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2011 Irs Forms

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2011 Irs Forms

2011 irs forms 5. 2011 irs forms   Table and Worksheets for the Self-Employed Table of Contents Community property laws. 2011 irs forms As discussed in chapters 2 and 4, if you are self-employed, you must use the rate table or rate worksheet and deduction worksheet to figure your deduction for contributions you made for yourself to a SEP-IRA or qualified plan. 2011 irs forms First, use either the rate table or rate worksheet to find your reduced contribution rate. 2011 irs forms Then complete the deduction worksheet to figure your deduction for contributions. 2011 irs forms The table and the worksheets in chapter 5 apply only to self-employed individuals who have only one defined contribution plan, such as a profit-sharing plan. 2011 irs forms A SEP plan is treated as a profit-sharing plan. 2011 irs forms However, do not use this worksheet for SARSEPs. 2011 irs forms Rate table for self-employed. 2011 irs forms   If your plan's contribution rate is a whole percentage (for example, 12% rather than 12½%), you can use the table on the next page to find your reduced contribution rate. 2011 irs forms Otherwise, use the rate worksheet provided below. 2011 irs forms   First, find your plan contribution rate (the contribution rate stated in your plan) in Column A of the table. 2011 irs forms Then read across to the rate under Column B. 2011 irs forms Enter the rate from Column B in step 4 of the Deduction Worksheet for Self-Employed on this page. 2011 irs forms    Example. 2011 irs forms You are a sole proprietor with no employees. 2011 irs forms If your plan's contribution rate is 10% of a participant's compensation, your rate is 0. 2011 irs forms 090909. 2011 irs forms Enter this rate in step 4 of the Deduction Worksheet for Self-Employed on this page. 2011 irs forms Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. 2011 irs forms For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. 2011 irs forms       *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. 2011 irs forms       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. 2011 irs forms     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27             Step 3           Net earnings from self-employment. 2011 irs forms Subtract step 2 from step 1     Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed     Step 5           Multiply step 3 by step 4     Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate)     Step 7           Enter the smaller of step 5 or step 6     Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. 2011 irs forms         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. 2011 irs forms       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. 2011 irs forms Do not enter more than $17,500     Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. 2011 irs forms         • Otherwise, skip steps 16 through 18 and go to step 19. 2011 irs forms       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. 2011 irs forms Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. 2011 irs forms     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17. 2011 irs forms     Step 21           Subtract step 20 from step 19. 2011 irs forms This is your maximum deductible contribution. 2011 irs forms                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. 2011 irs forms   Rate worksheet for self-employed. 2011 irs forms   If your plan's contribution rate is not a whole percentage (for example, 10½%), you cannot use the Rate Table for Self-Employed. 2011 irs forms Use the following worksheet instead. 2011 irs forms Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. 2011 irs forms 105)   2) Rate in line 1 plus 1 (for example, 0. 2011 irs forms 105 + 1 = 1. 2011 irs forms 105)   3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. 2011 irs forms 105 ÷ 1. 2011 irs forms 105 = 0. 2011 irs forms 095)   Figuring your deduction. 2011 irs forms   Now that you have your self-employed rate from either the rate table or rate worksheet, you can figure your maximum deduction for contributions for yourself by completing the Deduction Worksheet for Self-Employed. 2011 irs forms Community property laws. 2011 irs forms   If you reside in a community property state and you are married and filing a separate return, disregard community property laws for step 1 of the Deduction Worksheet for Self-Employed. 2011 irs forms Enter on step 1 the total net profit you actually earned. 2011 irs forms Rate Table for Self-Employed Column A  If the plan contri- bution rate is: (shown as %) Column B  Your rate is: (shown as decimal) 1 . 2011 irs forms 009901 2 . 2011 irs forms 019608 3 . 2011 irs forms 029126 4 . 2011 irs forms 038462 5 . 2011 irs forms 047619 6 . 2011 irs forms 056604 7 . 2011 irs forms 065421 8 . 2011 irs forms 074074 9 . 2011 irs forms 082569 10 . 2011 irs forms 090909 11 . 2011 irs forms 099099 12 . 2011 irs forms 107143 13 . 2011 irs forms 115044 14 . 2011 irs forms 122807 15 . 2011 irs forms 130435 16 . 2011 irs forms 137931 17 . 2011 irs forms 145299 18 . 2011 irs forms 152542 19 . 2011 irs forms 159664 20 . 2011 irs forms 166667 21 . 2011 irs forms 173554 22 . 