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2011 1040 Ez Tax Forms

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2011 1040 Ez Tax Forms

2011 1040 ez tax forms Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. 2011 1040 ez tax forms Gross monthly rate. 2011 1040 ez tax forms Your cost. 2011 1040 ez tax forms Choosing a survivor annuity after retirement. 2011 1040 ez tax forms Canceling a survivor annuity after retirement. 2011 1040 ez tax forms Annuity starting date after 1986. 2011 1040 ez tax forms Annuity starting date before 1987. 2011 1040 ez tax forms Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. 2011 1040 ez tax forms Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. 2011 1040 ez tax forms The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. 2011 1040 ez tax forms If the refund includes only your contributions, none of the refund is taxable. 2011 1040 ez tax forms If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). 2011 1040 ez tax forms If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. 2011 1040 ez tax forms See Rollover Rules in Part II for information on how to make a rollover. 2011 1040 ez tax forms Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. 2011 1040 ez tax forms Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. 2011 1040 ez tax forms If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. 2011 1040 ez tax forms If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. 2011 1040 ez tax forms For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. 2011 1040 ez tax forms A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. 2011 1040 ez tax forms Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. 2011 1040 ez tax forms OPM will tell you how to make the choice. 2011 1040 ez tax forms The choice for no withholding remains in effect until you change it. 2011 1040 ez tax forms These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. 2011 1040 ez tax forms If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. 2011 1040 ez tax forms You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. 2011 1040 ez tax forms Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. 2011 1040 ez tax forms For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. 2011 1040 ez tax forms Form CSA 1099R. 2011 1040 ez tax forms   Form CSA 1099R is mailed to you by OPM each year. 2011 1040 ez tax forms It will show any tax you had withheld. 2011 1040 ez tax forms File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. 2011 1040 ez tax forms    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. 2011 1040 ez tax forms servicesonline. 2011 1040 ez tax forms opm. 2011 1040 ez tax forms gov. 2011 1040 ez tax forms To log in, you will need your retirement CSA claim number and your personal identification number. 2011 1040 ez tax forms Choosing no withholding on payments outside the United States. 2011 1040 ez tax forms   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. 2011 1040 ez tax forms   To choose no withholding if you are a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. 2011 1040 ez tax forms Otherwise, OPM has to withhold tax. 2011 1040 ez tax forms For example, OPM must withhold if you provide a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms home address. 2011 1040 ez tax forms   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizen, a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms resident alien, or someone who left the United States to avoid tax. 2011 1040 ez tax forms But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. 2011 1040 ez tax forms For details, see Publication 519, U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Tax Guide for Aliens. 2011 1040 ez tax forms Withholding certificate. 2011 1040 ez tax forms   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. 2011 1040 ez tax forms The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. 2011 1040 ez tax forms If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. 2011 1040 ez tax forms To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. 2011 1040 ez tax forms C. 2011 1040 ez tax forms calling area must call 202-606-0500). 2011 1040 ez tax forms No special form is needed. 2011 1040 ez tax forms You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. 2011 1040 ez tax forms If you have TTY/TDD equipment, call 1-855–887–4957. 2011 1040 ez tax forms If you need a PIN, call OPM's Retirement Information Office. 2011 1040 ez tax forms You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. 2011 1040 ez tax forms servicesonline. 2011 1040 ez tax forms opm. 2011 1040 ez tax forms gov. 2011 1040 ez tax forms You will need your retirement CSA or CSF claim number and your PIN. 2011 1040 ez tax forms Withholding from certain lump-sum payments. 2011 1040 ez tax forms   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. 2011 1040 ez tax forms Tax will be withheld at a 20% rate on the interest distributed. 2011 1040 ez tax forms However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. 2011 1040 ez tax forms If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. 2011 1040 ez tax forms Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. 2011 1040 ez tax forms See Rollover Rules in Part II. 2011 1040 ez tax forms If you receive only your contributions, no tax will be withheld. 2011 1040 ez tax forms Withholding from Thrift Savings Plan payments. 2011 1040 ez tax forms   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. 2011 1040 ez tax forms The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. 2011 1040 ez tax forms  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. 2011 1040 ez tax forms By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. 2011 1040 ez tax forms   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. 2011 1040 ez tax forms The above document is also available in the “Forms & Publications” section of the TSP website at www. 2011 1040 ez tax forms tsp. 2011 1040 ez tax forms gov. 2011 1040 ez tax forms Estimated tax. 2011 1040 ez tax forms   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). 2011 1040 ez tax forms The return must cover all 12 months. 2011 1040 ez tax forms   You do not have to pay estimated tax for 2014 if you were a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. 2011 1040 ez tax forms   Publication 505 contains information that you can use to help you figure your estimated tax payments. 2011 1040 ez tax forms Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. 2011 1040 ez tax forms The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. 2011 1040 ez tax forms Children. 2011 1040 ez tax forms   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. 2011 1040 ez tax forms   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. 2011 1040 ez tax forms Form CSF 1099R. 2011 1040 ez tax forms   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. 2011 1040 ez tax forms It will show the total amount of the annuity you received in the past year. 2011 1040 ez tax forms It also should show, separately, the survivor annuity for a child or children. 2011 1040 ez tax forms Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. 2011 1040 ez tax forms   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. 2011 1040 ez tax forms    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. 2011 1040 ez tax forms servicesonline. 2011 1040 ez tax forms opm. 2011 1040 ez tax forms gov. 2011 1040 ez tax forms To log in you will need your retirement CSF claim number and personal identification number. 2011 1040 ez tax forms    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. 2011 1040 ez tax forms C. 2011 1040 ez tax forms calling area must call 202-606-0500). 2011 1040 ez tax forms You will need your CSF claim number and your social security number when you call. 2011 1040 ez tax forms Taxable part of annuity. 2011 1040 ez tax forms   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. 2011 1040 ez tax forms To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. 