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Where To E- File 2012 Federal Tax Return For Free

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Where To E- File 2012 Federal Tax Return For Free

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Tax Relief for Victims of Floods in Nebraska

Updated 11/21/11 to add the Omaha Indian Reservation and Thurston county.
Updated 9/8/11 to add Lincoln, Nemaha and Richardson counties.

MIL-2011-06-NE, Aug. 17, 2011

Victims of flooding beginning on May 24, 2011 in parts of Nebraska may qualify for tax relief from the Internal Revenue Service.

The President has declared Boyd, Burt, Cass, Dakota, Dixon, Douglas, Knox, Lincoln, Nemaha, Richardson, Sarpy, Thurston and Washington counties and the Omaha Indian Reservation a federal disaster area. Individuals who reside or have a business in these localities may qualify for tax relief.

As a result, the IRS has postponed until Aug. 1, 2011, certain deadlines occurring from May 24 to Aug. 1 that affect taxpayers who live or have a business in the disaster area. This includes the June 15 deadline for making estimated tax payments.

In addition, the IRS is abating the failure-to-deposit penalties for employment and excise tax deposits due on or after May 24 and on or before June 8, 2011, as long as the deposits were made by June 8, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The areas listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS has given affected taxpayers until Aug. 1, 2011, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after May 24 and on or before Aug. 1, 2011.

The IRS also gives affected taxpayers until Aug. 1 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after May 24 and on or before Aug. 1.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after May 24 and on or before June 8, provided the taxpayer made these deposits by June 8.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation, "Nebraska Flooding," at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information: Recent IRS Disaster Relief Announcements
 

 

