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Fill 1040x form online 25. Fill 1040x form online   Nonbusiness Casualty and Theft Losses Table of Contents What's New Introduction Useful Items - You may want to see: CasualtyFamily pet. Fill 1040x form online Progressive deterioration. Fill 1040x form online Damage from corrosive drywall. Fill 1040x form online Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses What's New New Section C of Form 4684 for Ponzi-type investment schemes. Fill 1040x form online  Section C of Form 4684 is new for 2013. Fill 1040x form online You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Fill 1040x form online Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Fill 1040x form online You do not need to complete Appendix A. Fill 1040x form online For details, see Losses from Ponzi-type investment schemes , in this chapter. Fill 1040x form online Introduction This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits. Fill 1040x form online The chapter also explains the following  topics. Fill 1040x form online How to figure the amount of your loss. Fill 1040x form online How to treat insurance and other reimbursements you receive. Fill 1040x form online The deduction limits. Fill 1040x form online When and how to report a casualty or theft. Fill 1040x form online Forms to file. Fill 1040x form online    When you have a casualty or theft, you have to file Form 4684. Fill 1040x form online You will also have to file one or more of the following forms. Fill 1040x form online Schedule A (Form 1040), Itemized Deductions Schedule D (Form 1040), Capital Gains and Losses Condemnations. Fill 1040x form online   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets. Fill 1040x form online Workbook for casualties and thefts. Fill 1040x form online    Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. Fill 1040x form online It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Fill 1040x form online Business or investment-related losses. Fill 1040x form online   For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts. Fill 1040x form online Useful Items - You may want to see: Publication 544 Sales and Other Dispositions  of Assets 547 Casualties, Disasters, and   Thefts 584 Casualty, Disaster, and Theft   Loss Workbook (Personal-Use  Property) Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Fill 1040x form online A sudden event is one that is swift, not gradual or progressive. Fill 1040x form online An unexpected event is one that is ordinarily unanticipated and unintended. Fill 1040x form online An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. Fill 1040x form online Deductible losses. Fill 1040x form online   Deductible casualty losses can result from a number of different causes, including the following. Fill 1040x form online Car accidents (but see Nondeductible losses , next, for exceptions). Fill 1040x form online Earthquakes. Fill 1040x form online Fires (but see Nondeductible losses , next, for exceptions). Fill 1040x form online Floods. Fill 1040x form online Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Publication 547. Fill 1040x form online Mine cave-ins. Fill 1040x form online Shipwrecks. Fill 1040x form online Sonic booms. Fill 1040x form online Storms, including hurricanes and tornadoes. Fill 1040x form online Terrorist attacks. Fill 1040x form online Vandalism. Fill 1040x form online Volcanic eruptions. Fill 1040x form online Nondeductible losses. Fill 1040x form online   A casualty loss is not deductible if the damage or destruction is caused by the following. Fill 1040x form online Accidentally breaking articles such as glassware or china under normal conditions. Fill 1040x form online A family pet (explained below). Fill 1040x form online A fire if you willfully set it or pay someone else to set it. Fill 1040x form online A car accident if your willful negligence or willful act caused it. Fill 1040x form online The same is true if the willful act or willful negligence of someone acting for you caused the accident. Fill 1040x form online Progressive deterioration (explained later). Fill 1040x form online Family pet. Fill 1040x form online   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met. Fill 1040x form online Example. Fill 1040x form online Your antique oriental rug was damaged by your new puppy before it was housebroken. Fill 1040x form online Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. Fill 1040x form online Progressive deterioration. Fill 1040x form online    Loss of property due to progressive deterioration is not deductible as a casualty loss. Fill 1040x form online This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Fill 1040x form online The following are examples of damage due to progressive deterioration. Fill 1040x form online The steady weakening of a building due to normal wind and weather conditions. Fill 1040x form online The deterioration and damage to a water heater that bursts. Fill 1040x form online However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. Fill 1040x form online Most losses of property caused by droughts. Fill 1040x form online To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. Fill 1040x form online Termite or moth damage. Fill 1040x form online The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. Fill 1040x form online However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. Fill 1040x form online Damage from corrosive drywall. Fill 1040x form online   Under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. Fill 1040x form online For details, see Publication 547. Fill 1040x form online Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. Fill 1040x form online The taking of property must be illegal under the laws of the state where it occurred and it must have been done with criminal intent. Fill 1040x form online You do not need to show a conviction for theft. Fill 1040x form online Theft includes the taking of money or property by the following means. Fill 1040x form online Blackmail. Fill 1040x form online Burglary. Fill 1040x form online Embezzlement. Fill 1040x form online Extortion. Fill 1040x form online Kidnapping for ransom. Fill 1040x form online Larceny. Fill 1040x form online Robbery. Fill 1040x form online The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Fill 1040x form online Decline in market value of stock. Fill 1040x form online   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. Fill 1040x form online However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. Fill 1040x form online You report a capital loss on Schedule D (Form 1040). Fill 1040x form online For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Fill 1040x form online Mislaid or lost property. Fill 1040x form online   The simple disappearance of money or property is not a theft. Fill 1040x form online However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Fill 1040x form online Sudden, unexpected, and unusual events are defined earlier. Fill 1040x form online Example. Fill 1040x form online A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Fill 1040x form online The diamond falls from the ring and is never found. Fill 1040x form online The loss of the diamond is a casualty. Fill 1040x form online Losses from Ponzi-type investment schemes. Fill 1040x form online   If you had a loss from a Ponzi-type investment scheme, see: Revenue Ruling 2009-9, 2009-14 I. Fill 1040x form online R. Fill 1040x form online B. Fill 1040x form online 735 (available at www. Fill 1040x form online irs. Fill 1040x form online gov/irb/2009-14_IRB/ar07. Fill 1040x form online html). Fill 1040x form online Revenue Procedure 2009-20, 2009-14 I. Fill 1040x form online R. Fill 1040x form online B. Fill 1040x form online 749 (available at www. Fill 1040x form online irs. Fill 1040x form online gov/irb/2009-14_IRB/ar11. Fill 1040x form online html). Fill 1040x form online Revenue Procedure 2011-58, 2011-50 I. Fill 1040x form online R. Fill 1040x form online B. Fill 1040x form online 849 (available at www. Fill 1040x form online irs. Fill 1040x form online gov/irb/2011-50_IRB/ar11. Fill 1040x form online html). Fill 1040x form online If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. Fill 1040x form online Skip lines 19 to 27. Fill 1040x form online Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Fill 1040x form online You do not need to complete Appendix A. Fill 1040x form online For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. Fill 1040x form online   If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. Fill 1040x form online Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Fill 1040x form online If you incurred this type of loss, you can choose one of the following ways to deduct the loss. Fill 1040x form online As a casualty loss. Fill 1040x form online As an ordinary loss. Fill 1040x form online As a nonbusiness bad debt. Fill 1040x form online Casualty loss or ordinary loss. Fill 1040x form online   You can choose to deduct a loss on deposits as a casualty loss or as an ordinary loss for any year in which you can reasonably estimate how much of your deposits you have lost in an insolvent or bankrupt financial institution. Fill 1040x form online The choice is generally made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. Fill 1040x form online If you treat the loss as a casualty or ordinary loss, you cannot treat the same amount of the loss as a nonbusiness bad debt when it actually becomes worthless. Fill 1040x form online However, you can take a nonbusiness bad debt deduction for any amount of loss that is more than the estimated amount you deducted as a casualty or ordinary loss. Fill 1040x form online Once you make this choice, you cannot change it without permission from the Internal Revenue Service. Fill 1040x form online   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Fill 1040x form online The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. Fill 1040x form online Your loss is subject to the 2%-of-adjusted-gross-income limit. Fill 1040x form online You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. Fill 1040x form online Nonbusiness bad debt. Fill 1040x form online   If you do not choose to deduct the loss as a casualty loss or as an ordinary loss, you must wait until the year the actual loss is determined and deduct the loss as a nonbusiness bad debt in that year. Fill 1040x form online How to report. Fill 1040x form online   The kind of deduction you choose for your loss on deposits determines how you report your loss. Fill 1040x form online If you choose: Casualty loss — report it on Form 4684 first and then on Schedule A (Form 1040). Fill 1040x form online Ordinary loss — report it on Schedule A (Form 1040) as a miscellaneous itemized deduction. Fill 1040x form online Nonbusiness bad debt — report it on Form 8949 first and then on Schedule D (Form 1040). Fill 1040x form online More information. Fill 1040x form online   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684 or Deposit in Insolvent or Bankrupt Financial Institution in Publication 550. Fill 1040x form online Proof of Loss To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. Fill 1040x form online You also must be able to support the amount you take as a deduction. Fill 1040x form online Casualty loss proof. Fill 1040x form online   For a casualty loss, your records should show all the following. Fill 1040x form online The type of casualty (car accident, fire, storm, etc. Fill 1040x form online ) and when it occurred. Fill 1040x form online That the loss was a direct result of the casualty. Fill 1040x form online That you were the owner of the property or, if you leased the property from someone else, that you were contractually liable to the owner for the damage. Fill 1040x form online Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Fill 1040x form online Theft loss proof. Fill 1040x form online   For a theft loss, your records should show all the following. Fill 1040x form online When you discovered that your property was missing. Fill 1040x form online That your property was stolen. Fill 1040x form online That you were the owner of the property. Fill 1040x form online Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Fill 1040x form online It is important that you have records that will prove your deduction. Fill 1040x form online If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. Fill 1040x form online Figuring a Loss Figure the amount of your loss using the following steps. Fill 1040x form online Determine your adjusted basis in the property before the casualty or theft. Fill 1040x form online Determine the decrease in fair market value of the property as a result of the casualty or theft. Fill 1040x form online From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. Fill 1040x form online For personal-use property and property used in performing services as an employee, apply the deduction limits, discussed later, to determine the amount of your deductible loss. Fill 1040x form online Gain from reimbursement. Fill 1040x form online   If your reimbursement is more than your adjusted basis in the property, you have a gain. Fill 1040x form online This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. Fill 1040x form online If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. Fill 1040x form online See Publication 547 for more information on how to treat a gain from a reimbursement for a casualty or theft. Fill 1040x form online Leased property. Fill 1040x form online   If you are liable for casualty damage to property you lease, your loss is the amount you must pay to repair the property minus any insurance or other reimbursement you receive or expect to receive. Fill 1040x form online Decrease in Fair Market Value Fair market value (FMV) is the price for which you could sell your property to a willing buyer when neither of you has to sell or buy and both of you know all the relevant facts. Fill 1040x form online The decrease in FMV used to figure the amount of a casualty or theft loss is the difference between the property's fair market value immediately before and immediately after the casualty or theft. Fill 1040x form online FMV of stolen property. Fill 1040x form online   The FMV of property immediately after a theft is considered to be zero, since you no longer have the property. Fill 1040x form online Example. Fill 1040x form online Several years ago, you purchased silver dollars at face value for $150. Fill 1040x form online This is your adjusted basis in the property. Fill 1040x form online Your silver dollars were stolen this year. Fill 1040x form online The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. Fill 1040x form online Your theft loss is $150. Fill 1040x form online Recovered stolen property. Fill 1040x form online   Recovered stolen property is your property that was stolen and later returned to you. Fill 1040x form online If you recovered property after you had already taken a theft loss deduction, you must refigure your loss using the smaller of the property's adjusted basis (explained later) or the decrease in FMV from the time just before it was stolen until the time it was recovered. Fill 1040x form online Use this amount to refigure your total loss for the year in which the loss was deducted. Fill 1040x form online   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. Fill 1040x form online But report the difference only up to the amount of the loss that reduced your tax. Fill 1040x form online For more information on the amount to report, see Recoveries in chapter 12. Fill 1040x form online Figuring Decrease in FMV— Items To Consider To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. Fill 1040x form online However, other measures can also be used to establish certain decreases. Fill 1040x form online Appraisal. Fill 1040x form online   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Fill 1040x form online The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Fill 1040x form online This information is needed to limit any deduction to the actual loss resulting from damage to the