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Free State Efiling

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Free State Efiling

Free state efiling Publication 560 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSEP plans. Free state efiling SIMPLE plans. Free state efiling Qualified plans. Free state efiling Ordering forms and publications. Free state efiling Tax questions. Free state efiling Future Developments For the latest information about developments related to Publication 560, such as legislation enacted after we release it, go to www. Free state efiling irs. Free state efiling gov/pub560. Free state efiling What's New Compensation limit increased for 2013 and 2014. Free state efiling  For 2013 the maximum compensation used for figuring contributions and benefits increases to $255,000. Free state efiling This limit increases to $260,000 for 2014. Free state efiling Elective deferral limit for 2013 and 2014. Free state efiling  The limit on elective deferrals, other than catch-up contributions, increases to $17,500 for 2013 and remains at $17,500 for 2014. Free state efiling These limits apply for participants in SARSEPs, 401(k) plans (excluding SIMPLE plans), section 403(b) plans and section 457(b) plans. Free state efiling Defined contribution limit increased for 2013 and 2014. Free state efiling  The limit on contributions, other than catch-up contributions, for a participant in a defined contribution plan increases to $51,000 for 2013. Free state efiling This limit increases to $52,000 for 2014. Free state efiling SIMPLE plan salary reduction contribution limit for 2013 and 2014. Free state efiling  The limit on salary reduction contributions, other than catch-up contributions, increases to $12,000 for 2013 and remains at $12,000 for 2014. Free state efiling Catch-up contribution limit remains unchanged for 2013 and 2014. Free state efiling  A plan can permit participants who are age 50 or over at the end of the calendar year to make catch-up contributions in addition to elective deferrals and SIMPLE plan salary reduction contributions. Free state efiling The catch-up contribution limitation for defined contribution plans other than SIMPLE plans remains unchanged at $5,500 for 2013 and 2014. Free state efiling The catch-up contribution limitation for SIMPLE plans remains unchanged at $2,500 for 2013 and 2014. Free state efiling The catch-up contributions a participant can make for a year cannot exceed the lesser of the following amounts. Free state efiling The catch-up contribution limit. Free state efiling The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Free state efiling See “Catch-up contributions” under Contribution Limits and Limit on Elective Deferrals in chapters 3 and 4, respectively, for more information. Free state efiling All section references are to the Internal Revenue Code, unless otherwise stated. Free state efiling Reminders In-plan Roth rollovers. Free state efiling  Section 402A(c)(4) provides for a distribution from an individual's account in a 401(k) plan, other than from a designated Roth account, that is rolled over to the individual's designated Roth account in the same plan. Free state efiling An in-plan Roth rollover is not treated as a distribution for most purposes. Free state efiling Section 402A(c)(4) was added by the Small Business Jobs Act of 2010 and applies to distributions made after September 27, 2010. Free state efiling For additional guidance on in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. Free state efiling R. Free state efiling B. Free state efiling 872, available at  www. Free state efiling irs. Free state efiling gov/irb/2010-51_IRB/ar11. Free state efiling html. Free state efiling In-plan Roth rollovers expanded. Free state efiling  Beginning in 2013, a plan with designated Roth accounts can permit a participant to roll over amounts into a designated Roth account from his or her other accounts in the same plan, regardless of whether the participant is eligible for a distribution from the other accounts. Free state efiling Section 402A(c)(4) was amended by the American Taxpayer Relief Act of 2012. Free state efiling For more information, see Notice 2013-74, 2013-52 I. Free state efiling R. Free state efiling B. Free state efiling 819, available at www. Free state efiling irs. Free state efiling gov/irb/2013-52_IRB/ar11. Free state efiling html. Free state efiling Credit for startup costs. Free state efiling  You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP, SIMPLE, or qualified plan. Free state efiling The credit equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first 3 years of the plan. Free state efiling You can choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective. Free state efiling You must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year. Free state efiling At least one participant must be a non-highly compensated employee. Free state efiling The employees generally cannot be substantially the same employees for whom contributions were made or benefits accrued under a plan of any of the following employers in the 3-tax-year period immediately before the first year to which the credit applies. Free state efiling You. Free state efiling A member of a controlled group that includes you. Free state efiling A predecessor of (1) or (2). Free state efiling The credit is part of the general