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Free Tax Filing 2011

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Free Tax Filing 2011

Free tax filing 2011 11. Free tax filing 2011   Departing Aliens and the Sailing or Departure Permit Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Aliens Not Required To Obtain Sailing or Departure Permits Aliens Required To Obtain Sailing or Departure PermitsGetting a Sailing or Departure Permit Forms To File Paying Taxes and Obtaining Refunds Bond To Ensure Payment Filing Annual U. Free tax filing 2011 S. Free tax filing 2011 Income Tax Returns Introduction Before leaving the United States, all aliens (except those listed under Aliens Not Required To Obtain Sailing or Departure Permits must obtain a certificate of compliance. Free tax filing 2011 This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Free tax filing 2011 You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Free tax filing 2011 These forms are discussed in this chapter. Free tax filing 2011 To find out if you need a sailing or departure permit, first read Aliens Not Required To Obtain Sailing or Departure Permits . Free tax filing 2011 If you do not fall into one of the categories in that discussion, you must obtain a sailing or departure permit. Free tax filing 2011 Read Aliens Required To Obtain Sailing or Departure Permits . Free tax filing 2011 Topics - This chapter discusses: Who needs a sailing permit, How to get a sailing permit, and Forms you file to get a sailing permit. Free tax filing 2011 Useful Items - You may want to see: Form (and Instructions) 1040-C U. Free tax filing 2011 S. Free tax filing 2011 Departing Alien Income Tax Return 2063 U. Free tax filing 2011 S. Free tax filing 2011 Departing Alien Income Tax Statement See chapter 12 for information about getting these forms. Free tax filing 2011 Aliens Not Required To Obtain Sailing or Departure Permits If you are included in one of the following categories, you do not have to get a sailing or departure permit before leaving the United States. Free tax filing 2011 If you are in one of these categories and do not have to get a sailing or departure permit, you must be able to support your claim for exemption with proper identification or give the authority for the exemption. Free tax filing 2011 Category 1. Free tax filing 2011   Representatives of foreign governments with diplomatic passports, whether accredited to the United States or other countries, members of their households, and servants accompanying them. Free tax filing 2011 Servants who are leaving, but not with a person with a diplomatic passport, must get a sailing or departure permit. Free tax filing 2011 However, they can get a sailing or departure permit on Form 2063 without examination of their income tax liability by presenting a letter from the chief of their diplomatic mission certifying that: Their name appears on the “White List” (a list of employees of diplomatic missions), and They do not owe to the United States any income tax, and will not owe any tax up to and including the intended date of departure. Free tax filing 2011   The statement must be presented to an IRS office. Free tax filing 2011 Category 2. Free tax filing 2011    Employees of international organizations and foreign governments (other than diplomatic representatives exempt under category 1) and members of their households: Whose compensation for official services is exempt from U. Free tax filing 2011 S. Free tax filing 2011 tax under U. Free tax filing 2011 S. Free tax filing 2011 tax laws (described in chapter 10), and Who receive no other income from U. Free tax filing 2011 S. Free tax filing 2011 sources. Free tax filing 2011 If you are an alien in category (1) or (2), above, who filed the waiver under section 247(b) of the Immigration and Nationality Act, you must get a sailing or departure permit. Free tax filing 2011 This is true even if your income is exempt from U. Free tax filing 2011 S. Free tax filing 2011 tax because of an income tax treaty, consular agreement, or international agreement. Free tax filing 2011 Category 3. Free tax filing 2011   Alien students, industrial trainees, and exchange visitors, including their spouses and children, who enter on an “F-1,” “F-2,” “H-3,” “H-4,” “J-1,” “J-2,” or “Q” visa only and who receive no income from U. Free tax filing 2011 S. Free tax filing 2011 sources while in the United States under those visas other than: Allowances to cover expenses incident to study or training in the United States, such as expenses for travel, maintenance, and tuition, The value of any services or food and lodging connected with this study or training, Income from employment authorized by the U. Free tax filing 2011 S. Free tax filing 2011 Citizenship and Immigration Services (USCIS), or Interest income on deposits that is not effectively connected with a U. Free tax filing 2011 S. Free tax filing 2011 trade or business. Free tax filing 2011 (See Interest Income in chapter 3. Free tax filing 2011 ) Category 4. Free tax filing 2011   Alien students, including their spouses and children, who enter on an “M-1” or “M-2” visa only and who receive no income from U. Free tax filing 2011 S. Free tax filing 2011 sources while in the United States under those visas, other than: Income from employment authorized by the U. Free tax filing 2011 S. Free tax filing 2011 Citizenship and Immigration Services (USCIS) or Interest income on deposits that is not effectively connected with a U. Free tax filing 2011 S. Free tax filing 2011 trade or business. Free tax filing 2011 (See Interest Income in chapter 3. Free tax filing 2011 ) Category 5. Free tax filing 2011   Certain other aliens temporarily in the United States who have received no taxable income during the tax year up to and including the date of departure or during the preceding tax year. Free tax filing 2011 If the IRS has reason to believe that an alien has received income subject to tax and that the collection of income tax is jeopardized by departure, it may then require the alien to obtain a sailing or departure permit. Free tax filing 2011 Aliens in this category are: Alien military trainees who enter the United States for training under the sponsorship of the Department of Defense and who leave the United States on official military travel orders, Alien visitors for business on a “B-1” visa, or on both a “B-1” visa and a “B-2” visa, who do not remain in the United States or a U. Free tax filing 2011 S. Free tax filing 2011 possession for more than 90 days during the tax year, Alien visitors for pleasure on a “B-2” visa, Aliens in transit through the United States or any of its possessions on a “C-1” visa, or under a contract, such as a bond agreement, between a transportation line and the Attorney General, and Aliens who enter the United States on a border-crossing identification card or for whom passports, visas, and border-crossing identification cards are not required, if they are: Visitors for pleasure, Visitors for business who do not remain in the United States or a U. Free tax filing 2011 S. Free tax filing 2011 possession for more than 90 days during the tax year, or In transit through the United States or any of its possessions. Free tax filing 2011 Category 6. Free tax filing 2011   Alien residents of Canada or Mexico who frequently commute between that country and the United States for employment, and whose wages are subject to the withholding of U. Free tax filing 2011 S. Free tax filing 2011 tax. Free tax filing 2011 Aliens Required To Obtain Sailing or Departure Permits If you do not fall into one of the categories listed under Aliens Not Required To Obtain Sailing or Departure Permits, you must obtain a sailing or departure permit. Free tax filing 2011 To obtain a permit, file Form 1040-C or Form 2063 (whichever applies) with your local IRS office before you leave the United States. Free tax filing 2011 See Forms To File , later. Free tax filing 2011 You must also pay all the tax shown as due on Form 1040-C and any taxes due for past years. Free tax filing 2011 See Paying Taxes and Obtaining Refunds , later. Free tax filing 2011 Getting a Sailing or Departure Permit The following discussion covers when and where to get your sailing permit. Free tax filing 2011 Where to get a sailing or departure permit. Free tax filing 2011   If you have been working in the United States, you should get the permit from an IRS office in the area of your employment, or you may obtain one from an IRS office in the area of your departure. Free tax filing 2011 When to get a sailing or departure permit. Free tax filing 2011   You should get your sailing or departure permit at least 2 weeks before you plan to leave. Free tax filing 2011 You cannot apply earlier than 30 days before your planned departure date. Free tax filing 2011 Do not wait until the last minute in case there are unexpected problems. Free tax filing 2011 Papers to submit. Free tax filing 2011   Getting