property. Fill 1040x form online   Several factors are important in evaluating the accuracy of an appraisal, including the following. Fill 1040x form online The appraiser's familiarity with your property before and after the casualty or theft. Fill 1040x form online The appraiser's knowledge of sales of comparable property in the area. Fill 1040x form online The appraiser's knowledge of conditions in the area of the casualty. Fill 1040x form online The appraiser's method of appraisal. Fill 1040x form online    You may be able to use an appraisal that you used to get a federal loan (or a federal loan guarantee) as the result of a federally declared disaster to establish the amount of your disaster loss. Fill 1040x form online For more information on disasters, see Disaster Area Losses, in Pub. Fill 1040x form online 547. Fill 1040x form online Cost of cleaning up or making repairs. Fill 1040x form online   The cost of repairing damaged property is not part of a casualty loss. Fill 1040x form online Neither is the cost of cleaning up after a casualty. Fill 1040x form online But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Fill 1040x form online The repairs are actually made. Fill 1040x form online The repairs are necessary to bring the property back to its condition before the casualty. Fill 1040x form online The amount spent for repairs is not excessive. Fill 1040x form online The repairs take care of the damage only. Fill 1040x form online The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Fill 1040x form online Landscaping. Fill 1040x form online   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. Fill 1040x form online You may be able to measure your loss by what you spend on the following. Fill 1040x form online Removing destroyed or damaged trees and shrubs minus any salvage you receive. Fill 1040x form online Pruning and other measures taken to preserve damaged trees and shrubs. Fill 1040x form online Replanting necessary to restore the property to its approximate value before the casualty. Fill 1040x form online Car value. Fill 1040x form online    Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. Fill 1040x form online You can use the book's retail values and modify them by such factors as mileage and the condition of your car to figure its value. Fill 1040x form online The prices are not official, but they may be useful in determining value and suggesting relative prices for comparison with current sales and offerings in your area. Fill 1040x form online If your car is not listed in the books, determine its value from other sources. Fill 1040x form online A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. Fill 1040x form online Figuring Decrease in FMV— Items Not To Consider You generally should not consider the following items when attempting to establish the decrease in FMV of your property. Fill 1040x form online Cost of protection. Fill 1040x form online   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. Fill 1040x form online The amount you spend on insurance or to board up your house against a storm is not part of your loss. Fill 1040x form online   If you make permanent improvements to your property to protect it against a casualty or theft, add the cost of these improvements to your basis in the property. Fill 1040x form online An example would be the cost of a dike to prevent flooding. Fill 1040x form online Exception. Fill 1040x form online   You cannot increase your basis in the property by, or deduct as a business expense, any expenditures you made with respect to qualified disaster mitigation payments. Fill 1040x form online See Disaster Area Losses in Publication 547. Fill 1040x form online Incidental expenses. Fill 1040x form online   Any incidental expenses you have due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. Fill 1040x form online Replacement cost. Fill 1040x form online   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. Fill 1040x form online Sentimental value. Fill 1040x form online   Do not consider sentimental value when determining your loss. Fill 1040x form online If a family portrait, heirloom, or keepsake is damaged, destroyed, or stolen, you must base your loss on its FMV, as limited by your adjusted basis in the property. Fill 1040x form online Decline in market value of property in or near casualty area. Fill 1040x form online   A decrease in the value of your property because it is in or near an area that suffered a casualty, or that might again suffer a casualty, is not to be taken into consideration. Fill 1040x form online You have a loss only for actual casualty damage to your property. Fill 1040x form online However, if your home is in a federally declared disaster area, see Disaster Area Losses in Publication 547. Fill 1040x form online Costs of photographs and appraisals. Fill 1040x form online    Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. Fill 1040x form online Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. Fill 1040x form online    Appraisals are used to figure the decrease in FMV because of a casualty or theft. Fill 1040x form online See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. Fill 1040x form online   The costs of photographs and appraisals used as evidence of the value and condition of property damaged as a result of a casualty are not a part of the loss. Fill 1040x form online You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). Fill 1040x form online For information about miscellaneous deductions, see chapter 28. Fill 1040x form online Adjusted Basis Adjusted basis is your basis in the property (usually cost) increased or decreased by various events, such as improvements and casualty losses. Fill 1040x form online For more information, see chapter 13. Fill 1040x form online Insurance and Other Reimbursements If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Fill 1040x form online You do not have a casualty or theft loss to the extent you are reimbursed. Fill 1040x form online If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Fill 1040x form online You must reduce your loss even if you do not receive payment until a later tax year. Fill 1040x form online See Reimbursement Received After Deducting Loss , later. Fill 1040x form online Failure to file a claim for reimbursement. Fill 1040x form online   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. Fill 1040x form online Otherwise, you cannot deduct this loss as a casualty or theft loss. Fill 1040x form online However, this rule does not apply to the portion of the loss not covered by insurance (for example, a deductible). Fill 1040x form online Example. Fill 1040x form online You have a car insurance policy with a $1,000 deductible. Fill 1040x form online Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the deduction limits discussed later). Fill 1040x form online This is true even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. Fill 1040x form online Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. Fill 1040x form online Other types of reimbursements are discussed next. Fill 1040x form online Also see the Instructions for Form 4684. Fill 1040x form online Employer's emergency disaster fund. Fill 1040x form online   If you receive money from your employer's emergency disaster fund and you must use that money to rehabilitate or replace property on which you are claiming a casualty loss deduction, you must take that money into consideration in computing the casualty loss deduction. Fill 1040x form online Take into consideration only the amount you used to replace your destroyed or damaged property. Fill 1040x form online Example. Fill 1040x form online Your home was extensively damaged by a tornado. Fill 1040x form online Your loss after reimbursement from your insurance company was $10,000. Fill 1040x form online Your employer set up a disaster relief fund for its employees. Fill 1040x form online Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. Fill 1040x form online You received $4,000 from the fund and spent the entire amount on repairs to your home. Fill 1040x form online In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. Fill 1040x form online Your casualty loss before applying the deduction limits discussed later is $6,000. Fill 1040x form online Cash gifts. Fill 1040x form online   If you receive excludable cash gifts as a disaster victim and there are no limits on how you can use the money, you do not reduce your casualty loss by these excludable cash gifts. Fill 1040x form online This applies even if you use the money to pay for repairs to property damaged in the disaster. Fill 1040x form online Example. Fill 1040x form online Your home was damaged by a hurricane. Fill 1040x form online Relatives and neighbors made cash gifts to you that were excludable from your income. Fill 1040x form online You used part of the cash gifts to pay for repairs to your home. Fill 1040x form online There were no limits or restrictions on how you could use the cash gifts. Fill 1040x form online Because it was an excludable gift, the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. Fill 1040x form online Insurance payments for living expenses. Fill 1040x form online   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. Fill 1040x form online You lose the use of your main home because of a casualty. Fill 1040x form online Government authorities do not allow you access to your main home because of a casualty or threat of one. Fill 1040x form online Inclusion in income. Fill 1040x form online   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. Fill 1040x form online Report this amount on Form 1040, line 21. Fill 1040x form online However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. Fill 1040x form online See Qualified disaster relief payments, under Disaster Area Losses in Publication 547. Fill 1040x form online   A temporary increase in your living expenses is the difference between the actual living expenses you and your family incurred during the period you could not use your home and your normal living expenses for that period. Fill 1040x form online Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. Fill 1040x form online Generally, these expenses include the amounts you pay for the following. Fill 1040x form online Rent for suitable housing. Fill 1040x form online Transportation. Fill 1040x form online Food. Fill 1040x form online Utilities. Fill 1040x form online Miscellaneous services. Fill 1040x form online Normal living expenses consist of these same expenses that you would have incurred but did not because of the casualty or the threat of one. Fill 1040x form online Example. Fill 1040x form online As a result of a fire, you vacated your apartment for a month and moved to a motel. Fill 1040x form online You normally pay $525 a month for rent. Fill 1040x form online None was charged for the month the apartment was vacated. Fill 1040x form online Your motel rent for this month was $1,200. Fill 1040x form online You normally pay $200 a month for food. Fill 1040x form online Your food expenses for the month you lived in the motel were $400. Fill 1040x form online You received $1,100 from your insurance company to cover your living expenses. Fill 1040x form online You determine the payment you must include in income as follows. Fill 1040x form online 1) Insurance payment for living expenses $1,100 2) Actual expenses during the month you are unable to use your home because of fire 1,600   3) Normal living expenses 725   4) Temporary increase in living  expenses: Subtract line 3 from line 2 875 5) Amount of payment includible  in income: Subtract line 4  from line 1 $ 225 Tax year of inclusion. Fill 1040x form online   You include the taxable part of the insurance payment in income for the year you regain the use of your main home or, if later, for the year you receive the taxable part of the insurance payment. Fill 1040x form online Example. Fill 1040x form online Your main home was destroyed by a tornado in August 2011. Fill 1040x form online You regained use of your home in November 2012. Fill 1040x form online The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. Fill 1040x form online You include this amount in income on your 2012 Form 1040. Fill 1040x form online If, in 2013, you receive further payments to cover the living expenses you had in 2011 and 2012, you must include those payments in income on your 2013 Form 1040. Fill 1040x form online Disaster relief. Fill 1040x form online   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss unless they are replacements for lost or destroyed property. Fill 1040x form online Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Fill 1040x form online For more information, see Disaster Area Losses in Publication 547. Fill 1040x form online Disaster unemployment assistance payments are unemployment benefits that are taxable. Fill 1040x form online Generally, disaster relief grants and qualified disaster mitigation payments made under the Robert T. Fill 1040x form online Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not includible in your income. Fill 1040x form online See Disaster Area Losses in Publication 547. Fill 1040x form online Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you receive your actual reimbursement. Fill 1040x form online This section explains the adjustment you may have to make. Fill 1040x form online Actual reimbursement less than expected. Fill 1040x form online   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. Fill 1040x form online Example. Fill 1040x form online Your personal car had an FMV of $2,000 when it was destroyed in a collision with another car in 2012. Fill 1040x form online The accident was due to the negligence of the other driver. Fill 1040x form online At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. Fill 1040x form online You did not have a deductible loss in 2012. Fill 1040x form online In January 2013, the court awarded you a judgment of $2,000. Fill 1040x form online However, in July it became apparent that you will be unable to collect any amount from the other driver. Fill 1040x form online You can deduct the loss in 2013 subject to the limits discussed later. Fill 1040x form online Actual reimbursement more than expected. Fill 1040x form online   If you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Fill 1040x form online However, if any part of the original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. Fill 1040x form online You do not refigure your tax for the year you claimed the deduction. Fill 1040x form online For more information, see Recoveries in chapter 12. Fill 1040x form online If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. Fill 1040x form online If you have already taken a deduction for a loss and you receive the reimbursement in a later year, you may have to include the gain in your income for the later year. Fill 1040x form online Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. Fill 1040x form online See Figuring a Gain in Publication 547 for more information on how to treat a gain from the reimbursement of a casualty or theft. Fill 1040x form online Actual reimbursement same as expected. Fill 1040x form online   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. Fill 1040x form online Example. Fill 1040x form online In December 2013, you had a collision while driving your personal car. Fill 1040x form online Repairs to the car cost $950. Fill 1040x form online You had $100 deductible collision insurance. Fill 1040x form online Your insurance company agreed to reimburse you for the rest of the damage. Fill 1040x form online Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. Fill 1040x form online Due to the $100 rule (discussed later under Deduction Limits ), you cannot deduct the $100 you paid as the deductible. Fill 1040x form online When you receive the $850 from the insurance company in 2014, do not report it as income. Fill 1040x form online Single Casualty on Multiple Properties Personal property. Fill 1040x form online   Personal property is any property that is not real property. Fill 1040x form online