Page Last Reviewed or Updated: 20-Feb-2014

The Where To E- File 2012 Federal Tax Return For Free

Where to e- file 2012 federal tax return for free 3. Where to e- file 2012 federal tax return for free   Limit on Annual Additions Table of Contents Ministers and church employees. Where to e- file 2012 federal tax return for free Includible Compensation for Your Most Recent Year of ServiceMost Recent Year of Service Includible Compensation The first component of MAC is the limit on annual additions. Where to e- file 2012 federal tax return for free This is a limit on the total contributions (elective deferrals, nonelective contributions, and after-tax contributions) that can be made to your 403(b) account. Where to e- file 2012 federal tax return for free The limit on annual additions generally is the lesser of: $51,000 for 2013 and $52,000 for 2014, or 100% of your includible compensation for your most recent year of service. Where to e- file 2012 federal tax return for free More than one 403(b) account. Where to e- file 2012 federal tax return for free If you contributed to more than one 403(b) account, you must combine the contributions made to all 403(b) accounts on your behalf by your employer. Where to e- file 2012 federal tax return for free Ministers and church employees. Where to e- file 2012 federal tax return for free   If you are a minister or a church employee, you may be able to increase your limit on annual additions or use different rules when figuring your limit on annual additions. Where to e- file 2012 federal tax return for free For more information, see chapter 5. Where to e- file 2012 federal tax return for free Participation in a qualified plan. Where to e- file 2012 federal tax return for free If you participated in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pensions of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. Where to e- file 2012 federal tax return for free You can use Part I of Worksheet 1 in chapter 9 to figure your limit on annual additions. Where to e- file 2012 federal tax return for free Includible Compensation for Your Most Recent Year of Service Definition. Where to e- file 2012 federal tax return for free   Generally, includible compensation for your most recent year of service is the amount of taxable wages and benefits you received from the employer that maintained a 403(b) account for your benefit during your most recent year of service. Where to e- file 2012 federal tax return for free When figuring your includible compensation for your most recent year of service, keep in mind that your most recent year of service may not be the same as your employer's most recent annual work period. Where to e- file 2012 federal tax return for free This can happen if your tax year is not the same as your employer's annual work period. Where to e- file 2012 federal tax return for free When figuring includible compensation for your most recent year of service, do not mix compensation or service of one employer with compensation or service of another employer. Where to e- file 2012 federal tax return for free Most Recent Year of Service Your most recent year of service is your last full year of service, ending on the last day of your tax year that you worked for the employer that maintained a 403(b) account on your behalf. Where to e- file 2012 federal tax return for free Tax year different from employer's annual work period. Where to e- file 2012 federal tax return for free   If your tax year is not the same as your employer's annual work period, your most recent year of service is made up of parts of at least two of your employer's annual work periods. Where to e- file 2012 federal tax return for free Example. Where to e- file 2012 federal tax return for free A professor who reports her income on a calendar-year basis is employed on a full-time basis by a university that operates on an academic year (October through May). Where to e- file 2012 federal tax return for free To figure her includible compensation for 2013, the professor's most recent year of service is her service from January through May 2013 and from October through December 2013. Where to e- file 2012 federal tax return for free Figuring Your Most Recent Year of Service To figure your most recent year of service, begin by determining what is a full year of service for your position. Where to e- file 2012 federal tax return for free A full year of service is equal to full-time employment for your employer's annual work period. Where to e- file 2012 federal tax return for free After identifying a full year of service, begin counting the service you have provided for your employer starting with the service provided in the current year. Where to e- file 2012 federal tax return for free Part-time or employed only part of the year. Where to e- file 2012 federal tax return for free   If you are a part-time or a full-time employee who is employed for only part of the year, your most recent year of service is your service this year and your service for as many previous years as is necessary to total 1 full year of service. Where to e- file 2012 federal tax return for free To determine your most recent year of service, add the following periods of service: Your service during the year for which you are figuring the limit on annual additions, and Your service during your preceding tax years until the total service equals 