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Amended 1040x

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Amended 1040x

Amended 1040x 3. Amended 1040x   Self-Employment Tax Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Who Must Pay Self-Employment Tax?Employed by a U. Amended 1040x S. Amended 1040x Church Effect of Exclusion Members of the Clergy Income From U. Amended 1040x S. Amended 1040x Possessions Exemption From Social Security and Medicare Taxes Topics - This chapter discusses: Who must pay self-employment tax, and Who is exempt from self-employment tax. Amended 1040x Useful Items - You may want to see: Publication 334 Tax Guide for Small Business 517 Social Security and Other Information for Members of the Clergy and Religious Workers Form (and Instructions) Form 1040-PR Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia Form 1040-SS U. Amended 1040x S. Amended 1040x Self-Employment Tax Return Form 4361 Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners Schedule SE (Form 1040) Self-Employment Tax See chapter 7 for information about getting these publications and forms. Amended 1040x Who Must Pay Self-Employment Tax? If you are a self-employed U. Amended 1040x S. Amended 1040x citizen or resident, the rules for paying self-employment tax are generally the same whether you are living in the United States or abroad. Amended 1040x The self-employment tax is a social security and Medicare tax on net earnings from self- employment. Amended 1040x You must pay self-employment tax if your net earnings from self-employment are at least $400. Amended 1040x For 2013, the maximum amount of net earnings from self-employment that is subject to the social security portion of the tax is $113,700. Amended 1040x All net earnings are subject to the Medicare portion of the tax. Amended 1040x Employed by a U. Amended 1040x S. Amended 1040x Church If you were employed by a U. Amended 1040x S. Amended 1040x church or a qualified church-controlled organization that chose exemption from social security and Medicare taxes and you received wages of $108. Amended 1040x 28 or more from the organization, the amounts paid to you are subject to self-employment tax. Amended 1040x However, you can choose to be exempt from social security and Medicare taxes if you are a member of a recognized religious sect. Amended 1040x See Publication 517 for more information about church employees and self-employment tax. Amended 1040x Effect of Exclusion You must take all of your self-employment income into account in figuring your net earnings from self-employment, even income that is exempt from income tax because of the foreign earned income exclusion. Amended 1040x Example. Amended 1040x You are in business abroad as a consultant and qualify for the foreign earned income exclusion. Amended 1040x Your foreign earned income is $95,000, your business deductions total $27,000, and your net profit is $68,000. Amended 1040x You must pay self-employment tax on all of your net profit, including the amount you can exclude from income. Amended 1040x Members of the Clergy If you are a member of the clergy, you are treated as self-employed for self-employment tax purposes. Amended 1040x Your U. Amended 1040x S. Amended 1040x self-employment tax is based upon net earnings from self-employment figured without regard to the foreign earned income exclusion or the foreign housing exclusion. Amended 1040x You can receive exemption from coverage for your ministerial duties if you conscientiously oppose public insurance due to religious reasons or if you oppose it due to the religious principles of your denomination. Amended 1040x You must file Form 4361 to apply for this exemption. Amended 1040x This subject is discussed in further detail in Publication 517. Amended 1040x Income From U. Amended 1040x S. Amended 1040x Possessions If you are a U. Amended 1040x S. Amended 1040x citizen or resident alien and you own and operate a business in Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Amended 1040x S. Amended 1040x Virgin Islands, you must pay tax on your net earnings from self-employment (if they are $400 or more) from those sources. Amended 1040x You must pay the self-employment tax whether or not the income is exempt from U. Amended 1040x S. Amended 1040x income taxes (or whether or not you otherwise must file a U. Amended 1040x S. Amended 1040x income tax return). Amended 1040x Unless your situation is described below, attach Schedule SE (Form 1040) to your U. Amended 1040x S. Amended 1040x income tax return. Amended 1040x If you do not have to file Form 1040 with the United States and you are a resident of any of the U. Amended 1040x S. Amended 1040x possessions listed in the preceding paragraph, figure your self-employment tax on Form 1040-SS. Amended 1040x Residents of Puerto Rico may file the Spanish-language Formulario 1040-PR. Amended 1040x If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If you are enclosing a check or money order, file your return with the: Department of the Treasury P. Amended 1040x O. Amended 1040x Box 1303 Charlotte, NC 28201-1303 Exemption From Social Security and Medicare Taxes The United States may reach agreements with foreign countries to eliminate dual coverage and dual contributions (taxes) to social security systems for the same work. Amended 1040x See Bilateral Social Security (Totalization) Agreements in chapter 2 under Social Security and Medicare Taxes. Amended 1040x As a general rule, self-employed persons who are subject to dual taxation will only be covered by the social security system of the country where they reside. Amended 1040x For more information on how any specific agreement affects self-employed persons, contact the United States Social Security Administration, as discussed under Bilateral Social Security (Totalization) Agreements in chapter 2. Amended 1040x If your self-employment earnings should be exempt from foreign social security tax and subject only to U. Amended 1040x S. Amended 1040x self-employment tax, you should request a certificate of coverage from the U. Amended 1040x S. Amended 1040x Social Security Administration, Office of International Programs. Amended 1040x The certificate will establish your exemption from the foreign social security tax. Amended 1040x Send the request to the: Social Security Administration Office of International Programs P. Amended 1040x O. Amended 1040x Box 17741 Baltimore, MD 21235-7741 Prev  Up  Next   Home   More Online Publications
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Understanding Your CP90C Notice

