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Federal Income Tax 1040ez

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Federal Income Tax 1040ez

Federal income tax 1040ez Publication 503 - Main Content Table of Contents Tests To Claim the CreditQualifying Person Test Earned Income Test Work-Related Expense Test Joint Return Test Provider Identification Test How To Figure the CreditFiguring Total Work-Related Expenses Earned Income Limit Dollar Limit Amount of Credit How To Claim the CreditTax credit not refundable. Federal income tax 1040ez Employment Taxes for Household Employers How To Get Tax HelpLow Income Taxpayer Clinics Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040, Form 1040A, or Form 1040NR, not Form 1040EZ or Form 1040NR-EZ, and meet all the following tests. Federal income tax 1040ez The care must be for one or more qualifying persons who are identified on Form 2441. Federal income tax 1040ez (See Qualifying Person Test. Federal income tax 1040ez ) You (and your spouse if filing jointly) must have earned income during the year. Federal income tax 1040ez (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. Federal income tax 1040ez ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. Federal income tax 1040ez (See Work-Related Expense Test, later. Federal income tax 1040ez ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. Federal income tax 1040ez If you make payments to your child, he or she cannot be your dependent and must be age 19 or older by the end of the year. Federal income tax 1040ez You cannot make payments to: Your spouse, or The parent of your qualifying person if your qualifying person is your child and under age 13. Federal income tax 1040ez See Payments to Relatives or Dependents under Work-Related Expense Test, later. Federal income tax 1040ez Your filing status may be single, head of household, or qualifying widow(er) with dependent child. Federal income tax 1040ez If you are married, you must file a joint return, unless an exception applies to you. Federal income tax 1040ez See Joint Return Test, later. Federal income tax 1040ez You must identify the care provider on your tax return. Federal income tax 1040ez (See Provider Identification Test, later. Federal income tax 1040ez ) If you exclude or deduct dependent care benefits provided by a dependent care benefit plan, the total amount you exclude or deduct must be less than the dollar limit for qualifying expenses (generally, $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for). Federal income tax 1040ez (If two or more qualifying persons were cared for, the amount you exclude or deduct will always be less than the dollar limit, since the total amount you can exclude or deduct is limited to $5,000. Federal income tax 1040ez See Reduced Dollar Limit under How To Figure the Credit, later. Federal income tax 1040ez ) These tests are presented in Figure A and are also explained in detail in this publication. Federal income tax 1040ez Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. Federal income tax 1040ez A qualifying person is: Your qualifying child who is your dependent and who was under age 13 when the care was provided (but see Child of divorced or separated parents or parents living apart , later), Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Federal income tax 1040ez Dependent defined. Federal income tax 1040ez   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. Federal income tax 1040ez To be your dependent, a person must be your qualifying child (or your qualifying relative). Federal income tax 1040ez Qualifying child. Federal income tax 1040ez   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. Federal income tax 1040ez More information. Federal income tax 1040ez   For more information about who is a dependent or a qualifying child, see Publication 501. Federal income tax 1040ez Physically or mentally not able to care for oneself. Federal income tax 1040ez   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Federal income tax 1040ez Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. Federal income tax 1040ez Person qualifying for part of year. Federal income tax 1040ez   You determine a person's qualifying status each day. Federal income tax 1040ez For example, if the person for whom you pay child and dependent care expenses no longer qualifies on September 16, count only those expenses through September 15. Federal income tax 1040ez Also see Yearly limit under Dollar Limit, later. Federal income tax 1040ez Birth or death of otherwise qualifying person. Federal income tax 1040ez   In determining whether a person is a qualifying person, a person who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the person's home more than half the time he or she was alive in 2013. Federal income tax 1040ez Taxpayer identification number. Federal income tax 1040ez   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). Federal income tax 1040ez If the correct information is not shown, the credit may be reduced or disallowed. Federal income tax 1040ez Individual taxpayer identification number (ITIN) for aliens. Federal income tax 1040ez   If your qualifying person is a nonresident or resident alien who does not have and cannot get a social security number (SSN), use that person's ITIN. Federal income tax 1040ez The ITIN is entered wherever an SSN is requested on a tax return. Federal income tax 1040ez If the alien does not have an ITIN, he or she must apply for one. Federal income tax 1040ez See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. Federal income tax 1040ez   An ITIN is for tax use only. Federal income tax 1040ez It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. Federal income tax 1040ez S. Federal income tax 1040ez law. Federal income tax 1040ez Adoption taxpayer identification number (ATIN). Federal income tax 1040ez   If your qualifying person is a child who was placed in your home for adoption and for whom you do not have an SSN, you must get an ATIN for the child. Federal income tax 1040ez File Form W-7A, Application for Taxpayer Identification Number for Pending U. Federal income tax 1040ez S. Federal income tax 1040ez Adoptions. Federal income tax 1040ez Child of divorced or separated parents or parents living apart. Federal income tax 1040ez   Even if you cannot claim your child as a dependent, he or she is treated as your qualifying person if: The child was under age 13 or was not physically or mentally able to care for himself or herself, The child received over half of his or her support during the calendar year from one or both parents who are divorced or legally separated under a decree of divorce or separate maintenance, are separated under a written separation agreement, or lived apart at all times during the last 6 months of the calendar year, The child was in the custody of one or both parents for more than half the year, and You were the child's custodial parent. Federal income tax 1040ez   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. Federal income tax 1040ez If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. Federal income tax 1040ez For details and an exception for a parent who works at night, see Publication 501. Federal income tax 1040ez   The noncustodial parent cannot treat the child as a qualifying person even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents. Federal income tax 1040ez Please click here for the text description of the image. Federal income tax 1040ez Figure a. Federal income tax 1040ez Can you claim the credit Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. Federal income tax 1040ez Earned income. Federal income tax 1040ez   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Federal income tax 1040ez A net loss from self-employment reduces earned income. Federal income tax 1040ez Earned income also includes strike benefits and any disability pay you report as wages. Federal income tax 1040ez   Generally, only taxable compensation is included. Federal income tax 1040ez However, you can elect to include nontaxable combat pay in earned income. Federal income tax 1040ez If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Federal income tax 1040ez (In other words, if one of you makes the election, the other one can also make it but does not have to. Federal income tax 1040ez ) Including this income will give you a larger credit only if your (or your spouse's) other earned income is less than the amount entered on line 3 of Form 2441. Federal income tax 1040ez You should figure your credit both ways and make the election if it gives you a greater tax benefit. Federal income tax 1040ez    You can choose to include your nontaxable combat pay in earned income when figuring your credit for child and dependent care expenses, even if you choose not to include it in earned income for the earned income credit or the exclusion or deduction for dependent care benefits. Federal income tax 1040ez Members of certain religious faiths opposed to social security. Federal income tax 1040ez   This section is for persons who are members of certain religious faiths that are opposed to participation in Social Security Act programs and have an IRS-approved form that exempts certain income from social security and Medicare taxes. Federal income tax 1040ez These forms are: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, and Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, for use by members of recognized religious groups. Federal income tax 1040ez   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. Federal income tax 1040ez For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Federal income tax 1040ez Form 4361. Federal income tax 1040ez   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. Federal income tax 1040ez This includes wages, salaries, tips, and other taxable employee compensation. Federal income tax 1040ez   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. Federal income tax 1040ez Examples include fees for performing marriages and honoraria for delivering speeches. Federal income tax 1040ez   Any amount you received for work that is not related to your ministerial duties is earned income. Federal income tax 1040ez Form 4029. Federal income tax 1040ez   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. Federal income tax 1040ez   However, amounts you received as a self-employed individual do not count as earned income. Federal income tax 1040ez What is not earned income?   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarships or fellowship grants, except for those reported on Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received, Income of a nonresident alien that is not effectively connected with a U. Federal income tax 1040ez S. Federal income tax 1040ez trade or business, or Any amount received for work while an inmate in a penal institution. Federal income tax 1040ez Rule for student-spouse or spouse not able to care for self. Federal income tax 1040ez   Your spouse is treated as having earned income for any month that he or she is: A full-time student, or Physically or mentally not able to care for himself or herself. Federal income tax 1040ez (Your spouse also must live with you for more than half the year. Federal income tax 1040ez )   If you are filing a joint return, this rule also applies to you. Federal income tax 1040ez You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. Federal income tax 1040ez   Figure the earned income of the nonworking spouse, described under (1) or (2) above, as shown under Earned Income Limit under How To Figure the Credit, later. Federal income tax 1040ez   This rule applies to only one spouse for any one month. Federal income tax 1040ez If, in the same month, both you and your spouse do not work and are either full-time students or not physically or mentally able to care for yourselves, only one of you can be treated as having earned income in that month. Federal income tax 1040ez Full-time student. Federal income tax 1040ez    You are a full-time student if you are enrolled at a school for the number of hours or classes that the school considers full time. Federal income tax 1040ez You must have been a full-time student for some part of each of 5 calendar months during the year. Federal income tax 1040ez (The months need not be consecutive. Federal income tax 1040ez ) School. Federal income tax 1040ez   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. Federal income tax 1040ez A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Federal income tax 1040ez Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. Federal income tax 1040ez Expenses are considered work-related only if both of the following are true. Federal income tax 1040ez They allow you (and your spouse if filing jointly) to work or look for work. Federal income tax 1040ez They are for a qualifying person's care. Federal income tax 1040ez Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. Federal income tax 1040ez If you are married, generally both you and your spouse must work or look for work. Federal income tax 1040ez One spouse is treated as working during any month he or she is a full-time student or is not physically or mentally able to care for himself or herself. Federal income tax 1040ez Your work can be for others or in your own business or partnership. Federal income tax 1040ez It can be either full time or part time. Federal income tax 1040ez Work also includes actively looking for work. Federal income tax 1040ez However, if you do not find a job and have no earned income for the year, you cannot take this credit. Federal income tax 1040ez See Earned Income Test, earlier. Federal income tax 1040ez An expense is not considered work-related merely because you had it while you were working. Federal income tax 1040ez The purpose of the expense must be to allow you to work. Federal income tax 1040ez Whether your expenses allow you to work or look for work depends on the facts. Federal income tax 1040ez Example 1. Federal income tax 1040ez The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. Federal income tax 1040ez Example 2. Federal income tax 1040ez You work during the day. Federal income tax 1040ez Your spouse works at night and sleeps during the day. Federal income tax 1040ez You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. Federal income tax 1040ez Your expenses are considered work-related. Federal income tax 1040ez Volunteer work. Federal income tax 1040ez   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. Federal income tax 1040ez Work for part of year. Federal income tax 1040ez   If you work or actively look for work during only part of the period covered by the expenses, then you must figure your expenses for each day. Federal income tax 1040ez For example, if you work all year and pay care expenses of $250 a month ($3,000 for the year), all the expenses are work related. Federal income tax 1040ez However, if you work or look for work for only 2 months and 15 days during the year and pay expenses of $250 a month, your work-related expenses are limited to $625 (2½ months × $250). Federal income tax 1040ez Temporary absence from work. Federal income tax 1040ez   You do not have to figure your expenses for each day during a short, temporary absence from work, such as for vacation or a minor illness, if you have to pay for care anyway. Federal income tax 1040ez Instead, you can figure your credit including the expenses you paid for the period of absence. Federal income tax 1040ez   An absence of 2 weeks or less is a short, temporary absence. Federal income tax 1040ez An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. Federal income tax 1040ez Example. Federal income tax 1040ez You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. Federal income tax 1040ez You become ill and miss 4 months of work but receive sick pay. Federal income tax 1040ez You continue to pay the nanny to care for the children while you are ill. Federal income tax 1040ez Your absence is not a short, temporary absence, and your expenses are not considered work-related. Federal income tax 1040ez Part-time work. Federal income tax 1040ez   If you work part-time, you generally must figure your expenses for each day. Federal income tax 1040ez However, if you have to pay for care weekly, monthly, or in another way that includes both days worked and days not worked, you can figure your credit including the expenses you paid for days you did not work. Federal income tax 1040ez Any day when you work at least 1 hour is a day of work. Federal income