Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

File 2010 Taxes Late Online Free

File State Taxes FreeFile Past Year TaxesFree Online Tax Extension Form1040zH&r Block Free EfileHow To File A Tax Amendment OnlineDownload A 1040ez Federal Tax FormFile Taxes For 2012 FreeWhere Can I Get A 1040x Tax FormFree Federal Tax ReturnAarp Free Tax PreparationMilitary Tax CreditsTurbo TaxFree State File1040ezform2011 1040ez Federal Income Tax Filing OnlineFiling An Amended Tax Return1040ez 2010printable Tax FormsAmended Tax Return Form 20132007 TaxesFiling Free State ReturnsArmy Free Turbo TaxHow To File TaxesState Tax Form1040 Ez 2011Free Federal And State Tax Filing 2012Can I Still File My 2010 TaxesFree 1040ez FilingIrs Mailing Address 1040ezHow To File 2007 Taxes Online FreeFree Online Tax ExtensionElectronic File 1040ezNeed 2011 TaxesWww Taxcut Com1040 NrTax Software 2011How Do You File State Income Taxes1040ez Online FilingTax Forms 1040ezFill Out 1040ez Online

File 2010 Taxes Late Online Free

File 2010 taxes late online free 5. File 2010 taxes late online free   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. File 2010 taxes late online free Making the election. File 2010 taxes late online free Form 3115. File 2010 taxes late online free Income TaxesAccrual of contested income taxes. File 2010 taxes late online free Employment Taxes Other TaxesAdditional Medicare Tax. File 2010 taxes late online free What's New Additional Medicare Tax. File 2010 taxes late online free  Beginning in 2013, you must withhold a 0. File 2010 taxes late online free 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. File 2010 taxes late online free Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. File 2010 taxes late online free See Employment Taxes , and Self-employment tax , later. File 2010 taxes late online free Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. File 2010 taxes late online free You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. File 2010 taxes late online free Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. File 2010 taxes late online free When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. File 2010 taxes late online free This applies whether you use the cash method or an accrual method of accounting. File 2010 taxes late online free Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. File 2010 taxes late online free You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . File 2010 taxes late online free Limit on accrual of taxes. File 2010 taxes late online free   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. File 2010 taxes late online free However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. File 2010 taxes late online free Example. File 2010 taxes late online free Your state imposes a tax on personal property used in a trade or business conducted in the state. File 2010 taxes late online free This tax is assessed and becomes a lien as of July 1 (accrual date). File 2010 taxes late online free In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. File 2010 taxes late online free Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. File 2010 taxes late online free You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. File 2010 taxes late online free Uniform capitalization rules. File 2010 taxes late online free   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. File 2010 taxes late online free They also apply to certain taxpayers who acquire property for resale. File 2010 taxes late online free Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. File 2010 taxes late online free For more information, see chapter 1. File 2010 taxes late online free Carrying charges. File 2010 taxes late online free   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. File 2010 taxes late online free You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. File 2010 taxes late online free For more information, see chapter 7. File 2010 taxes late online free Refunds of taxes. File 2010 taxes late online free   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. File 2010 taxes late online free For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. File 2010 taxes late online free    You must include in income any interest you receive on tax refunds. File 2010 taxes late online free Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. File 2010 taxes late online free The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. File 2010 taxes late online free Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. File 2010 taxes late online free See Taxes for local benefits , later. File 2010 taxes late online free If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. File 2010 taxes late online free However, you can elect to ratably accrue the taxes during the year. File 2010 taxes late online free See Electing to ratably accrue , later. File 2010 taxes late online free Taxes for local benefits. File 2010 taxes late online free   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. File 2010 taxes late online free These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. File 2010 taxes late online free You should increase the basis of your property by the amount of the assessment. File 2010 taxes late online free   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. File 2010 taxes late online free If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. File 2010 taxes late online free Example. File 2010 taxes late online free To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. File 2010 taxes late online free The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. File 2010 taxes late online free The city is paying the principal and interest with the annual payments made by the property owners. File 2010 taxes late online free The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. File 2010 taxes late online free The part of the payments used to pay the interest charges on the bonds is deductible as taxes. File 2010 taxes late online free Charges for services. File 2010 taxes late online free   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. File 2010 taxes late online free Purchase or sale of real estate. File 2010 taxes late online free   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. File 2010 taxes late online free   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. File 2010 taxes late online free Treat the seller as paying the taxes up to but not including the date of sale. File 2010 taxes late online free Treat the buyer as paying the taxes beginning with the date of sale. File 2010 taxes late online free You can usually find this information on the settlement statement you received at closing. File 2010 taxes late online free   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. File 2010 taxes late online free Example. File 2010 taxes late online free Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. File 2010 taxes late online free He has not elected to ratably accrue property taxes. File 2010 taxes late online free November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. File 2010 taxes late online free He sold the property on June 30, 2013. File 2010 taxes late online free Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. File 2010 taxes late online free He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. File 2010 taxes late online free Electing to ratably accrue. File 2010 taxes late online free   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. File 2010 taxes late online free Example. File 2010 taxes late online free Juan Sanchez is a calendar year taxpayer who uses an accrual method. File 2010 taxes late online free His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. File 2010 taxes late online free July 1 is the assessment and lien date. File 2010 taxes late online free If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. File 2010 taxes late online free Separate elections. File 2010 taxes late online free   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. File 2010 taxes late online free Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. File 2010 taxes late online free See Form 3115 , later. File 2010 taxes late online free Making the election. File 2010 taxes late online free   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. File 2010 taxes late online free The statement should show all the following items. File 2010 taxes late online free The trades or businesses to which the election applies and the accounting method or methods used. File 2010 taxes late online free The period to which the taxes relate. File 2010 taxes late online free The computation of the real estate tax deduction for that first year. File 2010 taxes late online free   Generally, you must file your return by the due date (including extensions). File 