We levied you for unpaid taxes. You have the right to a Collection Due
Process hearing.


What you need to do

  • Read your notice carefully — it explains our actions.
  • Pay what you owe.
  • Make a payment plan if you can’t pay the full amount you owe.

You may want to...


Answers to Common Questions

What should I do if I disagree with the notice?
Request a Collection Due Process hearing.

Why should I request a Collection Due Process hearing?
You can appeal the levy and other disagreements you have at a Collection Due Process hearing.

How do I request a Collection Due Process hearing?
Complete and send us a Form 12153, Request for a Collection Due Process or Equivalent Hearing.

Why didn't you tell me about my rights before you levied me?
Federal contractors do not have the right to a pre-levy hearing. We've already sent you several notices about the amount you owe.

What happens if I can't pay what I owe?
You can request a payment plan if you can't pay the full amount you owe.

How can I make a payment plan?
Call us at the toll free number on the top right corner of your notice to talk about payment plans or learn more about them here.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about how to file electronically.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 

Page Last Reviewed or Updated: 24-Mar-2014

The Amended 1040x

Amended 1040x 3. Amended 1040x   Limit on Annual Additions Table of Contents Ministers and church employees. Amended 1040x Includible Compensation for Your Most Recent Year of ServiceMost Recent Year of Service Includible Compensation The first component of MAC is the limit on annual additions. Amended 1040x This is a limit on the total contributions (elective deferrals, nonelective contributions, and after-tax contributions) that can be made to your 403(b) account. Amended 1040x The limit on annual additions generally is the lesser of: $51,000 for 2013 and $52,000 for 2014, or 100% of your includible compensation for your most recent year of service. Amended 1040x More than one 403(b) account. Amended 1040x If you contributed to more than one 403(b) account, you must combine the contributions made to all 403(b) accounts on your behalf by your employer. Amended 1040x Ministers and church employees. Amended 1040x   If you are a minister or a church employee, you may be able to increase your limit on annual additions or use different rules when figuring your limit on annual additions. Amended 1040x For more information, see chapter 5. Amended 1040x Participation in a qualified plan. Amended 1040x If you participated in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pensions of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. Amended 1040x You can use Part I of Worksheet 1 in chapter 9 to figure your limit on annual additions. Amended 1040x Includible Compensation for Your Most Recent Year of Service Definition. Amended 1040x   Generally, includible compensation for your most recent year of service is the amount of taxable wages and benefits you received from the employer that maintained a 403(b) account for your benefit during your most recent year of service. Amended 1040x When figuring your includible compensation for your most recent year of service, keep in mind that your most recent year of service may not be the same as your employer's most recent annual work period. Amended 1040x This can happen if your tax year is not the same as your employer's annual work period. Amended 1040x When figuring includible compensation for your most recent year of service, do not mix compensation or service of one employer with compensation or service of another employer. Amended 1040x Most Recent Year of Service Your most recent year of service is your last full year of service, ending on the last day of your tax year that you worked for the employer that maintained a 403(b) account on your behalf. Amended 1040x Tax year different from employer's annual work period. Amended 1040x   If your tax year is not the same as your employer's annual work period, your most recent year of service is made up of parts of at least two of your employer's annual work periods. Amended 1040x Example. Amended 1040x A professor who reports her income on a calendar-year basis is employed on a full-time basis by a university that operates on an academic year (October through May). Amended 1040x To figure her includible compensation for 2013, the professor's most recent year of service is her service from January through May 2013 and from October through December 