2011 1040 ez tax forms Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. 2011 1040 ez tax forms If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. 2011 1040 ez tax forms However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. 2011 1040 ez tax forms Annuity statement. 2011 1040 ez tax forms   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). 2011 1040 ez tax forms You will use this information to figure the tax-free recovery of your cost. 2011 1040 ez tax forms Annuity starting date. 2011 1040 ez tax forms   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. 2011 1040 ez tax forms If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. 2011 1040 ez tax forms Gross monthly rate. 2011 1040 ez tax forms   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. 2011 1040 ez tax forms Your cost. 2011 1040 ez tax forms   Your monthly annuity payment contains an amount on which you have previously paid income tax. 2011 1040 ez tax forms This amount represents part of your contributions to the retirement plan. 2011 1040 ez tax forms Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. 2011 1040 ez tax forms   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. 2011 1040 ez tax forms If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. 2011 1040 ez tax forms (See Lump-sum credit under Alternative Annuity Option, later. 2011 1040 ez tax forms )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. 2011 1040 ez tax forms You cannot claim an interest deduction for any interest payments. 2011 1040 ez tax forms You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. 2011 1040 ez tax forms Recovering your cost tax free. 2011 1040 ez tax forms   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. 2011 1040 ez tax forms If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. 2011 1040 ez tax forms If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). 2011 1040 ez tax forms If your annuity starting date is after November 18, 1996, you must use the Simplified Method. 2011 1040 ez tax forms   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). 2011 1040 ez tax forms The tax-free part is a fixed dollar amount. 2011 1040 ez tax forms It remains the same, even if your annuity is increased. 2011 1040 ez tax forms Generally, this rule applies as long as you receive your annuity. 2011 1040 ez tax forms However, see Exclusion limit , later. 2011 1040 ez tax forms Choosing a survivor annuity after retirement. 2011 1040 ez tax forms    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. 2011 1040 ez tax forms   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. 2011 1040 ez tax forms To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. 2011 1040 ez tax forms Figure the expected return as of the date the reduced annuity begins. 2011 1040 ez tax forms For details on the General Rule, see Publication 939. 2011 1040 ez tax forms Canceling a survivor annuity after retirement. 2011 1040 ez tax forms   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. 2011 1040 ez tax forms The increased annuity does not change the cost recovery you figured at the annuity starting date. 2011 1040 ez tax forms The tax-free part of each annuity payment remains the same. 2011 1040 ez tax forms    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. 2011 1040 ez tax forms C. 2011 1040 ez tax forms calling area must call 202-606-0500). 2011 1040 ez tax forms Exclusion limit. 2011 1040 ez tax forms   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. 2011 1040 ez tax forms Annuity starting date after 1986. 2011 1040 ez tax forms   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. 2011 1040 ez tax forms Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. 2011 1040 ez tax forms Example. 2011 1040 ez tax forms Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. 2011 1040 ez tax forms If your cost is $12,000, the exclusion ends after 10 years (120 months). 2011 1040 ez tax forms Thereafter, your entire annuity is generally fully taxable. 2011 1040 ez tax forms Annuity starting date before 1987. 2011 1040 ez tax forms   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. 2011 1040 ez tax forms If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. 2011 1040 ez tax forms The total exclusion may be more than your cost. 2011 1040 ez tax forms Deduction of unrecovered cost. 2011 1040 ez tax forms   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. 2011 1040 ez tax forms The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). 2011 1040 ez tax forms If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. 2011 1040 ez tax forms Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. 2011 1040 ez tax forms (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. 2011 1040 ez tax forms ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. 2011 1040 ez tax forms The Simplified Method does not apply if your annuity starting date is before July 2, 1986. 2011 1040 ez tax forms Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. 2011 1040 ez tax forms This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. 2011 1040 ez tax forms If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. 2011 1040 ez tax forms Worksheet A. 2011 1040 ez tax forms   Use Worksheet A. 2011 1040 ez tax forms Simplified Method (near the end of this publication), to figure your taxable annuity. 2011 1040 ez tax forms Be sure to keep the completed worksheet. 2011 1040 ez tax forms It will help you figure your taxable amounts for later years. 2011 1040 ez tax forms Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. 2011 1040 ez tax forms However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. 2011 1040 ez tax forms Line 2. 2011 1040 ez tax forms   See Your cost , earlier, for an explanation of your cost in the plan. 2011 1040 ez tax forms If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. 2011 1040 ez tax forms Line 3. 2011 1040 ez tax forms   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. 2011 1040 ez tax forms If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. 2011 1040 ez tax forms If your annuity starting date is before 1998, use Table 1. 2011 1040 ez tax forms Line 6. 2011 1040 ez tax forms   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. 2011 1040 ez tax forms If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. 2011 1040 ez tax forms Example. 2011 1040 ez tax forms Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. 2011 1040 ez tax forms His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. 2011 1040 ez tax forms He must use the Simplified Method to figure the tax-free part of his annuity benefits. 2011 1040 ez tax forms Bill's monthly annuity benefit is $1,000. 2011 1040 ez tax forms He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. 2011 1040 ez tax forms At his annuity starting date, he was 65 and Kathy was 57. 2011 1040 ez tax forms Bill's completed Worksheet A is shown later. 2011 1040 ez tax forms To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). 2011 1040 ez tax forms Bill keeps a copy of the completed worksheet for his records. 2011 1040 ez tax forms It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. 2011 1040 ez tax forms Bill's tax-free monthly amount is $100. 2011 1040 ez tax forms (See line 4 of the worksheet. 2011 1040 ez tax forms ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. 2011 1040 ez tax forms If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. 2011 1040 ez tax forms If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. 2011 1040 ez tax forms General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. 2011 1040 ez tax forms If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. 2011 1040 ez tax forms If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. 2011 1040 ez tax forms Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. 2011 1040 ez tax forms Figuring this percentage is complex and requires the use of actuarial tables. 