business credit, which can be carried back or forward to other tax years if it cannot be used in the current year. Free state efiling However, the part of the general business credit attributable to the small employer pension plan startup cost credit cannot be carried back to a tax year beginning before January 1, 2002. Free state efiling You cannot deduct the part of the startup costs equal to the credit claimed for a tax year, but you can choose not to claim the allowable credit for a tax year. Free state efiling To take the credit, use Form 8881, Credit for Small Employer Pension Plan Startup Costs. Free state efiling Retirement savings contributions credit. Free state efiling  Retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. Free state efiling The maximum contribution eligible for the credit is $2,000. Free state efiling To take the credit, use Form 8880, Credit for Qualified Retirement Savings Contributions. Free state efiling For more information on who is eligible for the credit, retirement plan contributions eligible for the credit and how to figure the credit, see Form 8880 and its instructions or go to the IRS website and search Retirement Topics-Retirement Savings Contributions Credit (Saver's Credit). Free state efiling Photographs of missing children. Free state efiling  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free state efiling Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free state efiling You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free state efiling Introduction This publication discusses retirement plans you can set up and maintain for yourself and your employees. Free state efiling In this publication, “you” refers to the employer. Free state efiling See chapter 1 for the definition of the term employer and the definitions of other terms used in this publication. Free state efiling This publication covers the following types of retirement plans. Free state efiling SEP (simplified employee pension) plans. Free state efiling SIMPLE (savings incentive match plan for employees) plans. Free state efiling Qualified plans (also called H. Free state efiling R. Free state efiling 10 plans or Keogh plans when covering self-employed individuals), including 401(k) plans. Free state efiling SEP, SIMPLE, and qualified plans offer you and your employees a tax-favored way to save for retirement. Free state efiling You can deduct contributions you make to the plan for your employees. Free state efiling If you are a sole proprietor, you can deduct contributions you make to the plan for yourself. Free state efiling You can also deduct trustees' fees if contributions to the plan do not cover them. Free state efiling Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Free state efiling Under a 401(k) plan, employees can have you contribute limited amounts of their before-tax (after-tax, in the case of a qualified Roth contribution program) pay to the plan. Free state efiling These amounts (and the earnings on them) are generally tax free until your employees receive distributions from the plan or, in the case of a qualified distribution from a designated Roth account, completely tax free. Free state efiling What this publication covers. Free state efiling   This publication contains the information you need to understand the following topics. Free state efiling What type of plan to set up. Free state efiling How to set up a plan. Free state efiling How much you can contribute to a plan. Free state efiling How much of your contribution is deductible. Free state efiling How to treat certain distributions. Free state efiling How to report information about the plan to the IRS and your employees. Free state efiling Basic features of SEP, SIMPLE, and qualified plans. Free state efiling The key rules for SEP, SIMPLE, and qualified plans are outlined in Table 1. Free state efiling SEP plans. Free state efiling   SEPs provide a simplified method for you to make contributions to a retirement plan for yourself and your employees. Free state efiling Instead of setting up a profit-sharing or money purchase plan with a trust, you can adopt a SEP agreement and make contributions directly to a traditional individual retirement account or a traditional individual retirement annuity (SEP-IRA) set up for yourself and each eligible employee. Free state efiling SIMPLE plans. Free state efiling   Generally, if you had 100 or fewer employees who received at least $5,000 in compensation last year, you can set up a SIMPLE plan. Free state efiling Under a SIMPLE plan, employees can choose to make salary reduction contributions rather than receiving these amounts as part of their regular pay. Free state efiling In addition, you will contribute matching or nonelective contributions. Free state efiling The two types of SIMPLE plans are the SIMPLE IRA plan and the SIMPLE 401(k) plan. Free state efiling Qualified plans. Free state efiling   The qualified plan rules are more complex than the SEP plan and SIMPLE plan rules. Free state efiling However, there are advantages to qualified plans, such as increased flexibility in designing plans and increased contribution and deduction limits in some cases. Free state efiling Table 1. Free state efiling Key Retirement Plan Rules for 2013 Type  of  Plan Last Date for Contribution Maximum Contribution Maximum Deduction When To Set Up Plan SEP Due date of employer's