2010 taxes late online free However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). File 2010 taxes late online free Attach the statement to the amended return and write “Filed pursuant to section 301. File 2010 taxes late online free 9100-2” on the statement. File 2010 taxes late online free File the amended return at the same address where you filed the original return. File 2010 taxes late online free Form 3115. File 2010 taxes late online free    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. File 2010 taxes late online free For more information, including applicable time frames for filing, see the Instructions for Form 3115. File 2010 taxes late online free Note. File 2010 taxes late online free If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. File 2010 taxes late online free R. File 2010 taxes late online free B. File 2010 taxes late online free 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. File 2010 taxes late online free R. File 2010 taxes late online free B. File 2010 taxes late online free 689, and Revenue Procedure 2012-20, 2012-14 I. File 2010 taxes late online free R. File 2010 taxes late online free B. File 2010 taxes late online free 700, or any successor. File 2010 taxes late online free Revenue Procedure 2011-14 is available at  www. File 2010 taxes late online free irs. File 2010 taxes late online free gov/irb/2011-04IRB/ar08. File 2010 taxes late online free html. File 2010 taxes late online free Income Taxes This section discusses federal, state, local, and foreign income taxes. File 2010 taxes late online free Federal income taxes. File 2010 taxes late online free   You cannot deduct federal income taxes. File 2010 taxes late online free State and local income taxes. File 2010 taxes late online free   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. File 2010 taxes late online free An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). File 2010 taxes late online free   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. File 2010 taxes late online free Accrual of contested income taxes. File 2010 taxes late online free   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. File 2010 taxes late online free   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. File 2010 taxes late online free You cannot deduct them in the year in which the liability is finally determined. File 2010 taxes late online free    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. File 2010 taxes late online free Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. File 2010 taxes late online free   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. File 2010 taxes late online free You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. File 2010 taxes late online free For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. File 2010 taxes late online free Foreign income taxes. File 2010 taxes late online free   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. File 2010 taxes late online free S. File 2010 taxes late online free possession. File 2010 taxes late online free However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. File 2010 taxes late online free S. File 2010 taxes late online free tax under the foreign earned income exclusion or the foreign housing exclusion. File 2010 taxes late online free For information on these exclusions, see Publication 54, Tax Guide for U. File 2010 taxes late online free S. File 2010 taxes late online free Citizens and Resident Aliens Abroad. File 2010 taxes late online free For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. File 2010 taxes late online free Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. File 2010 taxes late online free Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. File 2010 taxes late online free You may also need to pay certain employment taxes from your own funds. File 2010 taxes late online free These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. File 2010 taxes late online free Note. File 2010 taxes late online free Additional Medicare Tax is only imposed on the employee. File 2010 taxes late online free There is no employer share of Additional Medicare Tax. File 2010 taxes late online free Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. File 2010 taxes late online free You can deduct the employment taxes you must pay from your own funds as taxes. File 2010 taxes late online free Example. File 2010 taxes late online free You pay your employee $18,000 a year. File 2010 taxes late online free However, after you withhold various taxes, your employee receives $14,500. File 2010 taxes late online free You also pay an additional $1,500 in employment taxes. File 2010 taxes late online free You should deduct the full $18,000 as wages. File 2010 taxes late online free You can deduct the $1,500 you pay from your own funds as taxes. File 2010 taxes late online free For more information on employment taxes, see Publication 15 (Circular E). File 2010 taxes late online free Unemployment fund taxes. File 2010 taxes late online free   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. File 2010 taxes late online free Deduct these payments as taxes. File 2010 taxes late online free Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. File 2010 taxes late online free Excise taxes. File 2010 taxes late online free   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. File 2010 taxes late online free However, see Fuel taxes , later. File 2010 taxes late online free   For more information on excise taxes, see Publication 510. File 2010 taxes late online free Franchise taxes. File 2010 taxes late online free   You can deduct corporate franchise taxes as a business expense. File 2010 taxes late online free Fuel taxes. File 2010 taxes late online free   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. File 2010 taxes late online free Do not deduct these taxes as a separate item. File 2010 taxes late online free   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. File 2010 taxes late online free For more information, see Publication 510. File 2010 taxes late online free Occupational taxes. File 2010 taxes late online free   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. File 2010 taxes late online free Personal property tax. File 2010 taxes late online free   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. File 2010 taxes late online free Sales tax. File 2010 taxes late online free   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. File 2010 taxes late online free If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. File 2010 taxes late online free If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. File 2010 taxes late online free If the property is depreciable, add the sales tax to the basis for depreciation. File 2010 taxes late online free For more information on basis, see Publication 551. File 2010 taxes late online free    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. File 2010 taxes late online free Also, do not include these taxes in gross receipts or sales. File 2010 taxes late online free Self-employment tax. File 2010 taxes late online free   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. File 2010 taxes late online free This deduction only affects your income tax. File 2010 taxes late online free It does not affect your net earnings from self-employment or your self-employment tax. File 2010 taxes late online free   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). File 2010 taxes late online free   For more information on self-employment tax, see Publication 334. File 2010 taxes late online free Additional Medicare Tax. File 2010 taxes late online free   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. File 2010 taxes late online free See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. File 2010 taxes late online free Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Federal Payment Levy Program

In July 2000, the IRS, in conjunction with the Department of the Treasury, Financial Management Service (FMS), started the Federal Payment Levy Program (FPLP) which is authorized by Internal Revenue Code Section 6331 (h), as prescribed by the Taxpayer Relief Act of 1997 Section 1024. Through this program, we can collect your overdue taxes through a continuous levy on certain federal payments disbursed by FMS. The following is a list of federal payments that can be levied through the FPLP:

  • federal employee retirement annuities,
  • federal payments made to you as a contractor/vendor doing business with the government (including Defense contracts),
  • federal employee travel advances or reimbursements,
  • certain Social Security benefits paid to you,
  • some federal salaries, 
  • Medicare provider and supplier payments.
  • Railroad Retirement Board benefits paid to you.