2011 irs forms 180328 23 . 2011 irs forms 186992 24 . 2011 irs forms 193548 25* . 2011 irs forms 200000* *The deduction for annual employer contributions (other than elective deferrals) to a SEP plan, a profit-sharing plan, or a money purchase plan cannot be more than 20% of your net earnings (figured without deducting contributions for yourself) from the business that has the plan. 2011 irs forms Example. 2011 irs forms You are a sole proprietor with no employees. 2011 irs forms The terms of your plan provide that you contribute 8½% (. 2011 irs forms 085) of your compensation to your plan. 2011 irs forms Your net profit from line 31, Schedule C (Form 1040) is $200,000. 2011 irs forms You have no elective deferrals or catch-up contributions. 2011 irs forms Your self-employment tax deduction on line 27 of Form 1040 is $9,728. 2011 irs forms See the filled-in portions of both Schedule SE (Form 1040), Self-Employment Income, and Form 1040, later. 2011 irs forms You figure your self-employed rate and maximum deduction for employer contributions you made for yourself as follows. 2011 irs forms Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. 2011 irs forms For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. 2011 irs forms $200,000     *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. 2011 irs forms       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. 2011 irs forms     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27 9,728           Step 3           Net earnings from self-employment. 2011 irs forms Subtract step 2 from step 1 190,272   Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed 0. 2011 irs forms 078   Step 5           Multiply step 3 by step 4 14,841   Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate) 21,675   Step 7           Enter the smaller of step 5 or step 6 14,841   Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. 2011 irs forms         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. 2011 irs forms       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. 2011 irs forms Do not enter more than $17,500 N/A   Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. 2011 irs forms         • Otherwise, skip steps 16 through 18 and go to step 19. 2011 irs forms       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. 2011 irs forms Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. 2011 irs forms     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17     Step 21           Subtract step 20 from step 19. 2011 irs forms This is your maximum deductible contribution $14,841                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. 2011 irs forms   See the filled-in Deduction Worksheet for Self-Employed on this page. 2011 irs forms Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. 2011 irs forms 105) 0. 2011 irs forms 085 2) Rate in line 1 plus 1 (for example, 0. 2011 irs forms 105 + 1 = 1. 2011 irs forms 105) 1. 2011 irs forms 085 3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. 2011 irs forms 105 ÷ 1. 2011 irs forms 105 = 0. 2011 irs forms 095) 0. 2011 irs forms 078 This image is too large to be displayed in the current screen. 2011 irs forms Please click the link to view the image. 2011 irs forms Portion of Form 1040 and Portion of Schedule SE Prev  Up  Next   Home   More Online Publications
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The 2011 Irs Forms

2011 irs forms 8. 2011 irs forms   Qualified Tuition Program (QTP) Table of Contents Introduction What Is a Qualified Tuition ProgramDesignated beneficiary. 2011 irs forms Half-time student. 2011 irs forms How Much Can You Contribute Are Distributions TaxableFiguring the Taxable Portion of a Distribution Additional Tax on Taxable Distributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Introduction Qualified tuition programs (QTPs) are also called “529 plans. 2011 irs forms ” States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student's qualified education expenses at a postsecondary institution. 2011 irs forms Eligible educational institutions may establish and maintain programs that allow you to prepay a student's qualified education expenses. 2011 irs forms If you prepay tuition, the student (designated beneficiary) will be entitled to a waiver or a payment of qualified education expenses. 2011 irs forms You cannot deduct either payments or contributions to a QTP. 2011 irs forms For information on a specific QTP, you will need to contact the state agency or eligible educational institution that established and maintains it. 2011 irs forms What is the tax benefit of a QTP. 2011 irs forms   No tax is due on a distribution from a QTP unless the amount distributed is greater than the beneficiary's adjusted qualified education expenses. 2011 irs forms See Are Distributions Taxable , later, for more information. 2011 irs forms    Even if a QTP is used to finance a student's education, the student or the student's parents still may be eligible to claim the American opportunity credit or the lifetime learning credit. 2011 irs forms See Coordination With American Opportunity and Lifetime Learning Credits, later. 