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File An Amended Tax Return For 2012

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File An Amended Tax Return For 2012

File an amended tax return for 2012 Publication 936 - Introductory Material Table of Contents Reminders IntroductionOrdering forms and publications. File an amended tax return for 2012 Tax questions. File an amended tax return for 2012 Useful Items - You may want to see: Reminders Future developments. File an amended tax return for 2012  For the latest information about developments related to Publication 936, Home Mortgage Interest Deduction, such as legislation enacted after it was published, go to www. File an amended tax return for 2012 irs. File an amended tax return for 2012 gov/pub936. File an amended tax return for 2012 Photographs of missing children. File an amended tax return for 2012  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. File an amended tax return for 2012 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. File an amended tax return for 2012 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. File an amended tax return for 2012 Introduction This publication discusses the rules for deducting home mortgage interest. File an amended tax return for 2012 Part I contains general information on home mortgage interest, including points and mortgage insurance premiums. File an amended tax return for 2012 It also explains how to report deductible interest on your tax return. File an amended tax return for 2012 Part II explains how your deduction for home mortgage interest may be limited. File an amended tax return for 2012 It contains Table 1, which is a worksheet you can use to figure the limit on your deduction. File an amended tax return for 2012 Comments and suggestions. File an amended tax return for 2012   We welcome your comments about this publication and your suggestions for future editions. File an amended tax return for 2012   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. File an amended tax return for 2012 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. File an amended tax return for 2012 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. File an amended tax return for 2012   You can send your comments from www. File an amended tax return for 2012 irs. File an amended tax return for 2012 gov/formspubs. File an amended tax return for 2012 Click on “More Information” and then on “Comment on Tax Forms and Publications. File an amended tax return for 2012 ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. File an amended tax return for 2012 Ordering forms and publications. File an amended tax return for 2012   Visit www. File an amended tax return for 2012 irs. File an amended tax return for 2012 gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. File an amended tax return for 2012 Internal Revenue Service 1201 N. File an amended tax return for 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. File an amended tax return for 2012   If you have a tax question, check the information available on IRS. File an amended tax return for 2012 gov or call 1-800-829-1040. File an amended tax return for 2012 We cannot answer tax questions sent to either of the above addresses. File an amended tax return for 2012 Useful Items - You may want to see: Publication 523 Selling Your Home 527 Residential Rental Property 530 Tax Information for Homeowners 535 Business Expenses   See How To Get Tax Help near the end of this publication, for information about getting these publications. File an amended tax return for 2012 Prev  Up  Next   Home   More Online Publications
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File an amended tax return for 2012 1. File an amended tax return for 2012   Traditional IRAs Table of Contents What's New for 2013 What's New for 2014 Introduction Who Can Open a Traditional IRA?What Is Compensation? When Can a Traditional IRA Be Opened? How Can a Traditional IRA Be Opened?Individual Retirement Account Individual Retirement Annuity Individual Retirement Bonds Simplified Employee Pension (SEP) Employer and Employee Association Trust Accounts Required Disclosures How Much Can Be Contributed?Limit. File an amended tax return for 2012 When repayment contributions can be made. File an amended tax return for 2012 No deduction. File an amended tax return for 2012 Reserve component. File an amended tax return for 2012 Figuring your IRA deduction. File an amended tax return for 2012 Reporting the repayment. File an amended tax return for 2012 Example. File an amended tax return for 2012 General Limit Kay Bailey Hutchison Spousal IRA Limit Filing Status Less Than Maximum Contributions More Than Maximum Contributions When Can Contributions Be Made? How Much Can You Deduct?Kay Bailey Hutchison Spousal IRA. File an amended tax return for 2012 Are You Covered by an Employer Plan? Limit if Covered by Employer Plan Reporting Deductible Contributions Nondeductible Contributions Examples — Worksheet for Reduced IRA Deduction for 2013 What if You Inherit an IRA?Treating it as your own. File an amended tax return for 2012 Can You Move Retirement Plan Assets?Transfers to Roth IRAs from other retirement plans. File an amended tax return for 2012 Trustee-to-Trustee Transfer Rollovers Transfers Incident To Divorce Converting From Any Traditional IRA Into a Roth IRA Recharacterizations When Can You Withdraw or Use Assets?Contributions Returned Before Due Date of Return When Must You Withdraw Assets? (Required Minimum Distributions)IRA Owners IRA Beneficiaries Which Table Do You Use To Determine Your Required Minimum Distribution? What Age(s) Do You Use With the Table(s)? Miscellaneous Rules for Required Minimum Distributions Are Distributions Taxable?January 2013 QCDs treated as made in 2012. File an amended tax return for 2012 2013 Reporting. File an amended tax return for 2012 Additional reporting requirements if you made the election to treat a January 2013 QCD as made in 2012. File an amended tax return for 2012 One-time transfer. File an amended tax return for 2012 Testing period rules apply. File an amended tax return for 2012 More information. File an amended tax return for 2012 Distributions Fully or Partly Taxable Figuring the Nontaxable and Taxable Amounts Recognizing Losses on Traditional IRA Investments Other Special IRA Distribution Situations Reporting and Withholding Requirements for Taxable Amounts What Acts Result in Penalties or Additional Taxes?Prohibited Transactions Investment in Collectibles Excess Contributions Early Distributions Excess Accumulations (Insufficient Distributions) Reporting Additional Taxes What's New for 2013 Traditional IRA contribution and deduction limit. File an amended tax return for 2012  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. File an amended tax return for 2012 If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. File an amended tax return for 2012 For more information, see How Much Can Be Contributed? in this chapter. File an amended tax return for 2012 Modified AGI limit for traditional IRA contributions increased. File an amended tax return for 2012  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. File an amended tax return for 2012 If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. File an amended tax return for 2012 If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. File an amended tax return for 2012 See How Much Can You Deduct? in this chapter. File an amended tax return for 2012 Net Investment Income Tax. File an amended tax return for 2012  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). File an amended tax return for 2012 However, these distributions are taken into account when determining the modified adjusted gross income threshold. File an amended tax return for 2012 Distributions from a nonqualified retirement plan are included in net investment income. File an amended tax return for 2012 See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. File an amended tax return for 2012 What's New for 2014 Modified AGI limit for traditional IRA contributions increased. File an amended tax return for 2012  For 2014, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $96,000 but less than $116,000 for a married couple filing a joint return or a qualifying widow(er), More than $60,000 but less than $70,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. File an amended tax return for 2012 If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. File an amended tax return for 2012 If your modified AGI is $191,000 or more, you cannot take a deduction for contributions to a traditional IRA. File an amended tax return for 2012 Introduction This chapter discusses the original IRA. File an amended tax return for 2012 In this publication the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. File an amended tax return for 2012 ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. File an amended tax return for 2012 The following are two advantages of a traditional IRA: You may be able to deduct some or all of your contributions to it, depending on your circumstances. File an amended tax return for 2012 Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. File an amended tax return for 2012 Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. File an amended tax return for 2012 You can have a traditional IRA whether or not you are covered by any other retirement plan. File an amended tax return for 2012 However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan. File an amended tax return for 2012 See How Much Can You Deduct , later. File an amended tax return for 2012 Both spouses have compensation. File an amended tax return for 2012   If both you and your spouse have compensation and are under age 70½, each of you can open an IRA. File an amended tax return for 2012 You cannot both participate in the same IRA. File an amended tax return for 2012 If you file a joint return, only one of you needs to have compensation. File an