If your personal property is stolen or is damaged or destroyed by a casualty, you must figure your loss separately for each item of property. Fill 1040x form online Then combine these separate losses to figure the total loss from that casualty or theft. Fill 1040x form online Example. Fill 1040x form online A fire in your home destroyed an upholstered chair, an oriental rug, and an antique table. Fill 1040x form online You did not have fire insurance to cover your loss. Fill 1040x form online (This was the only casualty or theft you had during the year. Fill 1040x form online ) You paid $750 for the chair and you established that it had an FMV of $500 just before the fire. Fill 1040x form online The rug cost $3,000 and had an FMV of $2,500 just before the fire. Fill 1040x form online You bought the table at an auction for $100 before discovering it was an antique. Fill 1040x form online It had been appraised at $900 before the fire. Fill 1040x form online You figure your loss on each of these items as follows:     Chair Rug Table 1) Basis (cost) $750 $3,000 $100 2) FMV before fire $500 $2,500 $900 3) FMV after fire –0– –0– –0– 4) Decrease in FMV $500 $2,500 $900 5) Loss (smaller of (1) or  (4)) $500 $2,500 $100           6) Total loss     $3,100 Real property. Fill 1040x form online   In figuring a casualty loss on personal-use real property, treat the entire property (including any improvements, such as buildings, trees, and shrubs) as one item. Fill 1040x form online Figure the loss using the smaller of the adjusted basis or the decrease in FMV of the entire property. Fill 1040x form online Example. Fill 1040x form online You bought your home a few years ago. Fill 1040x form online You paid $160,000 ($20,000 for the land and $140,000 for the house). Fill 1040x form online You also spent $2,000 for landscaping. Fill 1040x form online This year a fire destroyed your home. Fill 1040x form online The fire also damaged the shrubbery and trees in your yard. Fill 1040x form online The fire was your only casualty or theft loss this year. Fill 1040x form online Competent appraisers valued the property as a whole at $200,000 before the fire, but only $30,000 after the fire. Fill 1040x form online (The loss to your household furnishings is not shown in this example. Fill 1040x form online It would be figured separately on each item, as explained earlier under Personal property . Fill 1040x form online ) Shortly after the fire, the insurance company paid you $155,000 for the loss. Fill 1040x form online You figure your casualty loss as follows: 1) Adjusted basis of the entire property (land, building, and landscaping) $162,000 2) FMV of entire property before fire $200,000 3) FMV of entire property after fire 30,000 4) Decrease in FMV of entire  property $170,000 5) Loss (smaller of (1) or (4)) $162,000 6) Subtract insurance 155,000 7) Amount of loss after reimbursement $7,000 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. Fill 1040x form online If the loss was to property for your personal use or your family's use, there are two limits on the amount you can deduct for your casualty or theft loss. Fill 1040x form online You must reduce each casualty or theft loss by $100 ($100 rule). Fill 1040x form online You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income (10% rule). Fill 1040x form online You make these reductions on Form 4684. Fill 1040x form online These rules are explained next and Table 25-1 summarizes how to apply the $100 rule and the 10% rule in various situations. Fill 1040x form online For more detailed explanations and examples, see Publication 547. Fill 1040x form online Table 25-1. Fill 1040x form online How To Apply the Deduction Limits for Personal-Use Property   $100 Rule 10% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. Fill 1040x form online Apply this rule after you have figured the amount of your loss. Fill 1040x form online You must reduce your total casualty or theft loss by 10% of your adjusted gross income. Fill 1040x form online Apply this rule after you reduce each loss by $100 (the $100 rule). Fill 1040x form online Single Event Apply this rule only once, even if many pieces of property are affected. Fill 1040x form online Apply this rule only once, even if many pieces of property are affected. Fill 1040x form online More Than One Event Apply to the loss from each event. Fill 1040x form online Apply to the total of all your losses from all events. Fill 1040x form online More Than One Person— With Loss From the Same Event (other than a married couple filing jointly) Apply separately to each person. Fill 1040x form online Apply separately to each person. Fill 1040x form online Married Couple—With Loss From the Same Event Filing Jointly Apply as if you were one person. Fill 1040x form online Apply as if you were one person. Fill 1040x form online Filing Separately Apply separately to each spouse. Fill 1040x form online Apply separately to each spouse. Fill 1040x form online More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. Fill 1040x form online Apply separately to each owner of jointly owned property. Fill 1040x form online Property used partly for business and partly for personal purposes. Fill 1040x form online   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use part and for the business or income-producing part. Fill 1040x form online You must figure each loss separately because the $100 rule and the 10% rule apply only to the loss on the personal-use part of the property. Fill 1040x form online $100 Rule After you have figured your casualty or theft loss on personal-use property, you must reduce that loss by $100. Fill 1040x form online This reduction applies to each total casualty or theft loss. Fill 1040x form online It does not matter how many pieces of property are involved in an event. Fill 1040x form online Only a single $100 reduction applies. Fill 1040x form online Example. Fill 1040x form online A hailstorm damages your home and your car. Fill 1040x form online Determine the amount of loss, as discussed earlier, for each of these items. Fill 1040x form online Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. Fill 1040x form online Single event. Fill 1040x form online   Generally, events closely related in origin cause a single casualty. Fill 1040x form online It is a single casualty when the damage is from two or more closely related causes, such as wind and flood damage caused by the same storm. Fill 1040x form online 10% Rule You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. Fill 1040x form online Apply this rule after you reduce each loss by $100. Fill 1040x form online For more information, see the Form 4684 instructions. Fill 1040x form online If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. Fill 1040x form online Example 1. Fill 1040x form online In June, you discovered that your house had been burglarized. Fill 1040x form online Your loss after insurance reimbursement was $2,000. Fill 1040x form online Your adjusted gross income for the year you discovered the theft is $29,500. Fill 1040x form online You first apply the $100 rule and then the 10% rule. Fill 1040x form online Figure your theft loss deduction as follows. Fill 1040x form online 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You do not have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your adjusted gross income ($2,950). Fill 1040x form online Example 2. Fill 1040x form online In March, you had a car accident that totally destroyed your car. Fill 1040x form online You did not have collision insurance on your car, so you did not receive any insurance reimbursement. Fill 1040x form online Your loss on the car was $1,800. Fill 1040x form online In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items stored there. Fill 1040x form online Your loss on the basement items after reimbursement was $2,100. Fill 1040x form online Your adjusted gross income for the year that the accident and fire occurred is $25,000. Fill 1040x form online You figure your casualty loss deduction as follows. Fill 1040x form online       Base-     Car ment 1) Loss $1,800 $2,100 2) Subtract $100 per incident 100 100 3) Loss after $100 rule $1,700 $2,000 4) Total loss $3,700 5) Subtract 10% × $25,000 AGI 2,500 6) Casualty loss deduction $1,200 Gains and losses. Fill 1040x form online   If you had both gains and losses from casualties or thefts to personal-use property, you must compare your total gains to your total losses. Fill 1040x form online Do this after you have reduced each loss by any reimbursements and by $100, but before you have reduced the losses by 10% of your adjusted gross income. Fill 1040x form online Casualty or theft gains do not include gains you choose to postpone. Fill 1040x form online See Publication 547 for information on the postponement of gain. Fill 1040x form online Losses more than gains. Fill 1040x form online   If your losses are more than your recognized gains, subtract your gains from your losses and reduce the result by 10% of your adjusted gross income. Fill 1040x form online The rest, if any, is your deductible loss from personal-use property. Fill 1040x form online Gains more than losses. Fill 1040x form online   If your recognized gains are more than your losses, subtract your losses from your gains. Fill 1040x form online The difference is treated as capital gain and must be reported on Schedule D (Form 1040). Fill 1040x form online The 10% rule does not apply to your gains. Fill 1040x form online When To Report Gains and Losses Gains. Fill 1040x form online   If you receive an insurance or other reimbursement that is more than your adjusted basis in the destroyed or stolen property, you have a gain from the casualty or theft. Fill 1040x form online You must include this gain in your income in the year you receive the reimbursement, unless you choose to postpone reporting the gain as explained in Publication 547. Fill 1040x form online If you have a loss, see Table 25-2 . Fill 1040x form online Table 25-2. Fill 1040x form online When To Deduct a Loss IF you have a loss. Fill 1040x form online . Fill 1040x form online . Fill 1040x form online THEN deduct it in the year. Fill 1040x form online . Fill 1040x form online . Fill 1040x form online from a casualty, the loss occurred. Fill 1040x form online in a federally declared disaster area, the disaster occurred or the year immediately before the disaster. Fill 1040x form online from a theft, the theft was discovered. Fill 1040x form online on a deposit treated as a:   • casualty or any ordinary loss, a reasonable estimate can be made. Fill 1040x form online • bad debt, deposits are totally worthless. Fill 1040x form online Losses. Fill 1040x form online   Generally, you can deduct a casualty loss that is not reimbursable only in the tax year in which the casualty occurred. Fill 1040x form online This is true even if you do not repair or replace the damaged property until a later year. Fill 1040x form online   You can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Fill 1040x form online   If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Fill 1040x form online Loss on deposits. Fill 1040x form online   If your loss is a loss on deposits in an insolvent or bankrupt financial institution, see Loss on Deposits , earlier. Fill 1040x form online Disaster Area Loss You generally must deduct a casualty loss in the year it occurred. Fill 1040x form online However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct the loss on your tax return or amended return for either of the following years. Fill 1040x form online The year the disaster occurred. Fill 1040x form online The year immediately preceding the year the disaster occurred. Fill 1040x form online Gains. Fill 1040x form online    Special rules apply if you choose to postpone reporting gain on property damaged or destroyed in a federally declared disaster area. Fill 1040x form online For those special rules, see Publication 547. Fill 1040x form online Postponed tax deadlines. Fill 1040x form online   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Fill 1040x form online The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Fill 1040x form online   If any tax deadline is postponed, the IRS will publicize the postponement in your area by publishing a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Fill 1040x form online Go to www. Fill 1040x form online irs. Fill 1040x form online gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Fill 1040x form online Who is eligible. Fill 1040x form online   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Fill 1040x form online Any individual whose main home is located in a covered disaster area (defined next). Fill 1040x form online Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Fill 1040x form online Any individual who is a relief worker affiliated with a recognized government or philanthropic organization who is assisting in a covered disaster area. Fill 1040x form online Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Fill 1040x form online The main home or principal place of business does not have to be located in the covered disaster area. Fill 1040x form online Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Fill 1040x form online The spouse on a joint return with a taxpayer who is eligible for postponements. Fill 1040x form online Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a postponed tax deadline are located in the covered disaster area. Fill 1040x form online Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Fill 1040x form online Any other person determined by the IRS to be affected by a federally declared disaster. Fill 1040x form online Covered disaster area. Fill 1040x form online   This is an area of a federally declared disaster in which the IRS has decided to postpone tax deadlines for up to 1 year. Fill 1040x form online Abatement of interest and penalties. Fill 1040x form online   The IRS may abate the interest and penalties on underpaid income tax for the length of any postponement of tax deadlines. Fill 1040x form online More information. Fill 1040x form online   For more information, see Disaster Area Losses in Publication 547. Fill 1040x form online How To Report Gains and Losses Use Form 4684 to report a gain or a deductible loss from a casualty or theft. Fill 1040x form online If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. Fill 1040x form online Combine the gains and losses on one Form 4684. Fill 1040x form online Follow the form instructions as to which lines to fill out. Fill 1040x form online In addition, you must use the appropriate schedule to report a gain or loss. Fill 1040x form online The schedule you use depends on whether you have a gain or loss. Fill 1040x form online If you have a: Report it on: Gain Schedule D (Form 1040) Loss Schedule A (Form 1040) Adjustments to basis. Fill 1040x form online   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. Fill 1040x form online Amounts you spend to restore your property after a casualty increase your adjusted basis. Fill 1040x form online See Adjusted Basis in chapter 13 for more information. Fill 1040x form online Net operating loss (NOL). Fill 1040x form online    If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. Fill 1040x form online You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. Fill 1040x form online Or, you can use it to lower your tax in a later year. Fill 1040x form online You do not have to be in business to have an NOL from a casualty or theft loss. Fill 1040x form online For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Fill 1040x form online Prev  Up  Next   Home   More Online Publications
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IRS Ofrece Consejos Tributarios Explicando Las Disposiciones Tributarias de La Ley del Cuidado de Salud a Bajo Precio

IR-2014-19SP, 25 de febrero de 2014

WASHINGTON — El Servicio de Impuestos Internos (IRS) está ofreciendo Consejos Tributarios del Cuidado de Salud  para educar a las personas acerca de entender cómo la Ley del Cuidado de Salud a Bajo Precio pudiera afectar sus impuestos. 