tax 1040ez Example 1. Federal income tax 1040ez You work 3 days a week. Federal income tax 1040ez While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. Federal income tax 1040ez You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Federal income tax 1040ez Your child attends the center 5 days a week. Federal income tax 1040ez Your work-related expenses are limited to $150 a week. Federal income tax 1040ez Example 2. Federal income tax 1040ez The facts are the same as in Example 1 except the center does not offer a 3-day option. Federal income tax 1040ez The entire $250 weekly fee may be a work-related expense. Federal income tax 1040ez Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. Federal income tax 1040ez You do not have to choose the least expensive way of providing the care. Federal income tax 1040ez The cost of a paid care provider may be an expense for the care of a qualifying person even if another care provider is available at no cost. Federal income tax 1040ez Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. Federal income tax 1040ez Expenses for household services qualify if part of the services is for the care of qualifying persons. Federal income tax 1040ez See Household Services, later. Federal income tax 1040ez Expenses not for care. Federal income tax 1040ez   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. Federal income tax 1040ez However, you can include small amounts paid for these items if they are incidental to and cannot be separated from the cost of caring for the qualifying person. Federal income tax 1040ez Otherwise, see the discussion of Expenses partly work-related, later. Federal income tax 1040ez   Child support payments are not for care and do not qualify for the credit. Federal income tax 1040ez Education. Federal income tax 1040ez   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. Federal income tax 1040ez   Expenses to attend kindergarten or a higher grade are not expenses for care. Federal income tax 1040ez Do not use these expenses to figure your credit. Federal income tax 1040ez   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. Federal income tax 1040ez   Summer school and tutoring programs are not for care. Federal income tax 1040ez Example 1. Federal income tax 1040ez You take your 3-year-old child to a nursery school that provides lunch and a few educational activities as part of its preschool childcare service. Federal income tax 1040ez The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. Federal income tax 1040ez You can count the total cost when you figure the credit. Federal income tax 1040ez Example 2. Federal income tax 1040ez You place your 10-year-old child in a boarding school so you can work full time. Federal income tax 1040ez Only the part of the boarding school expense that is for the care of your child is a work-related expense. Federal income tax 1040ez You can count that part of the expense in figuring your credit if it can be separated from the cost of education. Federal income tax 1040ez You cannot count any part of the amount you pay the school for your child's education. Federal income tax 1040ez Care outside your home. Federal income tax 1040ez   You can count the cost of care provided outside your home if the care is for your dependent under age 13 or any other qualifying person who regularly spends at least 8 hours each day in your home. Federal income tax 1040ez Dependent care center. Federal income tax 1040ez   You can count care provided outside your home by a dependent care center only if the center complies with all state and local regulations that apply to these centers. Federal income tax 1040ez   A dependent care center is a place that provides care for more than six persons (other than persons who live there) and receives a fee, payment, or grant for providing services for any of those persons, even if the center is not run for profit. Federal income tax 1040ez Camp. Federal income tax 1040ez   The cost of sending your child to an overnight camp is not considered a work-related expense. Federal income tax 1040ez    The cost of sending your child to a day camp may be a work-related expense, even if the camp specializes in a particular activity, such as computers or soccer. Federal income tax 1040ez Transportation. Federal income tax 1040ez   If a care provider takes a qualifying person to or from a place where care is provided, that transportation is for the care of the qualifying person. Federal income tax 1040ez This includes transportation by bus, subway, taxi, or private car. Federal income tax 1040ez However, transportation not provided by a care provider is not for the care of a qualifying person. Federal income tax 1040ez Also, if you pay the transportation cost for the care provider to come to your home, that expense is not for care of a qualifying person. Federal income tax 1040ez Fees and deposits. Federal income tax 1040ez   Fees you paid to an agency to get the services of a care provider, deposits you paid to an agency or preschool, application fees, and other indirect expenses are work-related expenses if you have to pay them to get care, even though they are not directly for care. Federal income tax 1040ez However, a forfeited deposit is not for the care of a qualifying person if care is not provided. Federal income tax 1040ez Example 1. Federal income tax 1040ez You paid a fee to an agency to get the services of the nanny who cares for your 2-year-old daughter while you work. Federal income tax 1040ez The fee you paid is a work-related expense. Federal income tax 1040ez Example 2. Federal income tax 1040ez You placed a deposit with a preschool to reserve a place for your 3-year-old child. Federal income tax 1040ez You later sent your child to a different preschool and forfeited the deposit. Federal income tax 1040ez The forfeited deposit is not for care and so is not a work-related expense. Federal income tax 1040ez Household Services Expenses you pay for household services meet the work-related expense test if they are at least partly for the well-being and protection of a qualifying person. Federal income tax 1040ez Definition. Federal income tax 1040ez   Household services are ordinary and usual services done in and around your home that are necessary to run your home. Federal income tax 1040ez They include the services of a housekeeper, maid, or cook. Federal income tax 1040ez However, they do not include the services of a chauffeur, bartender, or gardener. Federal income tax 1040ez Housekeeper. Federal income tax 1040ez   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. Federal income tax 1040ez Expenses partly work-related. Federal income tax 1040ez   If part of an expense is work-related (for either household services or the care of a qualifying person) and part is for other purposes, you have to divide the expense. Federal income tax 1040ez To figure your credit, count only the part that is work-related. Federal income tax 1040ez However, you do not have to divide the expense if only a small part is for other purposes. Federal income tax 1040ez Example. Federal income tax 1040ez You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. Federal income tax 1040ez The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. Federal income tax 1040ez You do not have to divide the expenses. Federal income tax 1040ez You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. Federal income tax 1040ez Nor do you have to divide the expenses between the two children, even though the expenses are partly for the 15-year-old child who is not a qualifying person, because the expense is also partly for the care of your 9-year-old child, who is a qualifying person. Federal income tax 1040ez However, the dollar limit (discussed later) is based on one qualifying person, not two. Federal income tax 1040ez Meals and lodging provided for housekeeper. Federal income tax 1040ez   If you have expenses for meals that your housekeeper eats in your home because of his or her employment, count these as work-related expenses. Federal income tax 1040ez If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. Federal income tax 1040ez Example. Federal income tax 1040ez To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. Federal income tax 1040ez You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. Federal income tax 1040ez However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. Federal income tax 1040ez Taxes paid on wages. Federal income tax 1040ez   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. Federal income tax 1040ez For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. Federal income tax 1040ez Payments to Relatives or Dependents You can count work-related payments you make to relatives who are not your dependents, even if they live in your home. Federal income tax 1040ez However, do not count any amounts you pay to: A dependent for whom you (or your spouse if filing jointly) can claim an exemption, Your child who was under age 19 at the end of the year, even if he or she is not your dependent, A person who was your spouse any time during the year, or The parent of your qualifying person if your qualifying person is your child and under age 13. Federal income tax 1040ez Joint Return Test Generally, married couples must file a joint return to take the credit. Federal income tax 1040ez However, if you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Federal income tax 1040ez Legally separated. Federal income tax 1040ez   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. Federal income tax 1040ez You may be eligible to take the credit on your return using head of household filing status. Federal income tax 1040ez Married and living apart. Federal income tax 1040ez   You are not considered married and are eligible to take the credit if all the following apply. Federal income tax 1040ez You file a return apart from your spouse. Federal income tax 1040ez Your home is the home of a qualifying person for more than half the year. Federal income tax 1040ez You pay more than half the cost of keeping up your home for the year. Federal income tax 1040ez Your spouse does not live in your home for the last 6 months of the year. Federal income tax 1040ez Costs of keeping up a home. Federal income tax 1040ez   The costs of keeping up a home normally include property taxes, mortgage interest, rent, utility charges, home repairs, insurance on the home, and food eaten at home. Federal income tax 1040ez   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. Federal income tax 1040ez   They also do not include the purchase, permanent improvement, or replacement of property. Federal income tax 1040ez For example, you cannot include the cost of replacing a water heater. Federal income tax 1040ez However, you can include the cost of repairing a water heater. Federal income tax 1040ez Death of spouse. Federal income tax 1040ez   If your spouse died during the year and you do not remarry before the end of the year, you generally must file a joint return to take the credit. Federal income tax 1040ez If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. Federal income tax 1040ez Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Federal income tax 1040ez Use Form 2441, Part I, to show the information. Federal income tax 1040ez If you do not have any care providers and you are filing Form 2441 only to report taxable income in Part III, enter “none” in line 1, column (a). Federal income tax 1040ez Information needed. Federal income tax 1040ez   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. Federal income tax 1040ez    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. Federal income tax 1040ez If the care provider is an organization, then it is the employer identification number (EIN). Federal income tax 1040ez   You do not have to show the taxpayer identification number if the care provider is a tax-exempt organization (such as a church or school). Federal income tax 1040ez In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. Federal income tax 1040ez   If you cannot provide all of the information or the information is incorrect, you must be able to show that you used due diligence (discussed later) in trying to furnish the necessary information. Federal income tax 1040ez Getting the information. Federal income tax 1040ez    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. Federal income tax 1040ez If you do not use Form W-10, you can get the information from one of the other sources listed in the instructions for Form W-10, including: A copy of the provider's social security card, A copy of the provider's completed Form W-4, Employee's Withholding Allowance Certificate, if he or she is your household employee, A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or A letter or invoice from the provider if it shows the necessary information. Federal income tax 1040ez    You should keep this information with your tax records. Federal income tax 1040ez Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. Federal income tax 1040ez Due diligence. Federal income tax 1040ez   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. Federal income tax 1040ez However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. Federal income tax 1040ez   You can show due diligence by getting and keeping the provider's completed Form W-10 or one of the other sources of information just listed. Federal income tax 1040ez Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. Federal income tax 1040ez Provider refusal. Federal income tax 1040ez    If the provider refuses to give you the identifying information, you should report on Form 2441 whatever information you have (such as the name and address). Federal income tax 1040ez Enter “See Attached Statement” in the columns calling for the information you do not have. Federal income tax 1040ez Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Federal income tax 1040ez Be sure to write your name and social security number on this statement. Federal income tax 1040ez The statement will show that you used due diligence in trying to furnish the necessary information. Federal income tax 1040ez U. Federal income tax 1040ez S. Federal income tax 1040ez citizens and resident aliens living abroad. Federal income tax 1040ez   If you are living abroad, your care provider may not have, and may not be required to get, a U. Federal income tax 1040ez S. Federal income tax 1040ez taxpayer identification number (for example, an SSN or an EIN). Federal income tax 1040ez If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. Federal income tax 1040ez How To Figure the Credit Your credit is a percentage of your work-related expenses. Federal income tax 1040ez Your expenses are subject to the earned income limit and the dollar limit. Federal income tax 1040ez The percentage is based on your adjusted gross income. Federal income tax 1040ez Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. Federal income tax 1040ez Expenses prepaid in an earlier year. Federal income tax 1040ez   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Federal income tax 1040ez Claim the expenses for the later year as if they were actually paid in that later year. Federal income tax 1040ez Expenses not paid until the following year. Federal income tax 1040ez   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. Federal income tax 1040ez You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. Federal income tax 1040ez See Payments for prior year's expenses under Amount of Credit, later. Federal income tax 1040ez If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. Federal income tax 1040ez You may be able to claim a credit for them on your 2014 return. Federal income tax 1040ez Expenses reimbursed. Federal income tax 1040ez   If a state social services agency pays you a nontaxable amount to reimburse you for some of your child and dependent care expenses, you cannot count the expenses that are reimbursed as work-related expenses. Federal income tax 1040ez Example. Federal income tax 1040ez You paid work-related expenses of $3,000. Federal income tax 1040ez You are reimbursed $2,000 by a state social services agency. Federal income tax 1040ez You can use only $1,000 to figure your credit. Federal income tax 1040ez Medical expenses. Federal income tax 1040ez   Some expenses for the care of qualifying persons who are not able to care for themselves may qualify as work-related expenses and also as medical expenses. Federal income tax 1040ez You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. Federal