you amend a tax return After he or she dies, a second annuitant receives a definite amount at regular intervals for life. When can you amend a tax return The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. When can you amend a tax return Variable annuities. When can you amend a tax return   You receive payments that may vary in amount for a specified length of time or for life. When can you amend a tax return The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund. When can you amend a tax return Disability pensions. When can you amend a tax return   You receive disability payments because you retired on disability and have not reached minimum retirement age. When can you amend a tax return More than one program. When can you amend a tax return   You may receive employee plan benefits from more than one program under a single trust or plan of your employer. When can you amend a tax return If you participate in more than one program, you may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. When can you amend a tax return Also, you may be considered to have received more than one pension or annuity. When can you amend a tax return Your former employer or the plan administrator should be able to tell you if you have more than one contract. When can you amend a tax return Example. When can you amend a tax return Your employer set up a noncontributory profit-sharing plan for its employees. When can you amend a tax return The plan provides that the amount held in the account of each participant will be paid when that participant retires. When can you amend a tax return Your employer also set up a contributory defined benefit pension plan for its employees providing for the payment of a lifetime pension to each participant after retirement. When can you amend a tax return The amount of any distribution from the profit-sharing plan depends on the contributions (including allocated forfeitures) made for the participant and the earnings from those contributions. When can you amend a tax return Under the pension plan, however, a formula determines the amount of the pension benefits. When can you amend a tax return The amount of contributions is the amount necessary to provide that pension. When can you amend a tax return Each plan is a separate program and a separate contract. When can you amend a tax return If you get benefits from these plans, you must account for each separately, even though the benefits from both may be included in the same check. When can you amend a tax return Distributions from a designated Roth account are treated separately from other distributions from the plan. When can you amend a tax return Qualified domestic relations order (QDRO). When can you amend a tax return   A QDRO is a judgment, decree, or order relating to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of a participant in a retirement plan. When can you amend a tax return The QDRO must contain certain specific information, such as the name and last known mailing address of the participant and each alternate payee, and the amount or percentage of the participant's benefits to be paid to each alternate payee. When can you amend a tax return A QDRO may not award an amount or form of benefit that is not available under the plan. When can you amend a tax return   A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if he or she were a plan participant. When can you amend a tax return The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. When can you amend a tax return The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. When can you amend a tax return The denominator is the present value of all benefits payable to the participant. When can you amend a tax return   A distribution that is paid to a child or other dependent under a QDRO is taxed to the plan participant. When can you amend a tax return Variable Annuities The tax rules in this publication apply both to annuities that provide fixed payments and to annuities that provide payments that vary in amount based on investment results or other factors. When can you amend a tax return For example, they apply to commercial variable annuity contracts, whether bought by an employee retirement plan for its participants or bought directly from the issuer by an individual investor. When can you amend a tax return Under these contracts, the owner can generally allocate the purchase payments among several types of investment portfolios or mutual funds and the contract value is determined by the performance of those investments. When can you amend a tax return The earnings are not taxed until distributed either in a withdrawal or in annuity payments. When can you amend a tax return The taxable part of a distribution is treated as ordinary income. When can you amend a tax return Net investment income tax. When can you amend a tax return   Beginning in 2013, annuities under a nonqualified plan are included in calculating your net investment income for the net investment income tax (NIIT). When can you amend a tax return For information see the Instructions for Form 8960, Net Investment Income Tax — Individuals, Estates and Trusts. When can you amend a tax return For information on the tax treatment of a transfer or exchange of a variable annuity contract, see Transfers of Annuity Contracts under Taxation of Nonperiodic Payments, later. When can you amend a tax return Withdrawals. When can you amend a tax return   If you withdraw funds before your annuity starting date and your annuity is under a qualified retirement plan, a ratable part of the amount withdrawn is tax free. When can you amend a tax return The tax-free part is based on the ratio of your cost (investment in the contract) to your account balance under the plan. When can you amend a tax return   If your annuity is under a nonqualified plan (including a contract you bought directly from the issuer), the amount withdrawn is allocated first to earnings (the taxable part) and then to your cost (the tax-free part). When can you amend a tax return However, if you bought your annuity contract before August 14, 1982, a different allocation applies to the investment before that date and the earnings on that investment. When can you amend a tax return To the extent the amount withdrawn does not exceed that investment and earnings, it is allocated first to your cost (the tax-free part) and then to earnings (the taxable part). When can you amend a tax return   If you withdraw funds (other than as an annuity) on or after your annuity starting date, the entire amount withdrawn is generally taxable. When can you amend a tax return   The amount you receive in a full surrender of your annuity contract at any time is tax free to the extent of any cost that you have not previously recovered tax free. When can you amend a tax return The rest is taxable. When can you amend a tax return   For more information on the tax treatment of withdrawals, see Taxation of Nonperiodic Payments , later. When can you amend a tax return If you withdraw funds from your annuity before you reach age 59½, also see Tax on Early Distributions under Special Additional Taxes, later. When can you amend a tax return Annuity payments. When can you amend a tax return   If you receive annuity payments under a variable annuity plan or contract, you recover your cost tax free under either the Simplified Method or the General Rule, as explained under Taxation of Periodic Payments , later. When can you amend a tax return For a variable annuity paid under a qualified plan, you generally must use the Simplified Method. When can you amend a tax return For a variable annuity paid under a nonqualified plan (including a contract you bought directly from the issuer), you must use a special computation under the General Rule. When can you amend a tax return For more information, see Variable annuities in Publication 939 under Computation Under the General Rule. When can you amend a tax return Death benefits. When can you amend a tax return    If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. When can you amend a tax return If you choose to receive an annuity, the payments are subject to tax as described above. When can you amend a tax return If the contract provides a joint and survivor annuity and the primary annuitant had received annuity payments before death, you figure the tax-free part of annuity payments you receive as the