El IRS ha diseñado Consejos Tributarios del Cuidado de Salud para ayudar a las personas a entender lo que necesitan saber para los impuestos federales individuales que están presentando este año, y para declaraciones futuras. Esto incluye información sobre el crédito tributario por primas y tomar decisiones de cobertura de médica.

Aunque varias de las disposiciones tributarias incluidas en la ley tomaron efecto el 1 de enero de 2014, la mayoría no afecta a las declaraciones de impuestos de 2013. 

Los Consejos Tributarios del Cuidado de Salud, ahora disponibles en IRS.gov/aca (español), incluyen:

  • IRS Recuerda a Individuos de Sus Opciones de Cuidado Médico para 2014 ─ Averigüe lo que necesita saber acerca de cómo la opción de cuidado de la salud que usted elija para 2014, puede afectar sus impuestos.
  • El Mercado de Seguros Médicos – Aprenda Sus Opciones de Cobertura de Seguro Médico – Infórmese acerca de obtener cobertura de salud a través del Mercado de Seguros Médicos.
  • El Crédito Tributario para Primas ─ Aprenda los conceptos básicos del Crédito Tributario para Primas, incluyendo quién pudiera ser elegible y cómo obtener el crédito.
  • El Pago de La Responsabilidad Compartida de Individuos - Un Repaso ─ Proporciona información sobre los tipos de cobertura que clasifica, exenciones de tener la cobertura, y efectuar un pago si no tiene cobertura que califica o una exención. 
  • Tres Consejos Oportunos Acerca de Los Impuestos y La Ley del Cuidado de Salud ─  Proporciona consejos que ayudan con la presentación de una declaración de impuestos de 2013, incluyendo información sobre estado de empleo, planes médicos favorecidos en los impuestos y deducciones detalladas.
  • Cuatro Hechos de Impuestos Acerca del Ley del Cuidado de Salud para Individuos ─ Ofrece consejos básicos para ayudar a las personas a determinar si la Ley del Cuidado de Salud a Bajo Precio les afecta a ellos y a sus familias, y dónde encontrar más información.
  • Cambios en Sus Circunstancias pueden Afectar Su Crédito Tributario para Primas ─ Infórmese acerca de la importancia de reportar cualquier cambio de circunstancias relacionado al tamaño de su familia o ingresos cuando están implicados pagos adelantos del Crédito Tributario para Primas.

Además de los Consejos Tributarios del Cuidado de Salud, el sitio IRS.gov/aca (español) ofrece folletos y boletines informativos, Preguntas Frecuentes y directrices legales detalladas en referencia a las disposiciones tributarias de la Ley del Cuidado de Salud a Bajo Precio.  

Aquellas personas interesadas en recibir copias en inglés de los consejos tributarios del IRS por email cubriendo una variedad de temas, incluyendo la Ley del Cuidado de Salud a Bajo Precio, pueden registrarse www.irs.gov/uac/Subscribe-to-IRS-Tax-Tips.  Para los consejos tributarios del IRS en español visite IRS.gov.

Page Last Reviewed or Updated: 26-Mar-2014

The Fill 1040x Form Online

Fill 1040x form online Publication 575 - Main Content Table of Contents General InformationPension. Fill 1040x form online Annuity. Fill 1040x form online Qualified employee plan. Fill 1040x form online Qualified employee annuity. Fill 1040x form online Designated Roth account. Fill 1040x form online Tax-sheltered annuity plan. Fill 1040x form online Fixed-period annuities. Fill 1040x form online Annuities for a single life. Fill 1040x form online Joint and survivor annuities. Fill 1040x form online Variable annuities. Fill 1040x form online Disability pensions. Fill 1040x form online Variable Annuities Section 457 Deferred Compensation Plans Disability Pensions Insurance Premiums for Retired Public Safety Officers Railroad Retirement Benefits Withholding Tax and Estimated Tax Cost (Investment in the Contract)Foreign employment contributions while a nonresident alien. Fill 1040x form online Taxation of Periodic PaymentsPeriod of participation. Fill 1040x form online Fully Taxable Payments Partly Taxable Payments Taxation of Nonperiodic PaymentsFiguring the Taxable Amount Loans Treated as Distributions Transfers of Annuity Contracts Lump-Sum Distributions RolloversExceptions. Fill 1040x form online No tax withheld. Fill 1040x form online Partial rollovers. Fill 1040x form online Frozen deposits. Fill 1040x form online Reasonable period of time. Fill 1040x form online 20% Mandatory withholding. Fill 1040x form online How to report. Fill 1040x form online How to report. Fill 1040x form online Special rule for Roth IRAs and designated Roth accounts. Fill 1040x form online Special Additional TaxesTax on Early Distributions Tax on Excess Accumulation Survivors and BeneficiariesGuaranteed payments. Fill 1040x form online How To Get Tax HelpLow Income Taxpayer Clinics General Information Definitions. Fill 1040x form online   Some of the terms used in this publication are defined in the following paragraphs. Fill 1040x form online Pension. Fill 1040x form online   A pension is generally a series of definitely determinable payments made to you after you retire from work. Fill 1040x form online Pension payments are made regularly and are based on such factors as years of service and prior compensation. Fill 1040x form online Annuity. Fill 1040x form online   An annuity is a series of payments under a contract made at regular intervals over a period of more than one full year. Fill 1040x form online They can be either fixed (under which you receive a definite amount) or variable (not fixed). Fill 1040x form online You can buy the contract alone or with the help of your employer. Fill 1040x form online Qualified employee plan. Fill 1040x form online   A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries and that meets Internal Revenue Code requirements. Fill 1040x form online It qualifies for special tax benefits, such as tax deferral for employer contributions and capital gain treatment or the 10-year tax option for lump-sum distributions (if participants qualify). Fill 1040x form online To determine whether your plan is a qualified plan, check with your employer or the plan administrator. Fill 1040x form online Qualified employee annuity. Fill 1040x form online   A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Fill 1040x form online Designated Roth account. Fill 1040x form online   A designated Roth account is a separate account created under a qualified Roth contribution program to which participants may elect to have part or all of their elective deferrals to a 401(k), 403(b), or 457(b) plan designated as Roth contributions. Fill 1040x form online Elective deferrals that are designated as Roth contributions are included in your income. Fill 1040x form online However, qualified distributions (explained later) are not included in your income. Fill 1040x form online You should check with your plan administrator to determine if your plan will accept designated Roth contributions. Fill 1040x form online Tax-sheltered annuity plan. Fill 1040x form online   A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. Fill 1040x form online Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants. Fill 1040x form online Types of pensions and annuities. Fill 1040x form online   Pensions and annuities include the following types. Fill 1040x form online Fixed-period annuities. Fill 1040x form online   You receive definite amounts at regular intervals for a specified length of time. Fill 1040x form online Annuities for a single life. Fill 1040x form online   You receive definite amounts at regular intervals for life. Fill 1040x form online The payments end at death. Fill 1040x form online Joint and survivor annuities. Fill 1040x form online   The first annuitant receives a definite amount at regular intervals for life. Fill 1040x form online After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Fill 1040x form online The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Fill 1040x form online Variable annuities. Fill 1040x form online   You receive payments that may vary in amount for a specified length of time or for life. Fill 1040x form online The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund. Fill 1040x form online Disability pensions. Fill 1040x form online   You receive disability payments because you retired on disability and have not reached minimum retirement age. Fill 1040x form online More than one program. Fill 1040x form online   You may receive employee plan benefits from more than one program under a single trust or plan of your employer. Fill 1040x form online If you participate in more than one program, you may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. Fill 1040x form online Also, you may be considered to have received more than one pension or annuity. Fill 1040x form online Your former employer or the plan administrator should be able to tell you if you have more than one contract. Fill 1040x form online Example. Fill 1040x form online Your employer set up a noncontributory profit-sharing plan for its employees. Fill 1040x form online The plan provides that the amount held in the account of each participant will be paid when that participant retires. Fill 1040x form online Your employer also set up a contributory defined benefit pension plan for its employees providing for the payment of a lifetime pension to each participant after retirement. Fill 1040x form online The amount of any distribution from the profit-sharing plan depends on the contributions (including allocated forfeitures) made for the participant and the earnings from those contributions. Fill 1040x form online Under the pension plan, however, a formula determines the amount of the pension benefits. Fill 1040x form online The amount of contributions is the amount necessary to provide that pension. Fill 1040x form online Each plan is a separate program and a separate contract. Fill 1040x form online If you get benefits from these plans, you must account for each separately, even though the benefits from both may be included in the same check. Fill 1040x form online Distributions from a designated Roth account are treated separately from other distributions from the plan. Fill 1040x form online Qualified domestic relations order (QDRO). Fill 1040x form online   A QDRO is a judgment, decree, or order relating to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of a participant in a retirement plan. Fill 1040x form online The QDRO must contain certain specific information, such as the name and last known mailing address of the participant and each alternate payee, and the amount or percentage of the participant's benefits to be paid to each alternate payee. Fill 1040x form online A QDRO may not award an amount or form of benefit that is not available under the plan. Fill 1040x form online   A spouse or former spouse who receives part of the benefits from a retirement plan under a QDRO reports the payments received as if he or she were a plan participant. Fill 1040x form online The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. Fill 1040x form online The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. Fill 1040x form online The denominator is the present value of all benefits payable to the participant. Fill 1040x form online   A distribution that is paid to a child or other dependent under a QDRO is taxed to the plan participant. Fill 1040x form online Variable Annuities The tax rules in this publication apply both to annuities that provide fixed payments and to annuities that provide payments that vary in amount based on investment results or other factors. Fill 1040x form online For example, they apply to commercial variable annuity contracts, whether bought by an employee retirement plan for its participants or bought directly from the issuer by an individual investor. Fill 1040x form online Under these contracts, the owner can generally allocate the purchase payments among several types of investment portfolios or mutual funds and the contract value is determined by the performance of those investments. Fill 1040x form online The earnings are not taxed until distributed either in a withdrawal or in annuity payments. Fill 1040x form online The taxable part of a distribution is treated as ordinary income. Fill 1040x form online Net investment income tax. Fill 1040x form online   Beginning in 2013, annuities under a nonqualified plan are included in calculating your net investment income for the net investment income tax (NIIT). Fill 1040x form online For information see the Instructions for Form 8960, Net Investment Income Tax — Individuals, Estates and Trusts. Fill 1040x form online For information on the tax treatment of a transfer or exchange of a variable annuity contract, see Transfers of Annuity Contracts under Taxation of Nonperiodic Payments, later. Fill 1040x form online Withdrawals. Fill 1040x form online   If you withdraw funds before your annuity starting date and your annuity is under a qualified retirement plan, a ratable part of the amount withdrawn is tax free. Fill 1040x form online The tax-free part is based on the ratio of your cost (investment in the contract) to your account balance under the plan. Fill 1040x form online   If your annuity is under a nonqualified plan (including a contract you bought directly from the issuer), the amount withdrawn is allocated first to earnings (the taxable part) and then to your cost (the tax-free part). Fill 1040x form online However, if you bought your annuity contract before August 14, 1982, a different allocation applies to the investment before that date and the earnings on that investment. Fill 1040x form online To the extent the amount withdrawn does not exceed that investment and earnings, it is allocated first to your cost (the tax-free part) and then to earnings (the taxable part). Fill 1040x form online   If you withdraw funds (other than as an annuity) on or after your annuity starting date, the entire amount withdrawn is generally taxable. Fill 1040x form online   The amount you receive in a full surrender of your annuity contract at any time is tax free to the extent of any cost that you have not previously recovered tax free. Fill 1040x form online The rest is taxable. Fill 1040x form online   For more information on the tax treatment of withdrawals, see Taxation of Nonperiodic Payments , later. Fill 1040x form online If you withdraw funds from your annuity before you reach age 59½, also see Tax on Early Distributions under Special Additional Taxes, later. Fill 1040x form online Annuity payments. Fill 1040x form online   If you receive