income tax 1040ez   If you use these expenses to figure the credit and they are more than the earned income limit or the dollar limit, discussed later, you can add the excess to your medical expenses. Federal income tax 1040ez However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. Federal income tax 1040ez For information on medical expenses, see Publication 502, Medical and Dental Expenses. Federal income tax 1040ez    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. Federal income tax 1040ez Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. Federal income tax 1040ez See Reduced Dollar Limit, later. Federal income tax 1040ez But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. Federal income tax 1040ez Dependent care benefits. Federal income tax 1040ez    Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person while you work, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. Federal income tax 1040ez Your salary may have been reduced to pay for these benefits. Federal income tax 1040ez If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. Federal income tax 1040ez See Statement for employee, later. Federal income tax 1040ez Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Federal income tax 1040ez   Enter the amount of these benefits on Form 2441, Part III, line 12. Federal income tax 1040ez Exclusion or deduction. Federal income tax 1040ez   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Federal income tax 1040ez Your employer can tell you whether your benefit plan qualifies. Federal income tax 1040ez To claim the exclusion, you must complete Part III of Form 2441. Federal income tax 1040ez You cannot use Form 1040EZ. Federal income tax 1040ez   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Federal income tax 1040ez Therefore, you would not get an exclusion from wages. Federal income tax 1040ez Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Federal income tax 1040ez To claim the deduction, you must use Form 2441. Federal income tax 1040ez   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Federal income tax 1040ez   The definition of earned income for the exclusion or deduction is the same as the definition used when figuring the credit except that earned income for the exclusion or deduction does not include any dependent care benefits you receive. Federal income tax 1040ez    You can choose to include your nontaxable combat pay in earned income when figuring your exclusion or deduction, even if you choose not to include it in earned income for the earned income credit or the credit for child and dependent care expenses. Federal income tax 1040ez Statement for employee. Federal income tax 1040ez   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Federal income tax 1040ez Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Federal income tax 1040ez Effect of exclusion on credit. Federal income tax 1040ez   If you exclude dependent care benefits from your income, the amount of the excluded benefits: Is not included in your work-related expenses, and Reduces the dollar limit, discussed later. Federal income tax 1040ez Earned Income Limit The amount of work-related expenses you use to figure your credit cannot be more than: Your earned income for the year, if you are single at the end of the year, or The smaller of your or your spouse's earned income for the year if you are married at the end of the year. Federal income tax 1040ez Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. Federal income tax 1040ez For purposes of item (2), use your spouse's earned income for the entire year, even if you were married for only part of the year. Federal income tax 1040ez Example. Federal income tax 1040ez You remarried on December 3. Federal income tax 1040ez Your earned income for the year was $18,000. Federal income tax 1040ez Your new spouse's earned income for the year was $2,000. Federal income tax 1040ez You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. Federal income tax 1040ez The amount of expenses you use to figure your credit cannot be more than $2,000 (the smaller of your earned income or that of your spouse). Federal income tax 1040ez Separated spouse. Federal income tax 1040ez   If you are legally separated or married and living apart from your spouse (as described under Joint Return Test, earlier), you are not considered married for purposes of the earned income limit. Federal income tax 1040ez Use only your income in figuring the earned income limit. Federal income tax 1040ez Surviving spouse. Federal income tax 1040ez   If your spouse died during the year and you file a joint return as a surviving spouse, you may, but are not required to, take into account the earned income of your spouse who died during the year. Federal income tax 1040ez Community property laws. Federal income tax 1040ez   Disregard community property laws when you figure earned income for this credit. Federal income tax 1040ez Self-employment earnings. Federal income tax 1040ez   If you are self-employed, include your net earnings in earned income. Federal income tax 1040ez For purposes of the child and dependent care credit, net earnings from self-employment generally means the amount from Schedule SE (either Section A or Section B), line 3, minus any deduction for self-employment tax on Form 1040 or Form 1040NR, line 27. Federal income tax 1040ez Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. Federal income tax 1040ez Clergy or church employee. Federal income tax 1040ez   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. Federal income tax 1040ez Statutory employee. Federal income tax 1040ez   If you filed Schedule C (Form 1040) or C-EZ (Form 1040) to report income as a statutory employee, also include as earned income the amount from line 1 of that Schedule C (Form 1040) or C-EZ (Form 1040). Federal income tax 1040ez Net loss. Federal income tax 1040ez   You must reduce your earned income by any net loss from self-employment. Federal income tax 1040ez Optional method if earnings are low or a net loss. Federal income tax 1040ez   If your net earnings from self-employment are low or you have a net loss, you may be able to figure your net earnings by using an optional method instead of the regular method. Federal income tax 1040ez Get Publication 334, Tax Guide for Small Business, for details. Federal income tax 1040ez If you use an optional method to figure net earnings for self-employment tax purposes, include those net earnings in your earned income for this credit. Federal income tax 1040ez In this case, subtract any deduction you claimed on Form 1040 or Form 1040NR, line 27, from the total of the amounts on Schedule SE, Section B, lines 3 and 4b, to figure your net earnings. Federal income tax 1040ez You or your spouse is a student or not able to care for self. Federal income tax 1040ez   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. Federal income tax 1040ez His or her earned income for each month is considered to be at least $250 if there is one qualifying person in your home, or at least $500 if there are two or more. Federal income tax 1040ez Spouse works. Federal income tax 1040ez   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. Federal income tax 1040ez Spouse qualifies for part of month. Federal income tax 1040ez   If your spouse is a full-time student or not able to care for himself or herself for only part of a month, the full $250 (or $500) still applies for that month. Federal income tax 1040ez You are a student or not able to care for self. Federal income tax 1040ez   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. Federal income tax 1040ez For each month or part of a month you are a student or not able to care for yourself, your earned income is considered to be at least $250 (or $500). Federal income tax 1040ez If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. Federal income tax 1040ez Both spouses qualify. Federal income tax 1040ez   If, in the same month, both you and your spouse are either full-time students or not able to care for yourselves, only one spouse can be considered to have this earned income of $250 (or $500) for that month. Federal income tax 1040ez Example. Federal income tax 1040ez Jim works and keeps up a home for himself and his wife Sharon. Federal income tax 1040ez Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. Federal income tax 1040ez During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. Federal income tax 1040ez These expenses also qualify as medical expenses. Federal income tax 1040ez Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. Federal income tax 1040ez Jim and Sharon's earned income limit is the smallest of the following amounts. Federal income tax 1040ez   Jim and Sharon's Earned Income Limit   1) Work-related expenses Jim paid $   3,300   2) Jim's earned income $   29,000   3) Income considered earned by Sharon (11 × $250) $    2,750   Jim and Sharon can use $2,750 to figure the credit and treat the balance of $550 ($3,300 − $2,750) as a medical expense. Federal income tax 1040ez However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. Federal income tax 1040ez Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. Federal income tax 1040ez This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. Federal income tax 1040ez If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. Federal income tax 1040ez This limit does not need to be divided equally among them. Federal income tax 1040ez For example, if your work-related expenses for the care of one qualifying person are $3,200 and your work-related expenses for another qualifying person are $2,800, you can use the total, $6,000, when figuring the credit. Federal income tax 1040ez Yearly limit. Federal income tax 1040ez   The dollar limit is a yearly limit. Federal income tax 1040ez The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. Federal income tax 1040ez Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. Federal income tax 1040ez Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. Federal income tax 1040ez Example 1. Federal income tax 1040ez You pay $500 a month for after-school care for your son. Federal income tax 1040ez He turned 13 on May 1 and is no longer a qualifying person. Federal income tax 1040ez You can use the $2,000 of expenses for his care January through April to figure your credit because it is not more than the $3,000 yearly limit. Federal income tax 1040ez Example 2. Federal income tax 1040ez In July of this year, to permit your spouse to begin a new job, you enrolled your 3-year-old daughter in a nursery school that provides preschool childcare. Federal income tax 1040ez You paid $300 per month for the childcare. Federal income tax 1040ez You can use the full $1,800 you paid ($300 × 6 months) as qualified expenses because it is not more than the $3,000 yearly limit. Federal income tax 1040ez Reduced Dollar Limit If you received dependent care benefits that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you. Federal income tax 1040ez Your reduced dollar limit is figured on Form 2441, Part III. Federal income tax 1040ez See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. Federal income tax 1040ez Example 1. Federal income tax 1040ez George is a widower with one child and earns $24,000 a year. Federal income tax 1040ez He pays work-related expenses of $2,900 for the care of his 4-year-old child and qualifies to claim the credit for child and dependent care expenses. Federal income tax 1040ez His employer pays an additional $1,000 under a qualified dependent care benefit plan. Federal income tax 1040ez This $1,000 is excluded from George's income. Federal income tax 1040ez Although the dollar limit for his work-related expenses is $3,000 (one qualifying person), George figures his credit on only $2,000 of the $2,900 work-related expenses he paid. Federal income tax 1040ez This is because his dollar limit is reduced as shown next. Federal income tax 1040ez   George's Reduced Dollar Limit 1) Maximum allowable expenses for one qualifying person $3,000 2) Minus: Dependent care benefits George excludes from income −1,000 3) Reduced dollar limit on expenses George can use for the credit $2,000 Example 2. Federal income tax 1040ez Randall is married and both he and his wife are employed. Federal income tax 1040ez Each has earned income in excess of $6,000. Federal income tax 1040ez They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. Federal income tax 1040ez Randall's work-related expenses are $6,000 for the year. Federal income tax 1040ez Randall's employer has a dependent care assistance program as part of its cafeteria plan, which allows employees to make pre-tax contributions to a dependent care flexible spending arrangement. Federal income tax 1040ez Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. Federal income tax 1040ez Although the dollar limit for his work-related expenses is $6,000 (two or more qualifying persons), Randall figures his credit on only $1,000 of the $6,000 work-related expense paid. Federal income tax 1040ez This is because his dollar limit is reduced as shown next. Federal income tax 1040ez   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits selected from employer's cafeteria plan and  excluded from Randall's income −5,000 3) Reduced dollar limit on work-related expenses Randall can use for the credit $1,000 Amount of Credit To determine the amount of your credit, multiply your work-related expenses (after applying the earned income and dollar limits) by a percentage. Federal income tax 1040ez This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Federal income tax 1040ez The following table shows the percentage to use based on adjusted gross income. Federal income tax 1040ez   IF your adjusted gross income is: THEN the       Over:       But not over:   percentage is:       $0   —   $15,000   35%       15,000   —   17,000   34%       17,000   —   19,000   33%       19,000   —   21,000   32%       21,000   —   23,000   31%       23,000   —   25,000   30%       25,000   —   27,000   29%       27,000   —   29,000   28%       29,000   —   31,000   27%       31,000   —   33,000   26%       33,000   —   35,000   25%       35,000   —   37,000   24%       37,000   —   39,000   23%       39,000   —   41,000   22%       41,000   —   43,000   21%       43,000   —   No limit   20%   To qualify for the credit, you must have one or more qualifying persons. Federal income tax 1040ez You should show the expenses for each person on Form 2441, line 2, column (c). Federal income tax 1040ez However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. Federal income tax 1040ez You should list -0- for the one person and the actual amount for the second person. Federal income tax 1040ez The $6,000 limit that applies to two or more qualifying persons would still be used to compute your credit unless you already excluded or deducted, in Part III of Form 2441, certain dependent care benefits paid to you (or on your behalf) by your employer. Federal income tax 1040ez Example. Federal income tax 1040ez Roger and Megan Paris have two qualifying children. Federal income tax 1040ez They received $1,000 of dependent care benefits from Megan's employer during 2013, but they incurred a total of $19,500 of child and dependent care expenses. Federal income tax 1040ez They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). Federal income tax 1040ez Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. Federal income tax 1040ez Line 30 tells them to complete line 2 without including any dependent care benefits. Federal income tax 1040ez They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. Federal income tax 1040ez Line 2 Example (a) Qualifying person's name (b) Qualifying person's social security number (c) Qualified expenses you incurred and paid in 2013 for the person listed in column (a) First Last Susan Paris 123-00-6789 -0- James Paris 987-00-4321 18,500. Federal income tax 1040ez 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. Federal income tax 1040ez However, their son James has special needs and they paid $18,500 for his care. Federal income tax 1040ez Line 3 imposes a $5,000 limit for two or more children ($6,000 limit, minus $1,000 already excluded from income = $5,000) and Roger and Megan continue to complete the form. Federal income tax 1040ez Even though line 2 indicates one of the Paris children did not have any dependent care expenses, it does not change the fact that they had two qualifying children for the