1 year of service or you have figured all of your service with the employer. Where to e- file 2012 federal tax return for free Example. Where to e- file 2012 federal tax return for free You were employed on a full-time basis from July through December 2011 (1/2 year of service), July through December 2012 (1/2 year of service), and October through December 2013 (1/4 year of service). Where to e- file 2012 federal tax return for free Your most recent year of service for computing your limit on annual additions for 2013 is the total of your service during 2013 (1/4 year of service), your service during 2012 (1/2 year of service), and your service during the months October through December 2011 (1/4 year of service). Where to e- file 2012 federal tax return for free Not yet employed for 1 year. Where to e- file 2012 federal tax return for free   If, at the close of the year, you have not yet worked for your employer for 1 year (including time you worked for the same employer in all earlier years), use the period of time you have worked for the employer as your most recent year of service. Where to e- file 2012 federal tax return for free Includible Compensation After identifying your most recent year of service, the next step is to identify the includible compensation associated with that full year of service. Where to e- file 2012 federal tax return for free Includible compensation is not the same as income included on your tax return. Where to e- file 2012 federal tax return for free Compensation is a combination of income and benefits received in exchange for services provided to your employer. Where to e- file 2012 federal tax return for free Generally, includible compensation is the amount of income and benefits: Received from the employer who maintains your 403(b) account, and Must be included in your income. Where to e- file 2012 federal tax return for free Includible compensation includes the following amounts. Where to e- file 2012 federal tax return for free Elective deferrals (employer's contributions made on your behalf under a salary reduction agreement). Where to e- file 2012 federal tax return for free Amounts contributed or deferred by your employer under a section 125 cafeteria plan. Where to e- file 2012 federal tax return for free Amounts contributed or deferred, at the election of the employee, under an eligible section 457 nonqualified deferred compensation plan (state or local government or tax-exempt organization plan). Where to e- file 2012 federal tax return for free  Note. Where to e- file 2012 federal tax return for free For information about treating elective deferrals under section 457 plans as Roth contributions, see Publication 575. Where to e- file 2012 federal tax return for free Wages, salaries, and fees for personal services earned with the employer maintaining your 403(b) account. Where to e- file 2012 federal tax return for free Income otherwise excluded under the foreign earned income exclusion. Where to e- file 2012 federal tax return for free Pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan. Where to e- file 2012 federal tax return for free Includible compensation does not include the following items. Where to e- file 2012 federal tax return for free Your employer's contributions to your 403(b) account. Where to e- file 2012 federal tax return for free Compensation earned while your employer was not an eligible employer. Where to e- file 2012 federal tax return for free Your employer's contributions to a qualified plan that: Are on your behalf, and Are excludable from income. Where to e- file 2012 federal tax return for free The cost of incidental life insurance. Where to e- file 2012 federal tax return for free See Cost of Incidental Life Insurance, later. Where to e- file 2012 federal tax return for free If you are a church employee or a foreign missionary, figure includible compensation using the rules explained in chapter 5. Where to e- file 2012 federal tax return for free Contributions after retirement. Where to e- file 2012 federal tax return for free   Nonelective contributions may be made for an employee for up to 5 years after retirement. Where to e- file 2012 federal tax return for free These contributions would be based on includible compensation for the last year of service before retirement. Where to e- file 2012 federal tax return for free Cost of Incidental Life Insurance Includible compensation does not include the cost of incidental life insurance. Where to e- file 2012 federal tax return for free If all of your 403(b) accounts invest only in mutual funds, then you have no incidental life insurance. Where to e- file 2012 federal tax return for free If you have an annuity contract, a portion of the cost of that contract may be for incidental life insurance. Where to e- file 2012 federal tax return for free If so, the cost of the insurance is taxable to you in the year contributed and is considered part of your basis when distributed. Where to e- file 2012 federal tax return for free Your employer will include the cost of your insurance as taxable wages in box 1 of Form W-2. Where to e- file 2012 federal tax return for free Not all annuity contracts include life insurance. Where to e- file 2012 federal tax return for free Contact your plan administrator to determine if your contract includes incidental life insurance. Where to e- file 2012 federal tax return