annuity payments under a variable annuity plan or contract, you recover your cost tax free under either the Simplified Method or the General Rule, as explained under Taxation of Periodic Payments , later. Fill 1040x form online For a variable annuity paid under a qualified plan, you generally must use the Simplified Method. Fill 1040x form online For a variable annuity paid under a nonqualified plan (including a contract you bought directly from the issuer), you must use a special computation under the General Rule. Fill 1040x form online For more information, see Variable annuities in Publication 939 under Computation Under the General Rule. Fill 1040x form online Death benefits. Fill 1040x form online    If you receive a single-sum distribution from a variable annuity contract because of the death of the owner or annuitant, the distribution is generally taxable only to the extent it is more than the unrecovered cost of the contract. Fill 1040x form online If you choose to receive an annuity, the payments are subject to tax as described above. Fill 1040x form online If the contract provides a joint and survivor annuity and the primary annuitant had received annuity payments before death, you figure the tax-free part of annuity payments you receive as the survivor in the same way the primary annuitant did. Fill 1040x form online See Survivors and Beneficiaries , later. Fill 1040x form online Section 457 Deferred Compensation Plans If you work for a state or local government or for a tax-exempt organization, you may be able to participate in a section 457 deferred compensation plan. Fill 1040x form online If your plan is an eligible plan, you are not taxed currently on pay that is deferred under the plan or on any earnings from the plan's investment of the deferred pay. Fill 1040x form online You are generally taxed on amounts deferred in an eligible state or local government plan only when they are distributed from the plan. Fill 1040x form online You are taxed on amounts deferred in an eligible tax-exempt organization plan when they are distributed or otherwise made available to you. Fill 1040x form online Your 457(b) plan may have a designated Roth account option. Fill 1040x form online If so, you may be able to roll over amounts to the designated Roth account or make contributions. Fill 1040x form online Elective deferrals to a designated Roth account are included in your income. Fill 1040x form online Qualified distributions (explained later) are not included in your income. Fill 1040x form online See the Designated Roth accounts discussion under Taxation of Periodic Payments, later. Fill 1040x form online This publication covers the tax treatment of benefits under eligible section 457 plans, but it does not cover the treatment of deferrals. Fill 1040x form online For information on deferrals under section 457 plans, see Retirement Plan Contributions under Employee Compensation in Publication 525. Fill 1040x form online Is your plan eligible?   To find out if your plan is an eligible plan, check with your employer. Fill 1040x form online Plans that are not eligible section 457 plans include the following: Bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plans. Fill 1040x form online Nonelective deferred compensation plans for nonemployees (independent contractors). Fill 1040x form online Deferred compensation plans maintained by churches. Fill 1040x form online Length of service award plans for bona fide volunteer firefighters and emergency medical personnel. Fill 1040x form online An exception applies if the total amount paid to a volunteer exceeds $3,000 for any year of service. Fill 1040x form online Disability Pensions If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. Fill 1040x form online You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. Fill 1040x form online Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Fill 1040x form online You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Fill 1040x form online For information on this credit, see Publication 524. Fill 1040x form online Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Fill 1040x form online Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. Fill 1040x form online Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income. Fill 1040x form online For more information about payments to survivors of terrorist attacks, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. Fill 1040x form online Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. Fill 1040x form online The premiums can be for coverage for you, your spouse, or dependents. Fill 1040x form online The distribution must be made directly from the plan to the insurance provider. Fill 1040x form online You can exclude from income the smaller of the amount of the insurance premiums or $3,000. Fill 1040x form online You can only make this election for amounts that would otherwise be included in your income. Fill 1040x form online The amount excluded from your income cannot be used to claim a medical expense deduction. Fill 1040x form online An eligible retirement plan is a governmental plan that is: a qualified trust, a section 403(a) plan, a section 403(b) annuity, or a section 457(b) plan. Fill 1040x form online If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. Fill 1040x form online The amount shown in box 2a of Form 1099-R does not reflect this exclusion. Fill 1040x form online Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Fill 1040x form online Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Fill 1040x form online Enter “PSO” next to the appropriate line on which you report the taxable amount. Fill 1040x form online If you are retired on disability and reporting your disability pension on line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to the applicable line. Fill 1040x form online Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. Fill 1040x form online These categories are treated differently for income tax purposes. Fill 1040x form online The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. Fill 1040x form online This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and you treat it for tax purposes like social security benefits. Fill 1040x form online If you received, repaid, or had tax withheld from the SSEB portion of tier 1 benefits during 2013, you will receive Form RRB-1099, Payments by the Railroad Retirement Board (or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, if you are a nonresident alien) from the U. Fill 1040x form online S. Fill 1040x form online Railroad Retirement Board (RRB). Fill 1040x form online For more information about the tax treatment of the SSEB portion of tier 1 benefits and Forms RRB-1099 and RRB-1042S, see Publication 915. Fill 1040x form online The second category contains the rest of the tier 1 railroad retirement benefits, called the non-social security equivalent benefit (NSSEB). Fill 1040x form online It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. Fill 1040x form online Treat this category of benefits, shown on Form RRB-1099-R, as an amount received from a qualified employee plan. Fill 1040x form online This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. Fill 1040x form online (The NSSEB and tier 2 benefits, less certain repayments, are combined into one amount called the Contributory Amount Paid on Form RRB-1099-R. Fill 1040x form online ) Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. Fill 1040x form online See Taxation of Periodic Payments , later, for information on how to report your benefits and how to recover the employee contributions tax free. Fill 1040x form online Form RRB-1099-R is used for U. Fill 1040x form online S. Fill 1040x form online citizens, resident aliens, and nonresident aliens. Fill 1040x form online Nonresident aliens. Fill 1040x form online   A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Fill 1040x form online Nonresident aliens are subject to mandatory U. Fill 1040x form online S. Fill 1040x form online tax withholding unless exempt under a tax treaty between the United States and their country of legal residency. Fill 1040x form online A tax treaty exemption may reduce or eliminate tax withholding from railroad retirement benefits. Fill 1040x form online See Tax withholding next for more information. Fill 1040x form online   If you are a nonresident alien and your tax withholding rate changed or your country of legal residence changed during the year, you may receive more than one Form RRB-1042S or Form RRB-1099-R. Fill 1040x form online To determine your total benefits paid or repaid and total tax withheld for the year, you should add the amounts shown on all forms you received for that year. Fill 1040x form online For information on filing requirements for aliens, see Publication 519, U. Fill 1040x form online S. Fill 1040x form online Tax Guide for Aliens. Fill 1040x form online For information on tax treaties between the United States and other countries that may reduce or eliminate U. Fill 1040x form online S. Fill 1040x form online tax on your benefits, see Publication 901, U. Fill 1040x form online S. Fill 1040x form online Tax Treaties. Fill 1040x form online Tax withholding. Fill 1040x form online   To request or change your income tax withholding from SSEB payments, U. Fill 1040x form online S. Fill 1040x form online citizens should contact the IRS for Form W-4V, Voluntary Withholding Request, and file it with the RRB. Fill 1040x form online To elect, revoke, or change your income tax withholding from NSSEB, tier 2, VDB, and supplemental annuity payments received, use Form RRB W-4P, Withholding Certificate for Railroad Retirement Payments. Fill 1040x form online If you are a nonresident alien or a U. Fill 1040x form online S. Fill 1040x form online citizen living abroad, you should provide Form RRB-1001, Nonresident Questionnaire, to the RRB to furnish citizenship and residency information and to claim any treaty exemption from U. Fill 1040x form online S. Fill 1040x form online tax withholding. Fill 1040x form online Nonresident U. Fill 1040x form online S. Fill 1040x form online citizens cannot elect to be exempt from withholding on payments delivered outside of the U. Fill 1040x form online S. Fill 1040x form online Help from the RRB. Fill 1040x form online   To request an RRB form or to get help with questions about an RRB benefit, you should contact your nearest RRB field office if you reside in the United States (call 1-877-772-5772 for the nearest field office) or U. Fill 1040x form online S. Fill 1040x form online consulate/Embassy if you reside outside the United States. Fill 1040x form online You can visit the RRB on the Internet at www. Fill 1040x form online rrb. Fill 1040x form online gov. Fill 1040x form online Form RRB-1099-R. Fill 1040x form online   The following discussion explains the items shown on Form RRB-1099-R. Fill 1040x form online The amounts shown on this form are before any deduction for: Federal income tax withholding, Medicare premiums, Legal process garnishment payments, Recovery of a prior year overpayment of an NSSEB, tier 2 benefit, VDB, or supplemental annuity benefit, or Recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity. Fill 1040x form online   The amounts shown on this form are after any offset for: Social Security benefits, Age reduction, Public Service pensions or public disability benefits, Dual railroad retirement entitlement under another RRB claim number, Work deductions, Legal process partition deductions, Actuarial adjustment, Annuity waiver, or Recovery of a current-year overpayment of NSSEB, tier 2, VDB, or supplemental annuity benefits. Fill 1040x form online   The amounts shown on Form RRB-1099-R do not reflect any special rules, such as capital gain treatment or the special 10-year tax option for lump-sum payments, or tax-free rollovers. Fill 1040x form online To determine if any of these rules apply to your benefits, see the discussions about them later. Fill 1040x form online   Generally, amounts shown on your Form RRB-1099-R are considered a normal distribution. Fill 1040x form online Use distribution code “7” if you are asked for a distribution code. Fill 1040x form online Distribution codes are not shown on Form RRB-1099-R. Fill 1040x form online   There are three copies of this form. Fill 1040x form online Copy B is to be included with your income tax return if federal income tax is withheld. Fill 1040x form online Copy C is for your own records. Fill 1040x form online Copy 2 is filed with your state, city, or local income tax return, when required. Fill 1040x form online See the illustrated Copy B (Form RRB-1099-R) above. Fill 1040x form online       Each beneficiary will receive his or her own Form RRB-1099-R. Fill 1040x form online If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099-R. Fill 1040x form online So that you get your form timely, make sure the RRB always has your current mailing address. Fill 1040x form online Please click here for the text description of the image. Fill 1040x form online Form RRB-1099-R Box 1—Claim Number and Payee Code. Fill 1040x form online   Your claim number is a six- or nine-digit number preceded by an alphabetical prefix. Fill 1040x form online This is the number under which the RRB paid your benefits. Fill 1040x form online Your payee code follows your claim number and is the last number in this box. Fill 1040x form online It is used by the RRB to identify you under your claim number. Fill 1040x form online In all your correspondence with the RRB, be sure to use the claim number and payee code shown in this box. Fill 1040x form online Box 2—Recipient's Identification Number. Fill 1040x form online   This is the recipient's U. Fill 1040x form online S. Fill 1040x form online taxpayer identification number. Fill 1040x form online It is the social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient. Fill 1040x form online If you are a resident or nonresident alien who must furnish a taxpayer identification number to the IRS and are not eligible to obtain an SSN, use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN. Fill 1040x form online The Instructions for Form W-7 explain how and when to apply. Fill 1040x form online Box 3—Employee Contributions. Fill 1040x form online   This is the amount of taxes withheld from the railroad employee's earnings that exceeds the amount of taxes that would have been withheld had the earnings been covered under the social security