2011 1040 ez tax forms For these tables and other information about using the General Rule, see Publication 939. 2011 1040 ez tax forms Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. 2011 1040 ez tax forms Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. 2011 1040 ez tax forms After your cost was recovered, all payments became fully taxable. 2011 1040 ez tax forms You cannot use another rule to again exclude amounts from income. 2011 1040 ez tax forms The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. 2011 1040 ez tax forms Worksheet A. 2011 1040 ez tax forms Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. 2011 1040 ez tax forms 1. 2011 1040 ez tax forms Enter the total pension or annuity payments received this year. 2011 1040 ez tax forms Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2011 1040 ez tax forms $ 8,000 2. 2011 1040 ez tax forms Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. 2011 1040 ez tax forms See Your cost in Part II, Rules for Retirees, earlier 2. 2011 1040 ez tax forms 31,000 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2011 1040 ez tax forms Otherwise, go to line 3. 2011 1040 ez tax forms   3. 2011 1040 ez tax forms Enter the appropriate number from Table 1 below. 2011 1040 ez tax forms But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. 2011 1040 ez tax forms 3. 2011 1040 ez tax forms 310 4. 2011 1040 ez tax forms Divide line 2 by the number on line 3 4. 2011 1040 ez tax forms 100 5. 2011 1040 ez tax forms Multiply line 4 by the number of months for which this year's payments were made. 2011 1040 ez tax forms If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2011 1040 ez tax forms Otherwise, go to line 6 5. 2011 1040 ez tax forms 800 6. 2011 1040 ez tax forms Enter any amounts previously recovered tax free in years after 1986. 2011 1040 ez tax forms This is the amount shown on line 10 of your worksheet for last year 6. 2011 1040 ez tax forms 0 7. 2011 1040 ez tax forms Subtract line 6 from line 2 7. 2011 1040 ez tax forms 31,000 8. 2011 1040 ez tax forms Enter the smaller of line 5 or line 7 8. 2011 1040 ez tax forms 800 9. 2011 1040 ez tax forms Taxable amount for year. 2011 1040 ez tax forms Subtract line 8 from line 1. 2011 1040 ez tax forms Enter the result, but not less than zero. 2011 1040 ez tax forms Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. 2011 1040 ez tax forms If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. 2011 1040 ez tax forms If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. 2011 1040 ez tax forms If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. 2011 1040 ez tax forms $7,200 10. 2011 1040 ez tax forms Was your annuity starting date before 1987?   Yes. 2011 1040 ez tax forms Do not complete the rest of this worksheet. 2011 1040 ez tax forms    No. 2011 1040 ez tax forms Add lines 6 and 8. 2011 1040 ez tax forms This is the amount you have recovered tax free through 2013. 2011 1040 ez tax forms You will need this number if you need to fill out this worksheet next year 10. 2011 1040 ez tax forms 800 11. 2011 1040 ez tax forms Balance of cost to be recovered. 2011 1040 ez tax forms Subtract line 10 from line 2. 2011 1040 ez tax forms If zero, you will not have to complete this worksheet next year. 2011 1040 ez tax forms The payments you receive next year will generally be fully taxable 11. 2011 1040 ez tax forms $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. 2011 1040 ez tax forms Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. 2011 1040 ez tax forms If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. 2011 1040 ez tax forms You are eligible to make this choice if you meet all of the following requirements. 2011 1040 ez tax forms You are retiring, but not on disability. 2011 1040 ez tax forms You have a life-threatening illness or other critical medical condition. 2011 1040 ez tax forms You do not have a former spouse entitled to court ordered benefits based on your service. 2011 1040 ez tax forms If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. 2011 1040 ez tax forms Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. 2011 1040 ez tax forms The tax-free part represents part of your cost. 2011 1040 ez tax forms The taxable part represents part of the earnings on your annuity contract. 2011 1040 ez tax forms Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. 2011 1040 ez tax forms Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. 2011 1040 ez tax forms Your taxable amount may therefore be more than the lump-sum payment you receive. 2011 1040 ez tax forms You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. 2011 1040 ez tax forms If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. 2011 1040 ez tax forms See Rollover Rules , later, for information on how to make a rollover. 2011 1040 ez tax forms OPM can make a direct rollover only up to the amount of the lump-sum payment. 2011 1040 ez tax forms Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. 2011 1040 ez tax forms The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. 2011 1040 ez tax forms It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. 2011 1040 ez tax forms For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. 2011 1040 ez tax forms Worksheet B. 2011 1040 ez tax forms   Use Worksheet B. 2011 1040 ez tax forms Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. 2011 1040 ez tax forms Be sure to keep the completed worksheet for your records. 2011 1040 ez tax forms   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. 2011 1040 ez tax forms Lump-sum credit. 2011 1040 ez tax forms   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). 2011 1040 ez tax forms However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. 2011 1040 ez tax forms Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. 2011 1040 ez tax forms Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. 2011 1040 ez tax forms You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. 2011 1040 ez tax forms Present value of your annuity contract. 2011 1040 ez tax forms   The present value of your annuity contract is figured using actuarial tables provided by the IRS. 2011 1040 ez tax forms If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. 2011 1040 ez tax forms Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. 2011 1040 ez tax forms , NW Washington, DC 20224-0002 Example. 2011 1040 ez tax forms David Brown retired from the federal government in 2013, one month after his 55th birthday. 2011 1040 ez tax forms He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. 2011 1040 ez tax forms The present value of his annuity contract was $155,000. 2011 1040 ez tax forms The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. 2011 1040 ez tax forms The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. 2011 1040 ez tax forms See Reduced Annuity , later. 2011 1040 ez tax forms Worksheet B. 2011 1040 ez tax forms Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . 2011 1040 ez tax forms  1. 2011 1040 ez tax forms Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. 2011 1040 ez tax forms $ 31,000 2. 2011 1040 ez tax forms Enter the present value of your annuity contract 2. 2011 1040 ez tax forms 155,000 3. 2011 1040 ez tax forms Divide line 1 by line 2 3. 2011 1040 ez tax forms . 2011 1040 ez tax forms 20 4. 2011 1040 ez tax forms Tax-free amount. 2011 1040 ez tax forms Multiply line 1 by line 3. 2011 1040 ez tax forms (Caution: Do not include this amount on line 6 of Worksheet A in this publication. 2011 1040 ez tax forms ) 4. 2011 1040 ez tax forms $6,200 5. 2011 1040 ez tax forms Taxable amount (net cost in the plan). 2011 1040 ez tax forms Subtract line 4 from line 1. 2011 1040 ez tax forms Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2011 1040 ez tax forms Also, enter this amount on line 2 of Worksheet A in this publication. 2011 1040 ez tax forms 5. 2011 1040 ez tax forms $24,800   Lump-sum payment in installments. 2011 1040 ez tax forms   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. 