survivor in the same way the primary annuitant did. When can you amend a tax return See Survivors and Beneficiaries , later. When can you amend a tax return Section 457 Deferred Compensation Plans If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. When can you amend a tax return If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. When can you amend a tax return You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. When can you amend a tax return You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. When can you amend a tax return Your 457(b) plan may have a designated Roth account option. When can you amend a tax return If so, you may be able to roll over amounts to the designated Roth account or make contributions. When can you amend a tax return Elective deferrals to a designated Roth account are included in your income. When can you amend a tax return Qualified distributions (explained later) are not included in your income. When can you amend a tax return See the Designated Roth accounts discussion under Taxation of Periodic Payments, later. When can you amend a tax return This publication covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. When can you amend a tax return For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525. When can you amend a tax return Is your plan eligible?   To find out if your plan is an eligible plan, check with your employer. When can you amend a tax return Plans that are not eligible section 457 plans include the following: Bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plans. When can you amend a tax return Nonelective deferred compensation plans for nonemployees (independent contractors). When can you amend a tax return Deferred compensation plans maintained by churches. When can you amend a tax return Length of service award plans for bona fide volunteer firefighters and emergency medical personnel. When can you amend a tax return An exception applies if the total amount paid to a volunteer exceeds $3,000 for any year of service. When can you amend a tax return Disability Pensions If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. When can you amend a tax return You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. When can you amend a tax return Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. When can you amend a tax return You may be entitled to a tax credit if you were permanently and totally disabled when you retired. When can you amend a tax return For information on this credit, see Publication 524. When can you amend a tax return Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. When can you amend a tax return Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. When can you amend a tax return Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. When can you amend a tax return For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. When can you amend a tax return Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. When can you amend a tax return The premiums can be for coverage for you, your spouse, or dependents. When can you amend a tax return The distribution must be made directly from the plan to the insurance provider. When can you amend a tax return You can exclude from income the smaller of the amount of the insurance premiums or $3,000. When can you amend a tax return You can only make this election for amounts that would otherwise be included in your income. When can you amend a tax return The amount excluded from your income cannot be used to claim a medical expense deduction. When can you amend a tax return An eligible retirement plan is a governmental plan that is: a qualified trust, a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. When can you amend a tax return If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. When can you amend a tax return The amount shown in box 2a of Form 1099-R does not reflect this exclusion. When can you amend a tax return Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. When can you amend a tax return Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. When can you amend a tax return Enter “PSO” next to the appropriate line on which you report the taxable amount. When can you amend a tax return If you are retired on disability and reporting your disability pension on line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to the applicable line. When can you amend a tax return Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. When can you amend a tax return These categories are treated differently for income tax purposes. When can you amend a tax return The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. When can you amend a tax return This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and you treat it for tax purposes like social security benefits. When can you amend a tax return If you received, repaid, or had tax withheld from the SSEB portion of tier 1 benefits during 2013, you will receive Form RRB-1099, Payments by the Railroad Retirement Board (or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, if you are a nonresident alien) from the U. When can you amend a tax return S. When can you amend a tax return Railroad Retirement Board (RRB). When can you amend a tax return For more information about the tax treatment of the SSEB portion of tier 1 benefits and Forms RRB-1099 and RRB-1042S, see Publication 915. When can you amend a tax return The second category contains the rest of the tier 1 railroad retirement benefits, called the non-social security equivalent benefit (NSSEB). When can you amend a tax return It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. When can you amend a tax return Treat this category of benefits, shown on Form RRB-1099-R, as an amount received from a qualified employee plan. When can you amend a tax return This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. When can you amend a tax return (The NSSEB and tier 2 benefits, less certain repayments, are combined into one amount called the Contributory Amount Paid on Form RRB-1099-R. When can you amend a tax return ) Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. When can you amend a tax return See Taxation of Periodic Payments , later, for information on how to report your benefits and how to recover the employee contributions tax free. When can you amend a tax return Form RRB-1099-R is used for U. When can you amend a tax return S. When can you amend a tax return citizens, resident aliens, and nonresident aliens. When can you amend a tax return Nonresident aliens. When can you amend a tax return   A nonresident alien is an individual who is not a citizen or a resident alien of the United States. When can you amend a tax return Nonresident aliens are subject to mandatory U. When can you amend a tax return S. When can you amend a tax return tax withholding unless exempt under a tax treaty between the United States and their country of legal residency. When can you amend a tax return A tax treaty exemption may reduce or eliminate tax withholding from railroad retirement benefits. When can you amend a tax return See Tax withholding next for more information. When can you amend a tax return   If you are a nonresident alien and your tax withholding rate changed or your country of legal residence changed during the year, you may receive more than one Form RRB-1042S or Form RRB-1099-R. When can you amend a tax return To determine your total benefits paid or repaid and total tax withheld for the year, you should add the amounts shown on all forms you received for that year. When can you amend a tax return For information on filing requirements for aliens, see Publication 519, U. When can you amend a tax return S. When can you amend a tax return Tax Guide for Aliens. When can you amend a tax return For information on tax treaties between the United States and other countries that may reduce or eliminate U. When can you amend a tax return S. When can you amend a tax return tax on your benefits, see Publication 901, U. When can you amend a tax return S. When can you amend a tax return Tax Treaties. When can you amend a tax return Tax withholding. When can you amend a tax return   To request or change your income tax withholding from SSEB payments, U. When can you amend a tax return S. When can you amend a tax return citizens should contact the IRS for Form W-4V, Voluntary Withholding Request, and file it with the