your sailing or departure permit will go faster if you bring to the IRS office papers and documents related to your income and your stay in the United States. Free tax filing 2011 Bring the following records with you if they apply. Free tax filing 2011 Your passport and alien registration card or visa. Free tax filing 2011 Copies of your U. Free tax filing 2011 S. Free tax filing 2011 income tax returns filed for the past 2 years. Free tax filing 2011 If you were in the United States for less than 2 years, bring the income tax returns you filed for that period. Free tax filing 2011 Receipts for income taxes paid on these returns. Free tax filing 2011 Receipts, bank records, canceled checks, and other documents that prove your deductions, business expenses, and dependents claimed on your returns. Free tax filing 2011 A statement from each employer showing wages paid and tax withheld from January 1 of the current year to the date of departure if you were an employee. Free tax filing 2011 If you were self-employed, you must bring a statement of income and expenses up to the date you plan to leave. Free tax filing 2011 Proof of estimated tax payments for the past year and this year. Free tax filing 2011 Documents showing any gain or loss from the sale of personal property and/or real property, including capital assets and merchandise. Free tax filing 2011 Documents relating to scholarship or fellowship grants including: Verification of the grantor, source, and purpose of the grant. Free tax filing 2011 Copies of the application for, and approval of, the grant. Free tax filing 2011 A statement of the amount paid, and your duties and obligations under the grant. Free tax filing 2011 A list of any previous grants. Free tax filing 2011 Documents indicating you qualify for any special tax treaty benefits claimed. Free tax filing 2011 Document verifying your date of departure from the United States, such as an airline ticket. Free tax filing 2011 Document verifying your U. Free tax filing 2011 S. Free tax filing 2011 taxpayer identification number, such as a social security card or an IRS issued Notice CP 565 showing your individual taxpayer identification number (ITIN). Free tax filing 2011 Note. Free tax filing 2011   If you are married and reside in a community property state, also bring the above-listed documents for your spouse. Free tax filing 2011 This applies whether or not your spouse requires a permit. Free tax filing 2011 Forms To File If you must get a sailing or departure permit, you must file Form 2063 or Form 1040-C. Free tax filing 2011 Employees in the IRS office can assist in filing these forms. Free tax filing 2011 Both forms have a “certificate of compliance” section. Free tax filing 2011 When the certificate of compliance is signed by an agent of the Field Assistance Area Director, it certifies that your U. Free tax filing 2011 S. Free tax filing 2011 tax obligations have been satisfied according to available information. Free tax filing 2011 Your Form 1040-C copy of the signed certificate, or the one detached from Form 2063, is your sailing or departure permit. Free tax filing 2011 Form 2063 This is a short form that asks for certain information but does not include a tax computation. Free tax filing 2011 The following departing aliens can get their sailing or departure permits by filing Form 2063. Free tax filing 2011 Aliens, whether resident or nonresident, who have had no taxable income for the tax year up to and including the date of departure and for the preceding year, if the period for filing the income tax return for that year has not expired. Free tax filing 2011 Resident aliens who have received taxable income during the tax year or preceding year and whose departure will not hinder the collection of any tax. Free tax filing 2011 However, if the IRS has information indicating that the aliens are leaving to avoid paying their income tax, they must file a Form 1040-C. Free tax filing 2011 Aliens in either of these categories who have not filed an income tax return or paid income tax for any tax year must file the return and pay the income tax before they can be issued a sailing or departure permit on Form 2063. Free tax filing 2011 The sailing or departure permit detached from Form 2063 can be used for all departures during the current year. Free tax filing 2011 However, the IRS may cancel the sailing or departure permit for any later departure if it believes the collection of income tax is jeopardized by that later departure. Free tax filing 2011 Form 1040-C If you must get a sailing or departure permit and you do not qualify to file Form 2063, you must file Form 1040-C. Free tax filing 2011 Ordinarily, all income received or reasonably expected to be received during the tax year up to and including the date of departure must be reported on Form 1040-C and the tax on it must be paid. Free tax filing 2011 When you pay any tax shown as due on the Form 1040-C, and you file all returns and pay all tax due for previous years, you will receive a sailing or departure permit. Free tax filing 2011 However, the IRS may permit you to furnish a bond guaranteeing payment instead of paying the taxes for certain years. Free tax filing 2011 See Bond To Ensure Payment , discussed later. Free tax filing 2011 The sailing or departure permit issued under the conditions in this paragraph is only for the specific departure for which it is issued. Free tax filing 2011 Returning to the United States. Free tax filing 2011   If you furnish the IRS with information showing, to the satisfaction of the IRS, that you intend to return to the United States and that your departure does not jeopardize the collection of income tax, you can get a sailing or departure permit by filing Form 1040-C without having to pay the tax shown on it. Free tax filing 2011 You must, however, file all income tax returns that have not yet been filed as required, and pay all income tax that is due on these returns. Free tax filing 2011   Your Form 1040-C must include all income received and reasonably expected to be received during the entire year of departure. Free tax filing 2011 The sailing or departure permit issued with this Form 1040-C can be used for all departures during the current year. Free tax filing 2011 However, the Service may cancel the sailing or departure permit for any later departure if the payment of income tax appears to be in jeopardy. Free tax filing 2011 Joint return on Form 1040-C. Free tax filing 2011   Departing husbands and wives who are nonresident aliens cannot file joint returns. Free tax filing 2011 However, if both spouses are resident aliens, they can file a joint return on Form 1040-C if: Both spouses can reasonably be expected to qualify to file a joint return at the normal close of their tax year, and The tax years of the spouses end at the same time. Free tax filing 2011 Paying Taxes and Obtaining Refunds You must pay all tax shown as due on the Form 1040-C at the time of filing it, except when a bond is furnished, or the IRS is satisfied that your departure does not jeopardize the collection of income tax. Free tax filing 2011 You must also pay any taxes due for past years. Free tax filing 2011 If the tax computation on Form 1040-C results in an overpayment, there is no tax to pay at the time you file that return. Free tax filing 2011 However, the IRS cannot provide a refund at the time of departure. Free tax filing 2011 If you are due a refund, you must file either Form 1040NR or Form 1040NR-EZ at the end of the tax year. Free tax filing 2011 Bond To Ensure Payment Usually, you must pay the tax shown as due on Form 1040-C when you file it. Free tax filing 2011 However, if you pay all taxes due that you owe for prior years, you can furnish a bond guaranteeing payment instead of paying the income taxes shown as due on the Form 1040-C or the tax return for the preceding year if the period for filing that return has not expired. Free tax filing 2011 The bond must equal the tax due plus interest to the date of payment as figured by the IRS. Free tax filing 2011 Information about the form of bond and security on it can be obtained from your IRS office. Free tax filing 2011 Filing Annual U. Free tax filing 2011 S. Free tax filing 2011 Income Tax Returns Form 1040-C is not an annual U. Free tax filing 2011 S. Free tax filing 2011 income tax return. Free tax filing 2011 If an income tax return is required by law, that return must be filed even though a Form 1040-C has already been filed. Free tax filing 2011 Chapters 5 and 7 discuss filing an annual U. Free tax filing 2011 S. Free tax filing 2011 income tax return. Free tax filing 2011 The tax paid with Form 1040-C should be taken as a credit against the tax liability for the entire tax year on your annual U. Free tax filing 2011 S. Free tax filing 2011 income tax return. Free tax filing 2011 Prev  Up  Next   Home   More Online Publications
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Understanding Your CP2000 Notice