purposes of Form 2441. Federal income tax 1040ez Payments for prior year's expenses. Federal income tax 1040ez   If you had work-related expenses in 2012 that you paid in 2013, you may be able to increase the credit on your 2013 return. Federal income tax 1040ez Attach a statement to your form showing how you figured the additional amount from 2012. Federal income tax 1040ez Then enter “CPYE” (Credit for Prior Year Expenses) and the amount of the credit on the dotted line next to line 9 on Form 2441. Federal income tax 1040ez Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. Federal income tax 1040ez Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. Federal income tax 1040ez See Worksheet A. Federal income tax 1040ez Example. Federal income tax 1040ez In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. Federal income tax 1040ez Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. Federal income tax 1040ez Their adjusted gross income for 2012 was $30,000. Federal income tax 1040ez Sam's earned income of $14,000 was less than Kate's earned income. Federal income tax 1040ez A credit for their 2012 expenses paid in 2013 is not allowed in 2012. Federal income tax 1040ez It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. Federal income tax 1040ez The filled-in Worksheet A they used to figure this credit is shown later. Federal income tax 1040ez Sam and Kate add the $162 from line 13 of this worksheet to their 2013 credit and enter the total on their Form 2441, line 9. Federal income tax 1040ez They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. Federal income tax 1040ez Worksheet A. Federal income tax 1040ez Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Federal income tax 1040ez 1. Federal income tax 1040ez   Enter your 2012 qualified expenses paid in 2012 1. Federal income tax 1040ez     2. Federal income tax 1040ez   Enter your 2012 qualified expenses paid in 2013 2. Federal income tax 1040ez     3. Federal income tax 1040ez   Add the amounts on lines 1 and 2 3. Federal income tax 1040ez     4. Federal income tax 1040ez   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Federal income tax 1040ez     5. Federal income tax 1040ez   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Federal income tax 1040ez     6. Federal income tax 1040ez   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Federal income tax 1040ez     7. Federal income tax 1040ez   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Federal income tax 1040ez     8. Federal income tax 1040ez   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Federal income tax 1040ez     9. Federal income tax 1040ez   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Federal income tax 1040ez     10. Federal income tax 1040ez   Subtract the amount on line 9 from the amount on line 8 and enter the result. Federal income tax 1040ez If zero or less, stop here. Federal income tax 1040ez You cannot increase your 2013 credit by any previous year's expenses 10. Federal income tax 1040ez     11. Federal income tax 1040ez   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Federal income tax 1040ez     12. Federal income tax 1040ez   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Federal income tax 1040ez             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . Federal income tax 1040ez 35                 15,000 — 17,000     . Federal income tax 1040ez 34                 17,000 — 19,000     . Federal income tax 1040ez 33                 19,000 — 21,000     . Federal income tax 1040ez 32                 21,000 — 23,000     . Federal income tax 1040ez 31                 23,000 — 25,000     . Federal income tax 1040ez 30                 25,000 — 27,000     . Federal income tax 1040ez 29                 27,000 — 29,000     . Federal income tax 1040ez 28                 29,000 — 31,000     . Federal income tax 1040ez 27                 31,000 — 33,000     . Federal income tax 1040ez 26                 33,000 — 35,000     . Federal income tax 1040ez 25                 35,000 — 37,000     . Federal income tax 1040ez 24                 37,000 — 39,000     . Federal income tax 1040ez 23                 39,000 — 41,000     . Federal income tax 1040ez 22                 41,000 — 43,000     . Federal income tax 1040ez 21                 43,000 — No limit     . Federal income tax 1040ez 20           13. Federal income tax 1040ez   Multiply line 10 by line 12. Federal income tax 1040ez Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Federal income tax 1040ez Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses           Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Federal income tax 1040ez       Worksheet A. Federal income tax 1040ez Filled-in Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Federal income tax 1040ez 1. Federal income tax 1040ez   Enter your 2012 qualified expenses paid in 2012 1. Federal income tax 1040ez   $2,000 2. Federal income tax 1040ez   Enter your 2012 qualified expenses paid in 2013 2. Federal income tax 1040ez   600 3. Federal income tax 1040ez   Add the amounts on lines 1 and 2 3. Federal income tax 1040ez   2,600 4. Federal income tax 1040ez   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Federal income tax 1040ez   3,000 5. Federal income tax 1040ez   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Federal income tax 1040ez   0 6. Federal income tax 1040ez   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Federal income tax 1040ez   3,000 7. Federal income tax 1040ez   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Federal income tax 1040ez   14,000 8. Federal income tax 1040ez   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Federal income tax 1040ez   2,600 9. Federal income tax 1040ez   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Federal income tax 1040ez   2,000 10. Federal income tax 1040ez   Subtract the amount on line 9 from the amount on line 8 and enter the result. Federal income tax 1040ez If zero or less, stop here. Federal income tax 1040ez You cannot increase your 2013 credit by any previous year's expenses 10. Federal income tax 1040ez   600 11. Federal income tax 1040ez   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Federal income tax 1040ez   30,000 12. Federal income tax 1040ez   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Federal income tax 1040ez   . Federal income tax 1040ez 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . Federal income tax 1040ez 35                 15,000 — 17,000     . Federal income tax 1040ez 34                 17,000 — 19,000     . Federal income tax 1040ez 33                 19,000 — 21,000     . Federal income tax 1040ez 32                 21,000 — 23,000     . Federal income tax 1040ez 31                 23,000 — 25,000     . Federal income tax 1040ez 30                 25,000 — 27,000     . Federal income tax 1040ez 29                 27,000 — 29,000     . Federal income tax 1040ez 28                 29,000 — 31,000     . Federal income tax 1040ez 27                 31,000 — 33,000     . Federal income tax 1040ez 26                 33,000 — 35,000     . Federal income tax 1040ez 25                 35,000 — 37,000     . Federal income tax 1040ez 24                 37,000 — 39,000     . Federal income tax 1040ez 23                 39,000 — 41,000     . Federal income tax 1040ez 22                 41,000 — 43,000     . Federal income tax 1040ez 21                 43,000 — No limit     . Federal income tax 1040ez 20           13. Federal income tax 1040ez   Multiply line 10 by line 12. Federal income tax 1040ez Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Federal income tax 1040ez Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses             Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Federal income tax 1040ez   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. Federal income tax 1040ez You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Federal income tax 1040ez Form 1040, Form 1040A, or Form 1040NR. Federal income tax 1040ez    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. Federal income tax 1040ez Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. Federal income tax 1040ez Limit on credit. Federal income tax 1040ez    The amount of credit you can claim is limited to your tax. Federal income tax 1040ez For more information, see the Instructions for Form 2441. Federal income tax 1040ez Tax credit not refundable. Federal income tax 1040ez   You cannot get a refund for any part of the credit that is more than this limit. Federal income tax 1040ez Recordkeeping. Federal income tax 1040ez You should keep records of your work-related expenses. Federal income tax 1040ez Also, if your dependent or spouse is not able to care for himself or herself, your records should show both the nature and length of the disability. Federal income tax 1040ez Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. Federal income tax 1040ez Employment Taxes for Household Employers If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer. Federal income tax 1040ez If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. Federal income tax 1040ez If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. Federal income tax 1040ez Self-employed persons who are in business for themselves are not household employees. Federal income tax 1040ez Usually, you are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. Federal income tax 1040ez If you use a placement agency that exercises control over what work is done and how it will be done by a babysitter or companion who works in your home, the worker is not your employee. Federal income tax 1040ez This control could include providing rules of conduct and appearance and requiring regular reports. Federal income tax 1040ez In this case, you do not have to pay employment taxes. Federal income tax 1040ez But, if an agency merely gives you a list of sitters and you hire one from that list, and pay the sitter directly, the sitter may be your employee. Federal income tax 1040ez If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. Federal income tax 1040ez Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Federal income tax 1040ez Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Federal income tax 1040ez Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. Federal income tax 1040ez For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. Federal income tax 1040ez State employment tax. Federal income tax 1040ez   You may also have to pay state unemployment tax. Federal income tax 1040ez Contact your state unemployment tax office for information. Federal income tax 1040ez You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. Federal income tax 1040ez For a list of state unemployment tax agencies, visit the U. Federal income tax 1040ez S. Federal income tax 1040ez Department of Labor's website. Federal income tax 1040ez To find that website, use the link in Publication 926 or search online. Federal income tax 1040ez How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Federal income tax 1040ez Free help with your tax return. Federal income tax 1040ez   You can get free help preparing your return nationwide from IRS-certified volunteers. Federal income tax 1040ez The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Federal income tax 1040ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Federal income tax 1040ez Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Federal income tax 1040ez In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Federal income tax 1040ez To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Federal income tax 1040ez gov, download the IRS2Go app, or call 1-800-906-9887. Federal income tax 1040ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. Federal income tax 1040ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. Federal income tax 1040ez aarp. Federal income tax 1040ez org/money/taxaide or call 1-888-227-7669. Federal income tax 1040ez For more information on these programs, go to IRS. Federal income tax 1040ez gov and enter “VITA” in the search box. Federal income tax 1040ez Internet. Federal income tax 1040ez    IRS. Federal income tax 1040ez gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Federal income tax 1040ez Download the free IRS2Go app from the iTunes app store or from Google Play. Federal income tax 1040ez Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Federal income tax 1040ez Check the status of your 2013 refund with the Where's My Refund? application on IRS. Federal income tax 1040ez gov or download the IRS2Go app and select the Refund Status option. Federal income tax 1040ez The IRS issues more than 9 out of 10 refunds in less than 21 days. Federal income tax 1040ez Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Federal income tax 1040ez You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Federal income tax 1040ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Federal income tax 1040ez Use the Interactive Tax Assistant (ITA) to research your tax questions. Federal income tax 1040ez No need to wait on the phone or stand in line. Federal income tax 1040ez The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Federal income tax 1040ez When you reach the response screen, you can print the entire interview and the final response for your records. Federal income tax 1040ez New subject areas are added on a regular basis. Federal income tax 1040ez  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Federal income tax 1040ez gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Federal income tax 1040ez You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Federal income tax 1040ez The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Federal income tax 1040ez When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Federal income tax 1040ez Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Federal income tax 1040ez You can also ask the IRS to mail a return or an account transcript to you. Federal income tax 1040ez Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Federal income tax 1040ez gov or by calling 1-800-908-9946. Federal income tax 1040ez Tax return and tax account transcripts are generally available for the current year and the past three years. Federal income tax 1040ez Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Federal income tax 1040ez Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Federal income tax 1040ez If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Federal income tax 1040ez Check the status of your amended return using Where's My Amended Return? Go to IRS. Federal income tax 1040ez gov and enter Where's My Amended Return? in the search box. Federal income tax 1040ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Federal income tax 1040ez It can take up to 3 weeks from the date you mailed it to show up in our system. Federal income tax 1040ez Make a payment using one of several safe and convenient electronic payment options available on IRS. Federal income tax 1040ez gov. Federal income tax 1040ez Select the Payment tab on the front page of IRS. Federal income tax 1040ez gov for more information. Federal income tax 1040ez Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Federal income tax 1040ez Figure your income tax withholding with the IRS Withholding Calculator on IRS. Federal income tax 1040ez gov. Federal income tax 1040ez Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Federal income tax 1040ez Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Federal income tax 1040ez gov. Federal income tax 1040ez Request an Electronic Filing PIN by going to IRS. Federal income tax 1040ez gov and entering Electronic Filing PIN in the search box. Federal income tax 1040ez Download forms, instructions and publications, including accessible versions for people with disabilities. Federal income tax 1040ez Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Federal income tax 1040ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Federal income tax 1040ez An employee can answer questions about your tax account or help you set up a payment plan. Federal income tax 1040ez Before you visit, check the Office Locator on IRS. Federal income tax 1040ez gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Federal income tax 1040ez If you have a special need, such as a disability, you can request an appointment. Federal income tax 1040ez Call the local number listed in the Office Locator, or look in the phone book under Unit
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Understanding your CP01 Notice