system. Fill 1040x form online This amount is the employee's cost that you use to figure the tax-free part of the NSSEB and tier 2 benefit you received (the amount shown in box 4). Fill 1040x form online (For information on how to figure the tax-free part, see Partly Taxable Payments under Taxation of Periodic Payments, later. Fill 1040x form online ) The amount shown is the total employee contribution amount, not reduced by any amounts that the RRB calculated as previously recovered. Fill 1040x form online It is the latest amount reported for 2013 and may have increased or decreased from a previous Form RRB-1099-R. Fill 1040x form online If this amount has changed, the change is retroactive. Fill 1040x form online You may need to refigure the tax-free part of your NSSEB/tier 2 benefit for 2013 and prior tax years. Fill 1040x form online If this box is blank, it means that the amount of your NSSEB and tier 2 payments shown in box 4 is fully taxable. Fill 1040x form online    If you had a previous annuity entitlement that ended and you are figuring the tax-free part of your NSSEB/tier 2 benefit for your current annuity entitlement, you should contact the RRB for confirmation of your correct employee contribution amount. Fill 1040x form online Box 4—Contributory Amount Paid. Fill 1040x form online   This is the gross amount of the NSSEB and tier 2 benefit you received in 2013, less any 2013 benefits you repaid in 2013. Fill 1040x form online (Any benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Fill 1040x form online ) This amount is the total contributory pension paid in 2013. Fill 1040x form online It may be partly taxable and partly tax free or fully taxable. Fill 1040x form online If you determine you are eligible to compute a tax-free part as explained later in Partly Taxable Payments under Taxation of Periodic Payments, use the latest reported employee contribution amount shown in box 3 as the cost. Fill 1040x form online Box 5—Vested Dual Benefit. Fill 1040x form online   This is the gross amount of vested dual benefit (VDB) payments paid in 2013, less any 2013 VDB payments you repaid in 2013. Fill 1040x form online It is fully taxable. Fill 1040x form online VDB payments you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Fill 1040x form online Note. Fill 1040x form online The amounts shown in boxes 4 and 5 may represent payments for 2013 and/or other years after 1983. Fill 1040x form online Box 6—Supplemental Annuity. Fill 1040x form online   This is the gross amount of supplemental annuity benefits paid in 2013, less any 2013 supplemental annuity benefits you repaid in 2013. Fill 1040x form online It is fully taxable. Fill 1040x form online Supplemental annuity benefits you repaid in 2013 for an earlier year or for an unknown year are shown in box 8. Fill 1040x form online Box 7—Total Gross Paid. Fill 1040x form online   This is the sum of boxes 4, 5, and 6. Fill 1040x form online The amount represents the total pension paid in 2013. Fill 1040x form online Include this amount on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Fill 1040x form online Box 8—Repayments. Fill 1040x form online   This amount represents any NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit you repaid to the RRB in 2013 for years before 2013 or for unknown years. Fill 1040x form online The amount shown in this box has not been deducted from the amounts shown in boxes 4, 5, and 6. Fill 1040x form online It only includes repayments of benefits that were taxable to you. Fill 1040x form online This means it only includes repayments in 2013 of NSSEB benefits paid after 1985, tier 2 and VDB benefits paid after 1983, and supplemental annuity benefits paid in any year. Fill 1040x form online If you included the benefits in your income in the year you received them, you may be able to deduct the repaid amount. Fill 1040x form online For more information about repayments, see Repayment of benefits received in an earlier year , later. Fill 1040x form online    You may have repaid an overpayment of benefits by returning a payment, by making a payment, or by having an amount withheld from your railroad retirement annuity payment. Fill 1040x form online Box 9—Federal Income Tax Withheld. Fill 1040x form online   This is the total federal income tax withheld from your NSSEB, tier 2 benefit, VDB, and supplemental annuity benefit. Fill 1040x form online Include this on your income tax return as tax withheld. Fill 1040x form online If you are a nonresident alien and your tax withholding rate and/or country of legal residence changed during 2013, you will receive more than one Form RRB-1099-R for 2013. Fill 1040x form online Determine the total amount of U. Fill 1040x form online S. Fill 1040x form online federal income tax withheld from your 2013 RRB NSSEB, tier 2, VDB, and supplemental annuity payments by adding the amounts in box 9 of all original 2013 Forms RRB-1099-R, or the latest corrected or duplicate Forms RRB-1099-R you receive. Fill 1040x form online Box 10—Rate of Tax. Fill 1040x form online   If you are taxed as a U. Fill 1040x form online S. Fill 1040x form online citizen or resident alien, this box does not apply to you. Fill 1040x form online If you are a nonresident alien, an entry in this box indicates the rate at which tax was withheld on the NSSEB, tier 2, VDB, and supplemental annuity payments that were paid to you in 2013. Fill 1040x form online If you are a nonresident alien whose tax was withheld at more than one rate during 2013, you will receive a separate Form RRB-1099-R for each rate change during 2013. Fill 1040x form online Box 11—Country. Fill 1040x form online   If you are taxed as a U. Fill 1040x form online S. Fill 1040x form online citizen or resident alien, this box does not apply to you. Fill 1040x form online If you are a nonresident alien, an entry in this box indicates the country of which you were a resident for tax purposes at the time you received railroad retirement payments in 2013. Fill 1040x form online If you are a nonresident alien who was a resident of more than one country during 2013, you will receive a separate Form RRB-1099-R for each country of residence during 2013. Fill 1040x form online Box 12—Medicare Premium Total. Fill 1040x form online   This is for information purposes only. Fill 1040x form online The amount shown in this box represents the total amount of Part B Medicare premiums deducted from your railroad retirement annuity payments in 2013. Fill 1040x form online Medicare premium refunds are not included in the Medicare total. Fill 1040x form online The Medicare total is normally shown on Form RRB-1099 (if you are a citizen or resident alien of the United States) or Form RRB-1042S (if you are a nonresident alien). Fill 1040x form online However, if Form RRB-1099 or Form RRB-1042S is not required for 2013, then this total will be shown on Form RRB-1099-R. Fill 1040x form online If your Medicare premiums were deducted from your social security benefits, paid by a third party, refunded to you, and/or you paid the premiums by direct billing, your Medicare total will not be shown in this box. Fill 1040x form online Repayment of benefits received in an earlier year. Fill 1040x form online   If you had to repay any railroad retirement benefits that you had included in your income in an earlier year because at that time you thought you had an unrestricted right to it, you can deduct the amount you repaid in the year in which you repaid it. Fill 1040x form online   If you repaid $3,000 or less in 2013, deduct it on Schedule A (Form 1040), line 23. Fill 1040x form online The 2%-of-adjusted-gross-income limit applies to this deduction. Fill 1040x form online You cannot take this deduction if you file Form 1040A. Fill 1040x form online    If you repaid more than $3,000 in 2013, you can either take a deduction for the amount repaid on Schedule A (Form 1040), line 28 or you can take a credit against your tax. Fill 1040x form online For more information, see Repayments in Publication 525. Fill 1040x form online Withholding Tax and Estimated Tax Your retirement plan distributions are subject to federal income tax withholding. Fill 1040x form online However, you can choose not to have tax withheld on payments you receive unless they are eligible rollover distributions. Fill 1040x form online (These are distributions, described later under Rollovers, that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. Fill 1040x form online ) If you choose not to have tax withheld or if you do not have enough tax withheld, you may have to make estimated tax payments. Fill 1040x form online See Estimated tax , later. Fill 1040x form online The withholding rules apply to the taxable part of payments you receive from: An employer pension, annuity, profit-sharing, or stock bonus plan, Any other deferred compensation plan, A traditional individual retirement arrangement (IRA), or A commercial annuity. Fill 1040x form online For this purpose, a commercial annuity means an annuity, endowment, or life insurance contract issued by an insurance company. Fill 1040x form online There will be no withholding on any part of a distribution where it is reasonable to believe that it will not be includible in gross income. Fill 1040x form online Choosing no withholding. Fill 1040x form online   You can choose not to have income tax withheld from retirement plan payments unless they are eligible rollover distributions. Fill 1040x form online You can make this choice on Form W-4P for periodic and nonperiodic payments. Fill 1040x form online This choice generally remains in effect until you revoke it. Fill 1040x form online   The payer will ignore your choice not to have tax withheld if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer, before the payment is made, that you gave an incorrect social security number. Fill 1040x form online   To choose not to have tax withheld, a U. Fill 1040x form online S. Fill 1040x form online citizen or resident alien must give the payer a home address in the United States or its possessions. Fill 1040x form online Without that address, the payer must withhold tax. Fill 1040x form online For example, the payer has to withhold tax if the recipient has provided a U. Fill 1040x form online S. Fill 1040x form online address for a nominee, trustee, or agent to whom the benefits are delivered, but has not provided his or her own U. Fill 1040x form online S. Fill 1040x form online home address. Fill 1040x form online   If you do not give the payer a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to the payer that you are not a U. Fill 1040x form online S. Fill 1040x form online citizen, a U. Fill 1040x form online S. Fill 1040x form online resident alien, or someone who left the country to avoid tax. Fill 1040x form online But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Fill 1040x form online This 30% rate will not apply if you are exempt or subject to a reduced rate by treaty. Fill 1040x form online For details, get Publication 519. Fill 1040x form online Periodic payments. Fill 1040x form online   Unless you choose no withholding, your annuity or similar periodic payments (other than eligible rollover distributions) will be treated like wages for withholding purposes. Fill 1040x form online Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Fill 1040x form online You should give the payer a completed withholding certificate (Form W-4P or a similar form provided by the payer). Fill 1040x form online If you do not, tax will be withheld as if you were married and claiming three withholding allowances. Fill 1040x form online   Tax will be withheld as if you were single and were claiming no withholding allowances if: You do not give the payer your social security number (in the required manner), or The IRS notifies the payer (before any payment is made) that you gave an incorrect social security number. Fill 1040x form online   You must file a new withholding certificate to change the amount of withholding. Fill 1040x form online Nonperiodic distributions. Fill 1040x form online    Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that is not an eligible rollover distribution is 10% of the distribution. Fill 1040x form online You can also ask the payer to withhold an additional amount using Form W-4P. Fill 1040x form online The part of any loan treated as a distribution (except an offset amount to repay the loan), explained later, is subject to withholding under this rule. Fill 1040x form online Eligible rollover distribution. Fill 1040x form online    If you receive an eligible rollover distribution, 20% of it generally will be withheld for income tax. Fill 1040x form online You cannot choose not to have tax withheld from an eligible rollover distribution. Fill 1040x form online However, tax will not be withheld if you have the plan administrator pay the eligible rollover distribution directly to another qualified plan or an IRA in a direct rollover. Fill 1040x form online For more information about eligible rollover distributions, see Rollovers , later. Fill 1040x form online Estimated tax. Fill 1040x form online   Your estimated tax is the total of your expected income tax, self-employment tax, and certain other taxes for the year, minus your expected credits and withheld tax. Fill 1040x form online Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 return, or 100% of the tax shown on your 2013 return. Fill 1040x form online If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. Fill 1040x form online For more information, get Publication 505, Tax Withholding and Estimated Tax. Fill 1040x form online In figuring your withholding or estimated tax, remember that a part of your monthly social security or equivalent tier 1 railroad retirement benefits may be taxable. Fill 1040x form online See Publication 915. Fill 1040x form online You can choose to have income tax withheld from those benefits. Fill 1040x form online Use Form W-4V to make this choice. Fill 1040x form online Cost (Investment in the Contract) Distributions from your pension or annuity plan may include amounts treated as a recovery of your cost (investment in the contract). Fill 1040x form online If any part of a distribution is treated as a recovery of your cost under the rules explained in this publication, that part is tax free. Fill 1040x form online Therefore, the first step in figuring how much of a distribution is taxable is to determine the cost of your pension or