The income and/or payment information we have on file doesn’t match the information you reported on your tax return. This could affect your tax return; it may cause an increase or decrease in your tax, or may not change it at all.


What you need to do

  • Read your notice carefully—it explains the information we received and how it affects your tax return.
  • Complete the notice response form whether or not you agree or disagree with the notice, the response form explains what actions to take. (Your specific notice may not have a response form. In that case, the notice will have instructions on what to do).
  • Contact the business or person reporting the information, if it is wrong. Ask them to correct it, and then provide the corrected information to us.

You may want to…


Answers to Common Questions

Why did I receive the notice?

We received information from a third party that doesn’t match the information you reported on your tax return.

Is the notice a bill?

No. It informs you about the information we’ve received and how it affects your tax.

What do I need to do?

Complete the notice response form. (Follow the notice instructions if your notice doesn’t have a response form.)

What do I do if the information is wrong or if I disagree?

The notice response form has instructions on what to do if the new information is wrong. You also may want to contact whoever reported the information and ask them to correct it.

The information is wrong because someone else is using my name and social security number. What can I do?

Call us and let us know. You also can use this link to go to our Identity theft information webpage to find out more about what you can do.

I reported the information but I reported it incorrectly. Can I call you to correct my return?

We can accept your information over the phone for incorrectly reported information as long as the mistake didn't increase or decrease your tax.

Do I need to amend my return?

If the information displayed in the CP2000 notice is correct, you don't need to amend your return unless you have additional income, credits or expenses to report. If you agree with our notice, follow the instructions to sign the response page and return it to us in the envelope provided.

If you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. You can receive help at an IRS Taxpayer Assistance Center.

I want to check a copy of my original return. I don’t have one. How can I get one?

You can get a transcript of your return on our ”Order a Transcript” webpage at irs.gov. You also can get one by completing and sending us a Form 4506-T, Request for Transcript of Tax Return.

I don’t want a transcript of my return. I want a copy. How can I get one?

Did an accountant or some other person prepare your return? You could ask them for a copy.

I can’t get a copy of my return from a tax preparer. How else can I get a copy of it?

You can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return. We charge a fee for tax return requests.

How can I find an IRS Taxpayer Assistance Center?

We have centers located throughout the country. Our website has directions on how to find the center nearest to you.

Why did it take you so long to contact me about this matter?

Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.

The notice says my taxes will increase. Will I be charged interest on the money I owe?

Yes, interest accrues on your unpaid balance until you pay it in full.

What happens if I can’t pay the full amount I owe?

You can make a payment plan with us when you can’t pay the full amount you owe.

How can I make a payment plan?

Call us at the toll free number on the top right corner of your notice to talk about payment plans or learn more about them at this web page.