We received the information that you provided and have verified your claim of identity theft. We have placed an identity theft indicator on your account.

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.
 


What you need to do

  • You need take no further action except continue to file your federal income tax returns as required by law.

You may want to...


Answers to Common Questions

What effect does the Identity Theft Indicator have on my account?
The indicator assists the IRS in identifying you as the valid owner of the Social Security Number (SSN) that is shown on your tax return. The indicator has no effect on your ability to file your tax return, make payments, or receive a refund.

What happens if someone else uses my SSN to file a fraudulent tax return?
The indicator that was placed on your account will alert us to research to make sure that a tax return filed with your SSN is valid. If the tax return is found to be invalid, we won't process it.

How long does the indicator remain on my account?
Because you were a victim of identity theft, to protect your tax account, the indicator will remain on your account unless you specifically request that it be removed.

Who should I contact if I have more questions about my account related to identity theft?
The Identity Theft Specialized Unit can assist you with questions regarding identity theft related to your account. You may call them at 1-800-908-4490. The number can also be found on your notice. For all other tax account related questions contact the IRS help desk at 1-800-829-1040.

Where can I find more information on preventing identity theft?


Tips for next year

File your return as you normally would. If we find that someone is attempting to use your SSN for filing a tax return we will notify you and provide you with a PIN to use when filing your return.

 