amended tax return for 2012 What Is Compensation? Generally, compensation is what you earn from working. File an amended tax return for 2012 For a summary of what compensation does and does not include, see Table 1-1. File an amended tax return for 2012 Compensation includes all of the items discussed next (even if you have more than one type). File an amended tax return for 2012 Wages, salaries, etc. File an amended tax return for 2012   Wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services are compensation. File an amended tax return for 2012 The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). File an amended tax return for 2012 Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2. File an amended tax return for 2012 Commissions. File an amended tax return for 2012   An amount you receive that is a percentage of profits or sales price is compensation. File an amended tax return for 2012 Self-employment income. File an amended tax return for 2012   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deduction allowed for the deductible part of your self-employment taxes. File an amended tax return for 2012   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. File an amended tax return for 2012 Self-employment loss. File an amended tax return for 2012   If you have a net loss from self-employment, do not subtract the loss from your salaries or wages when figuring your total compensation. File an amended tax return for 2012 Alimony and separate maintenance. File an amended tax return for 2012   For IRA purposes, compensation includes any taxable alimony and separate maintenance payments you receive under a decree of divorce or separate maintenance. File an amended tax return for 2012 Nontaxable combat pay. File an amended tax return for 2012   If you were a member of the U. File an amended tax return for 2012 S. File an amended tax return for 2012 Armed Forces, compensation includes any nontaxable combat pay you received. File an amended tax return for 2012 This amount should be reported in box 12 of your 2013 Form W-2 with code Q. File an amended tax return for 2012 Table 1-1. File an amended tax return for 2012 Compensation for Purposes of an IRA Includes . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 Does not include . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012   earnings and profits from property. File an amended tax return for 2012 wages, salaries, etc. File an amended tax return for 2012     interest and dividend income. File an amended tax return for 2012 commissions. File an amended tax return for 2012     pension or annuity income. File an amended tax return for 2012 self-employment income. File an amended tax return for 2012     deferred compensation. File an amended tax return for 2012 alimony and separate maintenance. File an amended tax return for 2012     income from certain  partnerships. File an amended tax return for 2012 nontaxable combat pay. File an amended tax return for 2012     any amounts you exclude from income. File an amended tax return for 2012     What Is Not Compensation? Compensation does not include any of the following items. File an amended tax return for 2012 Earnings and profits from property, such as rental income, interest income, and dividend income. File an amended tax return for 2012 Pension or annuity income. File an amended tax return for 2012 Deferred compensation received (compensation payments postponed from a past year). File an amended tax return for 2012 Income from a partnership for which you do not provide services that are a material income-producing factor. File an amended tax return for 2012 Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. File an amended tax return for 2012 Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. File an amended tax return for 2012 When Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. File an amended tax return for 2012 However, the time for making contributions for any year is limited. File an amended tax return for 2012 See When Can Contributions Be Made , later. File an amended tax return for 2012 How Can a Traditional IRA Be Opened? You can open different kinds of IRAs with a variety of organizations. File an amended tax return for 2012 You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. File an amended tax return for 2012 You can also open an IRA through your stockbroker. File an amended tax return for 2012 Any IRA must meet Internal Revenue Code requirements. File an amended tax return for 2012 The requirements for the various arrangements are discussed below. File an amended tax return for 2012 Kinds of traditional IRAs. File an amended tax return for 2012   Your traditional IRA can be an individual retirement account or annuity. File an amended tax return for 2012 It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. File an amended tax return for 2012 Individual Retirement Account An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. File an amended tax return for 2012 The account is created by a written document. File an amended tax return for 2012 The document must show that the account meets all of the following requirements. File an amended tax return for 2012 The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian. File an amended tax return for 2012 The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. File an amended tax return for 2012 However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount. File an amended tax return for 2012 Contributions, except for rollover contributions, must be in cash. File an amended tax return for 2012 See Rollovers , later. File an amended tax return for 2012 You must have a nonforfeitable right to the amount at all times. File an amended tax return for 2012 Money in your account cannot be used to buy a life insurance policy. File an amended tax return for 2012 Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund. File an amended tax return for 2012 You must start receiving distributions by April 1 of the year following the year in which you reach age 70½. File an amended tax return for 2012 See When Must You Withdraw Assets? (Required Minimum Distributions) , later. File an amended tax return for 2012 Individual Retirement Annuity You can open an individual retirement annuity by purchasing an annuity contract or an endowment contract from a life insurance company. File an amended tax return for 2012 An individual retirement annuity must be issued in your name as the owner, and either you or your beneficiaries who survive you are the only ones who can receive the benefits or payments. File an amended tax return for 2012 An individual retirement annuity must meet all the following requirements. File an amended tax return for 2012 Your entire interest in the contract must be nonforfeitable. File an amended tax return for 2012 The contract must provide that you cannot transfer any portion of it to any person other than the issuer. File an amended tax return for 2012 There must be flexible premiums so that if your compensation changes, your payment can also change. File an amended tax return for 2012 This provision applies to contracts issued after November 6, 1978. File an amended tax return for 2012 The contract must provide that contributions cannot be more than the deductible amount for an IRA for the year, and that you must use any refunded premiums to pay for future premiums or to buy more benefits before the end of the calendar year after the year in which you receive the refund. File an amended tax return for 2012 Distributions must begin by April 1 of the year following the year in which you reach age 70½. File an amended tax return for 2012 See When Must You Withdraw Assets? (Required Minimum Distributions) , later. File an amended tax return for 2012 Individual Retirement Bonds The sale of individual retirement bonds issued by the federal government was suspended after April 30, 1982. File an amended tax return for 2012 The bonds have the following features. File an amended tax return for 2012 They stop earning interest when you reach age 70½. File an amended tax return for 2012 If you die, interest will stop 5 years after your death, or on the date you would have reached age 70½, whichever is earlier. File an amended tax return for 2012 You cannot transfer the bonds. File an amended tax return for 2012 If you cash (redeem) the bonds before the year in which you reach age 59½, you may be subject to a 10% additional tax. File an amended tax return for 2012 See Age 59½ Rule under Early Distributions, later. File an amended tax return for 2012 You can roll over redemption proceeds into IRAs. File an amended tax return for 2012 Simplified Employee Pension (SEP) A simplified employee pension (SEP) is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (a SEP IRA) set up for you to receive such contributions. File an amended tax return for 2012 Generally, distributions from SEP IRAs are subject to the withdrawal and tax rules that apply to traditional IRAs. File an amended tax return for 2012 See Publication 560 for more information about SEPs. File an amended tax return for 2012 Employer and Employee Association Trust Accounts Your employer or your labor union or other employee association can set up a trust to provide individual retirement accounts for employees or members. File an amended tax return for 2012 The requirements for individual retirement accounts apply to these traditional IRAs. File an amended tax return for 2012 Required Disclosures The trustee or issuer (sometimes called the sponsor) of your traditional IRA generally must give you a disclosure statement at least 7 days before you open your IRA. File an amended tax return for 2012 However, the sponsor does not have to give you the statement until the date you open (or purchase, if earlier) your IRA, provided you are given at least 7 days from that date to revoke the IRA. File an amended tax return for 2012 The disclosure statement must explain certain items in plain language. File an