RRB. When can you amend a tax return To elect, revoke, or change your income tax withholding from NSSEB, tier 2, VDB, and supplemental annuity payments received, use Form RRB W-4P, Withholding Certificate for Railroad Retirement Payments. When can you amend a tax return If you are a nonresident alien or a U. When can you amend a tax return S. When can you amend a tax return citizen living abroad, you should provide Form RRB-1001, Nonresident Questionnaire, to the RRB to furnish citizenship and residency information and to claim any treaty exemption from U. When can you amend a tax return S. When can you amend a tax return tax withholding. When can you amend a tax return Nonresident U. When can you amend a tax return S. When can you amend a tax return citizens cannot elect to be exempt from withholding on payments delivered outside of the U. When can you amend a tax return S. When can you amend a tax return Help from the RRB. When can you amend a tax return   To request an RRB form or to get help with questions about an RRB benefit, you should contact your nearest RRB field office if you reside in the United States (call 1-877-772-5772 for the nearest field office) or U. When can you amend a tax return S. When can you amend a tax return consulate/Embassy if you reside outside the United States. When can you amend a tax return You can visit the RRB on the Internet at www. When can you amend a tax return rrb. When can you amend a tax return gov. When can you amend a tax return Form RRB-1099-R. When can you amend a tax return   The following discussion explains the items shown on Form RRB-1099-R. When can you amend a tax return The amounts shown on this form are before any deduction for: Federal income tax withholding, Medicare premiums, Legal process garnishment payments, Recovery of a prior year overpayment of an NSSEB, tier 2 benefit, VDB, or supplemental annuity benefit, or Recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity. When can you amend a tax return   The amounts shown on this form are after any offset for: Social Security benefits, Age reduction, Public Service pensions or public disability benefits, Dual railroad retirement entitlement under another RRB claim number, Work deductions, Legal process partition deductions, Actuarial adjustment, Annuity waiver, or Recovery of a current-year overpayment of NSSEB, tier 2, VDB, or supplemental annuity benefits. When can you amend a tax return   The amounts shown on Form RRB-1099-R do not reflect any special rules, such as capital gain treatment or the special 10-year tax option for lump-sum payments, or tax-free rollovers. When can you amend a tax return To determine if any of these rules apply to your benefits, see the discussions about them later. When can you amend a tax return   Generally, amounts shown on your Form RRB-1099-R are considered a normal distribution. When can you amend a tax return Use distribution code “7” if you are asked for a distribution code. When can you amend a tax return Distribution codes are not shown on Form RRB-1099-R. When can you amend a tax return   There are three copies of this form. When can you amend a tax return Copy B is to be included with your income tax return if federal income tax is withheld. When can you amend a tax return Copy C is for your own records. When can you amend a tax return Copy 2 is filed with your state, city, or local income tax return, when required. When can you amend a tax return See the illustrated Copy B (Form RRB-1099-R) above. When can you amend a tax return       Each beneficiary will receive his or her own Form RRB-1099-R. When can you amend a tax return If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099-R. When can you amend a tax return So that you get your form timely, make sure the RRB always has your current mailing address. When can you amend a tax return Please click here for the text description of the image. When can you amend a tax return Form RRB-1099-R Box 1—Claim Number and Payee Code. When can you amend a tax return   Your claim number is a six- or nine-digit number preceded by an alphabetical prefix. When can you amend a tax return This is the number under which the RRB paid your benefits. When can you amend a tax return Your payee code follows your claim number and is the last number in this box. When can you amend a tax return It is used by the RRB to identify you under your claim number. When can you amend a tax return In all your correspondence with the RRB, be sure to use the claim number and payee code shown in this box. When can you amend a tax return Box 2—Recipient's Identification Number. When can you amend a tax return   This is the recipient's U. When can you amend a tax return S. When can you amend a tax return taxpayer identification number. When can you amend a tax return It is the social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient. When can you amend a tax return If you are a resident or nonresident alien who must furnish a taxpayer identification number to the IRS and are not eligible to obtain an SSN, use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN. When can you amend a tax return The Instructions for Form W-7 explain how and when to apply. When can you amend a tax return Box 3—Employee Contributions. When can you amend a tax return   This is the amount of taxes withheld from the railroad employee's earnings that exceeds the amount of taxes that would have been withheld had the earnings been covered under the social security system. When can you amend a tax return This amount is the employee's cost that you use to figure the tax-free part of the NSSEB and tier 2 benefit you received (the amount shown in box 4). When can you amend a tax return (For information on how to figure the tax-free part, see Partly Taxable Payments under Taxation of Periodic Payments, later. When can you amend a tax return ) The amount shown is the total employee contribution amount, not reduced by any amounts that the RRB calculated as previously recovered. When can you amend a tax return It is the latest amount reported for 2013 and may have increased or decreased from a previous Form RRB-1099-R. When can you amend a tax return If this amount has changed, the change is retroactive. When can you amend a tax return You may need to refigure the tax-free part of your NSSEB/tier 2 benefit for 2013 and prior tax years. When can you amend a tax return If this box is blank, it means that the amount of your NSSEB and tier 2 payments shown in box 4 is fully taxable. When can you amend a tax return    If you had a previous annuity entitlement that ended and you are figuring the tax-free part of your NSSEB/tier 2 benefit for your current annuity entitlement, you should contact the RRB for confirmation of your correct employee contribution amount. When can you amend a tax return Box 4—Contributory Amount Paid. When can you amend a tax return   This is the gross amount of the NSSEB and tier 2 benefit you received in 2013, less any 2013 benefits you repaid in 2013. When can you amend a tax return (Any benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. When can you amend a tax return ) This amount is the total contributory pension paid in 2013. When can you amend a tax return It may be partly taxable and partly tax free or fully taxable. When can you amend a tax return If you determine you are eligible to compute a tax-free part as explained later in Partly Taxable Payments under Taxation of Periodic Payments, use the latest reported employee contribution amount shown in box 3 as the cost. When can you amend a tax return Box 5—Vested Dual Benefit. When can you amend a tax return   This is the gross amount of vested dual benefit (VDB) payments paid in 2013, less any 2013 VDB payments you repaid in 2013. When can you amend a tax return It is fully taxable. When can you amend a tax return VDB payments you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. When can you amend a tax return Note. When can you amend a tax return The amounts shown in boxes 4 and 5 may represent payments for 2013 and/or other years after 1983. When can you amend a tax return Box 6—Supplemental Annuity. When can you amend a tax return   This is the gross amount of supplemental annuity benefits paid in 2013, less any 2013 supplemental annuity benefits you repaid in 2013. When can you amend a tax return It is fully taxable. When can you amend a tax