for free If it does, you will need to figure the cost of life insurance each year the policy is in effect. Where to e- file 2012 federal tax return for free Figuring the cost of incidental life insurance. Where to e- file 2012 federal tax return for free If you have determined that part of the cost of your annuity contract is for an incidental life insurance premium, you will need to determine the amount of the premium and subtract it from your includible compensation. Where to e- file 2012 federal tax return for free To determine the amount of the life insurance premiums, you will need to know the following information. Where to e- file 2012 federal tax return for free The value of your life insurance contract, which is the amount payable upon your death. Where to e- file 2012 federal tax return for free The cash value of your life insurance contract at the end of the tax year. Where to e- file 2012 federal tax return for free Your age on your birthday nearest the beginning of the policy year. Where to e- file 2012 federal tax return for free Your current life insurance protection under an ordinary retirement income life insurance policy, which is the amount payable upon your death minus the cash value of the contract at the end of the year. Where to e- file 2012 federal tax return for free You can use Worksheet A, in chapter 9, to determine the cost of your incidental life insurance. Where to e- file 2012 federal tax return for free Example. Where to e- file 2012 federal tax return for free Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Where to e- file 2012 federal tax return for free Your cash value in the contract at the end of the first year is zero. Where to e- file 2012 federal tax return for free Your current life insurance protection for the first year is $10,000 ($10,000 − 0). Where to e- file 2012 federal tax return for free The cash value in the contract at the end of year two is $1,000, and the current life insurance protection for the second year is $9,000 ($10,000 – $1,000). Where to e- file 2012 federal tax return for free The 1-year cost of the protection can be calculated by using Figure 3-1, Table of One-Year Term Premiums for $1,000 Life Insurance Protection . Where to e- file 2012 federal tax return for free The premium rate is determined based on your age on your birthday nearest the beginning of the policy year. Where to e- file 2012 federal tax return for free Figure 3-1. Where to e- file 2012 federal tax return for free Table of One-Year Term Premiums for $1,000 Life Insurance Protection Age Cost   Age Cost   Age Cost 0 $0. Where to e- file 2012 federal tax return for free 70   35 $0. Where to e- file 2012 federal tax return for free 99   70 $20. Where to e- file 2012 federal tax return for free 62 1 0. Where to e- file 2012 federal tax return for free 41   36 1. Where to e- file 2012 federal tax return for free 01   71 22. Where to e- file 2012 federal tax return for free 72 2 0. Where to e- file 2012 federal tax return for free 27   37 1. Where to e- file 2012 federal tax return for free 04   72 25. Where to e- file 2012 federal tax return for free 07 3 0. Where to e- file 2012 federal tax return for free 19   38 1. Where to e- file 2012 federal tax return for free 06   73 27. Where to e- file 2012 federal tax return for free 57 4 0. Where to e- file 2012 federal tax return for free 13   39 1. Where to e- file 2012 federal tax return for free 07   74 30. Where to e- file 2012 federal tax return for free 18 5 0. Where to e- file 2012 federal tax return for free 13   40 1. Where to e- file 2012 federal tax return for free 10   75 33. Where to e- file 2012 federal tax return for free 05 6 0. Where to e- file 2012 federal tax return for free 14   41 1. Where to e- file 2012 federal tax return for free 13   76 36. Where to e- file 2012 federal tax return for free 33 7 0. Where to e- file 2012 federal tax return for free 15   42 1. Where to e- file 2012 federal tax return for free 20   77 40. Where to e- file 2012 federal tax return for free 17 8 0. Where to e- file 2012 federal tax return for free 16   43 1. Where to e- file 2012 federal tax return for free 29   78 44. Where to e- file 2012 federal tax return for free 33 9 0. Where to e- file 2012 federal tax return for free 16   44 1. Where to e- file 2012 federal tax return for free 40   79 49. Where to e- file 2012 federal tax return for free 23 10 0. Where to e- file 2012 federal tax return for free 16   45 1. Where to e- file 2012 federal tax return for free 53   80 54. Where to e- file 2012 federal tax return for free 56 11 0. Where to e- file 2012 federal tax return for free 19   46 1. Where to e- file 2012 federal tax return for free 67   81 60. Where to e- file 2012 federal tax return for free 51 12 0. Where to e- file 2012 federal tax return for free 24   47 1. Where to e- file 2012 federal tax return for free 83   82 66. Where to e- file 2012 federal tax return for free 74 13 0. Where to e- file 2012 federal tax return for free 28   48 1. Where to e- file 2012 federal tax return for free 98   83 73. Where to e- file 2012 federal tax return for free 07 14 0. Where to e- file 2012 federal tax return for free 33   49 2. Where to e- file 2012 federal tax return for free 13   84 80. Where to e- file 2012 federal tax return for free 35 15 0. Where to e- file 2012 federal tax return for free 38   50 2. Where to e- file 2012 federal tax