amended tax return for 2012 For example, the statement should explain when and how you can revoke the IRA, and include the name, address, and telephone number of the person to receive the notice of cancellation. File an amended tax return for 2012 This explanation must appear at the beginning of the disclosure statement. File an amended tax return for 2012 If you revoke your IRA within the revocation period, the sponsor must return to you the entire amount you paid. File an amended tax return for 2012 The sponsor must report on the appropriate IRS forms both your contribution to the IRA (unless it was made by a trustee-to-trustee transfer) and the amount returned to you. File an amended tax return for 2012 These requirements apply to all sponsors. File an amended tax return for 2012 How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. File an amended tax return for 2012 These limits and rules are explained below. File an amended tax return for 2012 Community property laws. File an amended tax return for 2012   Except as discussed later under Kay Bailey Hutchison Spousal IRA Limit , each spouse figures his or her limit separately, using his or her own compensation. File an amended tax return for 2012 This is the rule even in states with community property laws. File an amended tax return for 2012 Brokers' commissions. File an amended tax return for 2012   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. File an amended tax return for 2012 For information about whether you can deduct brokers' commissions, see Brokers' commissions , later, under How Much Can You Deduct. File an amended tax return for 2012 Trustees' fees. File an amended tax return for 2012   Trustees' administrative fees are not subject to the contribution limit. File an amended tax return for 2012 For information about whether you can deduct trustees' fees, see Trustees' fees , later, under How Much Can You Deduct. File an amended tax return for 2012 Qualified reservist repayments. File an amended tax return for 2012   If you were a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined later under Early Distributions) you received. File an amended tax return for 2012 You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. File an amended tax return for 2012 To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or a similar arrangement. File an amended tax return for 2012 Limit. File an amended tax return for 2012   Your qualified reservist repayments cannot be more than your qualified reservist distributions, explained under Early Distributions , later. File an amended tax return for 2012 When repayment contributions can be made. File an amended tax return for 2012   You cannot make these repayment contributions later than the date that is 2 years after your active duty period ends. File an amended tax return for 2012 No deduction. File an amended tax return for 2012   You cannot deduct qualified reservist repayments. File an amended tax return for 2012 Reserve component. File an amended tax return for 2012   The term “reserve component” means the: Army National Guard of the United States, Army Reserve, Naval Reserve, Marine Corps Reserve, Air National Guard of the United States, Air Force Reserve, Coast Guard Reserve, or Reserve Corps of the Public Health Service. File an amended tax return for 2012 Figuring your IRA deduction. File an amended tax return for 2012   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. File an amended tax return for 2012 Reporting the repayment. File an amended tax return for 2012   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606. File an amended tax return for 2012 Example. File an amended tax return for 2012   In 2013, your IRA contribution limit is $5,500. File an amended tax return for 2012 However, because of your filing status and AGI, the limit on the amount you can deduct is $3,500. File an amended tax return for 2012 You can make a nondeductible contribution of $2,000 ($5,500 - $3,500). File an amended tax return for 2012 In an earlier year you received a $3,000 qualified reservist distribution, which you would like to repay this year. File an amended tax return for 2012   For 2013, you can contribute a total of $8,500 to your IRA. File an amended tax return for 2012 This is made up of the maximum deductible contribution of $3,500; a nondeductible contribution of $2,000; and a $3,000 qualified reservist repayment. File an amended tax return for 2012 You contribute the maximum allowable for the year. File an amended tax return for 2012 Since you are making a nondeductible contribution ($2,000) and a qualified reservist repayment ($3,000), you must file Form 8606 with your return and include $5,000 ($2,000 + $3,000) on line 1 of Form 8606. File an amended tax return for 2012 The qualified reservist repayment is not deductible. File an amended tax return for 2012 Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. File an amended tax return for 2012 See chapter 2 for information about Roth IRAs. File an amended tax return for 2012 General Limit For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation (defined earlier) for the year. File an amended tax return for 2012 Note. File an amended tax return for 2012 This limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). File an amended tax return for 2012 This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. File an amended tax return for 2012 (See Nondeductible Contributions , later. File an amended tax return for 2012 ) Qualified reservist repayments do not affect this limit. File an amended tax return for 2012 Examples. File an amended tax return for 2012 George, who is 34 years old and single, earns $24,000 in 2013. File an amended tax return for 2012 His IRA contributions for 2013 are limited to $5,500. File an amended tax return for 2012 Danny, an unmarried college student working part time, earns $3,500 in 2013. File an amended tax return for 2012 His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. File an amended tax return for 2012 More than one IRA. File an amended tax return for 2012   If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your traditional IRAs for the year. File an amended tax return for 2012 Annuity or endowment contracts. File an amended tax return for 2012   If you invest in an annuity or endowment contract under an individual retirement annuity, no more than $5,500 ($6,500 if you are age 50 or older) can be contributed toward its cost for the tax year, including the cost of life insurance coverage. File an amended tax return for 2012 If more than this amount is contributed, the annuity or endowment contract is disqualified. File an amended tax return for 2012 Kay Bailey Hutchison Spousal IRA Limit For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following two amounts: $5,500 ($6,500 if you are age 50 or older), or The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. File an amended tax return for 2012 Your spouse's IRA contribution for the year to a traditional IRA. File an amended tax return for 2012 Any contributions for the year to a Roth IRA on behalf of your spouse. File an amended tax return for 2012 This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is age 50 or older or $13,000 if both of you are age 50 or older). File an amended tax return for 2012 Note. File an amended tax return for 2012 This traditional IRA limit is reduced by any contributions to a section 501(c)(18) plan (generally, a pension plan created before June 25, 1959, that is funded entirely by employee contributions). File an amended tax return for 2012 Example. File an amended tax return for 2012 Kristin, a full-time student with no taxable compensation, marries Carl during the year. File an amended tax return for 2012 Neither of them was age 50 by the end of 2013. File an amended tax return for 2012 For the year, Carl has taxable compensation of $30,000. File an amended tax return for 2012 He plans to contribute (and deduct) $5,500 to a traditional IRA. File an amended tax return for 2012 If he and Kristin file a joint return, each can contribute $5,500 to a traditional IRA. File an amended tax return for 2012 This is because Kristin, who has no compensation, can add Carl's compensation, reduced by the amount of his IRA contribution ($30,000 − $5,500 = $24,500), to her own compensation (-0-) to figure her maximum contribution to a traditional IRA. File an amended tax return for 2012 In her case, $5,500 is her contribution limit, because $5,500 is less than $24,500 (her compensation for purposes of figuring her contribution limit). File an amended tax return for 2012 Filing Status Generally, except as discussed earlier under Kay Bailey Hutchison Spousal IRA Limit , your filing status has no effect on the amount of allowable contributions to your traditional IRA. File an amended tax return for 2012 However, if during the year either you or your spouse was covered by a retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and income. File an amended tax return for 2012 See How Much Can You Deduct , later. File an amended tax return for 2012 Example. File an amended tax return for 2012 Tom and Darcy are married and both are 53. File an amended tax return for 2012 They both work and each has a traditional IRA. File an amended tax return for 2012 Tom earned $3,800 and Darcy earned $48,000 in 2013. File an amended tax return for 2012 Because of the Kay Bailey Hutchison Spousal IRA limit rule, even though Tom earned less than $6,500, they can contribute up to $6,500 to his IRA for 2013 if they file a joint return. File an amended tax return for 2012 They can contribute up to $6,500 to Darcy's IRA. File an amended tax return for 2012 If they file separate returns, the amount that can be contributed to Tom's IRA is limited by his earned income, $3,800. File an amended tax return for 2012 Less Than Maximum Contributions If contributions to your traditional IRA for a year were less than the limit, you cannot contribute more after the due date of your return