Tips for next year

You can avoid future problems by:

  • keeping accurate and full records
  • waiting until you get all of your income statements before filing your tax return
  • checking the records you get from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they're correct
  • including all your income on your tax return
  • following the instructions on how to report income, expenses and deductions
  • filing an amended tax return for any information you receive after you’ve filed your return

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions you may qualify for. In many cases, you can file for free. Learn more about how to file electronically here.

Page Last Reviewed or Updated: 28-Feb-2014

The Free Tax Filing 2011

Free tax filing 2011 Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. Free tax filing 2011 A pension is generally a series of payments made to you after you retire from work. Free tax filing 2011 Pension payments are made regularly and are for past services with an employer. Free tax filing 2011 An annuity is a series of payments under a contract. Free tax filing 2011 You can buy the contract alone or you can buy it with the help of your employer. Free tax filing 2011 Annuity payments are made regularly for more than one full year. Free tax filing 2011 Note. Free tax filing 2011 Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. Free tax filing 2011 Types of pensions and annuities. Free tax filing 2011   Particular types of pensions and annuities include: Fixed period annuities. Free tax filing 2011 You receive definite amounts at regular intervals for a definite length of time. Free tax filing 2011 Annuities for a single life. Free tax filing 2011 You receive definite amounts at regular intervals for life. Free tax filing 2011 The payments end at death. Free tax filing 2011 Joint and survivor annuities. Free tax filing 2011 The first annuitant receives a definite amount at regular intervals for life. Free tax filing 2011 After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Free tax filing 2011 The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Free tax filing 2011 Variable annuities. Free tax filing 2011 You receive payments that may vary in amount for a definite length of time or for life. Free tax filing 2011 The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. Free tax filing 2011 Disability pensions. Free tax filing 2011 You are under minimum retirement age and receive payments because you retired on disability. Free tax filing 2011 If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. Free tax filing 2011 If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. Free tax filing 2011 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. Free tax filing 2011 This plan must meet Internal Revenue Code requirements. Free tax filing 2011 It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. Free tax filing 2011 However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. Free tax filing 2011 A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Free tax filing 2011 A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. Free tax filing 2011   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. Free tax filing 2011 A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. Free tax filing 2011 It does not qualify for most of the tax benefits of a qualified plan. Free tax filing 2011 Annuity worksheets. Free tax filing 2011   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. Free tax filing 2011 Request for a ruling. Free tax filing 2011   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. Free tax filing 2011 This is treated as a request for a ruling. Free tax filing 2011 See Requesting a Ruling on Taxation of Annuity near the end of this publication. Free tax filing 2011 Withholding tax and estimated tax. Free tax filing 2011   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. Free tax filing 2011 If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. Free tax filing 2011 Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. Free tax filing 2011 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). Free tax filing 2011 These payments are also known as amounts received as an annuity. Free tax filing 2011 If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. Free tax filing 2011 In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. Free tax filing 2011 The amount of each payment that is more than the part that represents your net cost is taxable. Free tax filing 2011 Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. Free tax filing 2011 These terms are explained in the following discussions. Free tax filing 2011 Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. Free tax filing 2011 First, find your net cost of the contract as of the annuity starting date (defined later). Free tax filing 2011 To find this amount, you must first figure the total premiums, contributions, or other amounts paid. Free tax filing 2011 This includes the amounts your employer contributed if you were required to include these amounts in income. Free tax filing 2011 It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). Free tax filing 2011 From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. Free tax filing 2011 Any additional premiums paid for double indemnity or disability benefits. Free tax filing 2011 Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). Free tax filing 2011 The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. Free tax filing 2011 Example. Free tax filing 2011 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. Free tax filing 2011 The annuity starting date is July 1. Free tax filing 2011 This is the date you use in figuring your investment in the contract and your expected return (discussed later). Free tax filing 2011 Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. Free tax filing 2011 Foreign employment. Free tax filing 2011   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. Free tax filing 2011 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 (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. Free tax filing 2011 Foreign employment contributions while a nonresident alien. Free tax filing 2011   In determining your cost, special rules apply if you are a U. Free tax filing 2011 S. Free tax filing 2011 citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. Free tax filing 2011 Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were 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 they had been paid as cash compensation when the services were performed. Free tax filing 2011 Death benefit exclusion. Free tax filing 2011   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. Free tax filing 2011 The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. Free tax filing 2011 How to adjust your total cost. Free tax filing 2011   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. Free tax filing 2011 Add it to the cost or unrecovered cost of the annuity at the annuity starting date. Free tax filing 2011 See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. Free tax filing 2011 Net cost. Free tax filing 2011   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. Free tax filing 2011 This is the unrecovered investment in the contract as of the annuity starting date. Free tax filing 2011 If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. Free tax filing 2011 Refund feature. Free tax filing 2011   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. Free tax filing 2011 Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. Free tax filing 2011   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. Free tax filing 2011 Zero value of refund feature. Free tax filing 2011   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. Free tax filing 2011   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). Free tax filing 2011   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. Free tax filing 2011 Examples. Free tax filing 2011 The first example shows how to figure the value of the refund feature when there is only one beneficiary. Free tax filing 2011 Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. Free tax filing 2011 In both examples, the taxpayer elects to use Tables V through VIII. Free tax filing 2011 If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. Free tax filing 2011 Example 1. Free tax filing 2011 At age 65, Barbara bought for $21,053 an annuity with a refund feature. Free tax filing 2011 She will get $100 a month for life. Free tax filing 2011 Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. Free tax filing 2011 In this case, the contract cost and the total guaranteed return are the same ($21,053). Free tax filing 2011 Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. Free tax filing 2011 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. Free tax filing 2011 For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). Free tax filing 2011 In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. Free tax filing 2011 Example 2. Free tax filing 2011 John died while still employed. Free tax filing 2011 His widow, Eleanor, age 48, receives $171 a month for the rest of her life. Free tax filing 2011 John's son, Elmer, age 9, receives $50 a month until he reaches age 18. Free tax filing 2011 John's contributions to the retirement fund totaled $7,559. Free tax filing 2011 45, with interest on those contributions of $1,602. Free tax filing 2011 53. Free tax filing 2011 The guarantee or total refund feature of the contract is $9,161. Free tax filing 2011 98 ($7,559. Free tax filing 2011 45 plus $1,602. Free tax filing 2011 53). Free tax filing 2011 The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. Free tax filing 2011 9 $71,614. Free tax filing 2011 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. Free tax filing 2011 0 5,400. Free tax filing 2011 00   3) Total expected return   $77,014. Free tax filing 2011 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. Free tax filing 2011 45   2) Guaranteed amount (contributions of $7,559. Free tax filing 2011 45 plus interest of $1,602. Free tax filing 2011 53) $9,161. Free tax filing 2011 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. Free tax filing 2011 00   4) Net guaranteed amount $3,761. Free tax filing 2011 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. Free tax filing 2011 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. Free tax filing 2011 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Free tax filing 2011 See the discussion of expected return, later in this publication. Free tax filing 2011 Free IRS help. Free tax filing 2011   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. Free tax filing 2011 Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Free tax filing 2011 The following discussions explain how to figure the expected return with each type of annuity. Free tax filing 2011 A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. Free tax filing 2011 Fixed period annuity. Free tax filing 2011   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. Free tax filing 2011 It is the total amount you will get beginning at the annuity starting date. Free tax filing 2011 You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). Free tax filing 2011 To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. Free tax filing 2011 Single life annuity. Free tax filing 2011   If you are to get annuity payments for the rest of your life, find your expected return as follows. Free tax filing 2011 You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. Free tax filing 2011 These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). Free tax filing 2011   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. Free tax filing 2011 See Adjustments to Tables I, II, V, VI, and VIA following Table I. Free tax filing 2011 Example. Free tax filing 2011 Henry bought an annuity contract that will give him an annuity of $500 a month for his life. Free tax filing 2011 If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. Free tax filing 2011 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. Free tax filing 2011 2 multiple by +. Free tax filing 2011 1. Free tax filing 2011 His expected return would then be $115,800 ($6,000 × 19. Free tax filing 2011 3). Free tax filing 2011 Annuity for shorter of life or specified period. Free tax filing 2011   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. Free tax filing 2011 To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. Free tax filing 2011 Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. Free tax filing 2011 Example. Free tax filing 2011 Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. Free tax filing 2011 She was age 65 at her birthday nearest the annuity starting date. Free tax filing 2011 She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. Free tax filing 2011 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. Free tax filing 2011 See Special Elections, later. Free tax filing 2011 Joint and survivor annuities. Free tax filing 2011   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. Free tax filing 2011 To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. Free tax filing 2011 If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. Free tax filing 2011 See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. Free tax filing 2011 Example. Free tax filing 2011 John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. Free tax filing 2011 At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. Free tax filing 2011 The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. Free tax filing 2011 0 Expected return $132,000 Different payments to survivor. Free tax filing 2011   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. Free tax filing 2011 Example 1. Free tax filing 2011 Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. Free tax filing 2011 If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. Free tax filing 2011 0 Multiple for Gerald, age 70 (from Table V)   16. Free tax filing 2011 0 Difference: Multiple applicable to Mary   6. Free tax filing 2011 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. Free tax filing 2011 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. Free tax filing 2011 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. Free tax filing 2011 Your husband died while still employed. Free tax filing 2011 Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. Free tax filing 2011 Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. Free tax filing 2011 You were 50 years old at the annuity starting date. Free tax filing 2011 Marie was 16 and Jean was 14. Free tax filing 2011 Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. Free tax filing 2011 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. Free tax filing 2011 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. Free tax filing 2011 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. Free tax filing 2011 Computation Under the General Rule Note. Free tax filing 2011 Variable annuities use a different computation for determining the exclusion amounts. Free tax filing 2011 See Variable annuities later. Free tax filing 2011 Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. Free tax filing 2011   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. Free tax filing 2011 See Death benefit exclusion , earlier. Free tax filing 2011 Step 2. Free tax filing 2011   Figure your expected return. Free tax filing 2011 Step 3. Free tax filing 2011   Divide Step 1 by Step 2 and round to three decimal places. Free tax filing 2011 This will give you the exclusion percentage. Free tax filing 2011 Step 4. Free tax filing 2011   Multiply the exclusion percentage by the first regular periodic payment. Free tax filing 2011 The result is the tax-free part of each pension or annuity payment. Free tax filing 2011   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. Free tax filing 2011 However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. Free tax filing 2011   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. Free tax filing 2011 Step 5. Free tax filing 2011   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. Free tax filing 2011 This will give you the tax-free part of the total payment for the year. Free tax filing 2011    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. Free tax filing 2011 This fractional amount is multiplied by your exclusion percentage to get the tax-free part. Free tax filing 2011 Step 6. Free tax filing 2011   Subtract the tax-free part from the total payment you received. Free tax filing 2011 The rest is the taxable part of your pension or annuity. Free tax filing 2011 Example 1. Free tax filing 2011 You purchased an annuity with an investment in the contract of $10,800. Free tax filing 2011 Under its terms, the annuity will pay you $100 a month for life. Free tax filing 2011 The multiple for your age (age 65) is 20. Free tax filing 2011 0 as shown in Table V. Free tax filing 2011 Your expected return is $24,000 (20 × 12 × $100). Free tax filing 2011 Your cost of $10,800, divided by your expected return of $24,000, equals 45. Free tax filing 2011 0%. Free tax filing 2011 This is the percentage you will not have to include in income. Free tax filing 2011 Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. Free tax filing 2011 If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). Free tax filing 2011 Example 2. Free tax filing 2011 Gerald bought a joint and survivor annuity. Free tax filing 2011 Gerald's investment in the contract is $62,712 and the expected return is $121,200. Free tax filing 2011 The exclusion percentage is 51. Free tax filing 2011 7% ($62,712 ÷ $121,200). Free tax filing 2011 Gerald will receive $500 a month ($6,000 a year). Free tax filing 2011 Each year, until his net cost is recovered, $3,102 (51. Free tax filing 2011 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. Free tax filing 2011 If Gerald dies, his wife will receive $350 a month ($4,200 a year). Free tax filing 2011 If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. Free tax filing 2011 7%). Free tax filing 2011 Each year, until the entire net cost is recovered, his wife will receive $2,171. Free tax filing 2011 40 (51. Free tax filing 2011 7% of her payments received of $4,200) tax free. Free tax filing 2011 She will include $2,028. Free tax filing 2011 60 ($4,200 − $2,171. Free tax filing 2011 40) in her income tax return. Free tax filing 2011 Example 3. Free tax filing 2011 Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. Free tax filing 2011 Your two daughters each receive annual annuities of $1,800 until they reach age 18. Free tax filing 2011 Your husband contributed $25,576 to the plan. Free tax filing 2011 You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. Free tax filing 2011 Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. Free tax filing 2011 The exclusion percentage of 18. Free tax filing 2011 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. Free tax filing 2011 Each full year $864 (18. Free tax filing 2011 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. Free tax filing 2011 Each year, until age 18, $324 (18. Free tax filing 2011 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. Free tax filing 2011 Part-year payments. Free tax filing 2011   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. Free tax filing 2011   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. Free tax filing 2011 For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. Free tax filing 2011   If you received a fractional payment, follow Step 5, discussed earlier. Free tax filing 2011 This gives you the tax-free part of your total payment. Free tax filing 2011 Example. Free tax filing 2011 On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. Free tax filing 2011 The applicable multiple from Table V is 23. Free tax filing 2011 3 (age 61). Free tax filing 2011 Her expected return is $34,950 ($125 × 12 × 23. Free tax filing 2011 3). Free tax filing 2011 Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. Free tax filing 2011 1%. Free tax filing 2011 Each payment received will consist of 63. Free tax filing 2011 1% return of cost and 36. Free tax filing 2011 9% taxable income, until her net cost of the contract is fully recovered. Free tax filing 2011 During the first year, Mary received three payments of $125, or $375, of which $236. Free tax filing 2011 63 (63. Free tax filing 2011 1% × $375) is a return of cost. Free tax filing 2011 The remaining $138. Free tax filing 2011 37 is included in income. Free tax filing 2011 Increase in annuity payments. Free tax filing 2011   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. Free tax filing 2011 All increases in the installment payments are fully taxable. Free tax filing 2011   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. Free tax filing 2011 72-5(a)(5) of the regulations. Free tax filing 2011 Example. Free tax filing 2011 Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. Free tax filing 2011 In figuring the taxable part, Joe elects to use Tables V through VIII. Free tax filing 2011 The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. Free tax filing 2011 His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. Free tax filing 2011 0 × $1,764 annual payment). Free tax filing 2011 The exclusion percentage is $7,938 ÷ $35,280, or 22. Free tax filing 2011 5%. Free tax filing 2011 During the year he received 11 monthly payments of $147, or $1,617. Free tax filing 2011 Of this amount, 22. Free tax filing 2011 5% × $147 × 11 ($363. Free tax filing 2011 83) is tax free as a return of cost and the balance of $1,253. Free tax filing 2011 17 is taxable. Free tax filing 2011 Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). Free tax filing 2011 The tax-free part is still only 22. Free tax filing 2011 5% of the annuity payments as of the annuity starting date (22. Free tax filing 2011 5% × $147 × 12 = $396. Free tax filing 2011 90 for a full year). Free tax filing 2011 The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. Free tax filing 2011 Variable annuities. Free tax filing 2011   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. Free tax filing 2011   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. Free tax filing 2011 If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. Free tax filing 2011 Example. Free tax filing 2011 Frank purchased a variable annuity at age 65. Free tax filing 2011 The total cost of the contract was $12,000. Free tax filing 2011 The annuity starting date is January 1 of the year of purchase. Free tax filing 2011 His annuity will be paid, starting July 1, in variable annual installments for his life. Free tax filing 2011 The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. Free tax filing 2011   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. Free tax filing 2011 Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. Free tax filing 2011 The result is added to the previously figured periodic tax-free part. Free tax filing 2011 The sum is the amount of each future payment that will be tax free. Free tax filing 2011 Example. Free tax filing 2011 Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. Free tax filing 2011 Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. Free tax filing 2011 Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. Free tax filing 2011 00 Amount received in second year 500. Free tax filing 2011 00 Difference $100. Free tax filing 2011 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. Free tax filing 2011 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. Free tax filing 2011 4) $5. Free tax filing 2011 43 Revised annual tax-free part for third and later years ($600 + $5. Free tax filing 2011 43) $605. Free tax filing 2011 43 Amount taxable in third year ($1,200 − $605. Free tax filing 2011 43) $594. Free tax filing 2011 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. Free tax filing 2011 72–4(d)(3) of the Income Tax Regulations. Free tax filing 2011 The statement must also show the following information: The annuity starting date and your age on that date. Free tax filing 2011 The first day of the first period for which you received an annuity payment in the current year. Free tax filing 2011 Your investment in the contract as originally figured. Free tax filing 2011 The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. Free tax filing 2011 Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. Free tax filing 2011 Exclusion limited to net cost. Free tax filing 2011   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). Free tax filing 2011 This is the unrecovered investment in the contract as of the annuity starting date. Free tax filing 2011   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Free tax filing 2011 This deduction is not subject to the 2%-of-adjusted-gross-income limit. Free tax filing 2011 Example 1. Free tax filing 2011 Your annuity starting date is after 1986. Free tax filing 2011 Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. Free tax filing 2011 There is no refund feature. Free tax filing 2011 Your monthly annuity payment is $833. Free tax filing 2011 33. Free tax filing 2011 Your exclusion ratio is 12% and you exclude $100 a month. Free tax filing 2011 Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. Free tax filing 2011 Thereafter, your annuity payments are fully taxable. Free tax filing 2011 Example 2. Free tax filing 2011 The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. Free tax filing 2011 The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. Free tax filing 2011 The exclusion ratio is 10. Free tax filing 2011 8%, and your monthly exclusion is $90. Free tax filing 2011 After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). Free tax filing 2011 An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. Free tax filing 2011 Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. Free tax filing 2011 Exclusion not limited to net cost. Free tax filing 2011   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. Free tax filing 2011 If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. Free tax filing 2011 The total exclusion may be more than your investment in the contract. Free tax filing 2011 How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. Free tax filing 2011 Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. Free tax filing 2011 These tables correspond to the old Tables I through IV. Free tax filing 2011 In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. Free tax filing 2011 If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. Free tax filing 2011 However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). Free tax filing 2011 Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. Free tax filing 2011 Contributions made both before July 1986 and after June 1986. Free tax filing 2011   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. Free tax filing 2011 (See the examples below. Free tax filing 2011 )    Making the election. Free tax filing 2011 Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. Free tax filing 2011 72–6 of the Income Tax Regulations. Free tax filing 2011 ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. Free tax filing 2011   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. Free tax filing 2011 You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. Free tax filing 2011    Advantages of election. Free tax filing 2011 In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. Free tax filing 2011    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. Free tax filing 2011 If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. Free tax filing 2011   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. Free tax filing 2011 Example 1. Free tax filing 2011 Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. Free tax filing 2011 Payment of the $42,000 contribution is guaranteed under a refund feature. Free tax filing 2011 Bill is 55 years old as of the annuity starting date. Free tax filing 2011 For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. Free tax filing 2011       Pre- July 1986   Post- June 1986 A. Free tax filing 2011 Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. Free tax filing 2011 of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. Free tax filing 2011 Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. Free tax filing 2011 Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. Free tax filing 2011 7   28. Free tax filing 2011 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. Free tax filing 2011 Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . Free tax filing 2011 079   . Free tax filing 2011 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). Free tax filing 2011 The taxable part of his annuity is $22,080 ($24,000 minus $1,920). Free tax filing 2011 If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). Free tax filing 2011 Example 2. Free tax filing 2011 Al is age 62 at his nearest birthday to the annuity starting date. Free tax filing 2011 Al's wife is age 60 at her nearest birthday to the annuity starting date. Free tax filing 2011 The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. Free tax filing 2011 The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. Free tax filing 2011 Al makes the election described in Example 1 . Free tax filing 2011 For purposes of this example, assume the refund feature adjustment is zero. Free tax filing 2011 If an adjustment is required, IRS will figure the amount. Free tax filing 2011 See Requesting a Ruling on Taxation of Annuity near the end of this publication. Free tax filing 2011       Pre-  July 1986   Post-  June 1986 A. Free tax filing 2011 Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. Free tax filing 2011 Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. Free tax filing 2011 Expected return         1) Multiple for both annuitants from Tables II and VI 25. Free tax filing 2011 4   28. Free tax filing 2011 8   2) Multiple for first annuitant from Tables I and V 16. Free tax filing 2011 9   22. Free tax filing 2011 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. Free tax filing 2011 5   6. Free tax filing 2011 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. Free tax filing 2011 Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . Free tax filing 2011 209   . Free tax filing 2011 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). Free tax filing 2011 The taxable part of his annuity is $9,216 ($12,000 − $2,784). Free tax filing 2011 The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. Free tax filing 2011 After Al's death, his widow will apply the same exclusion percentages (20. Free tax filing 2011 9% and 2. Free tax filing 2011 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. Free tax filing 2011 Annuity received after June 30, 1986. Free tax filing 2011   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. Free tax filing 2011 Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. Free tax filing 2011    Make the election by attaching the following statement to your income tax return. Free tax filing 2011    “I elect, under section 1. Free tax filing 2011 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. Free tax filing 2011 ”   The statement must also include your name, address, and social security number. Free tax filing 2011   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. Free tax filing 2011 Disqualifying form of payment or settlement. Free tax filing 2011   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. Free tax filing 2011 See regulations section 1. Free tax filing 2011 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. Free tax filing 2011 You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. Free tax filing 2011 Worksheets for Determining Taxable Annuity Worksheets I and II. Free tax filing 2011   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. Free tax filing 2011 72–6(d)(6) Election. Free tax filing 2011 Worksheet I For Determining Taxable Annuity Under Regulations Section 1. Free tax filing 2011 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. Free tax filing 2011   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Free tax filing 2011 )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Free tax filing 2011 If not, the IRS will calculate the refund feature percentage. Free tax filing 2011             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Free tax filing 2011   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. Free tax filing 2011   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. Free tax filing 2011   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Free tax filing 2011     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. Free tax filing 2011 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. Free tax filing 2011   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Free tax filing 2011 )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Free tax filing 2011 If not, the IRS will calculate the refund feature percentage. Free tax filing 2011             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Free tax filing 2011   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. Free tax filing 2011   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. Free tax filing 2011 Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. Free tax filing 2011   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Free tax filing 2011   Actuarial Tables Please click here for the text description of the image. Free tax filing 2011 Actuarial Tables Please click here for the text description of the image. Free tax filing 2011 Actuarial Tables Please click here for the text description of the image. Free tax filing 2011 Actuarial tables Please click here for the text description of the image. 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Free tax filing 2011 Actuarial tables Requesting a Ruling on Taxation of Annuity If you are a retiree, or the survivor of an employee or retiree, you may ask the Internal Revenue Service to help you determine the taxation of your annuity. Free tax filing 2011 If you make this request, you are asking for a ruling. Free tax filing 2011 User fee. Free tax filing 2011   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. Free tax filing 2011 You should call the IRS for the proper fee. Free tax filing 2011 A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. Free tax filing 2011 Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. Free tax filing 2011 O. Free tax filing 2011 Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. Free tax filing 2011 When to make the request. Free tax filing 2011   Please note that requests sent between February 1 and April 15 may experience some delay. Free tax filing 2011 We process requests in the order received, and we will reply to your request as soon as we can process it. Free tax filing 2011 If you do not receive your ruling by the required filing date, you may use Form 4868, Application for Automatic Extension of Time To File U. Free tax filing 2011 S. Free tax filing 2011 Individual Income Tax Return, to get an extension of time to file. Free tax filing 2011 Information you must furnish. Free tax filing 2011   You must furnish the information listed below so the IRS can comply with your request. Free tax filing 2011 Failure to furnish the information will result in a delay in processing your request. Free tax filing 2011 Please send only copies of the following documents, as the IRS retains all material sent for its records: A letter explaining the question(s) you wish to have resolved or the information you need from the ruling. Free tax filing 2011 Copies of any documents showing distributions, annuity rates, and annuity options available to you. Free tax filing 2011 A copy of any Form 1099–R you received since your annuity began. Free tax filing 2011 A statement indicating whether you have filed your return for the year for which you are making the request. Free tax filing 2011 If you have requested an extension of time to file that return, please indicate the extension date. Free tax filing 2011 Your daytime phone number. Free tax filing 2011 Your current mailing address. Free tax filing 2011 A power of attorney if someone other than you, an attorney, a certified public accountant, or an enrolled agent is signing this request. Free tax filing 2011 Form 2848, Power of Attorney and Declaration of Representative, may be used for this purpose. Free tax filing 2011 A completed Tax Information Sheet (or facsimile) shown on the next page. Free tax filing 2011 Sign and date the Disclosure and Perjury Statement (or facsimile) at the end of the tax information sheet. Free tax filing 2011 This statement must be signed by the retiree or the survivor annuitant. Free tax filing 2011 It cannot be signed by a representative. Free tax filing 2011 Tax Information Sheet Please click here for the text description of the image. Free tax filing 2011 Tax Information Sheet Please click here for the text description of the image. Free tax filing 2011 Tax Information Sheet (continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free tax filing 2011 Free help with your tax return. Free tax filing 2011   You can get free help preparing your return nationwide from IRS-certified volunteers. Free tax filing 2011 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Free tax filing 2011 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free tax filing 2011 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free tax filing 2011 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Free tax filing 2011 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Free tax filing 2011 gov, download the IRS2Go app, or call 1-800-906-9887. Free tax filing 2011   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free tax filing 2011 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free tax filing 2011 aarp. Free tax filing 2011 org/money/taxaide or call 1-888-227-7669. Free tax filing 2011 For more information on these programs, go to IRS. Free tax filing 2011 gov and enter “VITA” in the search box. Free tax filing 2011 Internet. Free tax filing 2011    IRS. Free tax filing 2011 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Free tax filing 2011 Download the free IRS2Go app from the iTunes app store or from Google Play. Free tax filing 2011 Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Free tax filing 2011 Check the status of your 2013 refund with the Where's My Refund? application on IRS. Free tax filing 2011 gov or download the IRS2Go app and select the Refund Status option. Free tax filing 2011 The IRS issues more than 9 out of 10 refunds in less than 21 days. Free tax filing 2011 Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Free tax filing 2011 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free tax filing 2011 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free tax filing 2011 Use the Interactive Tax Assistant (ITA) to research your tax questions. Free tax filing 2011 No need to wait on the phone or stand in line. Free tax filing 2011 The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Free tax filing 2011 When you reach the response screen, you can print the entire interview and the final response for your records. Free tax filing 2011 New subject areas are added on a regular basis. Free tax filing 2011  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Free tax filing 2011 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Free tax filing 2011 You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Free tax filing 2011 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Free tax filing 2011 When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Free tax filing 2011 Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Free tax filing 2011 You can also ask the IRS to mail a return or an account transcript to you. Free tax filing 2011 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Free tax filing 2011 gov or by calling 1-800-908-9946. Free tax filing 2011 Tax return and tax account transcripts are generally available for the current year and the past three years. Free tax filing 2011 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Free tax filing 2011 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Free tax filing 2011 If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Free tax filing 2011 Check the status of your amended return using Where's My Amended Return? Go to IRS. Free tax filing 2011 gov and enter Where's My Amended Return? in the search box. Free tax filing 2011 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free tax filing 2011 It can take up to 3 weeks from the date you mailed it to show up in our system. Free tax filing 2011 Make a payment using one of several safe and convenient electronic payment options available on IRS. Free tax filing 2011 gov. Free tax filing 2011 Select the Payment tab on the front page of IRS. Free tax filing 2011 gov for more information. Free tax filing 2011 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free tax filing 2011 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free tax filing 2011 gov. Free tax filing 2011 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Free tax filing 2011 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free tax filing 2011 gov. Free tax filing 2011 Request an Electronic Filing PIN by going to IRS. Free tax filing 2011 gov and entering Electronic Filing PIN in the search box. Free tax filing 2011 Download forms, instructions and publications, including accessible versions for people with disabilities. Free tax filing 2011 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free tax filing 2011 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free tax filing 2011 An employee can answer questions about your tax account or help you set up a payment plan. Free tax filing 2011 Before you visit, check the Office Locator on IRS. Free tax filing 2011 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Free tax filing 2011 If you have a special need, such as a disability, you can request an appointment. Free tax filing 2011 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Free tax filing 2011 Apply for an Employer Identification Number (EIN). Free tax filing 2011 Go to IRS. Free tax filing 2011 gov and enter Apply for an EIN in the search box. Free tax filing 2011 Read the Internal Revenue Code, regulations, or other official guidance. Free tax filing 2011 Read Internal Revenue Bulletins. Free tax filing 2011 Sign up to receive local and national tax news and more by email. Free tax filing 2011 Just click on “subscriptions” above the search box on IRS. Free tax filing 2011 gov and choose from a variety of options. Free tax filing 2011    Phone. Free tax filing 2011 You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Free tax filing 2011 Download the free IRS2Go app from the iTunes app store or from Google Play. Free tax filing 2011 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Free tax filing 2011 gov, or download the IRS2Go app. Free tax filing 2011 Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Free tax filing 2011 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free tax filing 2011 Mos