return for free 30   85 88. Where to e- file 2012 federal tax return for free 76 16 0. Where to e- file 2012 federal tax return for free 52   51 2. Where to e- file 2012 federal tax return for free 52   86 99. Where to e- file 2012 federal tax return for free 16 17 0. Where to e- file 2012 federal tax return for free 57   52 2. Where to e- file 2012 federal tax return for free 81   87 110. Where to e- file 2012 federal tax return for free 40 18 0. Where to e- file 2012 federal tax return for free 59   53 3. Where to e- file 2012 federal tax return for free 20   88 121. Where to e- file 2012 federal tax return for free 85 19 0. Where to e- file 2012 federal tax return for free 61   54 3. Where to e- file 2012 federal tax return for free 65   89 133. Where to e- file 2012 federal tax return for free 40 20 0. Where to e- file 2012 federal tax return for free 62   55 4. Where to e- file 2012 federal tax return for free 15   90 144. Where to e- file 2012 federal tax return for free 30 21 0. Where to e- file 2012 federal tax return for free 62   56 4. Where to e- file 2012 federal tax return for free 68   91 155. Where to e- file 2012 federal tax return for free 80 22 0. Where to e- file 2012 federal tax return for free 64   57 5. Where to e- file 2012 federal tax return for free 20   92 168. Where to e- file 2012 federal tax return for free 75 23 0. Where to e- file 2012 federal tax return for free 66   58 5. Where to e- file 2012 federal tax return for free 66   93 186. Where to e- file 2012 federal tax return for free 44 24 0. Where to e- file 2012 federal tax return for free 68   59 6. Where to e- file 2012 federal tax return for free 06   94 206. Where to e- file 2012 federal tax return for free 70 25 0. Where to e- file 2012 federal tax return for free 71   60 6. Where to e- file 2012 federal tax return for free 51   95 228. Where to e- file 2012 federal tax return for free 35 26 0. Where to e- file 2012 federal tax return for free 73   61 7. Where to e- file 2012 federal tax return for free 11   96 250. Where to e- file 2012 federal tax return for free 01 27 0. Where to e- file 2012 federal tax return for free 76   62 7. Where to e- file 2012 federal tax return for free 96   97 265. Where to e- file 2012 federal tax return for free 09 28 0. Where to e- file 2012 federal tax return for free 80   63 9. Where to e- file 2012 federal tax return for free 08   98 270. Where to e- file 2012 federal tax return for free 11 29 0. Where to e- file 2012 federal tax return for free 83   64 10. Where to e- file 2012 federal tax return for free 41   99 281. Where to e- file 2012 federal tax return for free 05 30 0. Where to e- file 2012 federal tax return for free 87   65 11. Where to e- file 2012 federal tax return for free 90       31 0. Where to e- file 2012 federal tax return for free 90   66 13. Where to e- file 2012 federal tax return for free 51       32 0. Where to e- file 2012 federal tax return for free 93   67 15. Where to e- file 2012 federal tax return for free 20       33 0. Where to e- file 2012 federal tax return for free 96   68 16. Where to e- file 2012 federal tax return for free 92       34 0. Where to e- file 2012 federal tax return for free 98   69 18. Where to e- file 2012 federal tax return for free 70                       If the current published premium rates per $1,000 of insurance protection charged by an insurer for individual 1-year term life insurance premiums available to all standard risks are lower than those in the preceding table, you can use the lower rates for figuring the cost of insurance in connection with individual policies issued by the same insurer. Where to e- file 2012 federal tax return for free Example 1. Where to e- file 2012 federal tax return for free Lynne Green, age 44, and her employer enter into a 403(b) plan that will provide her with a $500 a month annuity upon retirement at age 65. Where to e- file 2012 federal tax return for free The agreement also provides that if she should die before retirement, her beneficiary will receive the greater of $20,000 or the cash surrender value in the life insurance contract. Where to e- file 2012 federal tax return for free Using the facts presented we can determine the cost of Lynne's life insurance protection as shown in Table 3-1. Where to e- file 2012 federal tax return for free Lynne's employer has included $28 for the cost of the life insurance protection in her current year's income. Where to e- file 2012 federal tax return for free When figuring her includible compensation for this year, Lynne will subtract $28. Where to e- file 2012 federal tax return for free Table 3-1. Where to e- file 2012 federal tax return for free Worksheet A. Where to e- file 2012 federal tax return for free Cost of Incidental Life Insurance Note. Where to e- file 2012 federal tax return for free Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Where to e- file 2012 federal tax return for free This amount will be used to figure includible compensation for your most recent year of service. Where to e- file 2012 federal tax return for free 1. Where to e- file 2012 federal tax return for free Enter the value of the contract (amount payable upon your death) 1. Where to e- file 2012 federal tax return for free $20,000. Where to e- file 2012 federal tax return for free 00 2. Where to e- file 2012 federal tax return for free Enter the cash value in the contract at the end of the year 2. Where to e- file 2012 federal tax return for free 0. Where to e- file 2012 federal tax return for free 00 3. Where to e- file 2012 federal tax return for free Subtract line 2 from line 1. Where to e- file 2012 federal tax return for free This is the value of your current life insurance protection 3. Where to e- file 2012 federal tax return for free $20,000. Where to e- file 2012 federal tax return for free 00 4. Where to e- file 2012 federal tax return for free Enter your age on your birthday nearest the beginning of the policy year 4. Where to e- file 2012 federal tax return for free 44 5. Where to e- file 2012 federal tax return for free Enter the 1-year term premium for $1,000 of life insurance based on your age. Where to e- file 2012 federal tax return for free (From Figure 3-1) 5. Where to e- file 2012 federal tax return for free $1. Where to e- file 2012 federal tax return for free 40 6. Where to e- file 2012 federal tax return for free Divide line 3 by $1,000 6. Where to e- file 2012 federal tax return for free 20 7. Where to e- file 2012 federal tax return for free Multiply line 6 by line 5. Where to e- file 2012 federal tax return for free This is the cost of your incidental life insurance 7. Where to e- file 2012 federal tax return for free $28. Where to e- file 2012 federal tax return for free 00 Example 2. Where to e- file 2012 federal tax return for free Lynne's cash value in the contract at the end of the second year is $1,000. Where to e- file 2012 federal tax return for free In year two, the cost of Lynne's life insurance is calculated as shown in Table 3-2. Where to e- file 2012 federal tax return for free In year two, Lynne's employer will include $29. Where to e- file 2012 federal tax return for free 07 in her current year's income. Where to e- file 2012 federal tax return for free Lynne will subtract this amount when figuring her includible compensation. Where to e- file 2012 federal tax return for free Table 3-2. Where to e- file 2012 federal tax return for free Worksheet A. Where to e- file 2012 federal tax return for free Cost of Incidental Life Insurance Note. Where to e- file 2012 federal tax return for free Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Where to e- file 2012 federal tax return for free This amount will be used to figure includible compensation for your most recent year of service. Where to e- file 2012 federal tax return for free 1. Where to e- file 2012 federal tax return for free Enter the value of the contract (amount payable upon your death) 1. Where to e- file 2012 federal tax return for free $20,000. Where to e- file 2012 federal tax return for free 00 2. Where to e- file 2012 federal tax return for free Enter the cash value in the contract at the end of the year 2. Where to e- file 2012 federal tax return for free $1,000. Where to e- file 2012 federal tax return for free 00 3. Where to e- file 2012 federal tax return for free Subtract line 2 from line 1. Where to e- file 2012 federal tax return for free This is the value of your current life insurance protection 3. Where to e- file 2012 federal tax return for free $19,000. Where to e- file 2012 federal tax return for free 00 4. Where to e- file 2012 federal tax return for free Enter your age on your birthday nearest the beginning of the policy year 4. Where to e- file 2012 federal tax return for free 45 5. Where to e- file 2012 federal tax return for free Enter the 1-year term premium for $1,000 of life insurance based on your age. Where to e- file 2012 federal tax return for free (From Figure 3-1) 5. Where to e- file 2012 federal tax return for free $1. Where to e- file 2012 federal tax return for free 53 6. Where to e- file 2012 federal tax return for free Divide line 3 by $1,000 6. Where to e- file 2012 federal tax return for free 19 7. Where to e- file 2012 federal tax return for free Multiply line 6 by line 5. Where to e- file 2012 federal tax return for free This is the cost of your incidental life insurance 7. Where to e- file 2012 federal tax return for free $29. Where to e- file 2012 federal tax return for free 07 Figuring Includible Compensation for Your Most Recent Year of Service You can use Worksheet B in chapter 9 to determine your includible compensation for your most recent year of service. Where to e- file 2012 federal tax return for free Example. Where to e- file 2012 federal tax return for free Floyd has been periodically working full-time for a local hospital since September 2011. Where to e- file 2012 federal tax return for free He needs to figure his limit on annual additions for 2014. Where to e- file 2012 federal tax return for free The hospital's normal annual work period for employees in Floyd's general type of work runs from January to December. Where to e- file 2012 federal tax return for free During the periods that Floyd was employed with the hospital, the hospital has always been eligible to provide a 403(b) plan to employees. Where to e- file 2012 federal tax return for free Additionally, the hospital has never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a cafeteria plan. Where to e- file 2012 federal tax return for free Floyd has never worked abroad and there is no life insurance provided under the plan. Where to e- file 2012 federal tax return for free Table 3-3 shows the service Floyd provided to his employer, his compensation for the periods worked, his elective deferrals, and his taxable wages. Where to e- file 2012 federal tax return for free Table 3-3. Where to e- file 2012 federal tax return for free Floyd's Compensation Note. Where to e- file 2012 federal tax return for free This table shows information Floyd will use to figure includible compensation for his most recent year of service. Where to e- file 2012 federal tax return for free   Year Years of Service Taxable Wages Elective Deferrals 2014 6/12 of  a year $42,000 $2,000 2013 4/12 of  a year $16,000 $1,650 2012 4/12 of  a year $16,000 $1,650 Before Floyd can figure his limit on annual additions, he must figure includible compensation for his most recent year of service. Where to e- file 2012 federal tax return for free Because Floyd is not planning to work the entire 2014 year, his most recent year of service will include the time he is planning to work in 2014 plus time he worked in the preceding 3 years until the time he worked for the hospital totals 1 year. Where to e- file 2012 federal tax return for free If the total time he worked is less than 1 year, Floyd will treat it as if it were 1 year. Where to e- file 2012 federal tax return for free He figures his most recent year of service shown in the following list. Where to e- file 2012 federal tax return for free Time he will work in 2014 is 6/12 of a year. Where to e- file 2012 federal tax return for free Time worked in 2013 is 4/12 of a year. Where to e- file 2012 federal tax return for free All of this time will be used to determine Floyd's most recent year of service. Where to e- file 2012 federal tax return for free Time worked in 2012 is 4/12 of a year. Where to e- file 2012 federal tax return for free Floyd only needs 2 months of the 4 months he worked in 2012 to have enough time to total 1 full year. Where to e- file 2012 federal tax return for free Because he needs only one-half of the actual time he worked, Floyd will use only one-half of his income earned during that period to calculate wages that will be used in figuring his includible compensation. Where to e- file 2012 federal tax return for free Using the information provided in Table 3-3, wages for Floyd's most recent year of service are $66,000 ($42,000 + $16,000 + $8,000). Where to e- file 2012 federal tax return for free His includible compensation for his most recent year of service is figured as shown in Table 3-4. Where to e- file 2012 federal tax return for free After figuring his includible compensation, Floyd determines his limit on annual additions for 2014 to be $52,000, the lesser of his includible compensation, $70,475 (Table 3-4), and the maximum amount of $52,000. Where to e- file 2012 federal tax return for free Table 3-4. Where to e- file 2012 federal tax return for free Worksheet B. Where to e- file 2012 federal tax return for free Includible Compensation for Your Most Recent Year of Service1 Note. Where to e- file 2012 federal tax return for free Use this worksheet to figure includible compensation for your most recent year of service. Where to e- file 2012 federal tax return for free 1. Where to e- file 2012 federal tax return for free Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Where to e- file 2012 federal tax return for free $66,000 2. Where to e- file 2012 federal tax return for free Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Where to e- file 2012 federal tax return for free 4,4753 3. Where to e- file 2012 federal tax return for free Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Where to e- file 2012 federal tax return for free -0- 4. Where to e- file 2012 federal tax return for free Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government, or of a tax-exempt organization) for your most recent year of service 4. Where to e- file 2012 federal tax return for free -0- 5. Where to e- file 2012 federal tax return for free Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. Where to e- file 2012 federal tax return for free -0- 6. Where to e- file 2012 federal tax return for free Enter your foreign earned income exclusion for your most recent year of service 6. Where to e- file 2012 federal tax return for free -0- 7. Where to e- file 2012 federal tax return for free Add lines 1, 2, 3, 4, 5, and 6 7. Where to e- file 2012 federal tax return for free 70,475 8. Where to e- file 2012 federal tax return for free Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Where to e- file 2012 federal tax return for free -0- 9. Where to e- file 2012 federal tax return for free Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. Where to e- file 2012 federal tax return for free -0- 10. Where to e- file 2012 federal tax return for free Add lines 8 and 9 10. Where to e- file 2012 federal tax return for free -0- 11. Where to e- file 2012 federal tax return for free Subtract line 10 from line 7. Where to e- file 2012 federal tax return for free This is your includible compensation for your most recent year of service 11. Where to e- file 2012 federal tax return for free 70,475 1Use estimated amounts if figuring includible compensation before the end of the year. Where to e- file 2012 federal tax return for free 2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Where to e- file 2012 federal tax return for free  3$4,475 ($2,000 + $1,650 + $825). Where to e- file 2012 federal tax return for free Prev  Up  Next   Home   More Online Publications