2013. Amended 1040x Figuring Your Most Recent Year of Service To figure your most recent year of service, begin by determining what is a full year of service for your position. Amended 1040x A full year of service is equal to full-time employment for your employer's annual work period. Amended 1040x After identifying a full year of service, begin counting the service you have provided for your employer starting with the service provided in the current year. Amended 1040x Part-time or employed only part of the year. Amended 1040x   If you are a part-time or a full-time employee who is employed for only part of the year, your most recent year of service is your service this year and your service for as many previous years as is necessary to total 1 full year of service. Amended 1040x To determine your most recent year of service, add the following periods of service: Your service during the year for which you are figuring the limit on annual additions, and Your service during your preceding tax years until the total service equals 1 year of service or you have figured all of your service with the employer. Amended 1040x Example. Amended 1040x You were employed on a full-time basis from July through December 2011 (1/2 year of service), July through December 2012 (1/2 year of service), and October through December 2013 (1/4 year of service). Amended 1040x Your most recent year of service for computing your limit on annual additions for 2013 is the total of your service during 2013 (1/4 year of service), your service during 2012 (1/2 year of service), and your service during the months October through December 2011 (1/4 year of service). Amended 1040x Not yet employed for 1 year. Amended 1040x   If, at the close of the year, you have not yet worked for your employer for 1 year (including time you worked for the same employer in all earlier years), use the period of time you have worked for the employer as your most recent year of service. Amended 1040x Includible Compensation After identifying your most recent year of service, the next step is to identify the includible compensation associated with that full year of service. Amended 1040x Includible compensation is not the same as income included on your tax return. Amended 1040x Compensation is a combination of income and benefits received in exchange for services provided to your employer. Amended 1040x Generally, includible compensation is the amount of income and benefits: Received from the employer who maintains your 403(b) account, and Must be included in your income. Amended 1040x Includible compensation includes the following amounts. Amended 1040x Elective deferrals (employer's contributions made on your behalf under a salary reduction agreement). Amended 1040x Amounts contributed or deferred by your employer under a section 125 cafeteria plan. Amended 1040x Amounts contributed or deferred, at the election of the employee, under an eligible section 457 nonqualified deferred compensation plan (state or local government or tax-exempt organization plan). Amended 1040x  Note. Amended 1040x For information about treating elective deferrals under section 457 plans as Roth contributions, see Publication 575. Amended 1040x Wages, salaries, and fees for personal services earned with the employer maintaining your 403(b) account. Amended 1040x Income otherwise excluded under the foreign earned income exclusion. Amended 1040x Pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan. Amended 1040x Includible compensation does not include the following items. Amended 1040x Your employer's contributions to your 403(b) account. Amended 1040x Compensation earned while your employer was not an eligible employer. Amended 1040x Your employer's contributions to a qualified plan that: Are on your behalf, and Are excludable from income. Amended 1040x The cost of incidental life insurance. Amended 1040x See Cost of Incidental Life Insurance, later. Amended 1040x If you are a church employee or a foreign missionary, figure includible compensation using the rules explained in chapter 5. Amended 1040x Contributions after retirement. Amended 1040x   Nonelective contributions may be made for an employee for up to 5 years after retirement. Amended 1040x These contributions would be based on includible compensation for the last year of service before retirement. Amended 1040x Cost of Incidental Life Insurance Includible compensation does not include the cost of incidental life insurance. Amended 1040x If all of your 403(b) accounts invest only in mutual