return (including extensions). Free state efiling Smaller of $51,000 or 25%1 of participant's compensation. Free state efiling 2 25%1 of all participants' compensation. Free state efiling 2 Any time up to the due date of employer's return (including extensions). Free state efiling SIMPLE IRA and SIMPLE 401(k) Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made. Free state efiling 4  Matching or nonelective contributions: Due date of employer's return (including extensions). Free state efiling Employee contribution: Salary reduction contribution up to $12,000, $14,500 if age 50 or over. Free state efiling   Employer contribution:  Either dollar-for-dollar matching contributions, up to 3% of employee's compensation,3 or fixed nonelective contributions of 2% of compensation. Free state efiling 2 Same as maximum contribution. Free state efiling Any time between 1/1 and 10/1 of the calendar year. Free state efiling   For a new employer coming into existence after 10/1, as soon as administratively feasible. Free state efiling Qualified Plan: Defined Contribution Plan  Elective deferral: Due date of employer's return (including extensions). Free state efiling 4   Employer contribution: Money Purchase or Profit-Sharing: Due date of employer's return (including extensions). Free state efiling  Employee contribution: Elective deferral up to $17,500, $23,000 if age 50 or over. Free state efiling   Employer contribution: Money Purchase: Smaller of $51,000 or 100%1 of participant's compensation. Free state efiling 2  Profit-Sharing: Smaller of $51,000 or 100%1 of participant's compensation. Free state efiling 2  25%1 of all participants' compensation2, plus amount of elective deferrals made. Free state efiling   By the end of the tax year. Free state efiling Qualified Plan: Defined Benefit Plan Contributions generally must be paid in quarterly installments, due 15 days after the end of each quarter. Free state efiling See Minimum Funding Requirement in chapter 4. Free state efiling Amount needed to provide an annual benefit no larger than the smaller of $205,000 or 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. Free state efiling Based on actuarial assumptions and computations. Free state efiling By the end of the tax year. Free state efiling 1Net earnings from self-employment must take the contribution into account. Free state efiling See Deduction Limit for Self-Employed Individuals in chapters 2 and 4 . Free state efiling  2Compensation is generally limited to $255,000 in 2013. Free state efiling  3Under a SIMPLE 401(k) plan, compensation is generally limited to $255,000 in 2013. Free state efiling  4Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions and elective deferrals. Free state efiling What this publication does not cover. Free state efiling   Although the purpose of this publication is to provide general information about retirement plans you can set up for your employees, it does not contain all the rules and exceptions that apply to these plans. Free state efiling You may also need professional help and guidance. Free state efiling   Also, this publication does not cover all the rules that may be of interest to employees. Free state efiling For example, it does not cover the following topics. Free state efiling The comprehensive IRA rules an employee needs to know. Free state efiling These rules are covered in Publication 590, Individual Retirement Arrangements (IRAs). Free state efiling The comprehensive rules that apply to distributions from retirement plans. Free state efiling These rules are covered in Publication 575, Pension and Annuity Income. Free state efiling The comprehensive rules that apply to section 403(b) plans. Free state efiling These rules are covered in Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). Free state efiling Comments and suggestions. Free state efiling   We welcome your comments about this publication and your suggestions for future editions. Free state efiling   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free state efiling NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free state efiling Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free state efiling   You can send your comments from www. Free state efiling irs. Free state efiling gov/formspubs. Free state efiling Click on “More Information” and then on “Give us feedback. Free state efiling ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free state efiling Ordering forms and publications. Free state efiling   Visit www. Free state efiling irs. Free state efiling gov/formspubs to download forms  and publications, call 1-800-TAX-FORM  (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Free state efiling Internal Revenue Service 1201 N. Free state efiling Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free state efiling   If you have a tax question, check the information available on IRS. Free state efiling gov or call 1-800-829-1040. Free state efiling We cannot answer tax questions sent to either of the above addresses. Free state efiling Note. Free state efiling Forms filed electronically with the Department of Labor are not available on the IRS website. Free state efiling Instead, see www. Free state efiling efast. Free state efiling dol. Free state efiling gov. Free state efiling Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Freedom and Noble Wildfires in Oklahoma