2011 irs forms What Is a Qualified Tuition Program A qualified tuition program is a program set up to allow you to either prepay, or contribute to an account established for paying, a student's qualified education expenses at an eligible educational institution. 2011 irs forms QTPs can be established and maintained by states (or agencies or instrumentalities of a state) and eligible educational institutions. 2011 irs forms The program must meet certain requirements. 2011 irs forms Your state government or the eligible educational institution in which you are interested can tell you whether or not they participate in a QTP. 2011 irs forms Qualified education expenses. 2011 irs forms   These are expenses related to enrollment or attendance at an Eligible educational institution (defined later). 2011 irs forms As shown in the following list, to be qualified, some of the expenses must be required by the institution and some must be incurred by students who are enrolled at least half-time. 2011 irs forms See Half-time student , later. 2011 irs forms The following expenses must be required for enrollment or attendance of a Designated beneficiary (defined later) at an eligible educational institution. 2011 irs forms Tuition and fees. 2011 irs forms Books, supplies, and equipment. 2011 irs forms Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible educational institution. 2011 irs forms Expenses for room and board must be incurred by students who are enrolled at least half-time. 2011 irs forms The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. 2011 irs forms The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. 2011 irs forms The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. 2011 irs forms You will need to contact the eligible educational institution for qualified room and board costs. 2011 irs forms    For tax years after 2010, the purchase of computer technology or equipment is only a qualified education expense if the computer technology or equipment is required for enrollment or attendance at an eligible institution. 2011 irs forms Designated beneficiary. 2011 irs forms   The designated beneficiary is generally the student (or future student) for whom the QTP is intended to provide benefits. 2011 irs forms The designated beneficiary can be changed after participation in the QTP begins. 2011 irs forms If a state or local government or certain tax-exempt organizations purchase an interest in a QTP as part of a scholarship program, the designated beneficiary is the person who receives the interest as a scholarship. 2011 irs forms Half-time student. 2011 irs forms   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic workload for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. 2011 irs forms Eligible educational institution. 2011 irs forms   For purposes of a QTP, this is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2011 irs forms S. 2011 irs forms Department of Education. 2011 irs forms It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2011 irs forms The educational institution should be able to tell you if it is an eligible educational institution. 2011 irs forms   Certain educational institutions located outside the United States also participate in the U. 2011 irs forms S. 2011 irs forms Department of Education's Federal Student Aid (FSA) programs. 2011 irs forms   How Much Can You Contribute Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified education expenses of the beneficiary. 2011 irs forms There are no income restrictions on the individual contributors. 2011 irs forms You can contribute to both a QTP and a Coverdell ESA in the same year for the same designated beneficiary. 2011 irs forms   Are Distributions Taxable The part of a distribution representing the amount paid or contributed to a QTP does not have to be included in income. 2011 irs forms This is a return of the investment in the plan. 2011 irs forms The designated beneficiary generally does not have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified education expenses (defined under Figuring the Taxable Portion of a Distribution , later). 2011 irs forms Earnings and return of investment. 2011 irs forms    You will receive a Form 1099-Q, from each of the programs from which you received a QTP distribution in 2013. 2011 irs forms The amount of your gross distribution (box 1) shown on each form will be divided between your earnings (box 2) and your basis, or return of investment (box 3). 2011 irs forms Form 1099-Q should be sent to you by January 31, 2014. 2011 irs forms Figuring the Taxable Portion of a Distribution To determine if total distributions for the year are more or less than the amount of qualified education expenses, you must compare the total of all QTP distributions for the tax year to the adjusted qualified education expenses. 2011 irs forms Adjusted qualified education expenses. 2011 irs forms   This amount is the total qualified education expenses reduced by any tax-free educational assistance. 2011 irs forms Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2011 irs forms Taxable earnings. 2011 irs forms   Use the following steps to figure the taxable part. 2011 irs forms Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. 