for that year to make up the difference. File an amended tax return for 2012 Example. File an amended tax return for 2012 Rafael, who is 40, earns $30,000 in 2013. File an amended tax return for 2012 Although he can contribute up to $5,500 for 2013, he contributes only $3,000. File an amended tax return for 2012 After April 15, 2014, Rafael cannot make up the difference between his actual contributions for 2013 ($3,000) and his 2013 limit ($5,500). File an amended tax return for 2012 He cannot contribute $2,500 more than the limit for any later year. File an amended tax return for 2012 More Than Maximum Contributions If contributions to your IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. File an amended tax return for 2012 However, a penalty or additional tax may apply. File an amended tax return for 2012 See Excess Contributions , later, under What Acts Result in Penalties or Additional Taxes. File an amended tax return for 2012 When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). File an amended tax return for 2012 Contributions must be in the form of money (cash, check, or money order). File an amended tax return for 2012 Property cannot be contributed. File an amended tax return for 2012 Although property cannot be contributed, your IRA may invest in certain property. File an amended tax return for 2012 For example, your IRA may purchase shares of stock. File an amended tax return for 2012 For other restrictions on the use of funds in your IRA, see Prohibited Transactions , later in this chapter. File an amended tax return for 2012 You may be able to transfer or roll over certain property from one retirement plan to another. File an amended tax return for 2012 See the discussion of rollovers and other transfers later in this chapter under Can You Move Retirement Plan Assets . File an amended tax return for 2012 You can make a contribution to your IRA by having your income tax refund (or a portion of your refund), if any, paid directly to your traditional IRA, Roth IRA, or SEP IRA. File an amended tax return for 2012 For details, see the instructions for your income tax return or Form 8888, Allocation of Refund (Including Savings Bond Purchases). File an amended tax return for 2012 Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70½. File an amended tax return for 2012 For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. File an amended tax return for 2012 See Who Can Open a Traditional IRA , earlier. File an amended tax return for 2012 Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. File an amended tax return for 2012 Contributions can resume for any years that you qualify. File an amended tax return for 2012 Contributions must be made by due date. File an amended tax return for 2012   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. File an amended tax return for 2012 For most people, this means that contributions for 2013 must be made by April 15, 2014, and contributions for 2014 must be made by April 15, 2015. File an amended tax return for 2012 Age 70½ rule. File an amended tax return for 2012   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. File an amended tax return for 2012   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. File an amended tax return for 2012 If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. File an amended tax return for 2012 Designating year for which contribution is made. File an amended tax return for 2012   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. File an amended tax return for 2012 If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). File an amended tax return for 2012 Filing before a contribution is made. File an amended tax return for 2012    You can file your return claiming a traditional IRA contribution before the contribution is actually made. File an amended tax return for 2012 Generally, the contribution must be made by the due date of your return, not including extensions. File an amended tax return for 2012 Contributions not required. File an amended tax return for 2012   You do not have to contribute to your traditional IRA for every tax year, even if you can. File an amended tax return for 2012 How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if applicable) explained earlier under How Much Can Be Contributed . File an amended tax return for 2012 However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. File an amended tax return for 2012 See Limit if Covered by Employer Plan , later. File an amended tax return for 2012 You may be able to claim a credit for contributions to your traditional IRA. File an amended tax return for 2012 For more information, see chapter 4. File an amended tax return for 2012 Trustees' fees. File an amended tax return for 2012   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. File an amended tax return for 2012 However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). File an amended tax return for 2012 For information about miscellaneous itemized deductions, see Publication 529, Miscellaneous Deductions. File an amended tax return for 2012 Brokers' commissions. File an amended tax return for 2012   These commissions are part of your IRA contribution and, as such, are deductible subject to the limits. File an amended tax return for 2012 Full deduction. File an amended tax return for 2012   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more of your traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older), or 100% of your compensation. File an amended tax return for 2012   This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. File an amended tax return for 2012 Kay Bailey Hutchison Spousal IRA. File an amended tax return for 2012   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of: $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older), or The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. File an amended tax return for 2012 The IRA deduction for the year of the spouse with the greater compensation. File an amended tax return for 2012 Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. File an amended tax return for 2012 Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. File an amended tax return for 2012   This limit is reduced by any contributions to a section 501(c)(18) plan on behalf of the spouse with the lesser compensation. File an amended tax return for 2012 Note. File an amended tax return for 2012 If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. File an amended tax return for 2012 After a divorce or legal separation, you can deduct only the contributions to your own IRA. File an amended tax return for 2012 Your deductions are subject to the rules for single individuals. File an amended tax return for 2012 Covered by an employer retirement plan. File an amended tax return for 2012   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. File an amended tax return for 2012 This is discussed later under Limit if Covered by Employer Plan . File an amended tax return for 2012 Limits on the amount you can deduct do not affect the amount that can be contributed. File an amended tax return for 2012 Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. File an amended tax return for 2012 The “Retirement Plan” box should be checked if you were covered. File an amended tax return for 2012 Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered , later. File an amended tax return for 2012 If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. File an amended tax return for 2012 Federal judges. File an amended tax return for 2012   For purposes of the IRA deduction, federal judges are covered by an employer plan. File an amended tax return for 2012 For Which Year(s) Are You Covered? Special rules apply to determine the tax years for which you are covered by an employer plan. File an amended tax return for 2012 These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. File an amended tax return for 2012 Tax year. File an amended tax return for 2012   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. File an amended tax return for 2012 For almost all people, the tax year is the calendar year. File an amended tax return for 2012 Defined contribution plan. File an amended tax return for 2012   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. File an amended tax return for 2012 However, also see Situations in Which You Are Not Covered , later. File an amended tax return for 2012   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. File an amended tax return for 2012 In a defined contribution plan, the amount to be contributed to each participant's account is spelled out in the plan. File an amended tax return for 2012 The level of benefits actually provided to a participant depends on the total amount contributed to that participant's account and any earnings and losses on those contributions. File an amended tax return for 2012 Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. File an amended tax return for 2012 Example. File an amended tax return for 2012 Company A has a money purchase pension plan. File an amended tax return for 2012 Its plan year is from July 1 to June 30. File an amended tax return for 2012 The plan provides that contributions must be allocated as of June 30. File an amended tax return for 2012 Bob, an employee, leaves Company A on December 31, 2012. File an amended tax return for 2012 The contribution for the plan year ending on June 30, 2013, is made February 15, 2014. File an amended tax return for 2012 Because an amount is contributed to Bob's account for the plan year, Bob is covered by the plan for his 2013 tax year. File an amended tax return for 2012   A special rule applies to certain plans in which it is not possible to determine if an amount will be contributed to your account for a given plan year. File an amended tax return for 2012 If, for a plan year, no amounts have been allocated to your account that are attributable to employer contributions, employee contributions, or forfeitures, by