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2010 Form 1040ez Instructions

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2010 Form 1040ez Instructions

2010 form 1040ez instructions 17. 2010 form 1040ez instructions   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. 2010 form 1040ez instructions  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. 2010 form 1040ez instructions If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. 2010 form 1040ez instructions For more information, see How Much Can Be Contributed? later. 2010 form 1040ez instructions Roth IRA contribution limit. 2010 form 1040ez instructions  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. 2010 form 1040ez instructions If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. 2010 form 1040ez instructions However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. 2010 form 1040ez instructions For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. 2010 form 1040ez instructions Modified AGI limit for traditional IRA contributions increased. 2010 form 1040ez instructions  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. 2010 form 1040ez instructions If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. 2010 form 1040ez instructions If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. 2010 form 1040ez instructions See How Much Can You Deduct , later. 2010 form 1040ez instructions Modified AGI limit for Roth IRA contributions increased. 2010 form 1040ez instructions  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. 2010 form 1040ez instructions Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. 2010 form 1040ez instructions You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. 2010 form 1040ez instructions Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. 2010 form 1040ez instructions You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. 2010 form 1040ez instructions Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. 2010 form 1040ez instructions You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. 2010 form 1040ez instructions See Can You Contribute to a Roth IRA , later. 2010 form 1040ez instructions Net Investment Income Tax. 2010 form 1040ez instructions   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). 2010 form 1040ez instructions However, these distributions are taken into account when determining the modified adjusted gross income threshold. 2010 form 1040ez instructions Distributions from a nonqualified retirement plan are included in net investment income. 2010 form 1040ez instructions See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. 2010 form 1040ez instructions Name change. 2010 form 1040ez instructions  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. 2010 form 1040ez instructions There are no changes to the rules regarding these IRAs. 2010 form 1040ez instructions See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. 2010 form 1040ez instructions Reminders 2014 limits. 2010 form 1040ez instructions   You can find information about the 2014 contribution and AGI limits in Publication 590. 2010 form 1040ez instructions Contributions to both traditional and Roth IRAs. 2010 form 1040ez instructions   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. 2010 form 1040ez instructions Statement of required minimum distribution. 2010 form 1040ez instructions  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. 2010 form 1040ez instructions The report or offer must include the date by which the amount must be distributed. 2010 form 1040ez instructions The report is due January 31 of the year in which the minimum distribution is required. 2010 form 1040ez instructions It can be provided with the year-end fair market value statement that you normally get each year. 2010 form 1040ez instructions No report is required for IRAs of owners who have died. 2010 form 1040ez instructions IRA interest. 2010 form 1040ez instructions  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. 2010 form 1040ez instructions Tax on your traditional IRA is generally deferred until you take a distribution. 2010 form 1040ez instructions Do not report this interest on your tax return as tax-exempt interest. 2010 form 1040ez instructions Form 8606. 2010 form 1040ez instructions   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. 2010 form 1040ez instructions The term “50 or older” is used several times in this chapter. 2010 form 1040ez instructions It refers to an IRA owner who is age 50 or older by the end of the tax year. 2010 form 1040ez instructions Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. 2010 form 1040ez instructions This chapter discusses the following topics. 2010 form 1040ez instructions The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). 2010 form 1040ez instructions The Roth IRA, which features nondeductible contributions and tax-free distributions. 2010 form 1040ez instructions Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. 2010 form 1040ez instructions For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. 2010 form 1040ez instructions For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. 2010 form 1040ez instructions Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. 2010 form 1040ez instructions ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. 2010 form 1040ez instructions Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. 2010 form 1040ez instructions Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. 2010 form 1040ez instructions What is compensation?   Generally, compensation is what you earn from working. 2010 form 1040ez instructions Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. 2010 form 1040ez instructions The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). 2010 form 1040ez instructions   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. 2010 form 1040ez instructions   Compensation also includes commissions and taxable alimony and separate maintenance payments. 2010 form 1040ez instructions Self-employment income. 2010 form 1040ez instructions   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. 2010 form 1040ez instructions   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. 2010 form 1040ez instructions Nontaxable combat pay. 2010 form 1040ez instructions   For IRA purposes, if you were a member of the U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions Armed Forces, your compensation includes any nontaxable combat pay you receive. 2010 form 1040ez instructions What is not compensation?   Compensation does not include any of the following items. 2010 form 1040ez instructions Earnings and profits from property, such as rental income, interest income, and dividend income. 2010 form 1040ez instructions Pension or annuity income. 2010 form 1040ez instructions Deferred compensation received (compensation payments postponed from a past year). 2010 form 1040ez instructions Income from a partnership for which you do not provide services that are a material income-producing factor. 2010 form 1040ez instructions Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. 2010 form 1040ez instructions Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. 2010 form 1040ez instructions When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. 2010 form 1040ez instructions However, the time for making contributions for any year is limited. 2010 form 1040ez instructions See When Can Contributions Be Made , later. 2010 form 1040ez instructions You can open different kinds of IRAs with a variety of organizations. 2010 form 1040ez instructions You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. 2010 form 1040ez instructions You can also open an IRA through your stockbroker. 2010 form 1040ez instructions Any IRA must meet Internal Revenue Code requirements. 2010 form 1040ez instructions Kinds of traditional IRAs. 2010 form 1040ez instructions   Your traditional IRA can be an individual retirement account or annuity. 2010 form 1040ez instructions It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. 2010 form 1040ez instructions How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. 2010 form 1040ez instructions These limits and other rules are explained below. 2010 form 1040ez instructions Community property laws. 2010 form 1040ez instructions   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. 2010 form 1040ez instructions This is the rule even in states with community property laws. 2010 form 1040ez instructions Brokers' commissions. 2010 form 1040ez instructions   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. 2010 form 1040ez instructions Trustees' fees. 2010 form 1040ez instructions   Trustees' administrative fees are not subject to the contribution limit. 2010 form 1040ez instructions Qualified reservist repayments. 2010 form 1040ez instructions   If you are (or were) a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions you received. 2010 form 1040ez instructions You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. 2010 form 1040ez instructions To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or similar arrangement. 2010 form 1040ez instructions   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. 