2011 1040 ez tax forms You will receive the first installment after you make the choice upon retirement. 2011 1040 ez tax forms The second installment will be paid to you, with interest, in the next calendar year. 2011 1040 ez tax forms (Exceptions to the installment rule are provided for cases of critical medical need. 2011 1040 ez tax forms )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. 2011 1040 ez tax forms If the payment has a tax-free part, you must treat the taxable part as received first. 2011 1040 ez tax forms How to report. 2011 1040 ez tax forms   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. 2011 1040 ez tax forms Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. 2011 1040 ez tax forms    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. 2011 1040 ez tax forms Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. 2011 1040 ez tax forms These annuity payments each will have a tax-free and a taxable part. 2011 1040 ez tax forms To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). 2011 1040 ez tax forms For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. 2011 1040 ez tax forms To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. 2011 1040 ez tax forms Enter as your net cost on line 2 the amount from Worksheet B, line 5. 2011 1040 ez tax forms Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. 2011 1040 ez tax forms Example. 2011 1040 ez tax forms The facts are the same as in the example for David Brown in the preceding discussion. 2011 1040 ez tax forms In addition, David received 10 annuity payments in 2013 of $1,200 each. 2011 1040 ez tax forms Using Worksheet A, he figures the taxable part of his annuity payments. 2011 1040 ez tax forms He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. 2011 1040 ez tax forms His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). 2011 1040 ez tax forms He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. 2011 1040 ez tax forms David's filled-in Worksheet A is shown on the next page. 2011 1040 ez tax forms Worksheet A. 2011 1040 ez tax forms Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . 2011 1040 ez tax forms 1. 2011 1040 ez tax forms Enter the total pension or annuity payments received this year. 2011 1040 ez tax forms Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2011 1040 ez tax forms $ 12,000 2. 2011 1040 ez tax forms Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. 2011 1040 ez tax forms See Your cost in Part II, Rules for Retirees, earlier 2. 2011 1040 ez tax forms 24,800 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2011 1040 ez tax forms Otherwise, go to line 3. 2011 1040 ez tax forms   3. 2011 1040 ez tax forms Enter the appropriate number from Table 1 below. 2011 1040 ez tax forms But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. 2011 1040 ez tax forms 3. 2011 1040 ez tax forms 360 4. 2011 1040 ez tax forms Divide line 2 by the number on line 3 4. 2011 1040 ez tax forms 68. 2011 1040 ez tax forms 89 5. 2011 1040 ez tax forms Multiply line 4 by the number of months for which this year's payments were made. 2011 1040 ez tax forms If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2011 1040 ez tax forms Otherwise, go to line 6 5. 2011 1040 ez tax forms 688. 2011 1040 ez tax forms 90 6. 2011 1040 ez tax forms Enter any amounts previously recovered tax free in years after 1986. 2011 1040 ez tax forms This is the amount shown on line 10 of your worksheet for last year 6. 2011 1040 ez tax forms 0 7. 2011 1040 ez tax forms Subtract line 6 from line 2 7. 2011 1040 ez tax forms 24,800 8. 2011 1040 ez tax forms Enter the smaller of line 5 or line 7 8. 2011 1040 ez tax forms 688. 2011 1040 ez tax forms 90 9. 2011 1040 ez tax forms Taxable amount for year. 2011 1040 ez tax forms Subtract line 8 from line 1. 2011 1040 ez tax forms Enter the result, but not less than zero. 2011 1040 ez tax forms Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. 2011 1040 ez tax forms If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. 2011 1040 ez tax forms If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. 2011 1040 ez tax forms If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. 2011 1040 ez tax forms $11,311. 2011 1040 ez tax forms 10 10. 2011 1040 ez tax forms Was your annuity starting date before 1987?   Yes. 2011 1040 ez tax forms Do not complete the rest of this worksheet. 2011 1040 ez tax forms    No. 2011 1040 ez tax forms Add lines 6 and 8. 2011 1040 ez tax forms This is the amount you have recovered tax free through 2013. 2011 1040 ez tax forms You will need this number if you need to fill out this worksheet next year 10. 2011 1040 ez tax forms 688. 2011 1040 ez tax forms 90 11. 2011 1040 ez tax forms Balance of cost to be recovered. 2011 1040 ez tax forms Subtract line 10 from line 2. 2011 1040 ez tax forms If zero, you will not have to complete this worksheet next year. 2011 1040 ez tax forms The payments you receive next year will generally be fully taxable 11. 2011 1040 ez tax forms $24,111. 2011 1040 ez tax forms 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. 2011 1040 ez tax forms Reemployment after choosing the alternative annuity option. 2011 1040 ez tax forms If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. 2011 1040 ez tax forms If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. 2011 1040 ez tax forms Annuity starting date before November 19, 1996. 2011 1040 ez tax forms   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. 2011 1040 ez tax forms Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. 2011 1040 ez tax forms However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. 2011 1040 ez tax forms Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. 2011 1040 ez tax forms The gift may be taxable for gift tax purposes. 2011 1040 ez tax forms The value of the gift is equal to the value of the annuity. 2011 1040 ez tax forms Joint and survivor annuity. 2011 1040 ez tax forms   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. 2011 1040 ez tax forms This will eliminate any gift tax liability with regard to that gift. 2011 1040 ez tax forms   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. 2011 1040 ez tax forms This may result in a taxable gift. 2011 1040 ez tax forms More information. 2011 1040 ez tax forms   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. 2011 1040 ez tax forms Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. 2011 1040 ez tax forms Annual leave. 2011 1040 ez tax forms   A payment for accrued annual leave received on retirement is a salary payment. 2011 1040 ez tax forms It is taxable as wages in the tax year you receive it. 2011 1040 ez tax forms Voluntary contributions. 2011 1040 ez tax forms   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. 2011 1040 ez tax forms They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. 2011 1040 ez tax forms Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. 2011 1040 ez tax forms See Thrift Savings Plan , later. 2011 1040 ez tax forms Additional annuity benefit. 2011 1040 ez tax forms   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. 2011 1040 ez tax forms This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. 2011 1040 ez tax forms It does not matter that you receive only one monthly check covering both benefits. 2011 1040 ez tax forms Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. 2011 1040 ez tax forms   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. 2011 1040 ez tax forms Refund of voluntary contributions. 2011 1040 ez tax forms   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. 2011 1040 ez tax forms If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. 2011 1040 ez tax forms See Rollover Rules , later. 2011 1040 ez tax forms The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. 2011 1040 ez tax forms It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. 2011 1040 ez tax forms For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. 