In the future, the program will expand to include additional federal employee salaries and other types of federal payments.

Federal payments to a delinquent taxpayer will not be included in the program in certain circumstances. These circumstances include, when you are in bankruptcy, have applied for relief as an innocent or injured spouse, made alternative arrangements to pay, or the IRS has determined you are in a hardship situation.

As part of this program, a file of delinquent accounts is transmitted to FMS to be matched against pending federal payments you are due. When a match is found, we send you a Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing, CP 90 or CP 297, if another Final Notice has not already been issued. See Tax Information for Appeals for additional information about your right to a hearing.

If we don't hear from you within 30 days from the date of the Final Notice, we will transmit the levy electronically to FMS. This applies to all federal payments that can be levied except for certain Social Security benefits. See Publication 594, The IRS Collection Process, and Publication 1, Your Rights as a Taxpayer , for additional information.

A levy may be transmitted to FMS without issuing a Final Notice if you previously requested a Collection Due Process (CDP) hearing on employment taxes. The Small Business and Work Opportunity Tax Act of 2007 amended I.R.C. Section 6330(f) and permits such a levy. If you requested a CDP hearing on previous employment taxes NO MORE THAN 2 years prior to the employment taxes being levied, we will send you a Notice of Levy and Notice of Your Right to a Hearing, CP 297A.

A levy may be transmitted to FMS without issuing a Final Notice if you or your predecessor is a Federal contractor.The Small Business Jobs Act of 2010 amended IRC Section 6330(f) and permits the IRS to issue such a levy.  We will send you a post levy notice, Notice of Levy and Notice of Your Right to a Hearing, CP 90C or CP 297C.

From that point on, FMS may reduce any federal payments subject to the levy by 15 percent, or the exact amount of tax owed if it is less than 15 percent of the payment.  Some contract/vendor payments, however, will be reduced by 100 percent, or the exact amount of tax owed. The levy is continuous until your overdue taxes are paid in full, or other arrangements are made to satisfy the debt. Each time your federal payment is levied, FMS will send you a letter of explanation, including information on which federal payment was levied, and advise you to contact us for resolution.

Contact us toll-free at 1-800-829-7650 or 1-800-829-3903 to resolve the issue by paying the tax bill, entering into an installment agreement, or proposing an Offer in Compromise. Please do not contact the FMS, OPM, SSA, or any other federal agency. See Topic 202, What to Do if You Can't Pay Your Tax, and Topic 204, Offers In Compromise, for additional information.

 