2010 form 1040ez instructions Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. 2010 form 1040ez instructions (See Roth IRAs, later. 2010 form 1040ez instructions ) General limit. 2010 form 1040ez instructions   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. 2010 form 1040ez instructions $5,500 ($6,500 if you are 50 or older). 2010 form 1040ez instructions Your taxable compensation (defined earlier) for the year. 2010 form 1040ez instructions This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. 2010 form 1040ez instructions (See Nondeductible Contributions , later. 2010 form 1040ez instructions ) Qualified reservist repayments do not affect this limit. 2010 form 1040ez instructions Example 1. 2010 form 1040ez instructions Betty, who is 34 years old and single, earned $24,000 in 2013. 2010 form 1040ez instructions Her IRA contributions for 2013 are limited to $5,500. 2010 form 1040ez instructions Example 2. 2010 form 1040ez instructions John, an unmarried college student working part time, earned $3,500 in 2013. 2010 form 1040ez instructions His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. 2010 form 1040ez instructions Kay Bailey Hutchison Spousal IRA limit. 2010 form 1040ez instructions   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. 2010 form 1040ez instructions $5,500 ($6,500 if you are 50 or older). 2010 form 1040ez instructions The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. 2010 form 1040ez instructions Your spouse's IRA contribution for the year to a traditional IRA. 2010 form 1040ez instructions Any contribution for the year to a Roth IRA on behalf of your spouse. 2010 form 1040ez instructions This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). 2010 form 1040ez instructions When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). 2010 form 1040ez instructions Contributions must be in the form of money (cash, check, or money order). 2010 form 1040ez instructions Property cannot be contributed. 2010 form 1040ez instructions Contributions must be made by due date. 2010 form 1040ez instructions   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. 2010 form 1040ez instructions Age 70½ rule. 2010 form 1040ez instructions   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. 2010 form 1040ez instructions   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. 2010 form 1040ez instructions If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. 2010 form 1040ez instructions Designating year for which contribution is made. 2010 form 1040ez instructions   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. 2010 form 1040ez instructions If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). 2010 form 1040ez instructions Filing before a contribution is made. 2010 form 1040ez instructions   You can file your return claiming a traditional IRA contribution before the contribution is actually made. 2010 form 1040ez instructions Generally, the contribution must be made by the due date of your return, not including extensions. 2010 form 1040ez instructions Contributions not required. 2010 form 1040ez instructions   You do not have to contribute to your traditional IRA for every tax year, even if you can. 2010 form 1040ez instructions How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if it applies). 2010 form 1040ez instructions However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. 2010 form 1040ez instructions See Limit If Covered by Employer Plan , later. 2010 form 1040ez instructions You may be able to claim a credit for contributions to your traditional IRA. 2010 form 1040ez instructions For more information, see chapter 37. 2010 form 1040ez instructions Trustees' fees. 2010 form 1040ez instructions   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. 2010 form 1040ez instructions However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). 2010 form 1040ez instructions See chapter 28. 2010 form 1040ez instructions Brokers' commissions. 2010 form 1040ez instructions   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. 2010 form 1040ez instructions Full deduction. 2010 form 1040ez instructions   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). 2010 form 1040ez instructions 100% of your compensation. 2010 form 1040ez instructions This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. 2010 form 1040ez instructions Kay Bailey Hutchison Spousal IRA. 2010 form 1040ez instructions   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of the following amounts. 2010 form 1040ez instructions $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). 2010 form 1040ez instructions The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. 2010 form 1040ez instructions The IRA deduction for the year of the spouse with the greater compensation. 2010 form 1040ez instructions Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. 2010 form 1040ez instructions Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. 2010 form 1040ez instructions This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. 2010 form 1040ez instructions Note. 2010 form 1040ez instructions If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. 2010 form 1040ez instructions After a divorce or legal separation, you can deduct only contributions to your own IRA. 2010 form 1040ez instructions Your deductions are subject to the rules for single individuals. 2010 form 1040ez instructions Covered by an employer retirement plan. 2010 form 1040ez instructions   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. 2010 form 1040ez instructions This is discussed later under Limit If Covered by Employer Plan . 2010 form 1040ez instructions Limits on the amount you can deduct do not affect the amount that can be contributed. 2010 form 1040ez instructions See Nondeductible Contributions , later. 2010 form 1040ez instructions Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. 2010 form 1040ez instructions The “Retirement plan” box should be checked if you were covered. 2010 form 1040ez instructions Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. 2010 form 1040ez instructions If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. 2010 form 1040ez instructions Federal judges. 2010 form 1040ez instructions   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. 2010 form 1040ez instructions For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. 2010 form 1040ez instructions These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. 2010 form 1040ez instructions Tax year. 2010 form 1040ez instructions   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. 2010 form 1040ez instructions For almost all people, the tax year is the calendar year. 2010 form 1040ez instructions Defined contribution plan. 2010 form 1040ez instructions   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. 2010 form 1040ez instructions   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. 2010 form 1040ez instructions Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. 2010 form 1040ez instructions Defined benefit plan. 2010 form 1040ez instructions   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. 2010 form 1040ez instructions This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. 2010 form 1040ez instructions   A defined benefit plan is any plan that is not a defined contribution plan. 2010 form 1040ez instructions Defined benefit plans include pension plans and annuity plans. 2010 form 1040ez instructions No vested interest. 2010 form 1040ez instructions   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. 2010 form 1040ez instructions Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. 2010 form 1040ez instructions Social security or railroad retirement. 2010 form 1040ez instructions   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. 2010 form 1040ez instructions Benefits from a previous employer's plan. 2010 form 1040ez instructions   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. 2010 form 1040ez instructions Reservists. 2010 form 1040ez instructions   If the only reason you participate in a plan is because you are a member of a reserve unit of the armed forces, you may not be covered by the plan. 2010 form 1040ez instructions You are not covered by the plan if both of the following conditions are met. 2010 form 1040ez instructions The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. 2010 form 1040ez instructions You did not serve more than 90 days on active duty during the year (not counting duty for training). 2010 form 1040ez instructions Volunteer firefighters. 2010 form 1040ez instructions   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. 2010 form 1040ez instructions You are not covered by the plan if both of the following conditions are met. 2010 form 1040ez instructions The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. 2010 form 1040ez instructions Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. 2010 form 1040ez instructions Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. 2010 form 1040ez instructions Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. 2010 form 1040ez instructions These amounts vary depending on your filing status. 