2011 1040 ez tax forms Community property laws. 2011 1040 ez tax forms   State community property laws apply to your annuity. 2011 1040 ez tax forms These laws will affect your income tax only if you file a return separately from your spouse. 2011 1040 ez tax forms   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. 2011 1040 ez tax forms Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. 2011 1040 ez tax forms   At any time, you have only one domicile even though you may have more than one home. 2011 1040 ez tax forms Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. 2011 1040 ez tax forms The question of your domicile is mainly a matter of your intentions as indicated by your actions. 2011 1040 ez tax forms   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. 2011 1040 ez tax forms The division is based on your periods of service and domicile in community and noncommunity property states while you were married. 2011 1040 ez tax forms   For more information, see Publication 555, Community Property. 2011 1040 ez tax forms Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. 2011 1040 ez tax forms The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. 2011 1040 ez tax forms This amount is taxable as wages. 2011 1040 ez tax forms Your annuity will continue to be taxed just as it was before. 2011 1040 ez tax forms If you are still recovering your cost, you continue to do so. 2011 1040 ez tax forms If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. 2011 1040 ez tax forms Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. 2011 1040 ez tax forms A nonresident alien is an individual who is not a citizen or a resident alien of the United States. 2011 1040 ez tax forms Special rule for figuring your total contributions. 2011 1040 ez tax forms   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. 2011 1040 ez tax forms You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. 2011 1040 ez tax forms For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. 2011 1040 ez tax forms Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. 2011 1040 ez tax forms   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. 2011 1040 ez tax forms Limit on taxable amount. 2011 1040 ez tax forms   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. 2011 1040 ez tax forms Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. 2011 1040 ez tax forms The numerator of the fraction is the retiree's total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay, other than tax-exempt pay for services performed outside the United States. 2011 1040 ez tax forms The denominator is the retiree's total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay for all services. 2011 1040 ez tax forms    Basic pay includes regular pay plus any standby differential. 2011 1040 ez tax forms It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. 2011 1040 ez tax forms   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. 2011 1040 ez tax forms (For an annuity, first complete Worksheet A in this publication. 2011 1040 ez tax forms ) Worksheet C. 2011 1040 ez tax forms Limited Taxable Amount for Nonresident Alien 1. 2011 1040 ez tax forms Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. 2011 1040 ez tax forms   2. 2011 1040 ez tax forms Enter the total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay other than tax-exempt pay for services performed outside the United States 2. 2011 1040 ez tax forms   3. 2011 1040 ez tax forms Enter the total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay for all services 3. 2011 1040 ez tax forms   4. 2011 1040 ez tax forms Divide line 2 by line 3 4. 2011 1040 ez tax forms   5. 2011 1040 ez tax forms Limited taxable amount. 2011 1040 ez tax forms Multiply line 1 by line 4. 2011 1040 ez tax forms Enter this amount on Form 1040NR, line 17b 5. 2011 1040 ez tax forms   Example 1. 2011 1040 ez tax forms You are a nonresident alien who performed all services for the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government abroad as a nonresident alien. 2011 1040 ez tax forms You retired and began to receive a monthly annuity of $200. 2011 1040 ez tax forms Your total basic pay for all services for the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government was $100,000. 2011 1040 ez tax forms All of your basic pay was tax exempt because it was not U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms source income. 2011 1040 ez tax forms The taxable amount of your annuity using Worksheet A in this publication is $720. 2011 1040 ez tax forms You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. 2011 1040 ez tax forms Worksheet C. 2011 1040 ez tax forms Limited Taxable Amount for Nonresident Alien — Example 1 1. 2011 1040 ez tax forms Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. 2011 1040 ez tax forms $ 720 2. 2011 1040 ez tax forms Enter the total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay other than tax-exempt pay for services performed outside the United States 2. 2011 1040 ez tax forms 0 3. 2011 1040 ez tax forms Enter the total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay for all services 3. 2011 1040 ez tax forms 100,000 4. 2011 1040 ez tax forms Divide line 2 by line 3 4. 2011 1040 ez tax forms 0 5. 2011 1040 ez tax forms Limited taxable amount. 2011 1040 ez tax forms Multiply line 1 by line 4. 2011 1040 ez tax forms Enter this amount on Form 1040NR, line 17b 5. 2011 1040 ez tax forms 0 Example 2. 2011 1040 ez tax forms You are a nonresident alien who performed services for the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government as a nonresident alien both within the United States and abroad. 2011 1040 ez tax forms You retired and began to receive a monthly annuity of $240. 2011 1040 ez tax forms Your total basic pay for your services for the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. 2011 1040 ez tax forms The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms source income. 2011 1040 ez tax forms The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. 2011 1040 ez tax forms You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. 2011 1040 ez tax forms Worksheet C. 2011 1040 ez tax forms Limited Taxable Amount for Nonresident Alien — Example 2 1. 2011 1040 ez tax forms Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. 2011 1040 ez tax forms $ 1,980 2. 2011 1040 ez tax forms Enter the total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay other than tax-exempt pay for services performed outside the United States 2. 2011 1040 ez tax forms 40,000 3. 2011 1040 ez tax forms Enter the total U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government basic pay for all services 3. 2011 1040 ez tax forms 120,000 4. 2011 1040 ez tax forms Divide line 2 by line 3 4. 2011 1040 ez tax forms . 2011 1040 ez tax forms 333 5. 2011 1040 ez tax forms Limited taxable amount. 2011 1040 ez tax forms Multiply line 1 by line 4. 2011 1040 ez tax forms Enter this amount on Form 1040NR, line 17b 5. 2011 1040 ez tax forms 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. 2011 1040 ez tax forms (However, see Roth TSP balance and Uniformed services TSP accounts, next. 2011 1040 ez tax forms ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. 2011 1040 ez tax forms The way that you withdraw your account balance determines when you must pay the tax. 2011 1040 ez tax forms Roth TSP balance. 2011 1040 ez tax forms   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. 2011 1040 ez tax forms This means Roth TSP contributions are included in your income. 2011 1040 ez tax forms The contribution limits are the same as the traditional TSP. 2011 1040 ez tax forms You can elect to have part or all of your TSP contributions designated as a Roth TSP. 2011 1040 ez tax forms Agency contributions will be part of your traditional TSP balance. 2011 1040 ez tax forms Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. 2011 1040 ez tax forms   Qualified distributions from your Roth TSP are not included in income. 