Page Last Reviewed or Updated: 07-Jan-2014

The File 2010 Taxes Late Online Free

File 2010 taxes late online free 2. File 2010 taxes late online free   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. File 2010 taxes late online free Surviving spouse. File 2010 taxes late online free Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. File 2010 taxes late online free Payments from a state fund for victims of crime. File 2010 taxes late online free Home Affordable Modification Program (HAMP). File 2010 taxes late online free Mortgage assistance payments. File 2010 taxes late online free Payments to reduce cost of winter energy use. File 2010 taxes late online free Nutrition Program for the Elderly. File 2010 taxes late online free Reemployment Trade Adjustment Assistance (RTAA). File 2010 taxes late online free Generally, income is taxable unless it is specifically exempt (not taxed) by law. File 2010 taxes late online free Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. File 2010 taxes late online free Under special provisions of the law, certain items are partially or fully exempt from tax. File 2010 taxes late online free Provisions that are of special interest to older taxpayers are discussed in this chapter. File 2010 taxes late online free Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. File 2010 taxes late online free In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. File 2010 taxes late online free You need not receive the compensation in cash for it to be taxable. File 2010 taxes late online free Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. File 2010 taxes late online free Volunteer work. File 2010 taxes late online free   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. File 2010 taxes late online free Retired Senior Volunteer Program (RSVP). File 2010 taxes late online free Foster Grandparent Program. File 2010 taxes late online free Senior Companion Program. File 2010 taxes late online free Service Corps of Retired Executives (SCORE). File 2010 taxes late online free Unemployment compensation. File 2010 taxes late online free   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. File 2010 taxes late online free More information. File 2010 taxes late online free   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. File 2010 taxes late online free Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. File 2010 taxes late online free A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. File 2010 taxes late online free A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. File 2010 taxes late online free A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. File 2010 taxes late online free More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. File 2010 taxes late online free Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. File 2010 taxes late online free Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. File 2010 taxes late online free These are discussed in Publication 590. File 2010 taxes late online free If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. File 2010 taxes late online free If you do not file Form 8606 with your return, you may have to pay a $50 penalty. File 2010 taxes late online free Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. File 2010 taxes late online free Early distributions. File 2010 taxes late online free   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. File 2010 taxes late online free You must include early distributions of taxable amounts in your gross income. File 2010 taxes late online free These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. File 2010 taxes late online free For purposes of the additional 10% tax, an IRA is a qualified retirement plan. File 2010 taxes late online free For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. File 2010 taxes late online free After age 59½ and before age 70½. File 2010 taxes late online free   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. File 2010 taxes late online free Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. File 2010 taxes late online free Required distributions. File 2010 taxes late online free   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. File 2010 taxes late online free See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. File 2010 taxes late online free If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. File 2010 taxes late online free For purposes of the 50% excise tax, an IRA is a qualified retirement plan. File 2010 taxes late online free For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. File 2010 taxes late online free See also Excess Accumulations (Insufficient Distributions) in Publication 590. File 2010 taxes late online free Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. File 2010 taxes late online free However, see Insurance Premiums for Retired Public Safety Officers , later. File 2010 taxes late online free If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). File 2010 taxes late online free This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. File 2010 taxes late online free The rest of each payment is taxable. File 2010 taxes late online free However, see Insurance Premiums for Retired Public Safety Officers , later. File 2010 taxes late online free You figure the tax-free part of the payment using one of the following methods. File 2010 taxes late online free Simplified Method. File 2010 taxes late online free You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). File 2010 taxes late online free You cannot use this method if your annuity is paid under a nonqualified plan. File 2010 taxes late online free General Rule. File 2010 taxes late online free You must use this method if your annuity is paid under a nonqualified plan. File 2010 taxes late online free You generally cannot use this method if your annuity is paid under a qualified plan. File 2010 taxes late online free Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. File 2010 taxes late online free You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. File 2010 taxes late online free Exclusion limit. File 2010 taxes late online free   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. File 2010 taxes late online free Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. File 2010 taxes late online free This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. File 2010 taxes late online free   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. File 2010 taxes late online free If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. File 2010 taxes late online free The total exclusion may be more than your cost. File 2010 taxes late online free Cost. File 2010 taxes late online free   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). File 2010 taxes late online free Your total cost in the plan includes everything that you paid. File 2010 taxes late online free It also includes amounts your employer contributed that were taxable to you when paid. File 2010 taxes late online free However, see Foreign employment contributions , later. File 2010 taxes late online free   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. File 2010 taxes late online free   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. File 2010 taxes late online free    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. File 2010 taxes late online free , that you receive. File 2010 taxes late online free Foreign employment contributions. File 2010 taxes late online free   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. File 2010 taxes late online free For details, see Foreign employment contributions in Publication 575. File 2010 taxes late online free Withholding. File 2010 taxes late online free   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. File 2010 taxes late online free However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. File 2010 taxes late online free (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. File 2010 taxes late online free ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. File 2010 taxes late online free   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. File 2010 taxes late online free Simplified Method. File 2010 taxes late online free   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. File 2010 taxes late online free For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. File 2010 taxes late online free For any other annuity, this number is the number of monthly annuity payments under the contract. File 2010 taxes late online free Who must use the Simplified Method. File 2010 taxes late online free   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). File 2010 taxes late online free   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. File 2010 taxes late online free If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. File 2010 taxes late online free Guaranteed payments. File 2010 taxes late online free   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. File 2010 taxes late online free If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. File 2010 taxes late online free Who cannot use the Simplified Method. File 2010 taxes late online free   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). File 2010 taxes late online free   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. File 2010 taxes late online free If you did not have to use the General Rule, you could have chosen to use it. File 2010 taxes late online free You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. File 2010 taxes late online free   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. File 2010 taxes late online free   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. File 2010 taxes late online free Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. File 2010 taxes late online free   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. File 2010 taxes late online free How to use the Simplified Method. File 2010 taxes late online free   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. File 2010 taxes late online free Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. File 2010 taxes late online free   