return Supplemental annuity benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. When can you amend a tax return Box 7—Total Gross Paid. When can you amend a tax return   This is the sum of boxes 4, 5, and 6. When can you amend a tax return The amount represents the total pension paid in 2013. When can you amend a tax return Include this amount on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. When can you amend a tax return Box 8—Repayments. When can you amend a tax return   This amount represents any NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit you repaid to the RRB in 2013 for years before 2013 or for unknown years. When can you amend a tax return The amount shown in this box has not been deducted from the amounts shown in boxes 4, 5, and 6. When can you amend a tax return It only includes repayments of benefits that were taxable to you. When can you amend a tax return This means it only includes repayments in 2013 of NSSEB benefits paid after 1985, tier 2 and VDB benefits paid after 1983, and supplemental annuity benefits paid in any year. When can you amend a tax return If you included the benefits in your income in the year you received them, you may be able to deduct the repaid amount. When can you amend a tax return For more information about repayments, see Repayment of benefits received in an earlier year , later. When can you amend a tax return    You may have repaid an overpayment of benefits by returning a payment, by making a payment, or by having an amount withheld from your railroad retirement annuity payment. When can you amend a tax return Box 9—Federal Income Tax Withheld. When can you amend a tax return   This is the total federal income tax withheld from your NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit. When can you amend a tax return Include this on your income tax return as tax withheld. When can you amend a tax return If you are a nonresident alien and your tax withholding rate and/or country of legal residence changed during 2013, you will receive more than one Form RRB-1099-R for 2013. When can you amend a tax return Determine the total amount of U. When can you amend a tax return S. When can you amend a tax return federal income tax withheld from your 2013 RRB NSSEB, tier 2, VDB, and supplemental annuity payments by adding the amounts in box 9 of all original 2013 Forms RRB-1099-R, or the latest corrected or duplicate Forms RRB-1099-R you receive. When can you amend a tax return Box 10—Rate of Tax. When can you amend a tax return   If you are taxed as a U. When can you amend a tax return S. When can you amend a tax return citizen or resident alien, this box does not apply to you. When can you amend a tax return If you are a nonresident alien, an entry in this box indicates the rate at which tax was withheld on the NSSEB, tier 2, VDB, and supplemental annuity payments that were paid to you in 2013. When can you amend a tax return If you are a nonresident alien whose tax was withheld at more than one rate during 2013, you will receive a separate Form RRB-1099-R for each rate change during 2013. When can you amend a tax return Box 11—Country. When can you amend a tax return   If you are taxed as a U. When can you amend a tax return S. When can you amend a tax return citizen or resident alien, this box does not apply to you. When can you amend a tax return If you are a nonresident alien, an entry in this box indicates the country of which you were a resident for tax purposes at the time you received railroad retirement payments in 2013. When can you amend a tax return If you are a nonresident alien who was a resident of more than one country during 2013, you will receive a separate Form RRB-1099-R for each country of residence during 2013. When can you amend a tax return Box 12—Medicare Premium Total. When can you amend a tax return   This is for information purposes only. When can you amend a tax return The amount shown in this box represents the total amount of Part B Medicare premiums deducted from your railroad retirement annuity payments in 2013. When can you amend a tax return Medicare premium refunds are not included in the Medicare total. When can you amend a tax return The Medicare total is normally shown on Form RRB-1099 (if you are a citizen or resident alien of the United States) or Form RRB-1042S (if you are a nonresident alien). When can you amend a tax return However, if Form RRB-1099 or Form RRB-1042S is not required for 2013, then this total will be shown on Form RRB-1099-R. When can you amend a tax return If your Medicare premiums were deducted from your social security benefits, paid by a third party, refunded to you, and/or you paid the premiums by direct billing, your Medicare total will not be shown in this box. When can you amend a tax return Repayment of benefits received in an earlier year. When can you amend a tax return   If you had to repay any railroad retirement benefits that you had included in your income in an earlier year because at that time you thought you had an unrestricted right to it, you can deduct the amount you repaid in the year in which you repaid it. When can you amend a tax return   If you repaid $3,000 or less in 2013, deduct it on Schedule A (Form 1040), line 23. When can you amend a tax return The 2%-of-adjusted-gross-income limit applies to this deduction. When can you amend a tax return You cannot take this deduction if you file Form 1040A. When can you amend a tax return    If you repaid more than $3,000 in 2013, you can either take a deduction for the amount repaid on Schedule A (Form 1040), line 28 or you can take a credit against your tax. When can you amend a tax return For more information, see Repayments in Publication 525. When can you amend a tax return Withholding Tax and Estimated Tax Your retirement plan distributions are subject to federal income tax withholding. When can you amend a tax return However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. When can you amend a tax return (These are distributions, described later under Rollovers, that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. When can you amend a tax return ) If you choose not to have tax withheld or if you do not have enough tax withheld, you may have to make estimated tax payments. When can you amend a tax return See Estimated tax , later. When can you amend a tax return The withholding rules apply to the taxable part of payments you receive from: An employer pension, annuity, profit-sharing, or stock bonus plan, Any other deferred compensation plan, A traditional individual retirement arrangement (IRA), or A commercial annuity. When can you amend a tax return For this purpose, a commercial annuity means an annuity, endowment, or life insurance contract issued by an insurance company. When can you amend a tax return There will be no withholding on any part of a distribution where it is reasonable to believe that it will not be includible in gross income. When can you amend a tax return Choosing no withholding. When can you amend a tax return   You can choose not to have income tax withheld from retirement plan payments unless they are eligible rollover distributions. When can you amend a tax return You can make this choice on Form W-4P for periodic and nonperiodic payments. When can you amend a tax return This choice generally remains in effect until you revoke it. When can you amend a tax return   The payer will ignore your choice not to have tax withheld if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer, before the payment is made, that you gave an incorrect social security number. When can you amend a tax return   To choose not to have tax withheld, a U. When can you amend a tax return S. When can you amend a tax return citizen or resident alien must give the payer a home address in the United States or its possessions. When can you amend a tax return Without that address, the payer must withhold tax. When can you amend a tax return For example, the payer has to withhold tax if the recipient has provided a U. When can you amend a tax return S. When can you amend a tax return address for a nominee, trustee, or agent to whom the benefits are delivered, but has not provided his or her own U. When can you amend a tax return S. When can you amend a tax return home address. When can you amend a tax return   If you do not give the payer a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to