2011 1040 ez tax forms This applies to both your cost in the account and income earned on that account. 2011 1040 ez tax forms A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. 2011 1040 ez tax forms   For more information, go to the TSP website, www. 2011 1040 ez tax forms tsp. 2011 1040 ez tax forms gov, or the TSP Service Office. 2011 1040 ez tax forms See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. 2011 1040 ez tax forms Uniformed services TSP accounts. 2011 1040 ez tax forms   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. 2011 1040 ez tax forms However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. 2011 1040 ez tax forms See Roth TSP balance discussed previously to get more information about Roth contributions. 2011 1040 ez tax forms The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. 2011 1040 ez tax forms You can get more information from the TSP website, www. 2011 1040 ez tax forms tsp. 2011 1040 ez tax forms gov, or the TSP Service Office. 2011 1040 ez tax forms Direct rollover by the TSP. 2011 1040 ez tax forms   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. 2011 1040 ez tax forms However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. 2011 1040 ez tax forms Also, see Rollover Rules , later. 2011 1040 ez tax forms Direct rollover by the TSP to a Roth IRA. 2011 1040 ez tax forms   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. 2011 1040 ez tax forms However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. 2011 1040 ez tax forms Also, see Rollovers to Roth IRAs for more information, later. 2011 1040 ez tax forms Note. 2011 1040 ez tax forms A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. 2011 1040 ez tax forms This is because you already paid tax on those contributions. 2011 1040 ez tax forms You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. 2011 1040 ez tax forms TSP annuity. 2011 1040 ez tax forms   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. 2011 1040 ez tax forms The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. 2011 1040 ez tax forms However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. 2011 1040 ez tax forms See Roth TSP balance , earlier. 2011 1040 ez tax forms This is because you already paid tax on those contributions. 2011 1040 ez tax forms Cash withdrawals. 2011 1040 ez tax forms   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. 2011 1040 ez tax forms (See Rollover Rules , later. 2011 1040 ez tax forms ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. 2011 1040 ez tax forms See Lump-Sum Distributions in Publication 575 for details. 2011 1040 ez tax forms However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. 2011 1040 ez tax forms See Roth TSP balance , earlier. 2011 1040 ez tax forms    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. 2011 1040 ez tax forms   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. 2011 1040 ez tax forms If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. 2011 1040 ez tax forms See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. 2011 1040 ez tax forms However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. 2011 1040 ez tax forms See Roth TSP balance , earlier, for a discussion of those conditions. 2011 1040 ez tax forms Tax on early distributions. 2011 1040 ez tax forms   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. 2011 1040 ez tax forms However, this additional tax does not apply in certain situations, including any of the following. 2011 1040 ez tax forms You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. 2011 1040 ez tax forms You choose to receive your account balance in monthly payments based on your life expectancy. 2011 1040 ez tax forms You are totally and permanently disabled. 2011 1040 ez tax forms You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). 2011 1040 ez tax forms The earnings may be subject to the 10% tax depending on whether you met certain conditions. 2011 1040 ez tax forms See Roth TSP balance , earlier. 2011 1040 ez tax forms   For more information, see Tax on Early Distributions in Publication 575. 2011 1040 ez tax forms Outstanding loan. 2011 1040 ez tax forms   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. 2011 1040 ez tax forms The distribution also may be subject to the additional 10% tax on early distributions. 2011 1040 ez tax forms However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. 2011 1040 ez tax forms See Rollover Rules , later. 2011 1040 ez tax forms   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. 2011 1040 ez tax forms However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. 2011 1040 ez tax forms See Roth TSP balance , earlier. 2011 1040 ez tax forms More information. 2011 1040 ez tax forms   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. 2011 1040 ez tax forms Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). 2011 1040 ez tax forms    The above documents are also available on the TSP website at www. 2011 1040 ez tax forms tsp. 2011 1040 ez tax forms gov. 2011 1040 ez tax forms Select “Forms & Publications. 2011 1040 ez tax forms ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. 2011 1040 ez tax forms You do not include the amount rolled over in your income, and you cannot take a deduction for it. 2011 1040 ez tax forms The amount rolled over is taxed later as the new program pays that amount to you. 2011 1040 ez tax forms If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. 2011 1040 ez tax forms However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. 2011 1040 ez tax forms To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. 2011 1040 ez tax forms You can also roll over a distribution from a qualified retirement plan into a Roth IRA. 2011 1040 ez tax forms Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. 2011 1040 ez tax forms See Rollovers to Roth IRAs , later, for more information. 2011 1040 ez tax forms Qualified retirement plan. 2011 1040 ez tax forms   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. 2011 1040 ez tax forms The CSRS, FERS, and TSP are considered qualified retirement plans. 2011 1040 ez tax forms Distributions eligible for rollover treatment. 2011 1040 ez tax forms   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. 2011 1040 ez tax forms You cannot roll over any part of your CSRS or FERS annuity payments. 2011 1040 ez tax forms   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. 2011 1040 ez tax forms   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. 2011 1040 ez tax forms However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. 2011 1040 ez tax forms Direct rollover option. 2011 1040 ez tax forms   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. 2011 1040 ez tax forms   There is an automatic rollover requirement for mandatory distributions. 2011 1040 ez tax forms A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. 2011 1040 ez tax forms The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. 2011 1040 ez tax forms You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. 2011 1040 ez tax forms If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. 2011 1040 ez tax forms No tax withheld. 2011 1040 ez tax forms   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. 2011 1040 ez tax forms However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. 2011 1040 ez tax forms Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. 2011 1040 ez tax forms Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. 2011 1040 ez tax forms Payment to you option. 2011 1040 ez tax forms   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. 2011 1040 ez tax forms However, the full amount is treated as distributed to you even though you actually receive only 80%. 2011 1040 ez tax forms You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. 2011 1040 ez tax forms Rollovers to Roth IRAs are generally included in income. 2011 1040 ez tax forms Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. 2011 1040 ez tax forms If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. 2011 1040 ez tax forms However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). 2011 1040 ez tax forms Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. 2011 1040 ez tax forms See Roth TSP balance , earlier. 2011 1040 ez tax forms Also, see Tax on Early Distributions in Publication 575. 2011 1040 ez tax forms Exception to withholding. 2011 1040 ez tax forms   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. 2011 1040 ez tax forms Partial rollovers. 2011 1040 ez tax forms   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. 2011 1040 ez tax forms See Lump-Sum Distributions in Publication 575. 2011 1040 ez tax forms However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. 2011 1040 ez tax forms Rolling over more than amount received. 2011 1040 ez tax forms   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). 2011 1040 ez tax forms Example. 2011 1040 ez tax forms You left government service at age 53. 2011 1040 ez tax forms On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