2011 irs forms The numerator is the adjusted qualified education expenses paid during the year and the denominator is the total amount distributed during the year. 2011 irs forms Subtract the amount figured in (1) from the total distributed earnings. 2011 irs forms The result is the amount the beneficiary must include in income. 2011 irs forms Report it on Form 1040 or Form 1040NR, line 21. 2011 irs forms Example 1. 2011 irs forms In 2007, Sara Clarke's parents opened a savings account for her with a QTP maintained by their state government. 2011 irs forms Over the years they contributed $18,000 to the account. 2011 irs forms The total balance in the account was $27,000 on the date the distribution was made. 2011 irs forms In the summer of 2013, Sara enrolled in college and had $8,300 of qualified education expenses for the rest of the year. 2011 irs forms She paid her college expenses from the following sources. 2011 irs forms   Gift from parents $1,600     Partial tuition scholarship (tax-free) 3,100     QTP distribution 5,300           Before Sara can determine the taxable part of her QTP distribution, she must reduce her total qualified education expenses by any tax-free educational assistance. 2011 irs forms   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Equals: Adjusted qualified  education expenses (AQEE) $5,200   Since the remaining expenses ($5,200) are less than the QTP distribution, part of the earnings will be taxable. 2011 irs forms Sara's Form 1099-Q shows that $950 of the QTP distribution is earnings. 2011 irs forms Sara figures the taxable part of the distributed earnings as follows. 2011 irs forms   1. 2011 irs forms $950 (earnings) × $5,200 AQEE  $5,300 distribution           =$932 (tax-free earnings)     2. 2011 irs forms $950 (earnings)−$932 (tax-free earnings)     =$18 (taxable earnings)  Sara must include $18 in income (Form 1040, line 21) as distributed QTP earnings not used for adjusted qualified education expenses. 2011 irs forms Coordination With American Opportunity and Lifetime Learning Credits An American opportunity or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. 2011 irs forms This means that after the beneficiary reduces qualified education expenses by tax-free educational assistance, he or she must further reduce them by the expenses taken into account in determining the credit. 2011 irs forms Example 2. 2011 irs forms Assume the same facts as in Example 1 , except that Sara's parents claimed an American opportunity credit of $2,500 (based on $4,000 expenses). 2011 irs forms   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Minus: Expenses taken into account  in figuring American opportunity credit −4,000     Equals: Adjusted qualified  education expenses (AQEE) $1,200           The taxable part of the distribution is figured as follows. 2011 irs forms   1. 2011 irs forms $950 (earnings) × $1,200 AQEE  $5,300 distribution           =$215 (tax-free earnings)     2. 2011 irs forms $950 (earnings)−$215 (tax-free earnings)     =$735 (taxable earnings)       Sara must include $735 in income (Form 1040, line 21). 2011 irs forms This represents distributed earnings not used for adjusted qualified education expenses. 2011 irs forms Coordination With Coverdell ESA Distributions If a designated beneficiary receives distributions from both a QTP and a Coverdell ESA in the same year, and the total of these distributions is more than the beneficiary's adjusted qualified higher education expenses, the expenses must be allocated between the distributions. 2011 irs forms For purposes of this allocation, disregard any qualified elementary and secondary education expenses. 2011 irs forms Example 3. 2011 irs forms Assume the same facts as in Example 2 , except that instead of receiving a $5,300 distribution from her QTP, Sara received $4,600 from that account and $700 from her Coverdell ESA. 2011 irs forms In this case, Sara must allocate her $1,200 of adjusted qualified higher education expenses (AQHEE) between the two distributions. 2011 irs forms   $1,200 AQHEE × $700 ESA distribution  $5,300 total distribution = $158 AQHEE (ESA)     $1,200 AQHEE × $4,600 QTP distribution  $5,300 total distribution = $1,042 AQHEE (QTP)   Sara then figures the taxable portion of her Coverdell ESA distribution based on qualified higher education expenses of $158, and the taxable portion of her QTP distribution based on the other $1,042. 2011 irs forms Note. 2011 irs forms If you are required to allocate your expenses between Coverdell ESA and QTP distributions, and you have adjusted qualified elementary and secondary education expenses, see the examples in chapter 7, Coverdell Education Savings Account under Coordination With Qualified Tuition Program (QTP) Distributions . 2011 irs forms Coordination With Tuition and Fees Deduction. 2011 irs forms   A tuition and fees deduction can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. 2011 irs forms Losses on QTP Investments If you have a loss on your investment in a QTP account, you may be able to take the loss on your income tax return. 2011 irs forms You can take the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. 2011 irs forms Your basis is the total amount of contributions to that QTP account. 2011 irs forms You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. 