funds, then you have no incidental life insurance. Amended 1040x If you have an annuity contract, a portion of the cost of that contract may be for incidental life insurance. Amended 1040x If so, the cost of the insurance is taxable to you in the year contributed and is considered part of your basis when distributed. Amended 1040x Your employer will include the cost of your insurance as taxable wages in box 1 of Form W-2. Amended 1040x Not all annuity contracts include life insurance. Amended 1040x Contact your plan administrator to determine if your contract includes incidental life insurance. Amended 1040x If it does, you will need to figure the cost of life insurance each year the policy is in effect. Amended 1040x Figuring the cost of incidental life insurance. Amended 1040x If you have determined that part of the cost of your annuity contract is for an incidental life insurance premium, you will need to determine the amount of the premium and subtract it from your includible compensation. Amended 1040x To determine the amount of the life insurance premiums, you will need to know the following information. Amended 1040x The value of your life insurance contract, which is the amount payable upon your death. Amended 1040x The cash value of your life insurance contract at the end of the tax year. Amended 1040x Your age on your birthday nearest the beginning of the policy year. Amended 1040x Your current life insurance protection under an ordinary retirement income life insurance policy, which is the amount payable upon your death minus the cash value of the contract at the end of the year. Amended 1040x You can use Worksheet A, in chapter 9, to determine the cost of your incidental life insurance. Amended 1040x Example. Amended 1040x Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Amended 1040x Your cash value in the contract at the end of the first year is zero. Amended 1040x Your current life insurance protection for the first year is $10,000 ($10,000 − 0). Amended 1040x The cash value in the contract at the end of year two is $1,000, and the current life insurance protection for the second year is $9,000 ($10,000 – $1,000). Amended 1040x The 1-year cost of the protection can be calculated by using Figure 3-1, Table of One-Year Term Premiums for $1,000 Life Insurance Protection . Amended 1040x The premium rate is determined based on your age on your birthday nearest the beginning of the policy year. Amended 1040x Figure 3-1. Amended 1040x Table of One-Year Term Premiums for $1,000 Life Insurance Protection Age Cost   Age Cost   Age Cost 0 $0. Amended 1040x 70   35 $0. Amended 1040x 99   70 $20. Amended 1040x 62 1 0. Amended 1040x 41   36 1. Amended 1040x 01   71 22. Amended 1040x 72 2 0. Amended 1040x 27   37 1. Amended 1040x 04   72 25. Amended 1040x 07 3 0. Amended 1040x 19   38 1. Amended 1040x 06   73 27. Amended 1040x 57 4 0. Amended 1040x 13   39 1. Amended 1040x 07   74 30. Amended 1040x 18 5 0. Amended 1040x 13   40 1. Amended 1040x 10   75 33. Amended 1040x 05 6 0. Amended 1040x 14   41 1. Amended 1040x 13   76 36. Amended 1040x 33 7 0. Amended 1040x 15   42 1. Amended 1040x 20   77 40. Amended 1040x 17 8 0. Amended 1040x 16   43 1. Amended 1040x 29   78 44. Amended 1040x 33 9 0. Amended 1040x 16   44 1. Amended 1040x 40   79 49. Amended 1040x 23 10 0. Amended 1040x 16   45 1. Amended 1040x 53   80 54. Amended 1040x 56 11 0. Amended 1040x 19   46 1. Amended 1040x 67   81 60. Amended 1040x 51 12 0. Amended 1040x 24   47 1. Amended 1040x 83   82 66. Amended 1040x 74 13 0. Amended 1040x 28   48 1. Amended 1040x 98   83 73. Amended 1040x 07 14 0. Amended 1040x 33   49 2. Amended 1040x 13   84 80. Amended 1040x 35 15 0. Amended 1040x 38   50 2. Amended 1040x 30   85 88. Amended 1040x 76 16 0. Amended 1040x 52   51 2. Amended 1040x 52   86 99. Amended 1040x 16 17 0. Amended 1040x 57   52 2. Amended 1040x 81   87 110. Amended 1040x 40 18 0. Amended 1040x 59   53 3. Amended 1040x 20   88 121. Amended 1040x 85 19 0. Amended 1040x 61   54 3. Amended 1040x 65   89 133. Amended 1040x 40 20 0. Amended 1040x 62   55 4. Amended 1040x 15   90 144. Amended 1040x 30 21 0. Amended 1040x 62   56 4. Amended 1040x 68   91 155. Amended 1040x 80 22 0. Amended 1040x 64   57 5. Amended 1040x 20   92 168. Amended 1040x 75 23 0. Amended 1040x 66   58 5. Amended 1040x 66   93 186. Amended 1040x 44 24 0. Amended 1040x 68   59 6. Amended 1040x 06   94 206. Amended 1040x 70 25 0. Amended 1040x 71   60 6. Amended 1040x 51   95 228. Amended 1040x 35 26 0. Amended 1040x 73   61 7. Amended 1040x 11   96 250. Amended 1040x 01 27 0. Amended 1040x 76   62 7. Amended 1040x 96   97 265. Amended 1040x 09 28 0. Amended 1040x 80   63 9. Amended 1040x 08   98 270. Amended 1040x 11 29 0. Amended 1040x 83   64 10. Amended 1040x 41   99 281. Amended 1040x 05 30 0. Amended 1040x 87   65 11. Amended 1040x 90       31 0. Amended 1040x 90   66 13. Amended 1040x 51       32 0. Amended 1040x 93   67 15. Amended 1040x 20       33 0. Amended 1040x 96   68 16. Amended 1040x 92       34 0. Amended 1040x 98   69 18. Amended 1040x 70                       If the current published premium rates per $1,000 of insurance protection charged by an insurer for individual 1-year term life insurance premiums available to all standard risks are lower than those in the preceding table, you can use the lower rates for figuring the cost of insurance in connection with individual policies issued by the same insurer. Amended 1040x Example 1. Amended 1040x Lynne Green, age 44, and her employer enter into a 403(b) plan that will provide her with a $500 a month annuity upon retirement at age 65. Amended 1040x The agreement also provides that if she should die before retirement, her beneficiary will receive the greater of $20,000 or the cash surrender value in the life insurance contract. Amended 1040x Using the facts presented we can determine the cost of Lynne's life insurance protection as shown in Table 3-1. Amended 1040x Lynne's employer has included $28 for the cost of the life insurance protection in her current year's income. Amended 1040x When figuring her includible compensation for this year, Lynne will subtract $28. Amended 1040x Table 3-1. Amended 1040x Worksheet A. Amended 1040x Cost of Incidental Life Insurance Note. Amended 1040x Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Amended 1040x This amount will be used to figure includible compensation for your most recent year of service. Amended 1040x 1. Amended 1040x Enter the value of the contract (amount payable upon your death) 1. Amended 1040x $20,000. Amended 1040x 00 2. Amended 1040x Enter the cash value in the contract at the end of the year 2. Amended 1040x 0. Amended 1040x 00 3. Amended 1040x Subtract line 2 from line 1. Amended 1040x This is the value of your current life insurance protection 3. Amended 1040x $20,000. Amended 1040x 00 4. Amended 1040x Enter your age on your birthday nearest the beginning of the policy year 4. Amended 1040x 44 5. Amended 1040x Enter the 1-year term premium for $1,000 of life insurance based on your age. Amended 1040x (From Figure 3-1) 5. Amended 1040x $1. Amended 1040x 40 6. Amended 1040x Divide line 3 by $1,000 6. Amended 1040x 20 7. Amended 1040x Multiply line 6 by line 5. Amended 1040x This is the cost of your incidental life insurance 7. Amended 1040x $28. Amended 1040x 00 Example 2. Amended 1040x Lynne's cash value in the contract at the end of the second year is $1,000. Amended 1040x In year two, the cost of Lynne's life insurance is calculated as shown in Table 3-2. Amended 1040x In year two, Lynne's employer will include $29. Amended 1040x 07 in her current year's income. Amended 1040x Lynne will subtract this amount when figuring her includible compensation. Amended 1040x Table 3-2. Amended 1040x Worksheet A. Amended 1040x Cost of Incidental Life Insurance Note. Amended 1040x Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Amended 1040x This amount will be used to figure includible compensation for your most recent year of service. Amended 1040x 1. Amended 1040x Enter the value of the contract (amount payable upon your death) 1. Amended 1040x $20,000. Amended 1040x 00 2. Amended 1040x Enter the cash value in the contract at the end of the year 2. Amended 1040x $1,000. Amended 1040x 00 3. Amended 1040x Subtract line 2 from line 1. Amended 1040x This is the value of your current life insurance protection 3. Amended 1040x $19,000. Amended 1040x 00 4. Amended 1040x Enter your age on your birthday nearest the beginning of the policy year 4. Amended 1040x 45 5. Amended 1040x Enter the 1-year term premium for $1,000 of life insurance based on your age. Amended 1040x (From Figure 3-1) 5. Amended 1040x $1. Amended 1040x 53 6. Amended 1040x Divide line 3 by $1,000 6. Amended 1040x 19 7. Amended 1040x Multiply line 6 by line 5. Amended 1040x This is the cost of your incidental life insurance 7. Amended 1040x $29. Amended 1040x 07 Figuring Includible Compensation for Your Most Recent Year of Service You can use Worksheet B in chapter 9 to determine your includible compensation for your most recent