OK-2012-09, Aug. 23, 2012

Updated 9/27/2012 to include Noble Wildfire and include Cleveland County.

OKLAHOMA CITY — Victims of the Freedom and Noble Wildfires that began on Aug. 3, 2012, in parts of Oklahoma may qualify for tax relief from the Internal Revenue Service.

The President has declared Creek and Cleveland counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 3, and on or before Oct. 2, have been postponed to Oct. 2, 2012. This includes the quarterly estimated tax payment due on Sept. 17, 2012.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 3, and on or before Aug. 20, as long as the deposits are made by Aug. 20, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and is entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 2 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 3 and on or before Oct. 2.

The IRS also gives affected taxpayers until Oct. 2 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 3 and on or before Oct. 2.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 3 and on or before Aug. 20 provided the taxpayer makes these deposits by Aug. 20.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “OKLAHOMA/FREEDOM WILDFIRE” or "OKLAHOMA/NOBLE WILDFIRE" at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, IRS.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Page Last Reviewed or Updated: 14-Aug-2013

The Free State Efiling

Free state efiling 9. Free state efiling   Education Exception to Additional Tax on Early IRA Distributions Table of Contents Introduction Who Is Eligible Figuring the Amount Not Subject to the 10% Tax Reporting Early Distributions Introduction Generally, if you take a distribution from your IRA before you reach age 59½, you must pay a 10% additional tax on the early distribution. Free state efiling This applies to any IRA you own, whether it is a traditional IRA (including a SEP-IRA), a Roth IRA, or a SIMPLE IRA. Free state efiling The additional tax on an early distribution from a SIMPLE IRA may be as high as 25%. Free state efiling See Publication 560, Retirement Plans for Small Business, for information on SEP-IRAs, and Publication 590, for information about all other IRAs. Free state efiling However, you can take distributions from your IRAs for qualified higher education expenses without having to pay the 10% additional tax. Free state efiling You may owe income tax on at least part of the amount distributed, but you may not have to pay the 10% additional tax. Free state efiling Generally, if the taxable part of the distribution is less than or equal to the adjusted qualified education expenses (AQEE), none of the distribution is subject to the additional tax. Free state efiling If the taxable part of the distribution is more than the AQEE, only the excess is subject to the additional tax. Free state efiling Who Is Eligible You can take a distribution from your IRA before you reach age 59½ and not have to pay the 10% additional tax if, for the year of the distribution, you pay qualified education expenses for: yourself, your spouse, or your or your spouse's child, foster child, adopted child, or descendant of any of them. Free state efiling Qualified education expenses. Free state efiling   For purposes of the 10% additional tax, these expenses are tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Free state efiling They also include expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. Free state efiling   In addition, if the student is at least a half-time student, room and board are qualified education expenses. Free state efiling   The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Free state efiling The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Free state efiling The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Free state efiling You will need to contact the eligible educational institution for qualified room and board costs. Free state efiling Eligible educational institution. Free state efiling   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Free state efiling S. Free state efiling Department of Education. Free state efiling It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Free state efiling The educational institution should be able to tell you if it is an eligible educational institution. Free state efiling   Certain educational institutions located outside the United States also participate in the U. Free state efiling S. Free state efiling Department of Education's Federal Student Aid (FSA) programs. Free state efiling Half-time student. Free state efiling   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic work load for the course of study the student is pursuing as determined under the standards of the school where the student is enrolled. Free state efiling Figuring the Amount Not Subject to the 10% Tax To determine the amount of your distribution that is not subject to the 10% additional tax, first figure your adjusted qualified education expenses. Free state efiling You do this by reducing your total qualified education expenses by any tax-free educational assistance, which includes: Expenses used to figure the tax-free portion of distributions from a Coverdell education savings account (ESA) (see Distributions in chapter 7, Coverdell Education Savings Account), The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Free state efiling Do not reduce the qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance given to either the student or the individual making the withdrawal, or A withdrawal from personal savings (including savings from a qualified tuition program (QTP)). Free state efiling If your IRA distribution is equal to or less than your adjusted qualified education expenses, you are not subject to the 10% additional tax. Free state efiling Example 1. Free state efiling In 2013, Erin (age 32) took a year off from teaching to attend graduate school full-time. Free state efiling She paid $5,800 of qualified education expenses from the following sources. Free state efiling   Employer-provided educational assistance  (tax free) $5,000     Early distribution from IRA (includes $500 taxable earnings) 3,200           Before Erin can determine if she must pay the 10% additional tax on her IRA distribution, she must reduce her total qualified education expenses. Free state efiling   Total qualified education expenses $5,800     Minus: Tax-free educational assistance −5,000     Equals: Adjusted qualified  education expenses (AQEE) $ 800   Because Erin's AQEE ($800) are more than the taxable portion of her IRA distribution ($500), she does not have to pay the 10% additional tax on any part of this distribution. Free state efiling However, she must include the $500 taxable earnings in her gross income subject to income tax. Free state efiling Example 2. Free state efiling Assume the same facts as in Example 1 , except that Erin deducted some of the contributions to her IRA, so the taxable part of her early distribution is higher by $1,000. Free state efiling This must be included in her income subject to income tax. Free state efiling The taxable part of Erin's IRA distribution ($1,000) is larger than her $800 AQEE. Free state efiling Therefore, she must pay the 10% additional tax on $200, the taxable part of her distribution ($1,000) that is more than her qualified education expenses ($800). Free state efiling She does not have to pay the 10% additional tax on the remaining $800 of her taxable distribution. Free state efiling Reporting Early Distributions By January 31, 2014, the payer of your IRA distribution should send you Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free state efiling The information on this form will help you determine how much of your distribution is taxable for income tax purposes and how much is subject to the 10% additional tax. Free state efiling If you received an early distribution from your IRA, you must report the taxable earnings on Form 1040, line 15b (Form 1040NR, line 16b). Free state efiling Then, if you qualify for an exception for qualified higher education expenses, you must file Form 5329 to show how much, if any, of your early distribution is subject to the 10% additional tax. Free state efiling See the Instructions for Form 5329, Part I, for help in completing the form and entering the results on Form 1040 or 1040NR. Free state efiling There are many other situations in which Form 5329 is required. Free state efiling If, during 2013, you had other distributions from IRAs or qualified retirement plans, or have made excess contributions to certain tax-favored accounts, see the instructions for line 58 (Form 1040) or line 56 (Form 1040NR) to determine if you must file Form 5329. Free state efiling Prev  Up  Next   Home   More Online Publications