2011 irs forms If you have distributions from more than one QTP account during a year, you must combine the information (amount of distribution, basis, etc. 2011 irs forms ) from all such accounts in order to determine your taxable earnings for the year. 2011 irs forms By doing this, the loss from one QTP account reduces the distributed earnings (if any) from any other QTP accounts. 2011 irs forms Example 1. 2011 irs forms In 2013, Taylor received a final distribution of $1,000 from QTP #1. 2011 irs forms His unrecovered basis in that account before the distribution was $3,000. 2011 irs forms If Taylor itemizes his deductions, he can claim the $2,000 loss on Schedule A (Form 1040). 2011 irs forms Example 2. 2011 irs forms Assume the same facts as in Example 1 , except that Taylor also had a distribution of $9,000 from QTP #2, giving him total distributions for 2013 of $10,000. 2011 irs forms His total basis in these distributions was $4,500 ($3,000 for QTP #1 and $1,500 for QTP #2). 2011 irs forms Taylor's adjusted qualified education expenses for 2013 totaled $6,000. 2011 irs forms In order to figure his taxable earnings, Taylor combines the two accounts and determines his taxable earnings as follows. 2011 irs forms   1. 2011 irs forms $10,000 (total distribution)−$4,500 (basis portion of distribution)     = $5,500 (earnings included in distribution)   2. 2011 irs forms $5,500 (earnings) x $6,000 AQEE  $10,000 distribution           =$3,300 (tax-free earnings)     3. 2011 irs forms $5,500 (earnings)−$3,300 (tax-free earnings)     =$2,200 (taxable earnings)                 Taylor must include $2,200 in income on Form 1040, line 21. 2011 irs forms Because Taylor's accounts must be combined, he cannot deduct his $2,000 loss (QTP #1) on Schedule A (Form 1040). 2011 irs forms Instead, the $2,000 loss reduces the total earnings that were distributed, thereby reducing his taxable earnings. 2011 irs forms Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. 2011 irs forms Exceptions. 2011 irs forms   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. 2011 irs forms Made because the designated beneficiary is disabled. 2011 irs forms A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. 2011 irs forms A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. 2011 irs forms Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2011 irs forms Made on account of the attendance of the designated beneficiary at a U. 2011 irs forms S. 2011 irs forms military academy (such as the USNA at Annapolis). 2011 irs forms This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. 2011 irs forms S. 2011 irs forms Code) attributable to such attendance. 2011 irs forms Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier. 2011 irs forms ) Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. 2011 irs forms Figuring the additional tax. 2011 irs forms    Use Part II of Form 5329, to figure any additional tax. 2011 irs forms Report the amount on Form 1040, line 58, or Form 1040NR, line 56. 2011 irs forms Rollovers and Other Transfers Assets can be rolled over or transferred from one QTP to another. 2011 irs forms In addition, the designated beneficiary can be changed without transferring accounts. 2011 irs forms Rollovers Any amount distributed from a QTP is not taxable if it is rolled over to another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse). 2011 irs forms An amount is rolled over if it is paid to another QTP within 60 days after the date of the distribution. 2011 irs forms Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. 2011 irs forms These are not taxable distributions. 2011 irs forms Members of the beneficiary's family. 2011 irs forms   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. 2011 irs forms Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. 2011 irs forms Brother, sister, stepbrother, or stepsister. 2011 irs forms Father or mother or ancestor of either. 2011 irs forms Stepfather or stepmother. 2011 irs forms Son or daughter of a brother or sister. 2011 irs forms Brother or sister of father or mother. 2011 irs forms Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 2011 irs forms The spouse of any individual listed above. 2011 irs forms First cousin. 2011 irs forms Example. 2011 irs forms When Aaron graduated from college last year he had $5,000 left in his QTP. 2011 irs forms He wanted to give this money to his younger brother, who was in junior high school. 2011 irs forms In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his brother's QTP within 60 days of the distribution. 2011 irs forms If the rollover is to another QTP for the same beneficiary, only one rollover is allowed within 12 months of a previous transfer to any QTP for that designated beneficiary. 2011 irs forms Changing the Designated Beneficiary There are no income tax consequences if the designated beneficiary of an account is changed to a member of the beneficiary's family. 2011 irs forms See Members of the beneficiary's family , earlier. 2011 irs forms Example. 2011 irs forms Assume the same situation as in the last example. 2011 irs forms Instead of closing his QTP and paying the distribution into his brother's QTP, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his brother. 2011 irs forms Prev  Up  Next   Home   More Online Publications