the payer that you are not a U. When can you amend a tax return S. When can you amend a tax return citizen, a U. When can you amend a tax return S. When can you amend a tax return resident alien, or someone who left the country to avoid tax. When can you amend a tax return But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. When can you amend a tax return This 30% rate will not apply if you are exempt or subject to a reduced rate by treaty. When can you amend a tax return For details, get Publication 519. When can you amend a tax return Periodic payments. When can you amend a tax return   Unless you choose no withholding, your annuity or similar periodic payments (other than eligible rollover distributions) will be treated like wages for withholding purposes. When can you amend a tax return Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). When can you amend a tax return You should give the payer a completed withholding certificate (Form W-4P or a similar form provided by the payer). When can you amend a tax return If you do not, tax will be withheld as if you were married and claiming three withholding allowances. When can you amend a tax return   Tax will be withheld as if you were single and were claiming no withholding allowances if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer (before any payment is made) that you gave an incorrect social security number. When can you amend a tax return   You must file a new withholding certificate to change the amount of withholding. When can you amend a tax return Nonperiodic distributions. When can you amend a tax return    Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that is not an eligible rollover distribution is 10% of the distribution. When can you amend a tax return You can also ask the payer to withhold an additional amount using Form W-4P. When can you amend a tax return The part of any loan treated as a distribution (except an offset amount to repay the loan), explained later, is subject to withholding under this rule. When can you amend a tax return Eligible rollover distribution. When can you amend a tax return    If you receive an eligible rollover distribution, 20% of it generally will be withheld for income tax. When can you amend a tax return You cannot choose not to have tax withheld from an eligible rollover distribution. When can you amend a tax return However, tax will not be withheld if you have the plan administrator pay the eligible rollover distribution directly to another qualified plan or an IRA in a direct rollover. When can you amend a tax return For more information about eligible rollover distributions, see Rollovers , later. When can you amend a tax return Estimated tax. When can you amend a tax return   Your estimated tax is the total of your expected income tax, self-employment tax, and certain other taxes for the year, minus your expected credits and withheld tax. When can you amend a tax return Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 return, or 100% of the tax shown on your 2013 return. When can you amend a tax return If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. When can you amend a tax return For more information, get Publication 505, Tax Withholding and Estimated Tax. When can you amend a tax return In figuring your withholding or estimated tax, remember that a part of your monthly social security or equivalent tier 1 railroad retirement benefits may be taxable. When can you amend a tax return See Publication 915. When can you amend a tax return You can choose to have income tax withheld from those benefits. When can you amend a tax return Use Form W-4V to make this choice. When can you amend a tax return Cost (Investment in the Contract) Distributions from your pension or annuity plan may include amounts treated as a recovery of your cost (investment in the contract). When can you amend a tax return If any part of a distribution is treated as a recovery of your cost under the rules explained in this publication, that part is tax free. When can you amend a tax return Therefore, the first step in figuring how much of a distribution is taxable is to determine the cost of your pension or annuity. When can you amend a tax return In general, your cost is your net investment in the contract as of the annuity starting date (or the date of the distribution, if earlier). When can you amend a tax return To find this amount, you must first figure the total premiums, contributions, or other amounts you paid. When can you amend a tax return This includes the amounts your employer contributed that were taxable to you when paid. When can you amend a tax return (However, see Foreign employment contributions , later. When can you amend a tax return ) It does not include amounts withheld from your pay on a tax-deferred basis (money that was taken out of your gross pay before taxes were deducted). When can you amend a tax return It also does not include amounts you contributed for health and accident benefits (including any additional premiums paid for double indemnity or disability benefits). When can you amend a tax return From this total cost you must subtract the following amounts. When can you amend a tax return Any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income and that you received by the later of the annuity starting date or the date on which you received your first payment. When can you amend a tax return Any other tax-free amounts you received under the contract or plan by the later of the dates in (1). When can you amend a tax return If you must use the Simplified Method for your annuity payments, the tax-free part of any single-sum payment received in connection with the start of the annuity payments, regardless of when you received it. When can you amend a tax return (See Simplified Method , later, for information on its required use. When can you amend a tax return ) If you use the General Rule for your annuity payments, the value of the refund feature in your annuity contract. When can you amend a tax return (See General Rule , later, for information on its use. When can you amend a tax return ) Your annuity contract has a refund feature if the annuity payments are for your life (or the lives of you and your survivor) and payments in the nature of a refund of the annuity's cost will be made to your beneficiary or estate if all annuitants die before a stated amount or a stated number of payments are made. When can you amend a tax return For more information, see Publication 939. When can you amend a tax return The tax treatment of the items described in (1) through (3) is discussed later under Taxation of Nonperiodic Payments . When can you amend a tax return Form 1099-R. When can you amend a tax return If you began receiving periodic payments of a life annuity in 2013, the payer should show your total contributions to the plan in box 9b of your 2013 Form 1099-R. When can you amend a tax return Annuity starting date defined. When can you amend a tax return   Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. When can you amend a tax return Example. When can you amend a tax return On January 1, you completed all your payments required under an annuity contract providing for monthly payments starting on August 1 for the period beginning July 1. When can you amend a tax return The annuity starting date is July 1. When can you amend a tax return This is the date you use in figuring the cost of the contract and selecting the appropriate number from Table 1 for line 3 of the Simplified Method Worksheet. When can you amend a tax return Designated Roth accounts. When can you amend a tax return   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. When can you amend a tax return Your cost will also include any in-plan Roth rollovers you included in income. When can you amend a tax return Foreign employment contributions. When can you amend a tax return   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. When can you amend a tax return The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (not including the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) but only if the contributions would be excludible from your gross income had they been paid directly to you. When can you amend a tax return Foreign employment contributions while a nonresident alien. When can you amend a tax return   In determining your cost, special rules