Page Last Reviewed or Updated: 27-Feb-2014

The Federal Income Tax 1040ez

Federal income tax 1040ez 2. Federal income tax 1040ez   Roth IRAs Table of Contents What's New for 2013 What's New for 2014 Reminders Introduction What Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA?How Much Can Be Contributed? When Can You Make Contributions? What if You Contribute Too Much? Can You Move Amounts Into a Roth IRA?Conversions Rollover From Employer's Plan Into a Roth IRA Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments Rollover From a Roth IRA Rollover of Exxon Valdez Settlement Income Rollover of Airline Payments Are Distributions Taxable?What Are Qualified Distributions? Additional Tax on Early Distributions Ordering Rules for Distributions How Do You Figure the Taxable Part? Must You Withdraw or Use Assets?Minimum distributions. Federal income tax 1040ez Recognizing Losses on Investments Distributions After Owner's Death What's New for 2013 Roth IRA contribution limit. Federal income tax 1040ez  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. Federal income tax 1040ez If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. Federal income tax 1040ez However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Federal income tax 1040ez For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this chapter. Federal income tax 1040ez Modified AGI limit for Roth IRA contributions increased. Federal income tax 1040ez  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Federal income tax 1040ez Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Federal income tax 1040ez You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Federal income tax 1040ez Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. Federal income tax 1040ez You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Federal income tax 1040ez Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. Federal income tax 1040ez You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Federal income tax 1040ez See Can You Contribute to a Roth IRA? in this chapter. Federal income tax 1040ez Net Investment Income Tax. Federal income tax 1040ez  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). Federal income tax 1040ez However, these distributions are taken into account when determining the modified adjusted gross income threshold. Federal income tax 1040ez Distributions from a nonqualified retirement plan are included in net investment income. Federal income tax 1040ez See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. Federal income tax 1040ez What's New for 2014 Modified AGI limit for Roth IRA contributions increased. Federal income tax 1040ez  For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations. Federal income tax 1040ez Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $181,000. Federal income tax 1040ez You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more. Federal income tax 1040ez Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2014 and your modified AGI is at least $114,000. Federal income tax 1040ez You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more. Federal income tax 1040ez Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. Federal income tax 1040ez You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Federal income tax 1040ez Reminders Deemed IRAs. Federal income tax 1040ez  For plan years beginning after 2002, a qualified employer plan (retirement plan) can maintain a separate account or annuity under the plan (a deemed IRA) to receive voluntary employee contributions. Federal income tax 1040ez If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. Federal income tax 1040ez An employee's account can be treated as a traditional IRA or a Roth IRA. Federal income tax 1040ez For this purpose, a “qualified employer plan” includes: A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan), A qualified employee annuity plan (section 403(a) plan), A tax-sheltered annuity plan (section 403(b) plan), and A deferred compensation plan (section 457 plan) maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. Federal income tax 1040ez Designated Roth accounts. Federal income tax 1040ez  Designated Roth accounts are separate accounts under 401(k), 403(b), or 457(b) plans that accept elective deferrals that are referred to as Roth contributions. Federal income tax 1040ez These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. Federal income tax 1040ez Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. Federal income tax 1040ez Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. Federal income tax 1040ez A contribution to one does not impact your eligibility to contribute to the other. Federal income tax 1040ez See Publication 575, for more information on designated Roth accounts. Federal income tax 1040ez Introduction Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA. Federal income tax 1040ez Contributions not reported. Federal income tax 1040ez   You do not report Roth IRA contributions on your return. Federal income tax 1040ez What Is a Roth IRA? A Roth IRA is an individual retirement plan that, except as explained in this chapter, is subject to the rules that apply to a traditional IRA (defined next). Federal income tax 1040ez It can be either an account or an annuity. Federal income tax 1040ez Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened. Federal income tax 1040ez To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. Federal income tax 1040ez A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Federal income tax 1040ez Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. Federal income tax 1040ez But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. Federal income tax 1040ez Contributions can be made to your Roth IRA after you reach age 70½ and you can leave amounts in your Roth IRA as long as you live. Federal income tax 1040ez Traditional IRA. Federal income tax 1040ez   A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. Federal income tax 1040ez Traditional IRAs are discussed in chapter 1. Federal income tax 1040ez When Can a Roth IRA Be Opened? You can open a Roth IRA at any time. Federal income tax 1040ez However, the time for making contributions for any year is limited. Federal income tax 1040ez See When Can You Make Contributions , later under Can You Contribute to a Roth IRA. Federal income tax 1040ez Can You Contribute to a Roth IRA? Generally, you can contribute to a Roth IRA if you have taxable compensation (defined later) and your modified AGI (defined later) is less than: $188,000 for married filing jointly or qualifying widow(er), $127,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year, and $10,000 for married filing separately and you lived with your spouse at any time during the year. Federal income tax 1040ez You may be able to claim a credit for contributions to your Roth IRA. Federal income tax 1040ez For more information, see chapter 4. Federal income tax 1040ez Is there an age limit for contributions?   Contributions can be made to your Roth IRA regardless of your age. Federal income tax 1040ez Can you contribute to a Roth IRA for your spouse?   You can contribute to a Roth IRA for your spouse provided the contributions satisfy the Kay Bailey Hutchison Spousal IRA limit discussed in chapter 1 under How Much Can Be Contributed, you file jointly, and your modified AGI is less than $188,000. Federal income tax 1040ez Compensation. Federal income tax 1040ez   Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services. Federal income tax 1040ez It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. Federal income tax 1040ez For more information, see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1. Federal income tax 1040ez Modified AGI. Federal income tax 1040ez   Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments. Federal income tax 1040ez Use Worksheet 2-1 , later, to determine your modified AGI. Federal income tax 1040ez    Do not subtract conversion income when figuring your other AGI-based phaseouts and taxable income, such as your deduction for medical and dental expenses. Federal income tax 1040ez Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes. Federal income tax 1040ez How Much Can Be Contributed? The contribution limit for Roth IRAs generally depends on whether contributions are made only to Roth IRAs or to both traditional IRAs and Roth IRAs. Federal income tax 1040ez Worksheet 2-1. Federal income tax 1040ez Modified Adjusted Gross Income for Roth IRA Purposes Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes. Federal income tax 1040ez 1. Federal income tax 1040ez Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37 1. Federal income tax 1040ez   2. Federal income tax 1040ez Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA (included on Form 1040, line 15b, Form 1040A, line 11b, or Form 1040NR, line 16b) and a rollover from a qualified retirement plan to a Roth IRA (included on Form 1040, line 16b, Form 1040A, line 12b, or Form 1040NR, line 17b) 2. Federal income tax 1040ez   3. Federal income tax 1040ez Subtract line 2 from line 1 3. Federal income tax 1040ez   4. Federal income tax 1040ez Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 4. Federal income tax 1040ez   5. Federal income tax 1040ez Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 5. Federal income tax 1040ez   6. Federal income tax 1040ez Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 6. Federal income tax 1040ez   7. Federal income tax 1040ez Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 7. Federal income tax 1040ez   8. Federal income tax 1040ez Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 8. Federal income tax 1040ez   9. Federal income tax 1040ez Enter any foreign housing deduction from Form 2555, line 50 9. Federal income tax 1040ez   10. Federal income tax 1040ez Enter any excludable qualified savings bond interest from Form 8815, line 14 10. Federal income tax 1040ez   11. Federal income tax 1040ez Enter any excluded employer-provided adoption benefits from Form 8839, line 28 11. Federal income tax 1040ez   12. Federal income tax 1040ez Add the amounts on lines 3 through 11 12. Federal income tax 1040ez   13. Federal income tax 1040ez Enter: $188,000 if married filing jointly or qualifying widow(er), $10,000 if married filing separately and you lived with your spouse at any time during the year, or $127,000 for all others 13. Federal income tax 1040ez   Is the amount on line 12 more than the amount on line 13? If yes, see the note below. Federal income tax 1040ez  If no, the amount on line 12 is your modified adjusted gross income for Roth IRA purposes. Federal income tax 1040ez       Note. Federal income tax 1040ez If the amount on line 12 is more than the amount on line 13 and you have other income or loss items, such as social security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your modified AGI for Roth IRA purposes. Federal income tax 1040ez (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI. Federal income tax 1040ez ) Then go to line 3 above in this Worksheet 2-1 to refigure your modified AGI. Federal income tax 1040ez If you do not have other income or loss items subject to AGI-based phaseouts, your modified adjusted gross income for Roth IRA purposes is the amount on line 12 above. Federal income tax 1040ez Roth IRAs only. Federal income tax 1040ez   If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation. Federal income tax 1040ez   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced . Federal income tax 1040ez Roth IRAs and traditional IRAs. Federal income tax 1040ez   If contributions are made to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. Federal income tax 1040ez Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. Federal income tax 1040ez   This means that your contribution limit is the lesser of: $5,500 ($6,500 if you are age 50 or older) minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or Your taxable compensation minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. Federal income tax 1040ez   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained below under Contribution limit reduced . Federal income tax 1040ez   Simplified employee pensions (SEPs) are discussed in Publication 560. Federal income tax 1040ez Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3. Federal income tax 1040ez Repayment of reservist distributions. Federal income tax 1040ez   You can repay qualified reservist distributions even if the repayments would cause your total contributions to the Roth IRA to be more than the general limit on contributions. Federal income tax 1040ez However, the total repayments cannot be more than the amount of your distribution. Federal income tax 1040ez Note. Federal income tax 1040ez If you make repayments of qualified reservist distributions to a Roth IRA, increase your basis in the Roth IRA by the amount of the repayment. Federal income tax 1040ez For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. Federal income tax 1040ez Contribution limit reduced. Federal income tax 1040ez   If your modified AGI is above a certain amount, your contribution limit is gradually reduced. Federal income tax 1040ez Use Table 2-1, later, to determine if this reduction applies to you. Federal income tax 1040ez Table 2-1. Federal income tax 1040ez Effect of Modified AGI on Roth IRA Contribution This table shows whether your contribution to a Roth IRA is affected by the amount of your modified adjusted gross income (modified AGI). Federal income tax 1040ez IF you have taxable compensation and your filing status is . Federal income tax 1040ez . Federal income tax 1040ez . Federal income tax 1040ez AND your modified AGI is . Federal income tax 1040ez . Federal income tax 1040ez . Federal income tax 1040ez THEN . Federal income tax 1040ez . Federal income tax 1040ez . Federal income tax 1040ez married filing jointly or  qualifying widow(er) less than $178,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Federal income tax 1040ez at least $178,000 but less than $188,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Federal income tax 1040ez $188,000 or more you cannot contribute to a Roth IRA. Federal income tax 1040ez married filing separately and you lived with your spouse at any time during the year zero (-0-) you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Federal income tax 1040ez more than zero (-0-) but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Federal income tax 1040ez $10,000 or more you cannot contribute to a Roth IRA. Federal income tax 1040ez single, head of household,  or married filing separately and you did not live with your spouse at any time during the year less than $112,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . Federal income tax 1040ez at least $112,000 but less than $127,000 the amount you can contribute is reduced as explained under Contribution limit reduced . Federal income tax 1040ez $127,000 or more you cannot contribute to a Roth IRA. Federal income tax 1040ez Figuring the reduction. Federal income tax 1040ez   If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit. Federal income tax 1040ez Worksheet 2-2. Federal income tax 1040ez Determining Your Reduced Roth IRA Contribution Limit Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. Federal income tax 1040ez If it is, use this worksheet to determine how much it is reduced. Federal income tax 1040ez 1. Federal income tax 1040ez Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Federal income tax 1040ez   2. Federal income tax 1040ez Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. Federal income tax 1040ez   3. Federal income tax 1040ez Subtract line 2 from line 1 3. Federal income tax 1040ez   4. Federal income tax 1040ez Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. Federal income tax 1040ez   5. Federal income tax 1040ez Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Federal income tax 1040ez If the result is 1. Federal income tax 1040ez 000 or more, enter 1. Federal income tax 1040ez 000 5. Federal income tax 1040ez   6. Federal income tax 1040ez Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Federal income tax 1040ez   7. Federal income tax 1040ez Multiply line 5 by line 6 7. Federal income tax 1040ez   8. Federal income tax 1040ez Subtract line 7 from line 6. Federal income tax 1040ez Round the result up to the nearest $10. Federal income tax 1040ez If the result is less than $200, enter $200 8. Federal income tax 1040ez   9. Federal income tax 1040ez Enter contributions for the year to other IRAs 9. Federal income tax 1040ez   10. Federal income tax 1040ez Subtract line 9 from line 6 10. Federal income tax 1040ez   11. Federal income tax 1040ez Enter the lesser of line 8 or line 10. Federal income tax 1040ez This is your reduced Roth IRA contribution limit 11. Federal income tax 1040ez      Round your reduced contribution limit up to the nearest $10. Federal income tax 1040ez If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. Federal income tax 1040ez Example. Federal income tax 1040ez You are a 45-year-old, single individual with taxable compensation of $113,000. Federal income tax 1040ez You want to make