annuity. Fill 1040x form online In general, your cost is your net investment in the contract as of the annuity starting date (or the date of the distribution, if earlier). Fill 1040x form online To find this amount, you must first figure the total premiums, contributions, or other amounts you paid. Fill 1040x form online This includes the amounts your employer contributed that were taxable to you when paid. Fill 1040x form online (However, see Foreign employment contributions , later. Fill 1040x form online ) It does not include amounts withheld from your pay on a tax-deferred basis (money that was taken out of your gross pay before taxes were deducted). Fill 1040x form online It also does not include amounts you contributed for health and accident benefits (including any additional premiums paid for double indemnity or disability benefits). Fill 1040x form online From this total cost you must subtract the following amounts. Fill 1040x form online Any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income and that you received by the later of the annuity starting date or the date on which you received your first payment. Fill 1040x form online Any other tax-free amounts you received under the contract or plan by the later of the dates in (1). Fill 1040x form online If you must use the Simplified Method for your annuity payments, the tax-free part of any single-sum payment received in connection with the start of the annuity payments, regardless of when you received it. Fill 1040x form online (See Simplified Method , later, for information on its required use. Fill 1040x form online ) If you use the General Rule for your annuity payments, the value of the refund feature in your annuity contract. Fill 1040x form online (See General Rule , later, for information on its use. Fill 1040x form online ) Your annuity contract has a refund feature if the annuity payments are for your life (or the lives of you and your survivor) and payments in the nature of a refund of the annuity's cost will be made to your beneficiary or estate if all annuitants die before a stated amount or a stated number of payments are made. Fill 1040x form online For more information, see Publication 939. Fill 1040x form online The tax treatment of the items described in (1) through (3) is discussed later under Taxation of Nonperiodic Payments . Fill 1040x form online Form 1099-R. Fill 1040x form online If you began receiving periodic payments of a life annuity in 2013, the payer should show your total contributions to the plan in box 9b of your 2013 Form 1099-R. Fill 1040x form online Annuity starting date defined. Fill 1040x form online   Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed. Fill 1040x form online Example. Fill 1040x form online On January 1, you completed all your payments required under an annuity contract providing for monthly payments starting on August 1 for the period beginning July 1. Fill 1040x form online The annuity starting date is July 1. Fill 1040x form online This is the date you use in figuring the cost of the contract and selecting the appropriate number from Table 1 for line 3 of the Simplified Method Worksheet. Fill 1040x form online Designated Roth accounts. Fill 1040x form online   Your cost in these accounts is your designated Roth contributions that were included in your income as wages subject to applicable withholding requirements. Fill 1040x form online Your cost will also include any in-plan Roth rollovers you included in income. Fill 1040x form online Foreign employment contributions. Fill 1040x form online   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. Fill 1040x form online The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (not including the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) but only if the contributions would be excludible from your gross income had they been paid directly to you. Fill 1040x form online Foreign employment contributions while a nonresident alien. Fill 1040x form online   In determining your cost, special rules apply if you are a U. Fill 1040x form online S. Fill 1040x form online citizen or resident alien who received distributions in 2013 from a plan to which contributions were made while you were a nonresident alien. Fill 1040x form online Your contributions and your employer's contributions are not included in your cost if the contribution: Was made based on compensation which was for services performed outside the United States while you were a nonresident alien, and Was not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if paid as cash compensation when the services were performed. Fill 1040x form online Taxation of Periodic Payments This section explains how the periodic payments you receive from a pension or annuity plan are taxed. Fill 1040x form online Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Fill 1040x form online These payments are also known as amounts received as an annuity. Fill 1040x form online If you receive an amount from your plan that is not a periodic payment, see Taxation of Nonperiodic Payments , later. Fill 1040x form online In general, you can recover the cost of your pension or annuity tax free over the period you are to receive the payments. Fill 1040x form online The amount of each payment that is more than the part that represents your cost is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Fill 1040x form online Designated Roth accounts. Fill 1040x form online   If you receive a qualified distribution from a designated Roth account, the distribution is not included in your gross income. Fill 1040x form online This applies to both your cost in the account and income earned on that account. Fill 1040x form online A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Fill 1040x form online   If the distribution is not a qualified distribution, the rules discussed in this section apply. Fill 1040x form online The designated Roth account is treated as a separate contract. Fill 1040x form online Period of participation. Fill 1040x form online   The 5-tax-year period of participation is the 5-tax-year period beginning with the first tax year for which the participant made a designated Roth contribution to the plan. Fill 1040x form online Therefore, for designated Roth contributions made for 2013, the first year for which a qualified distribution can be made is 2018. Fill 1040x form online   However, if a direct rollover is made to the plan from a designated Roth account under another plan, the 5-tax-year period for the recipient plan begins with the first tax year for which the participant first had designated Roth contributions made to the other plan. Fill 1040x form online   Your 401(k), 403(b), or 457(b) plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. Fill 1040x form online This is known as an in-plan Roth rollover. Fill 1040x form online For more details, see In-plan Roth rollovers , later. Fill 1040x form online Fully Taxable Payments The pension or annuity payments that you receive are fully taxable if you have no cost in the contract because any of the following situations applies to you (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Fill 1040x form online You did not pay anything or are not considered to have paid anything for your pension or annuity. Fill 1040x form online Amounts withheld from your pay on a tax-deferred basis are not considered part of the cost of the pension or annuity payment. Fill 1040x form online Your employer did not withhold contributions from your salary. Fill 1040x form online You got back all of your contributions tax free in prior years (however, see Exclusion not limited to cost under Partly Taxable Payments, later). Fill 1040x form online Report the total amount you got on Form 1040, line 16b; Form 1040A, line 12b; or on Form 1040NR, line 17b. Fill 1040x form online You should make no entry on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Fill 1040x form online Deductible voluntary employee contributions. Fill 1040x form online   Distributions you receive that are based on your accumulated deductible voluntary employee contributions are generally fully taxable in the year distributed to you. Fill 1040x form online Accumulated deductible voluntary employee contributions include net earnings on the contributions. Fill 1040x form online If distributed as part of a lump sum, they do not qualify for the 10-year tax option or capital gain treatment, explained later. Fill 1040x form online Partly Taxable Payments If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. Fill 1040x form online This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. Fill 1040x form online The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier). Fill 1040x form online You figure the tax-free part of the payment using one of the following methods. Fill 1040x form online Simplified Method. Fill 1040x form online You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). Fill 1040x form online You cannot use this method if your annuity is paid under a nonqualified plan. Fill 1040x form online General Rule. Fill 1040x form online You must use this method if your annuity is paid under a nonqualified plan. Fill 1040x form online You generally cannot use this method if your annuity is paid under a qualified plan. Fill 1040x form online You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. Fill 1040x form online If you had more than one partly taxable pension or annuity, figure the tax-free part and the taxable part of each separately. Fill 1040x form online Qualified plan annuity starting before November 19, 1996. Fill 1040x form online   If your annuity is paid under a qualified plan and your annuity starting date (defined earlier under Cost (Investment in the Contract) ) is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the Simplified Method or the General Rule. Fill 1040x form online If your annuity starting date is before July 2, 1986, you use the General Rule unless your annuity qualified for the Three-Year Rule. Fill 1040x form online If you used the Three-Year Rule (which was repealed for annuities starting after July 1, 1986), your annuity payments are generally now fully taxable. Fill 1040x form online Exclusion limit. Fill 1040x form online   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Fill 1040x form online Once your annuity starting date is determined, it does not change. Fill 1040x form online If you calculate the taxable portion of your annuity payments using the simplified method worksheet, the annuity starting date determines the recovery period for your cost. Fill 1040x form online That recovery period begins on your annuity starting date and is not affected by the date you first complete the worksheet. Fill 1040x form online Exclusion limited to cost. Fill 1040x form online   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost cannot exceed your total cost. Fill 1040x form online Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Fill 1040x form online This deduction is not subject to the 2%-of-adjusted-gross-income limit. Fill 1040x form online Example 1. Fill 1040x form online Your annuity starting date is after 1986, and you exclude $100 a month ($1,200 a year) under the Simplified Method. Fill 1040x form online The total cost of your annuity is $12,000. Fill 1040x form online Your exclusion ends when you have recovered your cost tax free, that is, after 10 years (120 months). Fill 1040x form online After that, your annuity payments are generally fully taxable. Fill 1040x form online Example 2. Fill 1040x form online The facts are the same as in Example 1, except you die (with no surviving annuitant) after the eighth year of retirement. Fill 1040x form online You have recovered tax free only $9,600 (8 × $1,200) of your cost. Fill 1040x form online An itemized deduction for your unrecovered cost of $2,400 ($12,000 – $9,600) can be taken on your final return. Fill 1040x form online Exclusion not limited to cost. Fill 1040x form online   If your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. Fill 1040x form online If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. Fill 1040x form online The total exclusion may be more than your cost. Fill 1040x form online Simplified Method Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. Fill 1040x form online For an annuity that is payable for the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. Fill 1040x form online For any other annuity, this number is the number of monthly annuity payments under the contract. Fill 1040x form online Who must use the Simplified Method. Fill 1040x form online   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions. Fill 1040x form online You receive your pension or annuity payments from any of the following plans. Fill 1040x form online A qualified employee plan. Fill 1040x form online A qualified employee annuity. Fill 1040x form online A tax-sheltered annuity plan (403(b) plan). Fill 1040x form online On your annuity starting date, at least one of the following conditions applies to you. Fill 1040x form online You are under age 75. Fill 1040x form online You are entitled to less than 5 years of guaranteed payments. Fill 1040x form online Guaranteed payments. Fill 1040x form online   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. Fill 1040x form online If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. Fill 1040x form online Annuity starting before November 19, 1996. Fill 1040x form online   If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. Fill 1040x form online You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed earlier under Who must use the Simplified Method . Fill 1040x form online Who cannot use the Simplified Method. Fill 1040x form online   You cannot use the Simplified Method if you receive your pension or annuity from a nonqualified plan or otherwise do not meet the conditions described in the preceding discussion. Fill 1040x form online See General Rule , later. Fill 1040x form online How to use the Simplified Method. Fill 1040x form online    Complete Worksheet A in the back of this publication to figure your taxable annuity for 2013. Fill 1040x form online Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. Fill 1040x form online   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. Fill 1040x form online How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. Fill 1040x form online For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. Fill 1040x form online    