the last day of the plan year, and contributions are discretionary for the plan year, you are not covered for the tax year in which the plan year ends. File an amended tax return for 2012 If, after the plan year ends, the employer makes a contribution for that plan year, you are covered for the tax year in which the contribution is made. File an amended tax return for 2012 Example. File an amended tax return for 2012 Mickey was covered by a profit-sharing plan and left the company on December 31, 2012. File an amended tax return for 2012 The plan year runs from July 1 to June 30. File an amended tax return for 2012 Under the terms of the plan, employer contributions do not have to be made, but if they are made, they are contributed to the plan before the due date for filing the company's tax return. File an amended tax return for 2012 Such contributions are allocated as of the last day of the plan year, and allocations are made to the accounts of individuals who have any service during the plan year. File an amended tax return for 2012 As of June 30, 2013, no contributions were made that were allocated to the June 30, 2013, plan year, and no forfeitures had been allocated within the plan year. File an amended tax return for 2012 In addition, as of that date, the company was not obligated to make a contribution for such plan year and it was impossible to determine whether or not a contribution would be made for the plan year. File an amended tax return for 2012 On December 31, 2013, the company decided to contribute to the plan for the plan year ending June 30, 2013. File an amended tax return for 2012 That contribution was made on February 15, 2014. File an amended tax return for 2012 Mickey is an active participant in the plan for his 2014 tax year but not for his 2013 tax year. File an amended tax return for 2012 No vested interest. File an amended tax return for 2012   If an amount is allocated to your account for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the account. File an amended tax return for 2012 Defined benefit plan. File an amended tax return for 2012   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. File an amended tax return for 2012 This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. File an amended tax return for 2012   A defined benefit plan is any plan that is not a defined contribution plan. File an amended tax return for 2012 In a defined benefit plan, the level of benefits to be provided to each participant is spelled out in the plan. File an amended tax return for 2012 The plan administrator figures the amount needed to provide those benefits and those amounts are contributed to the plan. File an amended tax return for 2012 Defined benefit plans include pension plans and annuity plans. File an amended tax return for 2012 Example. File an amended tax return for 2012 Nick, an employee of Company B, is eligible to participate in Company B's defined benefit plan, which has a July 1 to June 30 plan year. File an amended tax return for 2012 Nick leaves Company B on December 31, 2012. File an amended tax return for 2012 Because Nick is eligible to participate in the plan for its year ending June 30, 2013, he is covered by the plan for his 2013 tax year. File an amended tax return for 2012 No vested interest. File an amended tax return for 2012   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. File an amended tax return for 2012 Situations in Which You Are Not Covered Unless you are covered by another employer plan, you are not covered by an employer plan if you are in one of the situations described below. File an amended tax return for 2012 Social security or railroad retirement. File an amended tax return for 2012   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. File an amended tax return for 2012 Benefits from previous employer's plan. File an amended tax return for 2012   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. File an amended tax return for 2012 Reservists. File an amended tax return for 2012   If the only reason you participate in a plan is because you are a member of a reserve unit of the Armed Forces, you may not be covered by the plan. File an amended tax return for 2012 You are not covered by the plan if both of the following conditions are met. File an amended tax return for 2012 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. File an amended tax return for 2012 You did not serve more than 90 days on active duty during the year (not counting duty for training). File an amended tax return for 2012 Volunteer firefighters. File an amended tax return for 2012   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. File an amended tax return for 2012 You are not covered by the plan if both of the following conditions are met. File an amended tax return for 2012 The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. File an amended tax return for 2012 Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. File an amended tax return for 2012 Limit if Covered by Employer Plan As discussed earlier, the deduction you can take for contributions made to your traditional IRA depends on whether you or your spouse was covered for any part of the year by an employer retirement plan. File an amended tax return for 2012 Your deduction is also affected by how much income you had and by your filing status. File an amended tax return for 2012 Your deduction may also be affected by social security benefits you received. File an amended tax return for 2012 Reduced or no deduction. File an amended tax return for 2012   If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. File an amended tax return for 2012   Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. File an amended tax return for 2012 These amounts vary depending on your filing status. File an amended tax return for 2012   To determine if your deduction is subject to the phaseout, you must determine your modified adjusted gross income (AGI) and your filing status, as explained later under Deduction Phaseout . File an amended tax return for 2012 Once you have determined your modified AGI and your filing status, you can use Table 1-2 or Table 1-3 to determine if the phaseout applies. File an amended tax return for 2012 Social Security Recipients Instead of using Table 1-2 or Table 1-3 and Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, later, complete the worksheets in Appendix B of this publication if, for the year, all of the following apply. File an amended tax return for 2012 You received social security benefits. File an amended tax return for 2012 You received taxable compensation. File an amended tax return for 2012 Contributions were made to your traditional IRA. File an amended tax return for 2012 You or your spouse was covered by an employer retirement plan. File an amended tax return for 2012 Use the worksheets in Appendix B to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. File an amended tax return for 2012 Appendix B includes an example with filled-in worksheets to assist you. File an amended tax return for 2012 Table 1-2. File an amended tax return for 2012 Effect of Modified AGI1 on Deduction if You Are Covered by a Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. File an amended tax return for 2012 IF your filing status is . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your modified adjusted gross income (modified AGI) is . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 THEN you can take . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 single or head of household $59,000 or less a full deduction. File an amended tax return for 2012 more than $59,000 but less than $69,000 a partial deduction. File an amended tax return for 2012 $69,000 or more no deduction. File an amended tax return for 2012 married filing jointly or  qualifying widow(er) $95,000 or less a full deduction. File an amended tax return for 2012 more than $95,000 but less than $115,000 a partial deduction. File an amended tax return for 2012 $115,000 or more no deduction. File an amended tax return for 2012 married filing separately2 less than $10,000 a partial deduction. File an amended tax return for 2012 $10,000 or more no deduction. File an amended tax return for 2012 1 Modified AGI (adjusted gross income). File an amended tax return for 2012 See Modified adjusted gross income (AGI) , later. File an amended tax return for 2012  2 If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” filing status). File an amended tax return for 2012 Table 1-3. File an amended tax return for 2012 Effect of Modified AGI1 on Deduction if You Are NOT Covered by a Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. File an amended tax return for 2012 IF your filing status is . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your modified adjusted gross income (modified AGI) is . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 THEN you can take . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 single, head of household, or qualifying widow(er) any amount a full deduction. File an amended tax return for 2012 married filing jointly or separately with a spouse who is not covered by a plan at work any amount a full deduction. File an amended tax return for 2012 married filing jointly with a spouse who is covered by a plan at work $178,000 or less a full deduction. File an amended tax return for 2012 more than $178,000 but less than $188,000 a partial deduction. File an amended tax return for 2012 $188,000 or more no deduction. File an amended tax return for 2012 married filing separately with a spouse who is covered by a plan at work2 less than $10,000 a partial deduction. File an amended tax return for 2012 $10,000 or more no deduction. File an amended tax return for 2012 1 Modified AGI (adjusted gross income). File an amended tax return for 2012 See Modified adjusted gross income (AGI) , later. File an amended tax return for 2012  2 You are entitled to the full deduction if you did not live with your spouse at any time during the year. File an amended tax return for 2012 For 2014, if you are not covered by a retirement plan at work and you are married filing jointly with a spouse who is covered by a plan at work, your deduction is phased out if your modified AGI is more than $181,000 but less than $191,000. File an amended tax return for 2012 If your AGI is $191,000 or more, you cannot take a deduction for a contribution to a traditional IRA. File an amended tax return for 2012 Deduction Phaseout The amount of any reduction in the limit on your IRA deduction (phaseout) depends on whether you or your spouse was covered by an employer retirement plan. File an amended tax return for 2012 Covered by a retirement plan. File an amended tax return for 2012   If you are covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI, as shown in Table 1-2. File an amended tax return for 2012 For 2014, if you are covered by a retirement plan at work, your IRA deduction will not be reduced (phased out) unless your modified AGI is: More than $60,000 but less than $70,000 for a single individual (or head of household), More than $96,000 but less than $116,000 for a married couple filing a joint return (or a qualifying widow(er)), or Less than $10,000 for a married individual filing a separate return. File an amended tax return for 2012 If your spouse is covered. File an amended tax return for 2012   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 1-3. File an amended tax return for 2012 Filing status. File an amended tax return for 2012   Your filing status depends primarily on your marital status. File an amended tax return for 2012 For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. File an amended tax return for 2012 If you need more information on filing status, see Publication 501, Exemptions, Standard Deduction, and Filing Information. File an amended tax return for 2012 Lived apart from spouse. File an amended tax return for 2012   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. File an amended tax return for 2012 Modified adjusted gross income (AGI). File an amended tax return for 2012   You can use Worksheet 1-1 to figure your modified AGI. File an amended tax return for 2012 If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Both contributions for 2013 and distributions in 2013 , later. File an amended tax return for 2012    Do not assume that your modified AGI is the same as your compensation. File an amended tax return for 2012 Your modified AGI may include income in addition to your compensation (discussed earlier) such as interest, dividends, and income from IRA distributions. File an amended tax return for 2012 Form 1040. File an amended tax return for 2012   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. File an amended tax return for 2012 IRA deduction. File an amended tax return for 2012 Student loan interest deduction. File an amended tax return for 2012 Tuition and fees deduction. File an amended tax return for 2012 Domestic production activities deduction. File an amended tax return for 2012 Foreign earned income exclusion. File an amended tax return for 2012 Foreign housing exclusion or deduction. File an amended tax return for 2012 Exclusion of qualified savings bond interest shown on Form 8815. File an amended tax return for 2012 Exclusion of employer-provided adoption benefits shown on Form 8839. File an amended tax return for 2012 This is your modified AGI. File an amended tax return for 2012 Form 1040A. File an amended tax return for 2012   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. File an amended tax return for 2012 IRA deduction. File an amended tax return for 2012 Student loan interest deduction. File an amended tax return for 2012 Tuition and fees deduction. File an amended tax return for 2012 Exclusion of qualified savings bond interest shown on Form 8815. File an amended tax return for 2012 This is your modified AGI. File an amended tax return for 2012 Form 1040NR. File an amended tax return for 2012   If you file Form 1040NR, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. File an amended tax return for 2012 IRA deduction. File an amended tax return for 2012 Student loan interest deduction. File an amended tax return for 2012 Domestic production activities deduction. File an amended tax return for 2012 Exclusion of qualified savings bond interest shown on Form 8815. File an amended tax return for 2012 Exclusion of employer-provided adoption benefits shown on Form 8839. File an amended tax return for 2012 This is your modified AGI. File an amended tax return for 2012 Income from IRA distributions. File an amended tax return for 2012   If you received distributions in 2013 from one or more traditional IRAs and your traditional IRAs include only deductible contributions, the distributions are fully taxable and are included in your modified AGI. File an amended tax return for 2012 Both contributions for 2013 and distributions in 2013. File an amended tax return for 2012   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. File an amended tax return for 2012 You received distributions in 2013 from one or more traditional IRAs, You made contributions to a traditional IRA for 2013, and Some of those contributions may be nondeductible contributions. File an amended tax return for 2012 (See Nondeductible Contributions and Worksheet 1-2, later. File an amended tax return for 2012 ) If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. File an amended tax return for 2012 To do this, you can use Worksheet 1-5, later. File an amended tax return for 2012   If at least one of the above does not apply, figure your modified AGI using Worksheet 1-1, later. File an amended tax return for 2012 How To Figure Your Reduced IRA Deduction If you or your spouse is covered by an employer retirement plan and you did not receive any social security benefits, you can figure your reduced IRA deduction by using Worksheet 1-2. File an amended tax return for 2012 Figuring Your Reduced IRA Deduction for 2013. File an amended tax return for 2012 The Instructions for Form 1040, Form 1040A, and Form 1040NR include similar worksheets that you can use instead of the worksheet in this publication. File an amended tax return for 2012 If you or your spouse is covered by an employer retirement plan, and you received any social security benefits, see Social Security Recipients , earlier. File an amended tax return for 2012 Note. File an amended tax return for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return for 2012 Worksheet 1-1. File an amended tax return for 2012 Figuring Your Modified AGI Use this worksheet to figure your modified AGI for traditional IRA purposes. File an amended tax return for 2012 1. File an amended tax return for 2012 Enter your adjusted gross income (AGI) from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37, figured without taking into account the amount from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 1. File an amended tax return for 2012   2. File an amended tax return for 2012 Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 2. File an amended tax return for 2012   3. File an amended tax return for 2012 Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. File an amended tax return for 2012   4. File an amended tax return for 2012 Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 4. File an amended tax return for 2012   5. File an amended tax return for 2012 Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. File an amended tax return for 2012   6. File an amended tax return for 2012 Enter any foreign housing deduction from Form 2555, line 50 6. File an amended tax return for 2012   7. File an amended tax return for 2012 Enter any excludable savings bond interest from Form 8815, line 14 7. File an amended tax return for 2012   8. File an amended tax return for 2012 Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. File an amended tax return for 2012   9. File an amended tax return for 2012 Add lines 1 through 8. File an amended tax return for 2012 This is your Modified AGI for traditional IRA purposes 9. File an amended tax return for 2012   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. File an amended tax return for 2012 If you file Form 1040A, enter your IRA deduction on line 17 of that form. File an amended tax return for 2012 If you file Form 1040NR, enter your IRA deduction on line 32 of that form. File an amended tax return for 2012 You cannot deduct IRA contributions on Form 1040EZ or Form 1040NR-EZ. File an amended tax return for 2012 Self-employed. File an amended tax return for 2012   If you are self-employed (a sole proprietor or partner) and have a SIMPLE IRA, enter your deduction for allowable plan contributions on Form 1040, line 28. File an amended tax return for 2012 If you file Form 1040NR, enter your deduction on line 28 of that form. File an amended tax return for 2012 Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA of up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. File an amended tax return for 2012 The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. File an amended tax return for 2012 Example. File an amended tax return for 2012 Tony is 29 years old and single. File an amended tax return for 2012 In 2013, he was covered by a retirement plan at work. File an amended tax return for 2012 His salary is $62,000. File an amended tax return for 2012 His modified AGI is $70,000. File an amended tax return for 2012 Tony makes a $5,500 IRA contribution for 2013. File an amended tax return for 2012 Because he was covered by a retirement plan and his modified AGI is above $69,000, he cannot deduct his $5,500 IRA contribution. File an amended tax return for 2012 He must designate this contribution as a nondeductible contribution by reporting it on Form 8606. File an amended tax return for 2012 Repayment of reservist distributions. File an amended tax return for 2012   Nondeductible contributions may include repayments of qualified reservist