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The 2011 1040 Ez Tax Forms

2011 1040 ez tax forms 2. 2011 1040 ez tax forms   Withholding Tax Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Income Tax Withholding Statement. 2011 1040 ez tax forms 30% Flat Rate Withholding Social Security and Medicare TaxesGeneral Information Bilateral Social Security (Totalization) Agreements Topics - This chapter discusses: Withholding income tax from the pay of U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizens, Withholding tax at a flat rate, and Social security and Medicare taxes. 2011 1040 ez tax forms Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 673 Statement For Claiming Exemption From Withholding on Foreign Earned Income Eligible for the Exclusion Provided by Section 911 W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification See chapter 7 for information about getting this publication and these forms. 2011 1040 ez tax forms Income Tax Withholding U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms employers generally must withhold U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms income tax from the pay of U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizens working abroad unless the employer is required by foreign law to withhold foreign income tax. 2011 1040 ez tax forms Foreign earned income exclusion. 2011 1040 ez tax forms   Your employer does not have to withhold U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms income taxes from wages you earn abroad if it is reasonable to believe that you will exclude them from income under the foreign earned income exclusion or the foreign housing exclusion. 2011 1040 ez tax forms   Your employer should withhold taxes from any wages you earn for working in the United States. 2011 1040 ez tax forms Statement. 2011 1040 ez tax forms   You can give a statement to your employer indicating that you expect to qualify for the foreign earned income exclusion under either the bona fide residence test or the physical presence test and indicating your estimated housing cost exclusion. 2011 1040 ez tax forms   Form 673 is an acceptable statement. 2011 1040 ez tax forms You can use Form 673 only if you are a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizen. 2011 1040 ez tax forms You do not have to use the form. 2011 1040 ez tax forms You can prepare your own statement. 2011 1040 ez tax forms See a copy of Form 673, later. 2011 1040 ez tax forms   Generally, your employer can stop the withholding once you submit the statement that includes a declaration that the statement is made under penalties of perjury. 2011 1040 ez tax forms However, if your employer has reason to believe that you will not qualify for either the foreign earned income or the foreign housing exclusion, your employer must continue to withhold. 2011 1040 ez tax forms   In determining whether your foreign earned income is more than the limit on either the foreign earned income exclusion or the foreign housing exclusion, if your employer has any information about pay you received from any other source outside the United States, your employer must take that information into account. 2011 1040 ez tax forms Foreign tax credit. 2011 1040 ez tax forms   If you plan to take a foreign tax credit, you may be eligible for additional withholding allowances on Form W-4. 2011 1040 ez tax forms You can take these additional withholding allowances only for foreign tax credits attributable to taxable salary or wage income. 2011 1040 ez tax forms Withholding from pension payments. 2011 1040 ez tax forms   U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms payers of benefits from employer-deferred compensation plans, individual retirement plans, and commercial annuities generally must withhold income tax from payments delivered outside of the United States. 2011 1040 ez tax forms You can choose exemption from withholding if you: Provide the payer of the benefits with a residence address in the United States or a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms possession, or Certify to the payer that you are not a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizen or resident alien or someone who left the United States to avoid tax. 2011 1040 ez tax forms Check your withholding. 2011 1040 ez tax forms   Before you report U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms income tax withholding on your tax return, you should carefully review all information documents, such as Form W-2, Wage and Tax Statement, and the Form 1099 information returns. 2011 1040 ez tax forms Compare other records, such as final pay records or bank statements, with Form W-2 or Form 1099 to verify the withholding on these forms. 2011 1040 ez tax forms Check your U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms income tax withholding even if you pay someone else to prepare your tax return. 2011 1040 ez tax forms You may be assessed penalties and interest if you claim more than your correct amount of withholding allowances. 2011 1040 ez tax forms This image is too large to be displayed in the current screen. 2011 1040 ez tax forms Please click the link to view the image. 2011 1040 ez tax forms Form 673 30% Flat Rate Withholding Generally, U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms payers of income other than wages, such as dividends and royalties, are required to withhold tax at a flat 30% (or lower treaty) rate on nonwage income paid to nonresident aliens. 2011 1040 ez tax forms If you are a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizen or resident alien and this tax is withheld in error from payments to you because you have a foreign address, you should notify the payer of the income to stop the withholding. 2011 1040 ez tax forms Use Form W-9 to notify the payer. 2011 1040 ez tax forms You can claim the tax withheld in error as a withholding credit on your tax return if the amount is not adjusted by the payer. 2011 1040 ez tax forms Social security benefits paid to residents. 2011 1040 ez tax forms   If you are a lawful permanent resident (green card holder) and a flat 30% tax was withheld in error on your social security benefits, the tax is refundable by the Social Security Administration (SSA) or the IRS. 2011 1040 ez tax forms The SSA will refund the tax withheld if the refund can be processed during the same calendar year in which the tax was withheld. 2011 1040 ez tax forms If the SSA cannot refund the tax withheld, you must file a Form 1040 or 1040A with the Internal Revenue Service Center at the address listed under Where To File to determine if you are entitled to a refund. 2011 1040 ez tax forms The following information must be submitted with your Form 1040 or Form 1040A. 2011 1040 ez tax forms A copy of Form SSA-1042S, Social Security Benefit Statement. 2011 1040 ez tax forms A copy of your “green card. 2011 1040 ez tax forms ” A signed declaration that includes the following statements. 