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. File 2010 taxes late online free How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. File 2010 taxes late online free For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. File 2010 taxes late online free    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. File 2010 taxes late online free Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. File 2010 taxes late online free Single-life annuity. File 2010 taxes late online free   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. File 2010 taxes late online free Enter on line 3 the number shown for your age on your annuity starting date. File 2010 taxes late online free This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. File 2010 taxes late online free Multiple-lives annuity. File 2010 taxes late online free   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. File 2010 taxes late online free Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. File 2010 taxes late online free For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. File 2010 taxes late online free For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. File 2010 taxes late online free Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. File 2010 taxes late online free   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. File 2010 taxes late online free Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. File 2010 taxes late online free This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. File 2010 taxes late online free Fixed-period annuities. File 2010 taxes late online free   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. File 2010 taxes late online free Line 6. File 2010 taxes late online free   The amount on line 6 should include all amounts that could have been recovered in prior years. File 2010 taxes late online free If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. File 2010 taxes late online free    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. File 2010 taxes late online free Example. File 2010 taxes late online free Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. File 2010 taxes late online free Bill's annuity starting date is January 1, 2013. File 2010 taxes late online free The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. File 2010 taxes late online free Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. File 2010 taxes late online free Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. File 2010 taxes late online free Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. File 2010 taxes late online free See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. File 2010 taxes late online free You can find a blank version of this worksheet in Publication 575. File 2010 taxes late online free (The references in the illustrated worksheet are to sections in Publication 575). File 2010 taxes late online free His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. File 2010 taxes late online free Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). File 2010 taxes late online free Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. File 2010 taxes late online free The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. File 2010 taxes late online free If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. File 2010 taxes late online free This deduction is not subject to the 2%-of-adjusted-gross-income limit. File 2010 taxes late online free Worksheet 2-A. File 2010 taxes late online free Simplified Method Worksheet—Illustrated 1. File 2010 taxes late online free Enter the total pension or annuity payments received this year. File 2010 taxes late online free Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. File 2010 taxes late online free $ 14,400 2. File 2010 taxes late online free Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. File 2010 taxes late online free 31,000   Note. File 2010 taxes late online free If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). File 2010 taxes late online free Otherwise, go to line 3. File 2010 taxes late online free     3. File 2010 taxes late online free Enter the appropriate number from Table 1 below. File 2010 taxes late online free But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. File 2010 taxes late online free 310 4. File 2010 taxes late online free Divide line 2 by the number on line 3 4. File 2010 taxes late online free 100 5. File 2010 taxes late online free Multiply line 4 by the number of months for which this year's payments were made. File 2010 taxes late online free If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. File 2010 taxes late online free Otherwise, go to line 6 5. File 2010 taxes late online free 1,200 6. File 2010 taxes late online free Enter any amount previously recovered tax free in years after 1986. File 2010 taxes late online free This is the amount shown on line 10 of your worksheet for last year 6. File 2010 taxes late online free 0 7. File 2010 taxes late online free Subtract line 6 from line 2 7. File 2010 taxes late online free 31,000 8. File 2010 taxes late online free Enter the smaller of line 5 or line 7 8. File 2010 taxes late online free 1,200 9. File 2010 taxes late online free Taxable amount for year. File 2010 taxes late online free Subtract line 8 from line 1. File 2010 taxes late online free Enter the result, but not less than zero. File 2010 taxes late online free Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. File 2010 taxes late online free Note. File 2010 taxes late online free If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. File 2010 taxes late online free If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. File 2010 taxes late online free 9. File 2010 taxes late online free $ 13,200 10. File 2010 taxes late online free Was your annuity starting date before 1987? □ Yes. File 2010 taxes late online free STOP. File 2010 taxes late online free Do not complete the rest of this worksheet. File 2010 taxes late online free  ☑ No. File 2010 taxes late online free Add lines 6 and 8. File 2010 taxes late online free This is the amount you have recovered tax free through 2013. File 2010 taxes late online free You will need this number if you need to fill out this worksheet next year. File 2010 taxes late online free 10. File 2010 taxes late online free 1,200 11. File 2010 taxes late online free Balance of cost to be recovered. File 2010 taxes late online free Subtract line 10 from line 2. File 2010 taxes late online free If zero, you will not have to complete this worksheet next year. File 2010 taxes late online free The payments you receive next year will generally be fully taxable 11. File 2010 taxes late online free $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. File 2010 taxes late online free   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . File 2010 taxes late online free . File 2010 taxes late online free . File 2010 taxes late online free   BEFORE November 19, 1996, enter on line 3 . File 2010 taxes late online free . File 2010 taxes late online free . File 2010 taxes late online free AFTER November 18, 1996, enter on line 3 . File 2010 taxes late online free . File 2010 taxes late online free . File 2010 taxes late online free   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . File 2010 taxes late online free . File 2010 taxes late online free . File 2010 taxes late online free   THEN enter on line 3 . File 2010 taxes late online free . File 2010 taxes late online free . File 2010 taxes late online free         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. File 2010 taxes late online free   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. File 2010 taxes late online free   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. File 2010 taxes late online free The retiree's cost has already been recovered tax free. File 2010 taxes late online free   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. File 2010 taxes late online free The resulting tax-free amount will then remain fixed. File 2010 taxes late online free Any increases in the survivor annuity are fully taxable. File 2010 taxes late online free   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. File 2010 taxes late online free See Simplified Method , earlier. File 2010 taxes late online free How to report. File 2010 taxes late online free   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. File 2010 taxes late online free If your pension or annuity is fully taxable, enter it on line 16b. File 2010 taxes late online free Do not make an entry on line 16a. File 2010 taxes late online free   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. File 2010 taxes late online free If your pension or annuity is fully taxable, enter it on line 12b. File 2010 taxes late online free Do not make an entry on line 12a. File 2010 taxes late online free   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. File 2010 taxes late online free If your pension or annuity is fully taxable, enter it on line 17b. File 2010 taxes late online free Do not make an entry on line 17a. File 2010 taxes late online free Example. File 2010 taxes late online free You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. File 2010 taxes late online free You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). File 2010 taxes late online free The entire $1,200 is taxable. File 2010 taxes late online free You include $1,200 only on Form 1040, line 16b. File 2010 taxes late online free Joint return. File 2010 taxes late online free   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. File 2010 taxes late online free Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. File 2010 taxes late online free Form 1099-R. File 2010 taxes late online free   You should receive a Form 1099-R for your pension or annuity. File 2010 taxes late online free Form 1099-R shows your pension or annuity for the year and any income tax withheld. File 2010 taxes late online free You should receive a Form W-2 if you receive distributions from certain nonqualified plans. File 2010 taxes late online free You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. File 2010 taxes late online free Generally, you should be sent these forms by January 31, 2014. File 2010 taxes late online free Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. File 2010 taxes late online free Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. File 2010 taxes late online free For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. File 2010 taxes late online free The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. File 2010 taxes late online free See Tax on Early Distributions, later. File 2010 taxes late online free Lump-sum distributions. File 2010 taxes late online free   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. File 2010 taxes late online free The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. File 2010 taxes late online free The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. File 2010 taxes late online free You may be able to use the 10-year tax option to figure tax on the ordinary income part. File 2010 taxes late online free Form 1099-R. File 2010 taxes late online free   If you receive a total distribution from a plan, you should receive a Form 1099-R. File 2010 taxes late online free If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. File 2010 taxes late online free The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. File 2010 taxes late online free More information. File 2010 taxes late online free   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. File 2010 taxes late online free Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. File 2010 taxes late online free The tax applies to the taxable part of the distribution. File 2010 taxes late online free For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). File 2010 taxes late online free  An IRA is also a qualified retirement plan for purposes of this tax. File 2010 taxes late online free General exceptions to tax. File 2010 taxes late online free   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. File 2010 taxes late online free Additional exceptions. File 2010 taxes late online free   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. File 2010 taxes late online free See Publication 575 for details. File 2010 taxes late online free Reporting tax. File 2010 taxes late online free   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. File 2010 taxes late online free 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. File 2010 taxes late online free See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. File 2010 taxes late online free Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. File 2010 taxes late online free Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. File 2010 taxes late online free However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. File 2010 taxes late online free For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). File 2010 taxes late online free  An IRA is also a qualified retirement plan for purposes of this tax. File 2010 taxes late online free An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. File 2010 taxes late online free 5% owners. File 2010 taxes late online free   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. File 2010 taxes late online free See Publication 575 for more information. File 2010 taxes late online free Amount of tax. File 2010 taxes late online free   If you do not receive the required minimum distribution, you are subject to an additional tax. File 2010 taxes late online free The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. File 2010 taxes late online free You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. File 2010 taxes late online free Form 5329. File 2010 taxes late online free   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. File 2010 taxes late online free Additional information. File 2010 taxes late online free   For more detailed information on the tax on excess accumulation, see Publication 575. File 2010 taxes late online free Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. File 2010 taxes late online free The premiums can be for coverage for you, your spouse, or dependent(s). File 2010 taxes late online free The distribution must be made directly from the plan to the insurance provider. File 2010 taxes late online free You can exclude from income the smaller of the amount of the insurance premiums or $3,000. File 2010 taxes late online free You can only make this election for amounts that would otherwise be included in your income. File 2010 taxes late online free The amount excluded from your income cannot be used to claim a medical expense deduction. File 2010 taxes late online free An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. File 2010 taxes late online free If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. File 2010 taxes late online free The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. File 2010 taxes late online free Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. File 2010 taxes late online free Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. File 2010 taxes late online free Enter “PSO” next to the appropriate line on which you report the taxable amount. File 2010 taxes late online free Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. File 2010 taxes late online free These categories are treated differently for income tax purposes. File 2010 taxes late online free Social security equivalent benefits. File 2010 taxes late online free   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. File 2010 taxes late online free This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. File 2010 taxes late online free (See Social Security and Equivalent Railroad Retirement Benefits , later. File 2010 taxes late online free ) Non-social security equivalent benefits. File 2010 taxes late online free   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). File 2010 taxes late online free It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. File 2010 taxes late online free This category of benefits is treated as an amount received from a qualified employee plan. File 2010 taxes late online free This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. File 2010 taxes late online free Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. File 2010 taxes late online free More information. File 2010 taxes late online free   For more information about railroad retirement benefits, see Publication 575. File 2010 taxes late online free Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. File 2010 taxes late online free But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. File 2010 taxes late online free For more information, including information about veterans' benefits and insurance, see Publication 525. File 2010 taxes late online free Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. File 2010 taxes late online free Social security benefits include monthly retirement, survivor, and disability benefits. File 2010 taxes late online free They do not include supplemental security income (SSI) payments, which are not taxable. File 2010 taxes late online free Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. File 2010 taxes late online free They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. File 2010 taxes late online free If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. File 2010 taxes late online free Are Any of Your Benefits Taxable? Note. File 2010 taxes late online free When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. File 2010 taxes late online free  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. File 2010 taxes late online free When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. File 2010 taxes late online free S. File 2010 taxes late online free savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. File 2010 taxes late online free Figuring total income. File 2010 taxes late online free   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. File 2010 taxes late online free If that total amount is more than your base amount, part of your benefits may be taxable. File 2010 taxes late online free If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. File 2010 taxes late online free Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. File 2010 taxes late online free If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. File 2010 taxes late online free If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. File 2010 taxes late online free Worksheet 2-B. File 2010 taxes late online free A Quick Way To Check if Your Benefits May Be Taxable A. File 2010 taxes late online free Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. File 2010 taxes late online free Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. File 2010 taxes late online free (If you received more than one form, combine the amounts from box 5  and enter the total. File 2010 taxes late online free ) A. File 2010 taxes late online free     Note. File 2010 taxes late online free If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. File 2010 taxes late online free     B. File 2010 taxes late online free Enter one-half of the amount on line A B. File 2010 taxes late online free   C. File 2010 taxes late online free Enter your taxable pensions, wages, interest, dividends, and other taxable income C. File 2010 taxes late online free   D. File 2010 taxes late online free Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. File 2010 taxes late online free S. File 2010 taxes late online free savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. File 2010 taxes late online free   E. File 2010 taxes late online free Add lines B, C, and D and enter the total E. File 2010 taxes late online free   F. File 2010 taxes late online free If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. File 2010 taxes late online free   G. File 2010 taxes late online free Is the amount on line F less than or equal to the amount on line E? □ No. File 2010 taxes late online free None of your benefits are taxable this year. File 2010 taxes late online free  □ Yes. File 2010 taxes late online free Some of your benefits may be taxable. File 2010 taxes late online free To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. File 2010 taxes late online free     