apply if you are a U. When can you amend a tax return S. When can you amend a tax return citizen or resident alien who received distributions in 2013 from a plan to which contributions were made while you were a nonresident alien. When can you amend a tax return Your contributions and your employer's contributions are not included in your cost if the contribution: Was made based on compensation which was for services performed outside the United States while you were a nonresident alien, and Was not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if paid as cash compensation when the services were performed. When can you amend a tax return Taxation of Periodic Payments This section explains how the periodic payments you receive from a pension or annuity plan are taxed. When can you amend a tax return Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). When can you amend a tax return These payments are also known as amounts received as an annuity. When can you amend a tax return If you receive an amount from your plan that is not a periodic payment, see Taxation of Nonperiodic Payments , later. When can you amend a tax return In general, you can recover the cost of your pension or annuity tax free over the period you are to receive the payments. When can you amend a tax return The amount of each payment that is more than the part that represents your cost is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). When can you amend a tax return Designated Roth accounts. When can you amend a tax return   If you receive a qualified distribution from a designated Roth account, the distribution is not included in your gross income. When can you amend a tax return This applies to both your cost in the account and income earned on that account. When can you amend a tax return A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. When can you amend a tax return   If the distribution is not a qualified distribution, the rules discussed in this section apply. When can you amend a tax return The designated Roth account is treated as a separate contract. When can you amend a tax return Period of participation. When can you amend a tax return   The 5-tax-year period of participation is the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the plan. When can you amend a tax return Therefore, for designated Roth contributions made for 2013, the first year for which a qualified distribution can be made is 2018. When can you amend a tax return   However, if a direct rollover is made to the plan from a designated Roth account under another plan, the 5-tax-year period for the recipient plan begins with the first tax year for which the participant first had designated Roth contributions made to the other plan. When can you amend a tax return   Your 401(k), 403(b), or 457(b) plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. When can you amend a tax return This is known as an in-plan Roth rollover. When can you amend a tax return For more details, see In-plan Roth rollovers , later. When can you amend a tax return Fully Taxable Payments The pension or annuity payments that you receive are fully taxable if you have no cost in the contract because any of the following situations applies to you (however, see Insurance Premiums for Retired Public Safety Officers , earlier). When can you amend a tax return You did not pay anything or are not considered to have paid anything for your pension or annuity. When can you amend a tax return Amounts withheld from your pay on a tax-deferred basis are not considered part of the cost of the pension or annuity payment. When can you amend a tax return Your employer did not withhold contributions from your salary. When can you amend a tax return You got back all of your contributions tax free in prior years (however, see Exclusion not limited to cost under Partly Taxable Payments, later). When can you amend a tax return Report the total amount you got on Form 1040, line 16b; Form 1040A, line 12b; or on Form 1040NR, line 17b. When can you amend a tax return You should make no entry on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. When can you amend a tax return Deductible voluntary employee contributions. When can you amend a tax return   Distributions you receive that are based on your accumulated deductible voluntary employee contributions are generally fully taxable in the year distributed to you. When can you amend a tax return Accumulated deductible voluntary employee contributions include net earnings on the contributions. When can you amend a tax return If distributed as part of a lump sum, they do not qualify for the 10-year tax option or capital gain treatment, explained later. When can you amend a tax return Partly Taxable Payments If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. When can you amend a tax return This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. When can you amend a tax return The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). When can you amend a tax return You figure the tax-free part of the payment using one of the following methods. When can you amend a tax return Simplified Method. When can you amend a tax return You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). When can you amend a tax return You cannot use this method if your annuity is paid under a nonqualified plan. When can you amend a tax return General Rule. When can you amend a tax return You must use this method if your annuity is paid under a nonqualified plan. When can you amend a tax return You generally cannot use this method if your annuity is paid under a qualified plan. When can you amend a tax return You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. When can you amend a tax return If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. When can you amend a tax return Qualified plan annuity starting before November 19, 1996. When can you amend a tax return   If your annuity is paid under a qualified plan and your annuity starting date (defined earlier under Cost (Investment in the Contract) ) is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the Simplified Method or the General Rule. When can you amend a tax return If your annuity starting date is before July 2, 1986, you use the General Rule unless your annuity qualified for the Three-Year Rule. When can you amend a tax return If you used the Three-Year Rule (which was repealed for annuities starting after July 1, 1986), your annuity payments are generally now fully taxable. When can you amend a tax return Exclusion limit. When can you amend a tax return   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. When can you amend a tax return Once your annuity starting date is determined, it does not change. When can you amend a tax return If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. When can you amend a tax return That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. When can you amend a tax return Exclusion limited to cost. When can you amend a tax return   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. When can you amend a tax return Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. When can you amend a tax return This deduction is not subject to the 2%-of-adjusted-gross-income limit. When can you amend a tax return Example 1. When can you amend a tax return Your annuity starting date is after 1986, and you exclude $100 a month ($1,200 a year) under the Simplified Method. When can you amend a tax return The total cost of your annuity is $12,000. When can you amend a tax return Your exclusion ends when you have recovered your cost tax free, that is, after 10 years (120 months). When can you amend a tax return After that, your annuity payments are generally fully taxable. When can you amend a tax return Example 2. When can you amend a tax return The facts are the same as in Example 1, except you die (with no surviving annuitant) after the eighth year of retirement. When can you amend a tax return You have recovered tax free only $9,600 (8 × $1,200) of your cost. When can you amend a tax return An itemized deduction for your unrecovered cost of $2,400 ($12,000 – $9,600) can be taken on your final return. When can you amend a tax return Exclusion not limited to cost. When can you amend a tax return   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. When can you amend a tax return If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. When