2010 form 1040ez instructions To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. 2010 form 1040ez instructions See Filing status and Modified adjusted gross income (AGI) , later. 2010 form 1040ez instructions Then use Table 17-1 or 17-2 to determine if the phaseout applies. 2010 form 1040ez instructions Social security recipients. 2010 form 1040ez instructions   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. 2010 form 1040ez instructions You received social security benefits. 2010 form 1040ez instructions You received taxable compensation. 2010 form 1040ez instructions Contributions were made to your traditional IRA. 2010 form 1040ez instructions You or your spouse was covered by an employer retirement plan. 2010 form 1040ez instructions Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. 2010 form 1040ez instructions Deduction phaseout. 2010 form 1040ez instructions   If you were covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI as shown in Table 17-1. 2010 form 1040ez instructions Table 17-1. 2010 form 1040ez instructions Effect of Modified AGI1 on Deduction if You Are Covered by Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. 2010 form 1040ez instructions IF your filing status is. 2010 form 1040ez instructions . 2010 form 1040ez instructions . 2010 form 1040ez instructions   AND your modified AGI is. 2010 form 1040ez instructions . 2010 form 1040ez instructions . 2010 form 1040ez instructions   THEN you can take. 2010 form 1040ez instructions . 2010 form 1040ez instructions . 2010 form 1040ez instructions single   or  head of household   $59,000 or less   a full deduction. 2010 form 1040ez instructions   more than $59,000 but less than $69,000   a partial deduction. 2010 form 1040ez instructions   $69,000 or more   no deduction. 2010 form 1040ez instructions married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. 2010 form 1040ez instructions   more than $95,000 but less than $115,000   a partial deduction. 2010 form 1040ez instructions   $115,000 or more   no deduction. 2010 form 1040ez instructions married filing separately2   less than $10,000   a partial deduction. 2010 form 1040ez instructions   $10,000 or more   no deduction. 2010 form 1040ez instructions 1Modified AGI (adjusted gross income). 2010 form 1040ez instructions See Modified adjusted gross income (AGI) . 2010 form 1040ez instructions 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). 2010 form 1040ez instructions If your spouse is covered. 2010 form 1040ez instructions   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. 2010 form 1040ez instructions Filing status. 2010 form 1040ez instructions   Your filing status depends primarily on your marital status. 2010 form 1040ez instructions For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. 2010 form 1040ez instructions If you need more information on filing status, see chapter 2. 2010 form 1040ez instructions Lived apart from spouse. 2010 form 1040ez instructions   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. 2010 form 1040ez instructions Table 17-2. 2010 form 1040ez instructions Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. 2010 form 1040ez instructions IF your filing status is. 2010 form 1040ez instructions . 2010 form 1040ez instructions . 2010 form 1040ez instructions   AND your modified AGI is. 2010 form 1040ez instructions . 2010 form 1040ez instructions . 2010 form 1040ez instructions   THEN you can take. 2010 form 1040ez instructions . 2010 form 1040ez instructions . 2010 form 1040ez instructions single, head of household, or qualifying widow(er)   any amount   a full deduction. 2010 form 1040ez instructions married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. 2010 form 1040ez instructions married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. 2010 form 1040ez instructions   more than $178,000 but less than $188,000   a partial deduction. 2010 form 1040ez instructions   $188,000 or more   no deduction. 2010 form 1040ez instructions married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. 2010 form 1040ez instructions   $10,000 or more   no deduction. 2010 form 1040ez instructions 1Modified AGI (adjusted gross income). 2010 form 1040ez instructions See Modified adjusted gross income (AGI) . 2010 form 1040ez instructions 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. 2010 form 1040ez instructions Modified adjusted gross income (AGI). 2010 form 1040ez instructions   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. 2010 form 1040ez instructions If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. 2010 form 1040ez instructions You may be able to use Worksheet 17-1 to figure your modified AGI. 2010 form 1040ez instructions    Do not assume that your modified AGI is the same as your compensation. 2010 form 1040ez instructions Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. 2010 form 1040ez instructions Form 1040. 2010 form 1040ez instructions   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. 2010 form 1040ez instructions IRA deduction. 2010 form 1040ez instructions Student loan interest deduction. 2010 form 1040ez instructions Tuition and fees deduction. 2010 form 1040ez instructions Domestic production activities deduction. 2010 form 1040ez instructions Foreign earned income exclusion. 2010 form 1040ez instructions Foreign housing exclusion or deduction. 2010 form 1040ez instructions Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions Savings Bonds Issued After 1989. 2010 form 1040ez instructions Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. 2010 form 1040ez instructions This is your modified AGI. 2010 form 1040ez instructions Form 1040A. 2010 form 1040ez instructions   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. 2010 form 1040ez instructions IRA deduction. 2010 form 1040ez instructions Student loan interest deduction. 2010 form 1040ez instructions Tuition and fees deduction. 2010 form 1040ez instructions Exclusion of qualified savings bond interest shown on Form 8815. 2010 form 1040ez instructions This is your modified AGI. 2010 form 1040ez instructions Both contributions for 2013 and distributions in 2013. 2010 form 1040ez instructions   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. 2010 form 1040ez instructions You received distributions in 2013 from one or more traditional IRAs. 2010 form 1040ez instructions You made contributions to a traditional IRA for 2013. 2010 form 1040ez instructions Some of those contributions may be nondeductible contributions. 2010 form 1040ez instructions If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. 2010 form 1040ez instructions To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. 2010 form 1040ez instructions   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. 2010 form 1040ez instructions    How to figure your reduced IRA deduction. 2010 form 1040ez instructions   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. 2010 form 1040ez instructions Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. 2010 form 1040ez instructions Worksheet 17-1. 2010 form 1040ez instructions Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. 2010 form 1040ez instructions 1. 2010 form 1040ez instructions Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. 2010 form 1040ez instructions   2. 2010 form 1040ez instructions Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. 2010 form 1040ez instructions   3. 2010 form 1040ez instructions Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. 2010 form 1040ez instructions   4. 2010 form 1040ez instructions Enter any domestic production activities deduction from Form 1040, line 35 4. 2010 form 1040ez instructions   5. 2010 form 1040ez instructions Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. 2010 form 1040ez instructions   6. 2010 form 1040ez instructions Enter any foreign housing deduction from Form 2555, line 50 6. 2010 form 1040ez instructions   7. 2010 form 1040ez instructions Enter any excludable savings bond interest from Form 8815, line 14 7. 2010 form 1040ez instructions   8. 2010 form 1040ez instructions Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. 2010 form 1040ez instructions   9. 2010 form 1040ez instructions Add lines 1 through 8. 2010 form 1040ez instructions This is your Modified AGI for traditional IRA purposes 9. 2010 form 1040ez instructions   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. 2010 form 1040ez instructions If you file Form 1040A, enter your IRA deduction on line 17. 2010 form 1040ez instructions You cannot deduct IRA contributions on Form 1040EZ. 2010 form 1040ez instructions Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. 2010 form 1040ez instructions The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. 2010 form 1040ez instructions Example. 2010 form 1040ez instructions Mike is 28 years old and single. 2010 form 1040ez instructions In 2013, he was covered by a retirement plan at work. 2010 form 1040ez instructions His salary was $57,312. 2010 form 1040ez instructions His modified AGI was $70,000. 2010 form 1040ez instructions Mike made a $5,500 IRA contribution for 2013. 2010 form 1040ez instructions Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. 