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. File 2010 taxes late online free Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. File 2010 taxes late online free It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. File 2010 taxes late online free If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. File 2010 taxes late online free Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. File 2010 taxes late online free Your repayments are shown in box 4. File 2010 taxes late online free The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). File 2010 taxes late online free Use the amount in box 5 to figure whether any of your benefits are taxable. File 2010 taxes late online free Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. File 2010 taxes late online free If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. File 2010 taxes late online free If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. File 2010 taxes late online free For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. File 2010 taxes late online free How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. File 2010 taxes late online free Generally, the higher that total amount, the greater the taxable part of your benefits. File 2010 taxes late online free Maximum taxable part. File 2010 taxes late online free   The taxable part of your benefits usually cannot be more than 50%. File 2010 taxes late online free However, up to 85% of your benefits can be taxable if either of the following situations applies to you. File 2010 taxes late online free The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). File 2010 taxes late online free You are married filing separately and lived with your spouse at any time during 2013. File 2010 taxes late online free   If you are a nonresident alien, 85% of your benefits are taxable. File 2010 taxes late online free However, this income is exempt under some tax treaties. File 2010 taxes late online free Which worksheet to use. File 2010 taxes late online free   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. File 2010 taxes late online free However, you will need to use a different worksheet(s) if any of the following situations applies to you. File 2010 taxes late online free You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. File 2010 taxes late online free In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. File 2010 taxes late online free Situation (1) does not apply and you take one or more of the following exclusions. File 2010 taxes late online free Interest from qualified U. File 2010 taxes late online free S. File 2010 taxes late online free savings bonds (Form 8815). File 2010 taxes late online free Employer-provided adoption benefits (Form 8839). File 2010 taxes late online free Foreign earned income or housing (Form 2555 or Form 2555-EZ). File 2010 taxes late online free Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. File 2010 taxes late online free In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. File 2010 taxes late online free You received a lump-sum payment for an earlier year. File 2010 taxes late online free In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. File 2010 taxes late online free See Lump-Sum Election , later. File 2010 taxes late online free How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. File 2010 taxes late online free You cannot use Form 1040EZ. File 2010 taxes late online free Reporting on Form 1040. File 2010 taxes late online free   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. File 2010 taxes late online free If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. File 2010 taxes late online free Reporting on Form 1040A. File 2010 taxes late online free   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. File 2010 taxes late online free If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. File 2010 taxes late online free Reporting on Form 1040NR. File 2010 taxes late online free   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. File 2010 taxes late online free Benefits not taxable. File 2010 taxes late online free   If you are filing Form 1040EZ, do not report any benefits on your tax return. File 2010 taxes late online free If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. File 2010 taxes late online free Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. File 2010 taxes late online free If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. File 2010 taxes late online free Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. File 2010 taxes late online free This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. File 2010 taxes late online free No part of the lump-sum death benefit is subject to tax. File 2010 taxes late online free For more information about the lump-sum death benefit, visit the Social Security Administration website at www. File 2010 taxes late online free SSA. File 2010 taxes late online free gov, and use keyword: death benefit. File 2010 taxes late online free Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. File 2010 taxes late online free However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. File 2010 taxes late online free You can elect this method if it lowers your taxable benefits. File 2010 taxes late online free See Publication 915 for more information. File 2010 taxes late online free Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. File 2010 taxes late online free If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. File 2010 taxes late online free If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. File 2010 taxes late online free If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. File 2010 taxes late online free S. File 2010 taxes late online free Railroad Retirement Board field office. File 2010 taxes late online free Joint return. File 2010 taxes late online free   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. File 2010 taxes late online free You do this to get your net benefits when figuring if your combined benefits are taxable. File 2010 taxes late online free Repayment of benefits received in an earlier year. File 2010 taxes late online free   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. File 2010 taxes late online free   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. File 2010 taxes late online free Claim it on Schedule A (Form 1040), line 23. File 2010 taxes late online free   If this deduction is more than $3,000, you have to follow some special instructions. File 2010 taxes late online free See Publication 915 for those instructions. File 2010 taxes late online free Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. File 2010 taxes late online free If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. File 2010 taxes late online free However, certain payments may not be taxable to you. File 2010 taxes late online free Some of these payments are discussed later in this section. File 2010 taxes late online free Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. File 2010 taxes late online free Cost paid by you. File 2010 taxes late online free   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. File 2010 taxes late online free If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. File 2010 taxes late online free Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. File 2010 taxes late online free You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. File 2010 taxes late online free Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. File 2010 taxes late online free If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. File 2010 taxes late online free See Credit for the Elderly or the Disabled, later. File 2010 taxes late online free For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. File 2010 taxes late online free Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. File 2010 taxes late online free Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. File 2010 taxes late online free For more information on pensions and annuities, see Publication 575. File 2010 taxes late online free Retirement and profit-sharing plans. File 2010 taxes late online free   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. File 2010 taxes late online free The payments must be reported as a pension or annuity. File 2010 taxes late online free Accrued leave payment. File 2010 taxes late online free   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. File 2010 taxes late online free The payment is not a disability payment. File 2010 taxes late online free Include it in your income in the tax year you receive it. File 2010 taxes late online free Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. File 2010 taxes late online free Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. File 2010 taxes late online free However, the amount you can exclude may be limited. File 2010 taxes late online free Long-term care insurance contracts are discussed in more detail in Publication 525. File 2010 taxes late online free Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. File 2010 taxes late online free The exemption also applies to your survivors. File 2010 taxes late online free The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. File 2010 taxes late online free If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. File 2010 taxes late online free For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. File 2010 taxes late online free Return to work. File 2010 taxes late online free   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. File 2010 taxes late online free Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. File 2010 taxes late online free Federal Employees' Compensation Act (FECA). File 2010 taxes late online free   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. File 2010 taxes late online free However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. File 2010 taxes late online free Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. File 2010 taxes late online free Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. File 2010 taxes late online free    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. File 2010 taxes late online free