can you amend a tax return The total exclusion may be more than your cost. When can you amend a tax return Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. When can you amend a tax return For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. When can you amend a tax return For any other annuity, this number is the number of monthly annuity payments under the contract. When can you amend a tax return Who must use the Simplified Method. When can you amend a tax return   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions. When can you amend a tax return You receive your pension or annuity payments from any of the following plans. When can you amend a tax return A qualified employee plan. When can you amend a tax return A qualified employee annuity. When can you amend a tax return A tax-sheltered annuity plan (403(b) plan). When can you amend a tax return On your annuity starting date, at least one of the following conditions applies to you. When can you amend a tax return You are under age 75. When can you amend a tax return You are entitled to less than 5 years of guaranteed payments. When can you amend a tax return Guaranteed payments. When can you amend a tax return   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. When can you amend a tax return If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. When can you amend a tax return Annuity starting before November 19, 1996. When can you amend a tax return   If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. When can you amend a tax return You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed earlier under Who must use the Simplified Method . When can you amend a tax return Who cannot use the Simplified Method. When can you amend a tax return   You cannot use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. When can you amend a tax return See General Rule , later. When can you amend a tax return How to use the Simplified Method. When can you amend a tax return    Complete Worksheet A in the back of this publication to figure your taxable annuity for 2013. When can you amend a tax return Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. When can you amend a tax return   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. When can you amend a tax return How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. When can you amend a tax return For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. When can you amend a tax return    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. When can you amend a tax return Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. When can you amend a tax return Single-life annuity. When can you amend a tax return   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. When can you amend a tax return Enter on line 3 the number shown for your age on your annuity starting date. When can you amend a tax return This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. When can you amend a tax return Multiple-lives annuity. When can you amend a tax return   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. When can you amend a tax return Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. When can you amend a tax return For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. When can you amend a tax return For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. When can you amend a tax return Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. When can you amend a tax return   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. When can you amend a tax return Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. When can you amend a tax return This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. When can you amend a tax return Fixed-period annuity. When can you amend a tax return   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. When can you amend a tax return Line 6. When can you amend a tax return   The amount on line 6 should include all amounts that could have been recovered in prior years. When can you amend a tax return If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. When can you amend a tax return Example. When can you amend a tax return Bill Smith, age 65, began receiving retirement benefits in 2013 under a joint and survivor annuity. When can you amend a tax return Bill's annuity starting date is January 1, 2013. When can you amend a tax return The benefits are to be paid for the joint lives of Bill and his wife, Kathy, age 65. When can you amend a tax return Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. When can you amend a tax return Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. When can you amend a tax return Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. When can you amend a tax return Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of Worksheet A in completing line 3 of the worksheet. When can you amend a tax return His completed worksheet is shown later. When can you amend a tax return Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. When can you amend a tax return Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. When can you amend a tax return The full amount of any annuity payments received after 310 payments are paid must be included in gross income. When can you amend a tax return If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. When can you amend a tax return This deduction is not subject to the 2%-of-adjusted-gross-income limit. When can you amend a tax return Worksheet A. When can you amend a tax return Simplified Method Worksheet for Bill Smith 1. When can you amend a tax return Enter the total pension or annuity payments received this year. When can you amend a tax return Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. When can you amend a tax return $14,400 2. When can you amend a tax return Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. When can you amend a tax return * See Cost (Investment in the Contract) , earlier 2. When can you amend a tax return 31,000   Note. When can you amend a tax return If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). When can you amend a tax return Otherwise, go to line 3. When can you amend a tax return     3. When can you amend a tax return Enter the appropriate number from Table 1 below. When can you amend a tax return But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. When can you amend a tax return 310 4. When can you amend a tax return Divide line 2 by the number on line 3 4. When can you amend a tax return 100 5. When can you amend a tax return Multiply line 4 by the number of months for which this year's payments were made. When can you amend a tax return If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. When can you amend a tax return Otherwise, go to line 6 5. When can you amend a tax return 1,200 6. When can you amend a tax return Enter any amount previously recovered tax free in years after 1986. When can you amend a tax return This is the amount shown on line 10 of your worksheet for last year 6. When can you amend a tax return -0- 7. When can you amend a tax return Subtract line 6 from line 2 7. When can you amend a tax return 31,000 8. When can you amend a tax return Enter the smaller of line 5 or line 7 8. When can you amend a tax return 1,200 9. When can you amend a tax return Taxable amount for year. When can you amend a tax return Subtract line 8 from line 1. When can you amend a tax return Enter the result, but not less than zero. When can you amend a tax return Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. When can you amend a tax return Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. When can you amend a tax return If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. When can you amend a tax return $13,200 10. When can you amend a tax return Was your annuity starting date before 1987? □ Yes. When can you amend a tax return STOP. When can you amend a tax return Do not complete the rest of this worksheet. When can you amend a tax return  ☑ No. When can you amend a tax return Add lines 6 and 8. When can you amend a tax return This is the amount you have recovered tax free through 2013. When can you amend a tax return You will need this number if you need to fill out this worksheet next year 10. When can you amend a tax return 1,200 11. When can you amend a tax return Balance of cost to be recovered. When can you amend a tax