2010 form 1040ez instructions He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. 2010 form 1040ez instructions Form 8606. 2010 form 1040ez instructions   To designate contributions as nondeductible, you must file Form 8606. 2010 form 1040ez instructions   You do not have to designate a contribution as nondeductible until you file your tax return. 2010 form 1040ez instructions When you file, you can even designate otherwise deductible contributions as nondeductible. 2010 form 1040ez instructions   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. 2010 form 1040ez instructions A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. 2010 form 1040ez instructions In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. 2010 form 1040ez instructions See Form 8606 under Distributions Fully or Partly Taxable, later. 2010 form 1040ez instructions Failure to report nondeductible contributions. 2010 form 1040ez instructions   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. 2010 form 1040ez instructions All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. 2010 form 1040ez instructions Penalty for overstatement. 2010 form 1040ez instructions   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. 2010 form 1040ez instructions Penalty for failure to file Form 8606. 2010 form 1040ez instructions   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. 2010 form 1040ez instructions    Tax on earnings on nondeductible contributions. 2010 form 1040ez instructions   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. 2010 form 1040ez instructions See When Can You Withdraw or Use IRA Assets , later. 2010 form 1040ez instructions Cost basis. 2010 form 1040ez instructions   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. 2010 form 1040ez instructions Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. 2010 form 1040ez instructions Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. 2010 form 1040ez instructions A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. 2010 form 1040ez instructions Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. 2010 form 1040ez instructions Inherited from spouse. 2010 form 1040ez instructions   If you inherit a traditional IRA from your spouse, you generally have the following three choices. 2010 form 1040ez instructions You can: Treat it as your own IRA by designating yourself as the account owner. 2010 form 1040ez instructions Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). 2010 form 1040ez instructions Treat yourself as the beneficiary rather than treating the IRA as your own. 2010 form 1040ez instructions Treating it as your own. 2010 form 1040ez instructions   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. 2010 form 1040ez instructions You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. 2010 form 1040ez instructions   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. 2010 form 1040ez instructions Inherited from someone other than spouse. 2010 form 1040ez instructions   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. 2010 form 1040ez instructions This means that you cannot make any contributions to the IRA. 2010 form 1040ez instructions It also means you cannot roll over any amounts into or out of the inherited IRA. 2010 form 1040ez instructions However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. 2010 form 1040ez instructions For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. 2010 form 1040ez instructions Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. 2010 form 1040ez instructions You can make the following kinds of transfers. 2010 form 1040ez instructions Transfers from one trustee to another. 2010 form 1040ez instructions Rollovers. 2010 form 1040ez instructions Transfers incident to a divorce. 2010 form 1040ez instructions Transfers to Roth IRAs. 2010 form 1040ez instructions   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. 2010 form 1040ez instructions You can also move assets from a qualified retirement plan to a Roth IRA. 2010 form 1040ez instructions See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. 2010 form 1040ez instructions Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. 2010 form 1040ez instructions Because there is no distribution to you, the transfer is tax free. 2010 form 1040ez instructions Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . 2010 form 1040ez instructions For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. 2010 form 1040ez instructions Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. 2010 form 1040ez instructions The contribution to the second retirement plan is called a “rollover contribution. 2010 form 1040ez instructions ” Note. 2010 form 1040ez instructions An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. 2010 form 1040ez instructions Kinds of rollovers to a traditional IRA. 2010 form 1040ez instructions   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). 2010 form 1040ez instructions Treatment of rollovers. 2010 form 1040ez instructions   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . 2010 form 1040ez instructions Kinds of rollovers from a traditional IRA. 2010 form 1040ez instructions   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. 2010 form 1040ez instructions These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). 2010 form 1040ez instructions The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). 2010 form 1040ez instructions Qualified plans may, but are not required to, accept such rollovers. 2010 form 1040ez instructions Time limit for making a rollover contribution. 2010 form 1040ez instructions   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. 2010 form 1040ez instructions The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. 2010 form 1040ez instructions For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Extension of rollover period. 2010 form 1040ez instructions   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. 2010 form 1040ez instructions For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions More information. 2010 form 1040ez instructions   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. 2010 form 1040ez instructions Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. 2010 form 1040ez instructions Waiting period between rollovers. 2010 form 1040ez instructions   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. 2010 form 1040ez instructions You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. 2010 form 1040ez instructions   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. 2010 form 1040ez instructions Example. 2010 form 1040ez instructions You have two traditional IRAs, IRA-1 and IRA-2. 2010 form 1040ez instructions You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). 2010 form 1040ez instructions You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. 2010 form 1040ez instructions However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. 2010 form 1040ez instructions This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. 2010 form 1040ez instructions Exception. 2010 form 1040ez instructions   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Partial rollovers. 2010 form 1040ez instructions   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. 2010 form 1040ez instructions The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). 2010 form 1040ez instructions The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . 2010 form 1040ez instructions Required distributions. 2010 form 1040ez instructions   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. 2010 form 1040ez instructions Inherited IRAs. 2010 form 1040ez instructions   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. 2010 form 1040ez instructions See Treating it as your own , earlier. 2010 form 1040ez instructions Not inherited from spouse. 2010 form 1040ez instructions   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. 2010 form 1040ez instructions You must withdraw the IRA assets within a certain period. 2010 form 1040ez instructions For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Reporting rollovers from IRAs. 2010 form 1040ez instructions   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. 2010 form 1040ez instructions   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. 2010 form 1040ez instructions If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. 2010 form 1040ez instructions If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. 2010 form 1040ez instructions Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. 2010 form 1040ez instructions See your tax return instructions. 2010 form 1040ez instructions   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. 2010 form 1040ez instructions Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). 2010 form 1040ez instructions A qualified plan is one that meets the requirements of the Internal Revenue Code. 2010 form 1040ez instructions Eligible rollover distribution. 2010 form 1040ez instructions   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. 2010 form 1040ez instructions A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). 2010 form 1040ez instructions A hardship distribution. 2010 form 1040ez instructions Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. 2010 form 1040ez instructions Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. 2010 form 1040ez instructions A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. 2010 form 1040ez instructions Dividends on employer securities. 2010 form 1040ez instructions The cost of life insurance coverage. 2010 form 1040ez instructions Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. 2010 form 1040ez instructions To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. 2010 form 1040ez instructions See Form 8606 under Distributions Fully or Partly Taxable, later. 2010 form 1040ez instructions Rollover by nonspouse beneficiary. 2010 form 1040ez instructions   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. 2010 form 1040ez instructions The IRA is treated as an inherited IRA. 2010 form 1040ez instructions For more information about inherited IRAs, see Inherited IRAs , earlier. 2010 form 1040ez instructions Reporting rollovers from employer plans. 2010 form 1040ez instructions    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. 2010 form 1040ez instructions This amount should be shown in box 1 of Form 1099-R. 2010 form 1040ez instructions From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. 2010 form 1040ez instructions From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. 2010 form 1040ez instructions Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. 2010 form 1040ez instructions Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. 2010 form 1040ez instructions Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. 2010 form 1040ez instructions The transfer is tax free. 2010 form 1040ez instructions For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Converting From Any Traditional IRA to a Roth IRA Allowable conversions. 2010 form 1040ez instructions   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. 2010 form 1040ez instructions The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. 2010 form 1040ez instructions If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. 2010 form 1040ez instructions However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. 2010 form 1040ez instructions Required distributions. 2010 form 1040ez instructions   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). 2010 form 1040ez instructions Income. 2010 form 1040ez instructions   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. 2010 form 1040ez instructions These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. 2010 form 1040ez instructions   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. 2010 form 1040ez instructions   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. 2010 form 1040ez instructions   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. 2010 form 1040ez instructions See chapter 4. 2010 form 1040ez instructions Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. 2010 form 1040ez instructions This is called recharacterizing the contribution. 2010 form 1040ez instructions See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. 2010 form 1040ez instructions How to recharacterize a contribution. 2010 form 1040ez instructions   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. 2010 form 1040ez instructions If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. 2010 form 1040ez instructions If you recharacterize your contribution, you must do all three of the following. 2010 form 1040ez instructions Include in the transfer any net income allocable to the contribution. 2010 form 1040ez instructions If there was a loss, the net income you must transfer may be a negative amount. 2010 form 1040ez instructions Report the recharacterization on your tax return for the year during which the contribution was made. 2010 form 1040ez instructions Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. 2010 form 1040ez instructions No deduction allowed. 2010 form 1040ez instructions   You cannot deduct the contribution to the first IRA. 2010 form 1040ez instructions Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. 2010 form 1040ez instructions Required notifications. 2010 form 1040ez instructions   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. 2010 form 1040ez instructions You must make the notifications by the date of the transfer. 2010 form 1040ez instructions Only one notification is required if both IRAs are maintained by the same trustee. 2010 form 1040ez instructions The notification(s) must include all of the following information. 2010 form 1040ez instructions The type and amount of the contribution to the first IRA that is to be recharacterized. 2010 form 1040ez instructions The date on which the contribution was made to the first IRA and the year for which it was made. 2010 form 1040ez instructions A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. 2010 form 1040ez instructions The name of the trustee of the first IRA and the name of the trustee of the second IRA. 2010 form 1040ez instructions Any additional information needed to make the transfer. 2010 form 1040ez instructions Reporting a recharacterization. 2010 form 1040ez instructions   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. 2010 form 1040ez instructions You must treat the contribution as having been made to the second IRA. 2010 form 1040ez instructions When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. 2010 form 1040ez instructions Violation of the rules generally results in additional taxes in the year of violation. 2010 form 1040ez instructions See What Acts Result in Penalties or Additional Taxes , later. 2010 form 1040ez instructions Contributions returned before the due date of return. 2010 form 1040ez instructions   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. 2010 form 1040ez instructions If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. 2010 form 1040ez instructions You can do this if, for each contribution you withdraw, both of the following conditions apply. 2010 form 1040ez instructions You did not take a deduction for the contribution. 2010 form 1040ez instructions You withdraw any interest or other income earned on the contribution. 2010 form 1040ez instructions You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. 2010 form 1040ez instructions If there was a loss, the net income earned on the contribution may be a negative amount. 2010 form 1040ez instructions Note. 2010 form 1040ez instructions To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Earnings includible in income. 2010 form 1040ez instructions   You must include in income any earnings on the contributions you withdraw. 2010 form 1040ez instructions Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. 2010 form 1040ez instructions Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. 2010 form 1040ez instructions Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. 2010 form 1040ez instructions    Early distributions tax. 2010 form 1040ez instructions   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. 2010 form 1040ez instructions However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. 2010 form 1040ez instructions When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. 2010 form 1040ez instructions Eventually they must be distributed. 2010 form 1040ez instructions If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. 2010 form 1040ez instructions See Excess Accumulations (Insufficient Distributions) , later. 2010 form 1040ez instructions The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. 2010 form 1040ez instructions Required minimum distribution. 2010 form 1040ez instructions   The amount that must be distributed each year is referred to as the required minimum distribution. 2010 form 1040ez instructions Required distributions not eligible for rollover. 2010 form 1040ez instructions   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. 2010 form 1040ez instructions IRA owners. 2010 form 1040ez instructions   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. 2010 form 1040ez instructions April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. 2010 form 1040ez instructions Distributions by the required beginning date. 2010 form 1040ez instructions   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). 2010 form 1040ez instructions If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. 2010 form 1040ez instructions   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. 2010 form 1040ez instructions Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. 2010 form 1040ez instructions Distributions after the required beginning date. 2010 form 1040ez instructions   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. 2010 form 1040ez instructions    Beneficiaries. 2010 form 1040ez instructions   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. 2010 form 1040ez instructions More information. 2010 form 1040ez instructions   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. 2010 form 1040ez instructions Exceptions. 2010 form 1040ez instructions   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . 2010 form 1040ez instructions    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. 2010 form 1040ez instructions Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. 2010 form 1040ez instructions Qualified charitable distributions (QCD). 2010 form 1040ez instructions   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. 2010 form 1040ez instructions Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. 2010 form 1040ez instructions See Qualified Charitable Distributions in Publication 590 for more information. 2010 form 1040ez instructions Ordinary income. 2010 form 1040ez instructions   Distributions from traditional IRAs that you include in income are taxed as ordinary income. 2010 form 1040ez instructions No special treatment. 2010 form 1040ez instructions   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. 2010 form 1040ez instructions Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. 2010 form 1040ez instructions Fully taxable. 2010 form 1040ez instructions   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. 2010 form 1040ez instructions Because you have no basis in your IRA, any distributions are fully taxable when received. 2010 form 1040ez instructions See Reporting taxable distributions on your return , later. 2010 form 1040ez instructions Partly taxable. 2010 form 1040ez instructions    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. 2010 form 1040ez instructions These nondeductible contributions are not taxed when they are distributed to you. 2010 form 1040ez instructions They are a return of your investment in your IRA. 2010 form 1040ez instructions   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. 2010 form 1040ez instructions If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). 2010 form 1040ez instructions Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. 2010 form 1040ez instructions Form 8606. 2010 form 1040ez instructions   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. 2010 form 1040ez instructions Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. 2010 form 1040ez instructions Note. 2010 form 1040ez instructions If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. 2010 form 1040ez instructions Send it to the IRS at the time and place you would otherwise file an income tax return. 2010 form 1040ez instructions Distributions reported on Form 1099-R. 2010 form 1040ez instructions   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2010 form 1040ez instructions , or a similar statement. 2010 form 1040ez instructions IRA distributions are shown in boxes 1 and 2a of Form 1099-R. 2010 form 1040ez instructions A number or letter code in box 7 tells you what type of distribution you received from your IRA. 2010 form 1040ez instructions Withholding. 2010 form 1040ez instructions   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. 2010 form 1040ez instructions See chapter 4. 2010 form 1040ez instructions IRA distributions delivered outside the United States. 2010 form 1040ez instructions   In general, if you are a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. 2010 form 1040ez instructions Reporting taxable distributions on your return. 2010 form 1040ez instructions    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). 2010 form 1040ez instructions If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. 2010 form 1040ez instructions You cannot report distributions on Form 1040EZ. 2010 form 1040ez instructions What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. 2010 form 1040ez instructions There are additions to the regular tax for using your IRA funds in prohibited transactions. 2010 form 1040ez instructions There are also additional taxes for the following activities. 2010 form 1040ez instructions Investing in collectibles. 2010 form 1040ez instructions Making excess contributions. 2010 form 1040ez instructions Taking early distributions. 2010 form 1040ez instructions Allowing excess amounts to accumulate (failing to take required distributions). 2010 form 1040ez instructions There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. 2010 form 1040ez instructions Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. 2010 form 1040ez instructions Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). 2010 form 1040ez instructions The following are examples of prohibited transactions with a traditional IRA. 2010 form 1040ez instructions Borrowing money from it. 2010 form 1040ez instructions Selling property to it. 2010 form 1040ez instructions Receiving unreasonable compensation for managing it. 2010 form 1040ez instructions Using it as security for a loan. 2010 form 1040ez instructions Buying property for personal use (present or future) with IRA funds. 2010 form 1040ez instructions Effect on an IRA account. 2010 form 1040ez instructions   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. 2010 form 1040ez instructions Effect on you or your beneficiary. 2010 form 1040ez instructions   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. 2010 form 1040ez instructions If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. 2010 form 1040ez instructions For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. 2010 form 1040ez instructions The distribution may be subject to additional taxes or penalties. 2010 form 1040ez instructions Taxes on prohibited transactions. 2010 form 1040ez instructions   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. 2010 form 1040ez instructions In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. 2010 form 1040ez instructions More information. 2010 form 1040ez instructions   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. 2010 form 1040ez instructions Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. 2010 form 1040ez instructions You may have to pay the 10% additional tax on early distributions, discussed later. 2010 form 1040ez instructions Collectibles. 2010 form 1040ez instructions   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. 2010 form 1040ez instructions Exception. 2010 form 1040ez instructions    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions gold coins, or one-ounce silver coins minted by the Treasury Department. 2010 form 1040ez instructions It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. 2010 form 1040ez instructions Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. 2010 form 1040ez instructions For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. 2010 form 1040ez instructions Tax on excess contributions. 2010 form 1040ez instructions   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. 2010 form 1040ez instructions You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. 2010 form 1040ez instructions The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. 2010 form 1040ez instructions Excess contributions withdrawn by due date of return. 2010 form 1040ez instructions   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. 2010 form 1040ez instructions You must complete your withdrawal by the date your tax return for that year is due, including extensions. 2010 form 1040ez instructions How to treat withdrawn contributions. 2010 form 1040ez instructions   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. 2010 form 1040ez instructions No deduction was allowed for the excess contribution. 2010 form 1040ez instructions You withdraw the interest or other income earned on the excess contribution. 2010 form 1040ez instructions You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. 2010 form 1040ez instructions If there was a loss, the net income you must withdraw may be a negative amount. 2010 form 1040ez instructions How to treat withdrawn interest or other income. 2010 form 1040ez instructions   You must include in your gross income the interest or other income that was earned on the excess contribution. 2010 form 1040ez instructions Report it on your return for the year in which the excess contribution was made. 2010 form 1040ez instructions Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus
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Know the Steps to Take

A valid U.S. passport is required to enter and leave most foreign countries. Only the U.S. Department of State has the authority to grant, issue, or verify U.S. passports.

The Passport Services Office provides information and services to American citizens about how to obtain, replace or change a passport. To obtain a passport for the first time, you need to go in person to one of 7,000 passport acceptance facilities located throughout the United States with:

  • Two photographs of you taken within the last six months
  • Proof of U.S. citizenship
  • A valid form of photo identification (such as a driver's license)

Acceptance facilities include many Federal, state and probate courts, post offices, some public libraries and a number of county and municipal offices. There are also 20 regional passport agencies, and one Gateway City Agency, which serve customers who are traveling within two weeks (14 days), or who need foreign visas for travel. Appointments are required in such cases.

All American citizens must now have a valid U.S. passport to re-enter the country, regardless of what nations they have been visiting while traveling.