2011 1040 ez tax forms   “I am a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 2011 1040 ez tax forms I am filing a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms income tax return for the taxable year as a resident alien reporting all of my worldwide income. 2011 1040 ez tax forms I have not claimed benefits for the taxable year under an income tax treaty as a nonresident alien. 2011 1040 ez tax forms ” Social Security and Medicare Taxes Social security and Medicare taxes may apply to wages paid to an employee regardless of where the services are performed. 2011 1040 ez tax forms General Information In general, U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms social security and Medicare taxes do not apply to wages for services you perform as an employee outside the United States unless one of the following exceptions applies. 2011 1040 ez tax forms You perform the services on or in connection with an American vessel or aircraft (defined later) and either: You entered into your employment contract within the United States, or The vessel or aircraft touches at a U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms port while you are employed on it. 2011 1040 ez tax forms You are working in one of the countries with which the United States has entered into a bilateral social security agreement (discussed later). 2011 1040 ez tax forms You are working for an American employer (defined later). 2011 1040 ez tax forms You are working for a foreign affiliate (defined later) of an American employer under a voluntary agreement entered into between the American employer and the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Treasury Department. 2011 1040 ez tax forms American vessel or aircraft. 2011 1040 ez tax forms   An American vessel is any vessel documented or numbered under the laws of the United States and any other vessel whose crew is employed solely by one or more U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizens, residents, or corporations. 2011 1040 ez tax forms An American aircraft is an aircraft registered under the laws of the United States. 2011 1040 ez tax forms American employer. 2011 1040 ez tax forms   An American employer includes any of the following. 2011 1040 ez tax forms The U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Government or any of its instrumentalities. 2011 1040 ez tax forms An individual who is a resident of the United States. 2011 1040 ez tax forms A partnership of which at least two-thirds of the partners are U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms residents. 2011 1040 ez tax forms A trust of which all the trustees are U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms residents. 2011 1040 ez tax forms A corporation organized under the laws of the United States, any U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms state, or the District of Columbia, Puerto Rico, the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Virgin Islands, Guam, or American Samoa. 2011 1040 ez tax forms   An American employer also includes any foreign person with an employee who is performing services in connection with a contract between the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms government (or any instrumentality thereof) and a member of a domestically controlled group of entities which includes such foreign person. 2011 1040 ez tax forms Foreign affiliate. 2011 1040 ez tax forms   A foreign affiliate of an American employer is any foreign entity in which the American employer has at least a 10% interest, directly or through one or more entities. 2011 1040 ez tax forms For a corporation, the 10% interest must be in its voting stock. 2011 1040 ez tax forms For any other entity, the 10% interest must be in its profits. 2011 1040 ez tax forms   Form 2032, Contract Coverage Under Title II of the Social Security Act, is used by American employers to extend social security coverage to U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms citizens and resident aliens working abroad for foreign affiliates of American employers. 2011 1040 ez tax forms Once you enter into an agreement, coverage cannot be terminated. 2011 1040 ez tax forms Excludable meals and lodging. 2011 1040 ez tax forms   Social security tax does not apply to the value of meals and lodging provided to you for the convenience of your employer if it is reasonable to believe that you will be able to exclude the value from your income. 2011 1040 ez tax forms Bilateral Social Security (Totalization) Agreements The United States has entered into agreements with some foreign countries to coordinate social security coverage and taxation of workers who are employed in those countries. 2011 1040 ez tax forms These agreements are commonly referred to as totalization agreements and are in effect with the following countries. 2011 1040 ez tax forms Australia Greece Norway Austria Ireland Poland Belgium Italy Portugal Canada Japan Spain Chile Korea, Sweden Czech South Switzerland Republic Luxembourg United Denmark Netherlands Kingdom Finland     France     Germany           Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. 2011 1040 ez tax forms The agreements generally make sure that you pay social security taxes to only one country. 2011 1040 ez tax forms Generally, under these agreements, you will only be subject to social security taxes in the country where you are working. 2011 1040 ez tax forms However, if you are temporarily sent to work in a foreign country and your pay would otherwise be subject to social security taxes in both the United States and that country, you generally can remain covered only by U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms social security. 2011 1040 ez tax forms You can get more information on any specific agreement by contacting: Social Security Administration Office of International Programs P. 2011 1040 ez tax forms O. 2011 1040 ez tax forms Box 17741 Baltimore, MD 21235-7741 If you have access to the Internet, you can get more information at: http://www. 2011 1040 ez tax forms socialsecurity. 2011 1040 ez tax forms gov/international. 2011 1040 ez tax forms Covered by U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms only. 2011 1040 ez tax forms   If your pay in a foreign country is subject only to U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms social security tax and is exempt from foreign social security tax, your employer should get a certificate of coverage from the Office of International Programs. 2011 1040 ez tax forms Covered by foreign country only. 2011 1040 ez tax forms   If you are permanently working in a foreign country with which the United States has a social security agreement and, under the agreement, your pay is exempt from U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms social security tax, you or your employer should get a statement from the authorized official or agency of the foreign country verifying that your pay is subject to social security coverage in that country. 2011 1040 ez tax forms   If the authorities of the foreign country will not issue such a statement, either you or your employer should get a statement from the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms Social Security Administration, Office of International Programs, at the address listed earlier. 2011 1040 ez tax forms The statement should indicate that your wages are not covered by the U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms social security system. 2011 1040 ez tax forms   This statement should be kept by your employer because it establishes that your pay is exempt from U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms social security tax. 2011 1040 ez tax forms   Only wages paid on or after the effective date of the totalization agreement can be exempt from U. 2011 1040 ez tax forms S. 2011 1040 ez tax forms social security tax. 2011 1040 ez tax forms Prev  Up  Next   Home   More Online Publications