return Subtract line 10 from line 2. When can you amend a tax return If zero, you will not have to complete this worksheet next year. When can you amend a tax return The payments you receive next year will generally be fully taxable 11. When can you amend a tax return $29,800         * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. When can you amend a tax return           Table 1 for Line 3 Above       AND your annuity starting date was—     IF the age at annuity starting date was. When can you amend a tax return . When can you amend a tax return . When can you amend a tax return BEFORE November 19, 1996, enter on line 3. When can you amend a tax return . When can you amend a tax return . When can you amend a tax return AFTER November 18, 1996, enter on line 3. When can you amend a tax return . When can you amend a tax return . When can you amend a tax return     55 or under 300 360     56-60 260 310     61-65 240 260     66-70 170 210     71 or older 120 160     Table 2 for Line 3 Above     IF the combined ages at  annuity starting date were. When can you amend a tax return . When can you amend a tax return . When can you amend a tax return THEN enter on line 3. When can you amend a tax return . When can you amend a tax return . When can you amend a tax return     110 or under   410     111-120   360     121-130   310     131-140   260     141 or older   210   Multiple annuitants. When can you amend a tax return   If you and one or more other annuitants receive payments at the same time, you exclude from each annuity payment a pro rata share of the monthly tax-free amount. When can you amend a tax return Figure your share by taking the following steps. When can you amend a tax return Complete your worksheet through line 4 to figure the monthly tax-free amount. When can you amend a tax return Divide the amount of your monthly payment by the total amount of the monthly payments to all annuitants. When can you amend a tax return Multiply the amount on line 4 of your worksheet by the amount figured in (2) above. When can you amend a tax return The result is your share of the monthly tax-free amount. When can you amend a tax return   Replace the amount on line 4 of the worksheet with the result in (3) above. When can you amend a tax return Enter that amount on line 4 of your worksheet each year. When can you amend a tax return General Rule Under the General Rule, you determine the tax-free part of each annuity payment based on the ratio of the cost of the contract to the total expected return. When can you amend a tax return Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. When can you amend a tax return To figure it, you must use life expectancy (actuarial) tables prescribed by the IRS. When can you amend a tax return Who must use the General Rule. When can you amend a tax return   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. When can you amend a tax return Annuity starting before November 19, 1996. When can you amend a tax return   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. When can you amend a tax return You also had to use it for any fixed-period annuity. When can you amend a tax return If you did not have to use the General Rule, you could have chosen to use it. When can you amend a tax return If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. When can you amend a tax return   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. When can you amend a tax return Who cannot use the General Rule. When can you amend a tax return   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. When can you amend a tax return See Simplified Method , earlier. When can you amend a tax return More information. When can you amend a tax return   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. When can you amend a tax return Taxation of Nonperiodic Payments This section of the publication explains how any nonperiodic distributions you receive under a pension or annuity plan are taxed. When can you amend a tax return Nonperiodic distributions are also known as amounts not received as an annuity. When can you amend a tax return They include all payments other than periodic payments and corrective distributions. When can you amend a tax return For example, the following items are treated as nonperiodic distributions. When can you amend a tax return Cash withdrawals. When can you amend a tax return Distributions of current earnings (dividends) on your investment. When can you amend a tax return However, do not include these distributions in your income to the extent the insurer keeps them to pay premiums or other consideration for the contract. When can you amend a tax return Certain loans. When can you amend a tax return See Loans Treated as Distributions , later. When can you amend a tax return The value of annuity contracts transferred without full and adequate consideration. When can you amend a tax return See Transfers of Annuity Contracts , later. When can you amend a tax return Corrective distributions of excess plan contributions. When can you amend a tax return   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. When can you amend a tax return To correct an excess, your plan may distribute it to you (along with any income earned on the excess). When can you amend a tax return Although the plan reports the corrective distributions on Form 1099-R, the distribution is not treated as a nonperiodic distribution from the plan. When can you amend a tax return It is not subject to the allocation rules explained in the following discussion, it cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. When can you amend a tax return    If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099-R should have the code “8,” “B,” “P,” or “E” in box 7. When can you amend a tax return   For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. When can you amend a tax return Figuring the Taxable Amount How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. When can you amend a tax return If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. When can you amend a tax return If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. When can you amend a tax return You may be able to roll over the taxable amount of a nonperiodic distribution from a qualified retirement plan into another qualified retirement plan or a traditional IRA tax free. When can you amend a tax return See Rollovers, later. When can you amend a tax return If you do not make a tax-free rollover and the distribution qualifies as a lump-sum distribution, you may be able to elect an optional method of figuring the tax on the taxable amount. When can you amend a tax return See Lump-Sum Distributions, later. When can you amend a tax return Annuity starting date. When can you amend a tax return   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. When can you amend a tax return Distributions of employer securities. When can you amend a tax return    If you receive a distribution of employer securities from a qualified retirement plan, you may be able to defer the tax on the net unrealized appreciation (NUA) in the securities. When can you amend a tax return The NUA is the net increase in the securities' value while they were in the trust. When can you amend a tax return This tax deferral applies to distributions of the employer corporation's stocks, bonds, registered debentures, and debentures with interest coupons attached. When can you amend a tax return   If the distribution is a lump-sum distribution, tax is deferred on all of the NUA unless you choose to include it in your income for the year of the distribution. When can you amend a tax return    A lump-sum distribution for this purpose is the distribution or payment of a plan participant's entire balance (within a single tax year) from all of the employer's qualified plans of one kind (pension, profit-sharing, or stock bonus plans), but only if paid: Because of the plan participant's death, After the participant reaches age 59½, Because the participant, if an employee, separates from service, or After the participant, if a self-employed individual, becomes totally and permanently disabled. When can you amend a tax return    If you choose to include NUA in your income for the year of the distribution and the participant was born before January 2, 1936, you may be able to figure the tax on the NUA using the optional methods described und