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Fill 1040x form online Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. Fill 1040x form online Single-life annuity. Fill 1040x form online   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. Fill 1040x form online Enter on line 3 the number shown for your age on your annuity starting date. Fill 1040x form online This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Fill 1040x form online Multiple-lives annuity. Fill 1040x form online   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. Fill 1040x form online Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. Fill 1040x form online For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. Fill 1040x form online For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. Fill 1040x form online Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. Fill 1040x form online   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. Fill 1040x form online Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. Fill 1040x form online This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Fill 1040x form online Fixed-period annuity. Fill 1040x form online   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. Fill 1040x form online Line 6. Fill 1040x form online   The amount on line 6 should include all amounts that could have been recovered in prior years. Fill 1040x form online If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. Fill 1040x form online Example. Fill 1040x form online Bill Smith, age 65, began receiving retirement benefits in 2013 under a joint and survivor annuity. Fill 1040x form online Bill's annuity starting date is January 1, 2013. Fill 1040x form online The benefits are to be paid for the joint lives of Bill and his wife, Kathy, age 65. Fill 1040x form online Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Fill 1040x form online Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. Fill 1040x form online Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. Fill 1040x form online Because his annuity is payable over the lives of more than one annuitant, he uses his and Kathy's combined ages and Table 2 at the bottom of Worksheet A in completing line 3 of the worksheet. Fill 1040x form online His completed worksheet is shown later. Fill 1040x form online Bill's tax-free monthly amount is $100 ($31,000 ÷ 310) as shown on line 4 of the worksheet. Fill 1040x form online Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. Fill 1040x form online The full amount of any annuity payments received after 310 payments are paid must be included in gross income. Fill 1040x form online If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. Fill 1040x form online This deduction is not subject to the 2%-of-adjusted-gross-income limit. Fill 1040x form online Worksheet A. Fill 1040x form online Simplified Method Worksheet for Bill Smith 1. Fill 1040x form online Enter the total pension or annuity payments received this year. Fill 1040x form online Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Fill 1040x form online $14,400 2. Fill 1040x form online Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. Fill 1040x form online * See Cost (Investment in the Contract) , earlier 2. Fill 1040x form online 31,000   Note. Fill 1040x form online If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Fill 1040x form online Otherwise, go to line 3. Fill 1040x form online     3. Fill 1040x form online Enter the appropriate number from Table 1 below. Fill 1040x form online But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. Fill 1040x form online 310 4. Fill 1040x form online Divide line 2 by the number on line 3 4. Fill 1040x form online 100 5. Fill 1040x form online Multiply line 4 by the number of months for which this year's payments were made. Fill 1040x form online If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Fill 1040x form online Otherwise, go to line 6 5. Fill 1040x form online 1,200 6. Fill 1040x form online Enter any amount previously recovered tax free in years after 1986. Fill 1040x form online This is the amount shown on line 10 of your worksheet for last year 6. Fill 1040x form online -0- 7. Fill 1040x form online Subtract line 6 from line 2 7. Fill 1040x form online 31,000 8. Fill 1040x form online Enter the smaller of line 5 or line 7 8. Fill 1040x form online 1,200 9. Fill 1040x form online Taxable amount for year. Fill 1040x form online Subtract line 8 from line 1. Fill 1040x form online Enter the result, but not less than zero. Fill 1040x form online Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Fill 1040x form online Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Fill 1040x form online If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. Fill 1040x form online $13,200 10. Fill 1040x form online Was your annuity starting date before 1987? □ Yes. Fill 1040x form online STOP. Fill 1040x form online Do not complete the rest of this worksheet. Fill 1040x form online  ☑ No. Fill 1040x form online Add lines 6 and 8. Fill 1040x form online This is the amount you have recovered tax free through 2013. Fill 1040x form online You will need this number if you need to fill out this worksheet next year 10. Fill 1040x form online 1,200 11. Fill 1040x form online Balance of cost to be recovered. Fill 1040x form online Subtract line 10 from line 2. Fill 1040x form online If zero, you will not have to complete this worksheet next year. Fill 1040x form online The payments you receive next year will generally be fully taxable 11. Fill 1040x form online $29,800         * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Fill 1040x form online           Table 1 for Line 3 Above       AND your annuity starting date was—     IF the age at annuity starting date was. Fill 1040x form online . Fill 1040x form online . Fill 1040x form online BEFORE November 19, 1996, enter on line 3. Fill 1040x form online . Fill 1040x form online . Fill 1040x form online AFTER November 18, 1996, enter on line 3. Fill 1040x form online . Fill 1040x form online . Fill 1040x form online     55 or under 300 360     56-60 260 310     61-65 240 260     66-70 170 210     71 or older 120 160     Table 2 for Line 3 Above     IF the combined ages at  annuity starting date were. Fill 1040x form online . Fill 1040x form online . Fill 1040x form online THEN enter on line 3. Fill 1040x form online . Fill 1040x form online . Fill 1040x form online     110 or under   410     111-120   360     121-130   310     131-140   260     141 or older   210   Multiple annuitants. Fill 1040x form online   If you and one or more other annuitants receive payments at the same time, you exclude from each annuity payment a pro rata share of the monthly tax-free amount. Fill 1040x form online Figure your share by taking the following steps. Fill 1040x form online Complete your worksheet through line 4 to figure the monthly tax-free amount. Fill 1040x form online Divide the amount of your monthly payment by the total amount of the monthly payments to all annuitants. Fill 1040x form online Multiply the amount on line 4 of your worksheet by the amount figured in (2) above. Fill 1040x form online The result is your share of the monthly tax-free amount. Fill 1040x form online   Replace the amount on line 4 of the worksheet with the result in (3) above. Fill 1040x form online Enter that amount on line 4 of your worksheet each year. Fill 1040x form online General Rule Under the General Rule, you determine the tax-free part of each annuity payment based on the ratio of the cost of the contract to the total expected return. Fill 1040x form online Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Fill 1040x form online To figure it, you must use life expectancy (actuarial) tables prescribed by the IRS. Fill 1040x form online Who must use the General Rule. Fill 1040x form online   You must use the General Rule if you receive pension or annuity payments from: A nonqualified plan (such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan), or A qualified plan if you are age 75 or older on your annuity starting date and your annuity payments are guaranteed for at least 5 years. Fill 1040x form online Annuity starting before November 19, 1996. Fill 1040x form online   If your annuity starting date is after July 1, 1986, and before November 19, 1996, you had to use the General Rule for either circumstance just described. Fill 1040x form online You also had to use it for any fixed-period annuity. Fill 1040x form online If you did not have to use the General Rule, you could have chosen to use it. Fill 1040x form online If your annuity starting date is before July 2, 1986, you had to use the General Rule unless you could use the Three-Year Rule. Fill 1040x form online   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. Fill 1040x form online Who cannot use the General Rule. Fill 1040x form online   You cannot use the General Rule if you receive your pension or annuity from a qualified plan and none of the circumstances described in the preceding discussions apply to you. Fill 1040x form online See Simplified Method , earlier. Fill 1040x form online More information. Fill 1040x form online   For complete information on using the General Rule, including the actuarial tables you need, see Publication 939. Fill 1040x form online Taxation of Nonperiodic Payments This section of the publication explains how any nonperiodic distributions you receive under a pension or annuity plan are taxed. Fill 1040x form online Nonperiodic distributions are also known as amounts not received as an annuity. Fill 1040x form online They include all payments other than periodic payments and corrective distributions. Fill 1040x form online For example, the following items are treated as nonperiodic distributions. Fill 1040x form online Cash withdrawals. Fill 1040x form online Distributions of current earnings (dividends) on your investment. Fill 1040x form online However, do not include these distributions in your income to the extent the insurer keeps them to pay premiums or other consideration for the contract. Fill 1040x form online Certain loans. Fill 1040x form online See Loans Treated as Distributions , later. Fill 1040x form online The value of annuity contracts transferred without full and adequate consideration. Fill 1040x form online See Transfers of Annuity Contracts , later. Fill 1040x form online Corrective distributions of excess plan contributions. Fill 1040x form online   Generally, if the contributions made for you during the year to certain retirement plans exceed certain limits, the excess is taxable to you. Fill 1040x form online To correct an excess, your plan may distribute it to you (along with any income earned on the excess). Fill 1040x form online Although the plan reports the corrective distributions on Form 1099-R, the distribution is not treated as a nonperiodic distribution from the plan. Fill 1040x form online It is not subject to the allocation rules explained in the following discussion, it cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions. Fill 1040x form online    If your retirement plan made a corrective distribution of excess amounts (excess deferrals, excess contributions, or excess annual additions), your Form 1099-R should have the code “8,” “B,” “P,” or “E” in box 7. Fill 1040x form online   For information on plan contribution limits and how to report corrective distributions of excess contributions, see Retirement Plan Contributions under Employee Compensation in Publication 525. Fill 1040x form online Figuring the Taxable Amount How you figure the taxable amount of a nonperiodic distribution depends on whether it is made before the annuity starting date, or on or after the annuity starting date. Fill 1040x form online If it is made before the annuity starting date, its tax treatment also depends on whether it is made under a qualified or nonqualified plan. Fill 1040x form online If it is made under a nonqualified plan, its tax treatment depends on whether it fully discharges the contract, is received under certain life insurance or endowment contracts, or is allocable to an investment you made before August 14, 1982. Fill 1040x form online You may be able to roll over the taxable amount of a nonperiodic distribution from a qualified retirement plan into another qualified retirement plan or a traditional IRA tax free. Fill 1040x form online See Rollovers, later. Fill 1040x form online If you do not make a tax-free rollover and the distribution qualifies as a lump-sum distribution, you may be able to elect an optional method of figuring the tax on the taxable amount. Fill 1040x form online See Lump-Sum Distributions, later. Fill 1040x form online Annuity starting date. Fill 1040x form online   The annuity starting date is either the first day of the first period for which you receive an annuity payment under the contract or the date on which the obligation under the contract becomes fixed, whichever is later. Fill 1040x form online Distributions of employer securities. Fill 1040x form online    If you receive a distribution of employer securities from a qualified retirement plan, you may be able to defer the tax on the net unrealized appreciation (NUA) in the securities. Fill 1040x form online The NUA is the net increase in the securities' value while they were in the trust. Fill 1040x form online This tax deferral applies to distributions of the employer corporation's stocks, bonds, registered debentures, and debentures with interest coupons attached. Fill 1040x form online   If the distribution is a lump-sum distribution, tax is deferred on all of the NUA unless you choose to include it in your income for the year of the distribution. Fill 1040x form online    A lump-sum distribution for this purpose is the distribution or payment of a plan participant's entire balance (within a single tax year) from all of the employer's qualified plans of one kind (pension, profit-sharing, or stock bonus plans), but only if paid: Because of the plan participant's death, After the participant reaches age 59½, Because the participant, if an employee, separates from service, or After the participant, if a self-employed individual, becomes totally and permanently disabled. Fill 1040x form online    If you choose to include NUA in your income for the year of the distribution and the participant was born before January 2, 1936, you may be able to figure the tax on the NUA using the optional methods described und