The 2010 Form 1040ez Instructions

2010 form 1040ez instructions 6. 2010 form 1040ez instructions   Dual-Status Tax Year Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Income Subject to Tax Restrictions for Dual-Status Taxpayers Exemptions How To Figure TaxIncome Tax Credits and Payments Forms To File When and Where To File Introduction You have a dual-status tax year when you have been both a resident alien and a nonresident alien in the same year. 2010 form 1040ez instructions Dual status does not refer to your citizenship; it refers only to your resident status in the United States. 2010 form 1040ez instructions In determining your U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions income tax liability for a dual-status tax year, different rules apply for the part of the year you are a resident of the United States and the part of the year you are a nonresident. 2010 form 1040ez instructions The most common dual-status tax years are the years of arrival and departure. 2010 form 1040ez instructions See Dual-Status Aliens in chapter 1. 2010 form 1040ez instructions If you are married and choose to be treated as a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions resident for the entire year, as explained in chapter 1, the rules of this chapter do not apply to you for that year. 2010 form 1040ez instructions Topics - This chapter discusses: Income subject to tax, Restrictions for dual-status taxpayers, Exemptions, How to figure the tax, Forms to file, When and where to file, and How to fill out a dual-status return. 2010 form 1040ez instructions Useful Items - You may want to see: Publication 503 Child and Dependent Care Expenses 514 Foreign Tax Credit for Individuals 575 Pension and Annuity Income Form (and Instructions) 1040 U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions Individual Income Tax Return 1040-C U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions Departing Alien Income Tax Return 1040-ES Estimated Tax for Individuals 1040-ES (NR) U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions Estimated Tax for Nonresident Alien Individuals 1040NR U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions Nonresident Alien Income Tax Return 1116 Foreign Tax Credit See chapter 12 for information about getting these publications and forms. 2010 form 1040ez instructions Tax Year You must file your tax return on the basis of an annual accounting period called a tax year. 2010 form 1040ez instructions If you have not previously established a fiscal tax year, your tax year is the calendar year. 2010 form 1040ez instructions A calendar year is 12 consecutive months ending on December 31. 2010 form 1040ez instructions If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December, or a 52–53 week year) and are considered to be a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions resident for any calendar year, you will be treated as a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions resident for any part of your fiscal year that falls within that calendar year. 2010 form 1040ez instructions Income Subject to Tax For the part of the year you are a resident alien, you are taxed on income from all sources. 2010 form 1040ez instructions Income from sources outside the United States is taxable if you receive it while you are a resident alien. 2010 form 1040ez instructions The income is taxable even if you earned it while you were a nonresident alien or if you became a nonresident alien after receiving it and before the end of the year. 2010 form 1040ez instructions For the part of the year you are a nonresident alien, you are taxed on income from U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions sources and on certain foreign source income treated as effectively connected with a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions trade or business. 2010 form 1040ez instructions (The rules for treating foreign source income as effectively connected are discussed in chapter 4 under Foreign Income. 2010 form 1040ez instructions ) Income from sources outside the United States that is not effectively connected with a trade or business in the United States is not taxable if you receive it while you are a nonresident alien. 2010 form 1040ez instructions The income is not taxable even if you earned it while you were a resident alien or if you became a resident alien or a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizen after receiving it and before the end of the year. 2010 form 1040ez instructions Income from U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions sources is taxable whether you receive it while a nonresident alien or a resident alien unless specifically exempt under the Internal Revenue Code or a tax treaty provision. 2010 form 1040ez instructions Generally, tax treaty provisions apply only to the part of the year you were a nonresident. 2010 form 1040ez instructions In certain cases, however, treaty provisions may apply while you were a resident alien. 2010 form 1040ez instructions See chapter 9 for more information. 2010 form 1040ez instructions When determining what income is taxed in the United States, you must consider exemptions under U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions tax law as well as the reduced tax rates and exemptions provided by tax treaties between the United States and certain foreign countries. 2010 form 1040ez instructions For a further discussion of tax treaties, see chapter 9. 2010 form 1040ez instructions Restrictions for Dual-Status Taxpayers The following restrictions apply if you are filing a tax return for a dual-status tax year. 2010 form 1040ez instructions 1) Standard deduction. 2010 form 1040ez instructions   You cannot use the standard deduction allowed on Form 1040. 2010 form 1040ez instructions However, you can itemize any allowable deductions. 2010 form 1040ez instructions 2) Exemptions. 2010 form 1040ez instructions   Your total deduction for the exemptions for your spouse and allowable dependents cannot be more than your taxable income (figured without deducting personal exemptions) for the period you are a resident alien. 2010 form 1040ez instructions 3) Head of household. 2010 form 1040ez instructions   You cannot use the head of household Tax Table column or Tax Computation Worksheet. 2010 form 1040ez instructions 4) Joint return. 2010 form 1040ez instructions   You cannot file a joint return. 2010 form 1040ez instructions However, see Choosing Resident Alien Status under Dual-Status Aliens in chapter 1. 2010 form 1040ez instructions 5) Tax rates. 2010 form 1040ez instructions   If you are married and a nonresident of the United States for all or part of the tax year and you do not choose to file jointly as discussed in chapter 1, you must use the Tax Table column or Tax Computation Worksheet for married filing separately to figure your tax on income effectively connected with a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions trade or business. 2010 form 1040ez instructions You cannot use the Tax Table column or Tax Computation Worksheet for married filing jointly or single. 2010 form 1040ez instructions However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a: Married resident of Canada, Mexico, or South Korea, or Married U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions national. 2010 form 1040ez instructions  See the instructions for Form 1040NR to see if you qualify. 2010 form 1040ez instructions    A U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions national is an individual who, although not a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizen, owes his or her allegiance to the United States. 2010 form 1040ez instructions U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions nationals include American Samoans and Northern Mariana Islanders who chose to become U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions nationals instead of U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizens. 2010 form 1040ez instructions 6) Tax credits. 2010 form 1040ez instructions   You cannot claim the education credits, the earned income credit, or the credit for the elderly or the disabled unless: You are married, and You choose to be treated as a resident for all of 2013 by filing a joint return with your spouse who is a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizen or resident, as discussed in chapter 1. 2010 form 1040ez instructions Exemptions As a dual-status taxpayer, you usually will be able to claim your own personal exemption. 2010 form 1040ez instructions Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. 2010 form 1040ez instructions The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. 2010 form 1040ez instructions You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. 2010 form 1040ez instructions Special rules apply to exemptions for the part of the tax year you are a nonresident alien if you are a: Resident of Canada, Mexico, or South Korea, U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions national, or Student or business apprentice from India. 2010 form 1040ez instructions For more information, see Exemptions in chapter 5. 2010 form 1040ez instructions How To Figure Tax When you figure your U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions tax for a dual-status year, you are subject to different rules for the part of the year you are a resident and the part of the year you are a nonresident. 2010 form 1040ez instructions Income All income for your period of residence and all income that is effectively connected with a trade or business in the United States for your period of nonresidence, after allowable deductions, is added and taxed at the rates that apply to U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizens and residents. 2010 form 1040ez instructions Income that is not connected with a trade or business in the United States for your period of nonresidence is subject to the flat 30% rate or lower treaty rate. 2010 form 1040ez instructions You cannot take any deductions against this income. 2010 form 1040ez instructions Social security and railroad retirement benefits. 2010 form 1040ez instructions   During the part of the year you are a nonresident alien, 85% of any U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 2010 form 1040ez instructions (See The 30% Tax in chapter 4. 2010 form 1040ez instructions )   During the part of the year you are a resident alien, part of the social security and the equivalent portion of tier 1 railroad retirement benefits will be taxed at graduated rates if your modified adjusted gross income plus half of these benefits is more than a certain base amount. 2010 form 1040ez instructions Use the Social Security Benefits Worksheet in the Form 1040 instructions to help you figure the taxable part of your social security and equivalent tier 1 railroad retirement benefits for the part of the year you were a resident alien. 2010 form 1040ez instructions If you received U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions social security benefits while you were a nonresident alien, the Social Security Administration will send you Form SSA-1042S showing your combined benefits for the entire year and the amount of tax withheld. 2010 form 1040ez instructions You will not receive separate statements for the benefits received during your periods of U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions residence and nonresidence. 2010 form 1040ez instructions Therefore, it is important for you to keep careful records of these amounts. 2010 form 1040ez instructions You will need this information to properly complete your return and determine your tax liability. 2010 form 1040ez instructions If you received railroad retirement benefits while you were a nonresident alien, the U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions Railroad Retirement Board (RRB) will send you Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, and/or Form RRB-1099-R, Annuities or Pensions by the Railroad Retirement Board. 2010 form 1040ez instructions If your country of legal residence changed or your rate of tax changed during the tax year, you may receive more than one form. 2010 form 1040ez instructions Tax Credits and Payments This discussion covers tax credits and payments for dual-status aliens. 2010 form 1040ez instructions Credits As a dual-status alien, you generally can claim tax credits using the same rules that apply to resident aliens. 2010 form 1040ez instructions There are certain restrictions that may apply. 2010 form 1040ez instructions These restrictions are discussed here, along with a brief explanation of credits often claimed by individuals. 2010 form 1040ez instructions Foreign tax credit. 2010 form 1040ez instructions   If you have paid or are liable for the payment of income tax to a foreign country on income from foreign sources, you may be able to claim a credit for the foreign taxes. 2010 form 1040ez instructions   If you claim the foreign tax credit, you generally must file Form 1116 with your income tax return. 2010 form 1040ez instructions For more information, see the Instructions for Form 1116 and Publication 514. 2010 form 1040ez instructions Child and dependent care credit. 2010 form 1040ez instructions   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse so that you can work or look for work. 2010 form 1040ez instructions Generally, you must be able to claim an exemption for your dependent. 2010 form 1040ez instructions   Married dual-status aliens can claim the credit only if they choose to file a joint return as discussed in chapter 1, or if they qualify as certain married individuals living apart. 2010 form 1040ez instructions   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income for that tax year. 2010 form 1040ez instructions   For more information, get Publication 503 and Form 2441. 2010 form 1040ez instructions Retirement savings contributions credit. 2010 form 1040ez instructions   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. 2010 form 1040ez instructions You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. 2010 form 1040ez instructions Use Form 8880 to figure the credit. 2010 form 1040ez instructions For more information, see Publication 590. 2010 form 1040ez instructions Child tax credit. 2010 form 1040ez instructions   You may be able to take this credit if you have a qualifying child. 2010 form 1040ez instructions   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. 2010 form 1040ez instructions Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). 2010 form 1040ez instructions Is a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizen, a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions national, or a resident alien. 2010 form 1040ez instructions Did not provide over half of his or her own support for 2013. 2010 form 1040ez instructions Lived with you more than half of 2013. 2010 form 1040ez instructions Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. 2010 form 1040ez instructions Is claimed as a dependent on your return. 2010 form 1040ez instructions An adopted child is always treated as your own child. 2010 form 1040ez instructions An adopted child includes a child lawfully placed with you for legal adoption. 2010 form 1040ez instructions   See your form instructions for additional details. 2010 form 1040ez instructions Adoption credit. 2010 form 1040ez instructions   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. 2010 form 1040ez instructions This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. 2010 form 1040ez instructions To claim the adoption credit, file Form 8839 with the U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions income tax return that you file. 2010 form 1040ez instructions   Married dual-status aliens can claim the credit only if they choose to file a joint return with a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). 2010 form 1040ez instructions Payments You can report as payments against your U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions income tax liability certain taxes you paid, are considered to have paid, or that were withheld from your income. 2010 form 1040ez instructions These include: Tax withheld from wages earned in the United States, Taxes withheld at the source from various items of income from U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions sources other than wages, Estimated tax paid with Form 1040-ES or Form 1040-ES (NR), and Tax paid with Form 1040-C, at the time of departure from the United States. 2010 form 1040ez instructions Forms To File The U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions income tax return you must file as a dual-status alien depends on whether you are a resident alien or a nonresident alien at the end of the tax year. 2010 form 1040ez instructions Resident at end of year. 2010 form 1040ez instructions   You must file Form 1040 if you are a dual-status taxpayer who becomes a resident during the year and who is a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions resident on the last day of the tax year. 2010 form 1040ez instructions Write “Dual-Status Return” across the top of the return. 2010 form 1040ez instructions Attach a statement to your return to show the income for the part of the year you are a nonresident. 2010 form 1040ez instructions You can use Form 1040NR or Form 1040NR-EZ as the statement, but be sure to mark “Dual-Status Statement” across the top. 2010 form 1040ez instructions Nonresident at end of year. 2010 form 1040ez instructions   You must file Form 1040NR or Form 1040NR-EZ if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U. 2010 form 1040ez instructions S. 2010 form 1040ez instructions resident on the last day of the tax year. 2010 form 1040ez instructions Write “Dual-Status Return” across the top of the return. 2010 form 1040ez instructions Attach a statement to your return to show the income for the part of the year you are a resident. 2010 form 1040ez instructions You can use Form 1040 as the statement, but be sure to mark “Dual-Status Statement” across the top. 2010 form 1040ez instructions   If you expatriated or terminated your residency in 2013, you may be required to file an expatriation statement (Form 8854) with your tax return. 2010 form 1040ez instructions For more information, see Expatriation Tax in chapter 4. 2010 form 1040ez instructions Statement. 2010 form 1040ez instructions   Any statement must have your name, address, and taxpayer identification number on it. 2010 form 1040ez instructions You do not need to sign a separate statement or schedule accompanying your return, because your signature on the return also applies to the supporting statements and schedules. 2010 form 1040ez instructions When and Where To File If you are a resident alien on the last day of your tax year and report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year. 2010 form 1040ez instructions If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. 2010 form 1040ez instructions In either case, file your return with the address for dual-status aliens shown on the back page of the Form 1040 instructions. 2010 form 1040ez instructions If you are a nonresident alien on the last day of your tax year and you report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year if you receive wages subject to withholding. 2010 form 1040ez instructions If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. 2010 form 1040ez instructions If you did not receive wages subject to withholding and you report your income on a calendar year basis, you must file no later than June 15 of the year following the close of your tax year. 2010 form 1040ez instructions If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 6th month following the close of your tax year. 2010 form 1040ez instructions In any case, mail your return to:  Department of the Treasury Internal Revenue Service  Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. 2010 form 1040ez instructions O. 2010 form 1040ez instructions Box 1303 Charlotte, NC 28201-1303 If the regular due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day that is not a Saturday, Sunday, or legal holiday. 2010 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