For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. File 2010 taxes late online free Other compensation. File 2010 taxes late online free   Many other amounts you receive as compensation for sickness or injury are not taxable. File 2010 taxes late online free These include the following amounts. File 2010 taxes late online free Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. File 2010 taxes late online free Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. File 2010 taxes late online free Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). File 2010 taxes late online free This compensation must be based only on the injury and not on the period of your absence from work. File 2010 taxes late online free These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. File 2010 taxes late online free Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. File 2010 taxes late online free This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. File 2010 taxes late online free Proceeds not received in installments. File 2010 taxes late online free   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. File 2010 taxes late online free If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. File 2010 taxes late online free Proceeds received in installments. File 2010 taxes late online free   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. File 2010 taxes late online free   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. File 2010 taxes late online free Include anything over this excluded part in your income as interest. File 2010 taxes late online free Installments for life. File 2010 taxes late online free   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. File 2010 taxes late online free If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. File 2010 taxes late online free Surviving spouse. File 2010 taxes late online free   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. File 2010 taxes late online free If you remarry, you can continue to take the exclusion. File 2010 taxes late online free Surrender of policy for cash. File 2010 taxes late online free   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. File 2010 taxes late online free In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. File 2010 taxes late online free You should receive a Form 1099-R showing the total proceeds and the taxable part. File 2010 taxes late online free Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. File 2010 taxes late online free Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. File 2010 taxes late online free Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. File 2010 taxes late online free To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. File 2010 taxes late online free Include in your income the part of the lump-sum payment that is more than your cost. File 2010 taxes late online free Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. File 2010 taxes late online free The tax treatment of an annuity is explained in Publication 575. File 2010 taxes late online free For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. File 2010 taxes late online free This election must be made within 60 days after the lump-sum payment first becomes payable to you. File 2010 taxes late online free Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. File 2010 taxes late online free However, see Exception , later. File 2010 taxes late online free For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. File 2010 taxes late online free Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. File 2010 taxes late online free In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. File 2010 taxes late online free Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. File 2010 taxes late online free To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. File 2010 taxes late online free Terminally or chronically ill defined. File 2010 taxes late online free   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. File 2010 taxes late online free A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. File 2010 taxes late online free The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. File 2010 taxes late online free The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. File 2010 taxes late online free Exception. File 2010 taxes late online free   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. File 2010 taxes late online free Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. File 2010 taxes late online free Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. File 2010 taxes late online free You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. File 2010 taxes late online free Main home. File 2010 taxes late online free   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. File 2010 taxes late online free Repaying the first-time homebuyer credit because you sold your home. File 2010 taxes late online free   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. File 2010 taxes late online free For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. File 2010 taxes late online free   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. File 2010 taxes late online free If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. File 2010 taxes late online free If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. File 2010 taxes late online free   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. File 2010 taxes late online free Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. File 2010 taxes late online free You meet the ownership test. File 2010 taxes late online free You meet the use test. File 2010 taxes late online free During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. File 2010 taxes late online free You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . File 2010 taxes late online free Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. File 2010 taxes late online free This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). File 2010 taxes late online free Exception to ownership and use tests. File 2010 taxes late online free   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. File 2010 taxes late online free Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. File 2010 taxes late online free The maximum amount you can exclude will be reduced. File 2010 taxes late online free See Publication 523, Selling Your Home, for more information. File 2010 taxes late online free Exception to use test for individuals with a disability. File 2010 taxes late online free   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. File 2010 taxes late online free Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. File 2010 taxes late online free   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. File 2010 taxes late online free Exception to ownership test for property acquired in a like-kind exchange. File 2010 taxes late online free   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. File 2010 taxes late online free This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. File 2010 taxes late online free A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. File 2010 taxes late online free See Publication 523 for more information. File 2010 taxes late online free Period of nonqualified use. File 2010 taxes late online free   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. File 2010 taxes late online free Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. File 2010 taxes late online free See Publication 523 for more information. File 2010 taxes late online free Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. File 2010 taxes late online free However, see Special rules for joint returns , next. File 2010 taxes late online free Special rules for joint returns. File 2010 taxes late online free   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. File 2010 taxes late online free You are married and file a joint return for the year. File 2010 taxes late online free Either you or your spouse meets the ownership test. File 2010 taxes late online free Both you and your spouse meet the use test. File 2010 taxes late online free During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. File 2010 taxes late online free Sale of home by surviving spouse. File 2010 taxes late online free   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. File 2010 taxes late online free   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. File 2010 taxes late online free The sale or exchange took place no more than 2 years after the date of death of your spouse. File 2010 taxes late online free You have not remarried. File 2010 taxes late online free You and your spouse met the use test at the time of your spouse's death. File 2010 taxes late online free You or your spouse met the ownership test at the time of your spouse's death. File 2010 taxes late online free Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. File 2010 taxes late online free Home transferred from spouse. File 2010 taxes late online free   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. File 2010 taxes late online free Use of home after divorce. File 2010 taxes late online free   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. File 2010 taxes late online free Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. File 2010 taxes late online free However, you must meet the ownership and use tests. File 2010 taxes late online free See Publication 523 for more information. File 2010 taxes late online free Depreciation after May 6, 1997. File 2010 taxes late online free   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. File 2010 taxes late online free See Publication 523 for more information. File 2010 taxes late online free Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. File 2010 taxes late online free If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. File 2010 taxes late online free Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. File 2010 taxes late online free If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. File 2010 taxes late online free See Publication 523 for more information. File 2010 taxes late online free Reverse Mortgages A revers