year of service. Amended 1040x Example. Amended 1040x Floyd has been periodically working full-time for a local hospital since September 2011. Amended 1040x He needs to figure his limit on annual additions for 2014. Amended 1040x The hospital's normal annual work period for employees in Floyd's general type of work runs from January to December. Amended 1040x During the periods that Floyd was employed with the hospital, the hospital has always been eligible to provide a 403(b) plan to employees. Amended 1040x Additionally, the hospital has never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a cafeteria plan. Amended 1040x Floyd has never worked abroad and there is no life insurance provided under the plan. Amended 1040x Table 3-3 shows the service Floyd provided to his employer, his compensation for the periods worked, his elective deferrals, and his taxable wages. Amended 1040x Table 3-3. Amended 1040x Floyd's Compensation Note. Amended 1040x This table shows information Floyd will use to figure includible compensation for his most recent year of service. Amended 1040x   Year Years of Service Taxable Wages Elective Deferrals 2014 6/12 of  a year $42,000 $2,000 2013 4/12 of  a year $16,000 $1,650 2012 4/12 of  a year $16,000 $1,650 Before Floyd can figure his limit on annual additions, he must figure includible compensation for his most recent year of service. Amended 1040x Because Floyd is not planning to work the entire 2014 year, his most recent year of service will include the time he is planning to work in 2014 plus time he worked in the preceding 3 years until the time he worked for the hospital totals 1 year. Amended 1040x If the total time he worked is less than 1 year, Floyd will treat it as if it were 1 year. Amended 1040x He figures his most recent year of service shown in the following list. Amended 1040x Time he will work in 2014 is 6/12 of a year. Amended 1040x Time worked in 2013 is 4/12 of a year. Amended 1040x All of this time will be used to determine Floyd's most recent year of service. Amended 1040x Time worked in 2012 is 4/12 of a year. Amended 1040x Floyd only needs 2 months of the 4 months he worked in 2012 to have enough time to total 1 full year. Amended 1040x Because he needs only one-half of the actual time he worked, Floyd will use only one-half of his income earned during that period to calculate wages that will be used in figuring his includible compensation. Amended 1040x Using the information provided in Table 3-3, wages for Floyd's most recent year of service are $66,000 ($42,000 + $16,000 + $8,000). Amended 1040x His includible compensation for his most recent year of service is figured as shown in Table 3-4. Amended 1040x After figuring his includible compensation, Floyd determines his limit on annual additions for 2014 to be $52,000, the lesser of his includible compensation, $70,475 (Table 3-4), and the maximum amount of $52,000. Amended 1040x Table 3-4. Amended 1040x Worksheet B. Amended 1040x Includible Compensation for Your Most Recent Year of Service1 Note. Amended 1040x Use this worksheet to figure includible compensation for your most recent year of service. Amended 1040x 1. Amended 1040x Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Amended 1040x $66,000 2. Amended 1040x Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Amended 1040x 4,4753 3. Amended 1040x Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Amended 1040x -0- 4. Amended 1040x Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government, or of a tax-exempt organization) for your most recent year of service 4. Amended 1040x -0- 5. Amended 1040x Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. Amended 1040x -0- 6. Amended 1040x Enter your foreign earned income exclusion for your most recent year of service 6. Amended 1040x -0- 7. Amended 1040x Add lines 1, 2, 3, 4, 5, and 6 7. Amended 1040x 70,475 8. Amended 1040x Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Amended 1040x -0- 9. Amended 1040x Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. Amended 1040x -0- 10. Amended 1040x Add lines 8 and 9 10. Amended 1040x -0- 11. Amended 1040x Subtract line 10 from line 7. Amended 1040x This is your includible compensation for your most recent year of service 11. Amended 1040x 70,475 1Use estimated amounts if figuring includible compensation before the end of the year. Amended 1040x 2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Amended 1040x  3$4,475 ($2,000 + $1,650 + $825). Amended 1040x Prev  Up  Next   Home   More Online Publications