the maximum allowable contribution to your Roth IRA for 2013. Federal income tax 1040ez Your modified AGI for 2013 is $113,000. Federal income tax 1040ez You have not contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $5,500. Federal income tax 1040ez You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. Federal income tax 1040ez Example—Illustrated, later. Federal income tax 1040ez   Worksheet 2-2. Federal income tax 1040ez Example—Illustrated Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. Federal income tax 1040ez If it is, use this worksheet to determine how much it is reduced. Federal income tax 1040ez 1. Federal income tax 1040ez Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. Federal income tax 1040ez 113,000 2. Federal income tax 1040ez Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. Federal income tax 1040ez 112,000 3. Federal income tax 1040ez Subtract line 2 from line 1 3. Federal income tax 1040ez 1,000 4. Federal income tax 1040ez Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. Federal income tax 1040ez 15,000 5. Federal income tax 1040ez Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). Federal income tax 1040ez If the result is 1. Federal income tax 1040ez 000 or more, enter 1. Federal income tax 1040ez 000 5. Federal income tax 1040ez . Federal income tax 1040ez 067 6. Federal income tax 1040ez Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. Federal income tax 1040ez 5,500 7. Federal income tax 1040ez Multiply line 5 by line 6 7. Federal income tax 1040ez 369 8. Federal income tax 1040ez Subtract line 7 from line 6. Federal income tax 1040ez Round the result up to the nearest $10. Federal income tax 1040ez If the result is less than $200, enter $200 8. Federal income tax 1040ez 5,140 9. Federal income tax 1040ez Enter contributions for the year to other IRAs 9. Federal income tax 1040ez 0 10. Federal income tax 1040ez Subtract line 9 from line 6 10. Federal income tax 1040ez 5,500 11. Federal income tax 1040ez Enter the lesser of line 8 or line 10. Federal income tax 1040ez This is your reduced Roth IRA contribution limit 11. Federal income tax 1040ez 5,140 When Can You Make Contributions? You can make contributions to a Roth IRA for a year at any time during the year or by the due date of your return for that year (not including extensions). Federal income tax 1040ez You can make contributions for 2013 by the due date (not including extensions) for filing your 2013 tax return. Federal income tax 1040ez This means that most people can make contributions for 2013 by April 15, 2014. Federal income tax 1040ez What if You Contribute Too Much? A 6% excise tax applies to any excess contribution to a Roth IRA. Federal income tax 1040ez Excess contributions. Federal income tax 1040ez   These are the contributions to your Roth IRAs for a year that equal the total of: Amounts contributed for the tax year to your Roth IRAs (other than amounts properly and timely rolled over from a Roth IRA or properly converted from a traditional IRA or rolled over from a qualified retirement plan, as described later) that are more than your contribution limit for the year (explained earlier under How Much Can Be Contributed? ), plus Any excess contributions for the preceding year, reduced by the total of: Any distributions out of your Roth IRAs for the year, plus Your contribution limit for the year minus your contributions to all your IRAs for the year. Federal income tax 1040ez Withdrawal of excess contributions. Federal income tax 1040ez   For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. Federal income tax 1040ez This treatment only applies if any earnings on the contributions are also withdrawn. Federal income tax 1040ez The earnings are considered earned and received in the year the excess contribution was made. Federal income tax 1040ez   If you timely filed your 2013 tax return without withdrawing a contribution that you made in 2013, you can still have the contribution returned to you within 6 months of the due date of your 2013 tax return, excluding extensions. Federal income tax 1040ez If you do, file an amended return with “Filed pursuant to section 301. Federal income tax 1040ez 9100-2” written at the top. Federal income tax 1040ez Report any related earnings on the amended return and include an explanation of the withdrawal. Federal income tax 1040ez Make any other necessary changes on the amended return. Federal income tax 1040ez Applying excess contributions. Federal income tax 1040ez    If contributions to your Roth IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. Federal income tax 1040ez Can You Move Amounts Into a Roth IRA? You may be able to convert amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. Federal income tax 1040ez You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. Federal income tax 1040ez You may be able to recharacterize contributions made to one IRA as having been made directly to a different IRA. Federal income tax 1040ez You can roll amounts over from a designated Roth account or from one Roth IRA to another Roth IRA. Federal income tax 1040ez Conversions You can convert a traditional IRA to a Roth IRA. Federal income tax 1040ez The conversion is treated as a rollover, regardless of the conversion method used. Federal income tax 1040ez Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Federal income tax 1040ez However, the 1-year waiting period does not apply. Federal income tax 1040ez Conversion methods. Federal income tax 1040ez   You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. Federal income tax 1040ez Rollover. Federal income tax 1040ez You can receive a distribution from a traditional IRA and roll it over (contribute it) to a Roth IRA within 60 days after the distribution. Federal income tax 1040ez Trustee-to-trustee transfer. Federal income tax 1040ez You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. Federal income tax 1040ez Same trustee transfer. Federal income tax 1040ez If the trustee of the traditional IRA also maintains the Roth IRA, you can direct the trustee to transfer an amount from the traditional IRA to the Roth IRA. Federal income tax 1040ez Same trustee. Federal income tax 1040ez   Conversions made with the same trustee can be made by redesignating the traditional IRA as a Roth IRA, rather than opening a new account or issuing a new contract. Federal income tax 1040ez Income. Federal income tax 1040ez   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. Federal income tax 1040ez These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. Federal income tax 1040ez If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Federal income tax 1040ez See Publication 505, Tax Withholding and Estimated Tax. Federal income tax 1040ez More information. Federal income tax 1040ez   For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Federal income tax 1040ez Rollover From Employer's Plan Into a Roth IRA You can roll over into a Roth IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan); Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). Federal income tax 1040ez Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. Federal income tax 1040ez See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. Federal income tax 1040ez Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan. Federal income tax 1040ez Rollover methods. Federal income tax 1040ez   You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the following ways. Federal income tax 1040ez Rollover. Federal income tax 1040ez You can receive a distribution from a qualified retirement plan and roll it over (contribute) to a Roth IRA within 60 days after the distribution. Federal income tax 1040ez Since the distribution is paid directly to you, the payer generally must withhold 20% of it. Federal income tax 1040ez Direct rollover option. Federal income tax 1040ez Your employer's qualified plan must give you the option to have any part of an eligible rollover distribution paid directly to a Roth IRA. Federal income tax 1040ez Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the Roth IRA. Federal income tax 1040ez Rollover by nonspouse beneficiary. Federal income tax 1040ez   If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you can roll over all or part of an eligible rollover distribution from one of the types of plans listed above into a Roth IRA. Federal income tax 1040ez You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. Federal income tax 1040ez   You will determine your required minimum distributions in years after you make the rollover based on whether the employee died before his or her required beginning date for taking distributions from the plan. Federal income tax 1040ez For more information, see Distributions after the employee’s death under Tax on Excess Accumulation in Publication 575. Federal income tax 1040ez Income. Federal income tax 1040ez   You must include in your gross income distributions from a qualified retirement plan that you would have had to include in income if you had not rolled them over into a Roth IRA. Federal income tax 1040ez You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions (after-tax contributions) to the plan that were taxable to you when paid. Federal income tax 1040ez These amounts are normally included in income on your return for the year of the rollover from the qualified employer plan to a Roth IRA. Federal income tax 1040ez If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Federal income tax 1040ez See Publication 505, Tax Withholding and Estimated Tax. Federal income tax 1040ez For more information on eligible rollover distributions from qualified retirement plans and withholding, see Rollover From Employer's Plan Into an IRA in chapter 1. Federal income tax 1040ez Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments If you received a military death gratuity or SGLI payment with respect to a death from injury that occurred after October 6, 2001, you can contribute (roll over) all or part of the amount received to your Roth IRA. Federal income tax 1040ez The contribution is treated as a qualified rollover contribution. Federal income tax 1040ez The amount you can roll over to your Roth IRA cannot exceed the total amount that you received reduced by any part of that amount that was contributed to a Coverdell ESA or another Roth IRA. Federal income tax 1040ez Any military death gratuity or SGLI payment contributed to a Roth IRA is disregarded for purposes of the 1-year waiting period between rollovers. Federal income tax 1040ez The rollover must be completed before the end of the 1-year period beginning on the date you received the payment. Federal income tax 1040ez The amount contributed to your Roth IRA is treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. Federal income tax 1040ez Rollover From a Roth IRA You can withdraw, tax free, all or part of the assets from one Roth IRA if you contribute them within 60 days to another Roth IRA. Federal income tax 1040ez Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. Federal income tax 1040ez However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. Federal income tax 1040ez A rollover from a Roth IRA to an employer retirement plan is not allowed. Federal income tax 1040ez A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. Federal income tax 1040ez If you roll over an amount from one Roth IRA to another Roth IRA, the 5-year period used to determine qualified distributions does not change. Federal income tax 1040ez The 5-year period begins with the first taxable year for which the contribution was made to the initial Roth IRA. Federal income tax 1040ez See What are Qualified Distributions , later. Federal income tax 1040ez Rollover of Exxon Valdez Settlement Income If you are a qualified taxpayer (defined in chapter 1, earlier) and you received qualified settlement income (defined in chapter 1, earlier), you can contribute all or part of the amount received to an eligible retirement plan which includes a Roth IRA. Federal income tax 1040ez The rules for contributing qualified settlement income to a Roth IRA are the same as the rules for contributing qualified settlement income to a traditional IRA with the following exception. Federal income tax 1040ez Qualified settlement income that is contributed to a Roth IRA, or to a designated Roth account, will be: Included in your taxable income for the year the qualified settlement income was received, and Treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. Federal income tax 1040ez For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. Federal income tax 1040ez Rollover of Airline Payments If you are a qualified airline employee (defined next), you may contribute any portion of an airline payment (defined below) you receive to a Roth IRA. Federal income tax 1040ez The contribution must be made within 180 days from the date you received the payment. Federal income tax 1040ez The contribution will be treated as a qualified rollover contribution. Federal income tax 1040ez The rollover contribution is included in income to the extent it would be included in income if it were not part of the rollover contribution. Federal income tax 1040ez Also, any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can contribute to your Roth IRA. Federal income tax 1040ez Qualified airline employee. Federal income tax 1040ez    A current or former employee of a commercial airline carrier who was a participant in a qualified defined benefit plan maintained by the carrier which was terminated or became subject to restrictions under Section 402(b) of the Pension Protection Act of 2006. Federal income tax 1040ez These provisions also apply to surviving spouses of qualified airline employees. Federal income tax 1040ez Airline payment. Federal income tax 1040ez    An airline payment is any payment of money or other property that is paid to a qualified airline employee from a commercial airline carrier. Federal income tax 1040ez The payment also must be made both: Under the approval of an order of federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, and In respect of the qualified airline employee’s interest in a bankruptcy claim against the airline carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount. Federal income tax 1040ez Any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can roll over to your traditional IRA. Federal income tax 1040ez Also, an airline payment shall not include any amount payable on the basis of the airline carrier’s future earnings or profits. Federal income tax 1040ez Are Distributions Taxable? You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). Federal income tax 1040ez You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. Federal income tax 1040ez You may have to include part of other distributions in your income. Federal income tax 1040ez See Ordering Rules for Distributions , later. Federal income tax 1040ez Basis of distributed property. Federal income tax 1040ez   The basis of property distributed from a Roth IRA is its fair market value (FMV) on the date of distribution, whether or not the distribution is a qualified distribution. Federal income tax 1040ez Withdrawals of contributions by due date. Federal income tax 1040ez   If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them. Federal income tax 1040ez If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. Federal income tax 1040ez The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions. Federal income tax 1040ez What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. Federal income tax 1040ez It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and The payment or distribution is: Made on or after the date you reach age 59½, Made because you are disabled (defined earlier), Made to a beneficiary or to your estate after your death, or One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit). Federal income tax 1040ez Additional Tax on Early Distributions If you receive a distribution that is not a qualified distribution, you may have to pay the 10% additional tax on early distributions as explained in the following paragraphs. Federal income tax 1040ez Distributions of conversion and certain rollover contributions within 5-year period. Federal income tax 1040ez   If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or rollover an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. Federal income tax 1040ez You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). Federal income tax 1040ez A separate 5-year period applies to each conversion and rollover. Federal income tax 1040ez See Ordering Rules for Distributions , later, to determine the recapture amount, if any. Federal income tax 1040ez   The 5-year period used for determining whether the 10% early distribution tax applies to a distribution from a conversion or rollover contribution is separately determined for each conversion and rollover, and is not necessarily the same as the 5-year period used for determining whether a distribution is a qualified distribution. Federal income tax 1040ez See What Are Qualified Distributions , earlier. Federal income tax 1040ez   For example, if a calendar-year taxpayer makes a conversion contribution on February 25, 2013, and makes a regular contribution for 2012 on the same date, the 5-year period for the conversion begins January 1, 2013, while the 5-year period for the regular contribution begins on January 1, 2012. Federal income tax 1040ez   Unless one of the exceptions listed later applies, you must pay the additional tax on the portion of the distribution attributable to the part of the conversion or rollover contribution that you had to include in income because of the conversion or rollover. Federal income tax 1040ez   You must pay the 10% additional tax in the year of the distribution, even if you had included the conversion or rollover contribution in an earlier year. Federal income tax 1040ez You also must pay the additional tax on any portion of the distribution attributable to earnings on contributions. Federal income tax 1040ez Other early distributions. Federal income tax 1040ez   Unless one of the exceptions listed below applies, you must pay the 10% additional tax on the taxable part of any distributions that are not qualified distributions. Federal income tax 1040ez Exceptions. Federal income tax 1040ez   You may not have to pay the 10% additional tax in the following situations. Federal income tax 1040ez You have reached age 59½. Federal income tax 1040ez You are totally and permanently disabled. Federal income tax 1040ez You are the beneficiary of a deceased IRA owner. Federal income tax 1040ez You use the distribution to buy, build, or rebuild a first home. Federal income tax 1040ez The distributions are part of a series of substantially equal payments. Federal income tax 1040ez You have unreimbursed medical expenses that are more than 10% (or 7. Federal income tax 1040ez 5% if you or your spouse was born before January 2, 1949) of your adjusted gross income (defined earlier) for the year. Federal income tax 1040ez You are paying medical insurance premiums during a period of unemployment. Federal income tax 1040ez The distributions are not more than your qualified higher education expenses. Federal income tax 1040ez The distribution is due to an IRS levy of the qualified plan. Federal income tax 1040ez The distribution is a qualified reservist distribution. Federal income tax 1040ez Most of these exceptions are discussed earlier in chapter 1 under Early Distributions . Federal income tax 1040ez Please click here for the text description of the image. Federal income tax 1040ez Is Roth Distributions a Qualified Distribution? Ordering Rules for Distributions If you receive a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. Federal income tax 1040ez There is a set order in which contributions (including conversion contributions and rollover contributions from qualified retirement plans) and earnings are considered to be distributed from your Roth IRA. Federal income tax 1040ez For these purposes, disregard the withdrawal of excess contributions and the earnings on them (discussed earlier under What if You Contribute Too Much ). Federal income tax 1040ez Order the distributions as follows. Federal income tax 1040ez Regular contributions. Federal income tax 1040ez Conversion and rollover contributions, on a first-in, first-out basis (generally, total conversions and rollovers from the earliest year first). Federal income tax 1040ez See Aggregation (grouping and adding) rules, later. Federal income tax 1040ez Take these conversion and rollover contributions into account as follows: Taxable portion (the amount required to be included in gross income because of the conversion or rollover) first, and then the Nontaxable portion. Federal income tax 1040ez Earnings on contributions. Federal income tax 1040ez Disregard rollover contributions from other Roth IRAs for this purpose. Federal income tax 1040ez Aggregation (grouping and adding) rules. Federal income tax 1040ez   Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them together as follows. Federal income tax 1040ez Add all distributions from all your Roth IRAs during the year together. Federal income tax 1040ez Add all regular contributions made for the year (including contributions made after the close of the year, but before the due date of your return) together. Federal income tax 1040ez Add this total to the total undistributed regular contributions made in prior years. Federal income tax 1040ez Add all conversion and rollover contributions made during the year together. Federal income tax 1040ez For purposes of the ordering rules, in the case of any conversion or rollover in which the conversion or rollover distribution is made in 2013 and the conversion or rollover contribution is made in 2014, treat the conversion or rollover contribution as contributed before any other conversion or rollover contributions made in 2014. Federal income tax 1040ez Add any recharacterized contributions that end up in a Roth IRA to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. Federal income tax 1040ez   Disregard any recharacterized contribution that ends up in an IRA other than a Roth IRA for the purpose of grouping (aggregating) both contributions and distributions. Federal income tax 1040ez Also disregard any amount withdrawn to correct an excess contribution (including the earnings withdrawn) for this purpose. Federal income tax 1040ez Example. Federal income tax 1040ez On October 15, 2009, Justin converted all $80,000 in his traditional IRA to his Roth IRA. Federal income tax 1040ez His Forms 8606 from prior years show that $20,000 of the amount converted is his basis. Federal income tax 1040ez Justin included $60,000 ($80,000 − $20,000) in his gross income. Federal income tax 1040ez On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. Federal income tax 1040ez On November 8, 2013, at age 60, Justin took a $7,000 distribution from his Roth IRA. Federal income tax 1040ez The first $5,000 of the distribution is a return of Justin's regular contribution and is not includible in his income. Federal income tax 1040ez The next $2,000 of the distribution is not includible in income because it was included previously. Federal income tax 1040ez Figuring your recapture amount. Federal income tax 1040ez   If you had an early distribution from your Roth IRAs in 2013, you must allocate the early distribution by using the Recapture Amount—Allocation Chart, later. Federal income tax 1040ez Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19   Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. Federal income tax 1040ez   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). Federal income tax 1040ez The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Federal income tax 1040ez Note. Federal income tax 1040ez Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Federal income tax 1040ez See the Example , earlier. Federal income tax 1040ez Tax Year Your Form 2013 Form 8606, line 20   Form 8606, line 22   1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18   Form 8606, line 17   2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. Federal income tax 1040ez  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Federal income tax 1040ez Amount to include on Form 5329, line 1. Federal income tax 1040ez   Include on line 1 of your 2013 Form 5329 the following four amounts from the Recapture Amount—Allocation Chart that you filled out. Federal income tax 1040ez The amount you allocated to line 20 of your 2013 Form 8606. Federal income tax 1040ez The amount(s) allocated to your 2009 through 2013 Forms 8606, line 18, and your 2010 Form 8606, line 23. Federal income tax 1040ez The amount(s) allocated to your 2009, 2011, 2012, and 2013 Forms 1040, line 16b; Forms 1040A, line 12b; and Forms 1040NR, line 17b. Federal income tax 1040ez The amount from your 2013 Form 8606, line 25. Federal income tax 1040ez   Also, include any amount you allocated to line 20 of your 2013 Form 8606 on your 2013 Form 5329, line 2, and enter exception number 09. Federal income tax 1040ez Example. Federal income tax 1040ez Ishmael, age 32, opened a Roth IRA in 2000. Federal income tax 1040ez He made the maximum contributions to it every year. Federal income tax 1040ez In addition, he made the following transactions into his Roth IRA. Federal income tax 1040ez In 2005, he converted $10,000 from his traditional IRA into his Roth IRA. Federal income tax 1040ez He filled out a 2005 Form 8606 and attached it with his 2005 Form 1040. Federal income tax 1040ez He entered $0 on line 17 of Form 8606 because he took a deduction for all the contributions to the traditional IRA, therefore he has no basis. Federal income tax 1040ez He entered $10,000 on line 18 of Form 8606. Federal income tax 1040ez In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he changed jobs. Federal income tax 1040ez He used a 2011 Form 1040 to file his taxes. Federal income tax 1040ez He entered $20,000 on line 16a of Form 1040 because that was the amount reported in box 1 of his 2011 Form 1099-R. Federal income tax 1040ez Box 5 of his 2011 Form 1099-R reported $0 since he did not make any after-tax contributions to the qualified retirement plan. Federal income tax 1040ez He entered $20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011. Federal income tax 1040ez The total balance in his Roth IRA as of January 1, 2013 was $105,000 ($50,000 in contributions from 2000 through 2012 + $10,000 from the 2005 conversion + $20,000 from the 2011 rollover + $25,000 from earnings). Federal income tax 1040ez He has not taken any early distribution from his Roth IRA before 2013. Federal income tax 1040ez In 2013, he made the maximum contribution of $5,500 to his Roth IRA. Federal income tax 1040ez In August of 2013, he took a $85,500 early distribution from his Roth IRA to use as a down payment on the purchase of his first home. Federal income tax 1040ez See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. Federal income tax 1040ez Based on his allocation, he would enter $20,000 on his 2013 Form 5329, line 1 (see Amount to include on Form 5329, line 1 , above). Federal income tax 1040ez He should also report $10,000 on his 2013 Form 5329, line 2, and enter exception 09 since that amount is not subject to the 10% additional tax on early distributions. Federal income tax 1040ez Illustrated Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19 $85,500 Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. Federal income tax 1040ez   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). Federal income tax 1040ez The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. Federal income tax 1040ez Note. Federal income tax 1040ez Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. Federal income tax 1040ez See the Example , earlier. Federal income tax 1040ez Tax Year Your Form 2013 Form 8606, line 20 $10,000 Form 8606, line 22 $55,500 1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18 $10,000 Form 8606, line 17 $-0- 2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b* $10,000 Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. Federal income tax 1040ez  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. Federal income tax 1040ez How Do You Figure the Taxable Part? To figure the taxable part of a distribution that is not a qualified distribution, complete Form 8606, Part III. Federal income tax 1040ez Must You Withdraw or Use Assets? You are not required to take distributions from your Roth IRA at any age. Federal income tax 1040ez The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive. Federal income tax 1040ez However, after the death of a Roth IRA owner, certain of the minimum distribution rules that apply to traditional IRAs also apply to Roth IRAs as explained later under Distributions After Owner's Death . Federal income tax 1040ez Minimum distributions. Federal income tax 1040ez   You cannot use your Roth IRA to satisfy minimum distribution requirements for your traditional IRA. Federal income tax 1040ez Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. Federal income tax 1040ez See Distributions to beneficiaries , later. Federal income tax 1040ez Recognizing Losses on Investments If you have a loss on your Roth IRA investment, you can recognize the loss on your income tax return, but only when all the amounts in all of your Roth IRA accounts have been distributed to you and the total distributions are less than your unrecovered basis. Federal income tax 1040ez Your basis is the total amount of contributions in your Roth IRAs. Federal income tax 1040ez You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions on Schedule A (Form 1040). Federal income tax 1040ez Any such losses are added back to taxable income for purposes of calculating the alternative minimum tax. Federal income tax 1040ez Distributions After Owner's Death If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before his or her required beginning date. Federal income tax 1040ez See When Can You Withdraw or Use Assets? in chapter 1. Federal income tax 1040ez Distributions to beneficiaries. Federal income tax 1040ez   Generally, the entire interest in the Roth IRA must be distributed by the end of the fifth calendar year after the year of the owner's death unless the interest is payable to a designated beneficiary over the life or life expectancy of the designated beneficiary. Federal income tax 1040ez (See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. Federal income tax 1040ez )   If paid as an annuity, the entire interest must be payable over a period not greater than the designated beneficiary's life expectancy and distributions must begin before the end of the calendar year following the year of death. Federal income tax 1040ez Distributions from another Roth IRA cannot be substituted for these distributions unless the other Roth IRA was inherited from the same decedent. Federal income tax 1040ez   If the sole beneficiary is the spouse, he or she can either delay distributions until the decedent would have reached age 70½ or treat the Roth IRA as his or her own. Federal income tax 1040ez Combining with other Roth IRAs. Federal income tax 1040ez   A beneficiary can combine an inherited Roth IRA with another Roth IRA maintained by the beneficiary only if the beneficiary either: Inherited the other Roth IRA from the same decedent, or Was the spouse of the decedent and the sole beneficiary of the Roth IRA and elects to treat it as his or her own IRA. Federal income tax 1040ez Distributions that are not qualified distributions. Federal income tax 1040ez   If a distribution to a beneficiary is not a qualified distribution, it is generally includible in the beneficiary's gross income in the same manner as it would have been included in the owner's income had it been distributed to the IRA owner when he or she was alive. Federal income tax 1040ez   If the owner of a Roth IRA dies before the end of: The 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for the owner's benefit, or The 5-year period starting with the year of a conversion contribution from a traditional IRA or a rollover from a qualified retirement plan to a Roth IRA, each type of contribution is divided among multiple beneficiaries according to the pro-rata share of each. Federal income tax 1040ez See Ordering Rules for Distributions , earlier in this chapter under Are Distributions Taxable. Federal income tax 1040ez Example. Federal income tax 1040ez When Ms. Federal income tax 1040ez Hibbard died in 2013, her Roth IRA contained regular contributions of $4,000, a conversion contribution of $10,000 that was made in 2009, and earnings of $2,000. Federal income tax 1040ez No distributions had been made from her IRA. Federal income tax 1040ez She had no basis in the conversion contribution in 2009. Federal income tax 1040ez When she established this Roth IRA (her first) in 2009, she named each of her four children as equal beneficiaries. Federal income tax 1040ez Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. Federal income tax 1040ez An immediate distribution of $4,000 to each child will be treated as $1,000 from regular contributions, $2,500 from conversion contributions, and $500 from earnings. Federal income tax 1040ez In this case, because the distributions are made before the end of the applicable 5-year period for a qualified distribution, each beneficiary includes $500 in income for 2013. Federal income tax 1040ez The 10% additional tax on early distributions does not apply because the distribution was made to the beneficiaries as a result of the death of the IRA owner. Federal income tax 1040ez If distributions from an inherited Roth IRA are less than the required minimum distribution for the year, discussed in chapter 1 under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 50% excise tax for that year on the amount not distributed as required. Federal income tax 1040ez For the tax on excess accumulations (insufficient distributions), see Excess Accumulations (Insufficient Distributions) under What Acts Result in Penalties or Additional Taxes? in chapter 1. Federal income tax 1040ez If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion. Federal income tax 1040ez Prev  Up  Next   Home   More Online Publications