distributions. File an amended tax return for 2012 For more information, see Qualified reservist repayments under How Much Can Be Contributed, earlier. File an amended tax return for 2012 Form 8606. File an amended tax return for 2012   To designate contributions as nondeductible, you must file Form 8606. File an amended tax return for 2012 (See the filled-in Forms 8606 in this chapter. File an amended tax return for 2012 )   You do not have to designate a contribution as nondeductible until you file your tax return. File an amended tax return for 2012 When you file, you can even designate otherwise deductible contributions as nondeductible contributions. File an amended tax return for 2012   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. File an amended tax return for 2012    A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. File an amended tax return for 2012 In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. File an amended tax return for 2012 See Form 8606 under Distributions Fully or Partly Taxable, later. File an amended tax return for 2012 Failure to report nondeductible contributions. File an amended tax return for 2012   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated like deductible contributions when withdrawn. File an amended tax return for 2012 All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. File an amended tax return for 2012 Penalty for overstatement. File an amended tax return for 2012   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. File an amended tax return for 2012 Penalty for failure to file Form 8606. File an amended tax return for 2012   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. File an amended tax return for 2012 Tax on earnings on nondeductible contributions. File an amended tax return for 2012   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. File an amended tax return for 2012 Cost basis. File an amended tax return for 2012   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. File an amended tax return for 2012 Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. File an amended tax return for 2012    Commonly, distributions from your traditional IRAs will include both taxable and nontaxable (cost basis) amounts. File an amended tax return for 2012 See Are Distributions Taxable, later, for more information. File an amended tax return for 2012 Recordkeeping. File an amended tax return for 2012 There is a recordkeeping worksheet, Appendix A. File an amended tax return for 2012 Summary Record of Traditional IRA(s) for 2013 , that you can use to keep a record of deductible and nondeductible IRA contributions. File an amended tax return for 2012 Examples — Worksheet for Reduced IRA Deduction for 2013 The following examples illustrate the use of Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013. File an amended tax return for 2012 Example 1. File an amended tax return for 2012 For 2013, Tom and Betty file a joint return on Form 1040. File an amended tax return for 2012 They are both 39 years old. File an amended tax return for 2012 They are both employed and Tom is covered by his employer's retirement plan. File an amended tax return for 2012 Tom's salary is $59,000 and Betty's is $32,555. File an amended tax return for 2012 They each have a traditional IRA and their combined modified AGI, which includes $5,000 interest and dividend income, is $96,555. File an amended tax return for 2012 Because their modified AGI is between $95,000 and $115,000 and Tom is covered by an employer plan, Tom is subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . File an amended tax return for 2012 For 2013, Tom contributed $5,500 to his IRA and Betty contributed $5,500 to hers. File an amended tax return for 2012 Even though they file a joint return, they must use separate worksheets to figure the IRA deduction for each of them. File an amended tax return for 2012 Tom can take a deduction of only $5,080. File an amended tax return for 2012 He can choose to treat the $5,080 as either deductible or nondeductible contributions. File an amended tax return for 2012 He can either leave the $420 ($5,500 − $5,080) of nondeductible contributions in his IRA or withdraw them by April 15, 2014. File an amended tax return for 2012 He decides to treat the $5,080 as deductible contributions and leave the $420 of nondeductible contributions in his IRA. File an amended tax return for 2012 Using Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, Tom figures his deductible and nondeductible amounts as shown on Worksheet 1-2. File an amended tax return for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated. File an amended tax return for 2012 Betty figures her IRA deduction as follows. File an amended tax return for 2012 Betty can treat all or part of her contributions as either deductible or nondeductible. File an amended tax return for 2012 This is because her $5,500 contribution for 2013 is not subject to the deduction phaseout discussed earlier under Limit if Covered by Employer Plan . File an amended tax return for 2012 She does not need to use Worksheet 1-2, Figuring Your Reduced IRA Deduction for 2013, because their modified AGI is not within the phaseout range that applies. File an amended tax return for 2012 Betty decides to treat her $5,500 IRA contributions as deductible. File an amended tax return for 2012 The IRA deductions of $5,080 and $5,500 on the joint return for Tom and Betty total $10,580. File an amended tax return for 2012 Example 2. File an amended tax return for 2012 For 2013, Ed and Sue file a joint return on Form 1040. File an amended tax return for 2012 They are both 39 years old. File an amended tax return for 2012 Ed is covered by his employer's retirement plan. File an amended tax return for 2012 Ed's salary is $45,000. File an amended tax return for 2012 Sue had no compensation for the year and did not contribute to an IRA. File an amended tax return for 2012 Sue is not covered by an employer plan. File an amended tax return for 2012 Ed contributed $5,500 to his traditional IRA and $5,500 to a traditional IRA for Sue (a Kay Bailey Hutchison Spousal IRA). File an amended tax return for 2012 Their combined modified AGI, which includes $2,000 interest and dividend income and a large capital gain from the sale of stock, is $180,555. File an amended tax return for 2012 Because the combined modified AGI is $115,000 or more, Ed cannot deduct any of the contribution to his traditional IRA. File an amended tax return for 2012 He can either leave the $5,500 of nondeductible contributions in his IRA or withdraw them by April 15, 2014. File an amended tax return for 2012 Sue figures her IRA deduction as shown on Worksheet 1-2. File an amended tax return for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated. File an amended tax return for 2012 Worksheet 1-2. File an amended tax return for 2012 Figuring Your Reduced IRA Deduction for 2013 (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. File an amended tax return for 2012 ) Note. File an amended tax return for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return for 2012 IF you . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your  filing status is . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your modified AGI is over . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 THEN enter on  line 1 below . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. File an amended tax return for 2012 Enter applicable amount from table above 1. File an amended tax return for 2012   2. File an amended tax return for 2012 Enter your modified AGI (that of both spouses, if married filing jointly) 2. File an amended tax return for 2012     Note. File an amended tax return for 2012 If line 2 is equal to or more than the amount on line 1, stop here. File an amended tax return for 2012  Your IRA contributions are not deductible. File an amended tax return for 2012 See Nondeductible Contributions , earlier. File an amended tax return for 2012     3. File an amended tax return for 2012 Subtract line 2 from line 1. File an amended tax return for 2012 If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. File an amended tax return for 2012 You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. File an amended tax return for 2012   4. File an amended tax return for 2012 Multiply line 3 by the percentage below that applies to you. File an amended tax return for 2012 If the result is not a multiple of $10, round it to the next highest multiple of $10. File an amended tax return for 2012 (For example, $611. File an amended tax return for 2012 40 is rounded to $620. File an amended tax return for 2012 ) However, if the result is less than $200, enter $200. File an amended tax return for 2012         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. File an amended tax return for 2012 5% (. File an amended tax return for 2012 275) (by 32. File an amended tax return for 2012 5% (. File an amended tax return for 2012 325) if you are age 50 or older). File an amended tax return for 2012 All others, multiply line 3 by 55% (. File an amended tax return for 2012 55) (by 65% (. File an amended tax return for 2012 65) if you are age 50 or older). File an amended tax return for 2012 4. File an amended tax return for 2012   5. File an amended tax return for 2012 Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). File an amended tax return for 2012 If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. File an amended tax return for 2012 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. File an amended tax return for 2012   6. File an amended tax return for 2012 Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). File an amended tax return for 2012 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. File an amended tax return for 2012 6. File an amended tax return for 2012   7. File an amended tax return for 2012 IRA deduction. File an amended tax return for 2012 Compare lines 4, 5, and 6. File an amended tax return for 2012 Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. File an amended tax return for 2012 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. File an amended tax return for 2012   8. File an amended tax return for 2012 Nondeductible contribution. File an amended tax return for 2012 Subtract line 7 from line 5 or 6, whichever is smaller. File an amended tax return for 2012  Enter the result here and on line 1 of your Form 8606 8. File an amended tax return for 2012   Worksheet 1-2. File an amended tax return for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 1 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. File an amended tax return for 2012 ) Note. File an amended tax return for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return for 2012 IF you . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your  filing status is . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your modified AGI is over . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 THEN enter on  line 1 below . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. File an amended tax return for 2012 Enter applicable amount from table above 1. File an amended tax return for 2012 115,000 2. File an amended tax return for 2012 Enter your modified AGI (that of both spouses, if married filing jointly) 2. File an amended tax return for 2012 96,555   Note. File an amended tax return for 2012 If line 2 is equal to or more than the amount on line 1, stop here. File an amended tax return for 2012  Your IRA contributions are not deductible. File an amended tax return for 2012 See Nondeductible Contributions , earlier. File an amended tax return for 2012     3. File an amended tax return for 2012 Subtract line 2 from line 1. File an amended tax return for 2012 If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. File an amended tax return for 2012 You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. File an amended tax return for 2012 18,445 4. File an amended tax return for 2012 Multiply line 3 by the percentage below that applies to you. File an amended tax return for 2012 If the result is not a multiple of $10, round it to the next highest multiple of $10. File an amended tax return for 2012 (For example, $611. File an amended tax return for 2012 40 is rounded to $620. File an amended tax return for 2012 ) However, if the result is less than $200, enter $200. File an amended tax return for 2012         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. File an amended tax return for 2012 5% (. File an amended tax return for 2012 275) (by 32. File an amended tax return for 2012 5% (. File an amended tax return for 2012 325) if you are age 50 or older). File an amended tax return for 2012 All others, multiply line 3 by 55% (. File an amended tax return for 2012 55) (by 65% (. File an amended tax return for 2012 65) if you are age 50 or older). File an amended tax return for 2012 4. File an amended tax return for 2012 5,080 5. File an amended tax return for 2012 Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). File an amended tax return for 2012 If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. File an amended tax return for 2012 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. File an amended tax return for 2012 59,000 6. File an amended tax return for 2012 Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). File an amended tax return for 2012 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. File an amended tax return for 2012 6. File an amended tax return for 2012 5,500 7. File an amended tax return for 2012 IRA deduction. File an amended tax return for 2012 Compare lines 4, 5, and 6. File an amended tax return for 2012 Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. File an amended tax return for 2012 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. File an amended tax return for 2012 5,080 8. File an amended tax return for 2012 Nondeductible contribution. File an amended tax return for 2012 Subtract line 7 from line 5 or 6, whichever is smaller. File an amended tax return for 2012  Enter the result here and on line 1 of your Form 8606 8. File an amended tax return for 2012 420 Worksheet 1-2. File an amended tax return for 2012 Figuring Your Reduced IRA Deduction for 2013—Example 2 Illustrated (Use only if you or your spouse is covered by an employer plan and your modified AGI falls between the two amounts shown below for your coverage situation and filing status. File an amended tax return for 2012 ) Note. File an amended tax return for 2012 If you were married and both you and your spouse contributed to IRAs, figure your deduction and your spouse's deduction separately. File an amended tax return for 2012 IF you . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your  filing status is . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 AND your modified AGI is over . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012 THEN enter on  line 1 below . File an amended tax return for 2012 . File an amended tax return for 2012 . File an amended tax return for 2012       are covered by an employer plan single or head of household $59,000 $69,000     married filing jointly or qualifying widow(er) $95,000 $115,000     married filing separately $0 $10,000     are not covered by an employer plan, but your spouse is covered married filing jointly $178,000 $188,000     married filing separately $0 $10,000     1. File an amended tax return for 2012 Enter applicable amount from table above 1. File an amended tax return for 2012 188,000 2. File an amended tax return for 2012 Enter your modified AGI (that of both spouses, if married filing jointly) 2. File an amended tax return for 2012 180,555   Note. File an amended tax return for 2012 If line 2 is equal to or more than the amount on line 1, stop here. File an amended tax return for 2012  Your IRA contributions are not deductible. File an amended tax return for 2012 See Nondeductible Contributions , earlier. File an amended tax return for 2012     3. File an amended tax return for 2012 Subtract line 2 from line 1. File an amended tax return for 2012 If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. File an amended tax return for 2012 You can take a full IRA deduction for contributions of up to $5,500 ($6,500 if you are age 50 or older) or 100% of your (and if married filing jointly, your spouse's) compensation, whichever is less 3. File an amended tax return for 2012 7,445 4. File an amended tax return for 2012 Multiply line 3 by the percentage below that applies to you. File an amended tax return for 2012 If the result is not a multiple of $10, round it to the next highest multiple of $10. File an amended tax return for 2012 (For example, $611. File an amended tax return for 2012 40 is rounded to $620. File an amended tax return for 2012 ) However, if the result is less than $200, enter $200. File an amended tax return for 2012         Married filing jointly or qualifying widow(er) and you are covered by an employer plan, multiply line 3 by 27. File an amended tax return for 2012 5% (. File an amended tax return for 2012 275) (by 32. File an amended tax return for 2012 5% (. File an amended tax return for 2012 325) if you are age 50 or older). File an amended tax return for 2012 All others, multiply line 3 by 55% (. File an amended tax return for 2012 55) (by 65% (. File an amended tax return for 2012 65) if you are age 50 or older). File an amended tax return for 2012 4. File an amended tax return for 2012 4,100 5. File an amended tax return for 2012 Enter your compensation minus any deductions on Form 1040 or Form 1040NR, line 27 (deductible part of self-employment tax) and line 28 (self-employed SEP, SIMPLE, and qualified plans). File an amended tax return for 2012 If you are filing a joint return and your compensation is less than your spouse's, include your spouse's compensation reduced by his or her traditional IRA and Roth IRA contributions for this year. File an amended tax return for 2012 If you file Form 1040 or Form 1040NR, do not reduce your compensation by any losses from self-employment 5. File an amended tax return for 2012 39,500 6. File an amended tax return for 2012 Enter contributions made, or to be made, to your IRA for 2013, but do not enter more than $5,500 ($6,500 if you are age 50 or older). File an amended tax return for 2012 If contributions are more than $5,500 ($6,500 if you are age 50 or older), see Excess Contributions , later. File an amended tax return for 2012 6. File an amended tax return for 2012 5,500 7. File an amended tax return for 2012 IRA deduction. File an amended tax return for 2012 Compare lines 4, 5, and 6. File an amended tax return for 2012 Enter the smallest amount (or a smaller amount if you choose) here and on the Form 1040, 1040A, or 1040NR line for your IRA, whichever applies. File an amended tax return for 2012 If line 6 is more than line 7 and you want to make a nondeductible contribution, go to line 8 7. File an amended tax return for 2012 4,100 8. File an amended tax return for 2012 Nondeductible contribution. File an amended tax return for 2012 Subtract line 7 from line 5 or 6, whichever is smaller. File an amended tax return for 2012  Enter the result here and on line 1 of your Form 8606 8. File an amended tax return for 2012 1,400 What if You Inherit an IRA? If you inherit a traditional IRA, you are called a beneficiary. File an amended tax return for 2012 A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. File an amended tax return for 2012 Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. File an amended tax return for 2012 Inherited from spouse. File an amended tax return for 2012   If you inherit a traditional IRA from your spouse, you generally have the following three choices. File an amended tax return for 2012 You can: Treat it as your own IRA by designating yourself as the account owner. File an amended tax return for 2012 Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (s