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How Do You File A Tax Extension For Free

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How Do You File A Tax Extension For Free

How do you file a tax extension for free Publication 970 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionComparison table. How do you file a tax extension for free Ordering forms and publications. How do you file a tax extension for free Tax questions. How do you file a tax extension for free Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 970, such as legislation enacted after it was published, go to www. How do you file a tax extension for free irs. How do you file a tax extension for free gov/pub970. How do you file a tax extension for free What's New Lifetime learning credit. How do you file a tax extension for free  For 2013, the amount of your lifetime learning credit is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). How do you file a tax extension for free You cannot claim a credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). How do you file a tax extension for free This is an increase from the 2012 limits of $52,000 and $62,000 ($104,000 and $124,000 if filing a joint return). How do you file a tax extension for free For more information, see chapter 3, Lifetime Learning Credit . How do you file a tax extension for free Business deduction for work-related education. How do you file a tax extension for free  For 2013, if you drive your car to and from school and qualify to deduct transportation expenses, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013 is 56. How do you file a tax extension for free 5 cents per mile. How do you file a tax extension for free See chapter 12, Business Deduction for Work-Related Education , for more information. How do you file a tax extension for free Reminders Form 1098-T, Tuition Statement. How do you file a tax extension for free  When figuring an education credit or the tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. How do you file a tax extension for free In most cases, the student should receive Form 1098-T from the eligible educational institution by January 31, 2014. How do you file a tax extension for free An institution my choose to report either payments received during calendar year 2013 (box 1), or amounts billed during the calendar year 2013 (box 2), for qualified education expenses. How do you file a tax extension for free However, the amounts in boxes 1 and 2 of Form 1098-T might be different than the amount you actually paid and are deemed to have paid. How do you file a tax extension for free In addition, the Form 1098-T should give you other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements, or refunds, and whether the student was enrolled at least half-time or was a graduate student. How do you file a tax extension for free The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number. How do you file a tax extension for free Hope Scholarship Credit. How do you file a tax extension for free  For 2013, the Hope Scholarship Credit is not available. How do you file a tax extension for free However, you may be able to claim an American opportunity or lifetime learning credit. How do you file a tax extension for free See chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit , for more information. How do you file a tax extension for free Estimated tax payments. How do you file a tax extension for free  If you have taxable income from any of your education benefits and the payer does not withhold enough income tax, you may need to make estimated tax payments. How do you file a tax extension for free For more information, see Publication 505, Tax Withholding and Estimated Tax. How do you file a tax extension for free Photographs of missing children. How do you file a tax extension for free  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How do you file a tax extension for free Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How do you file a tax extension for free You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. How do you file a tax extension for free Introduction This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family. How do you file a tax extension for free Most benefits apply only to higher education. How do you file a tax extension for free What is in this publication. How do you file a tax extension for free    Chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions , explains the tax treatment of various types of educational assistance, including scholarships, fellowships, and tuition reductions. How do you file a tax extension for free   Two tax credits for which you may be eligible are explained in chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit . How do you file a tax extension for free These benefits, which reduce the amount of income tax you may have to pay, are: The American opportunity credit, and The lifetime learning credit. How do you file a tax extension for free    Ten other types of benefits are explained in chapters 4 through 12. How do you file a tax extension for free These benefits, which reduce the amount of income tax you may have to pay, are: Deduct student loan interest; Receive tax-free treatment of a canceled student loan; Receive tax-free student loan repayment assistance; Deduct tuition and fees for education; Establish and contribute to a Coverdell education savings account (ESA), which features tax-free earnings; Participate in a qualified tuition program (QTP), which features tax-free earnings; Take early distributions from any type of individual retirement arrangement (IRA) for education costs without paying the 10% additional tax on early distributions; Cash in savings bonds for education costs without having to pay tax on the interest; Receive tax-free educational benefits from your employer; and Take a business deduction for work-related education. How do you file a tax extension for free Note. How do you file a tax extension for free You generally cannot claim more than one of the benefits described in the list above for the same qualifying education expense. How do you file a tax extension for free Comparison table. How do you file a tax extension for free   Some of the features of these benefits are highlighted in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 , later, in this publication. How do you file a tax extension for free This general comparison table may guide you in determining which benefits you may be eligible for and which chapters you may want to read. How do you file a tax extension for free When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that gives you the lowest tax liability. How do you file a tax extension for free If you qualify, you may find that a combination of credit(s) and deduction(s) gives you the lowest tax. How do you file a tax extension for free Analyzing your tax withholding. How do you file a tax extension for free   After you estimate your education tax benefits for the year, you may be able to reduce the amount of your federal income tax withholding. How do you file a tax extension for free Also, you may want to recheck your withholding during the year if your personal or financial situation changes. How do you file a tax extension for free See Publication 919, How Do I Adjust My Tax Withholding, for more information. How do you file a tax extension for free Glossary. How do you file a tax extension for free   In this publication, wherever appropriate, we have tried to use the same or similar terminology when referring to the basic components of each education benefit. How do you file a tax extension for free Some of the terms used are: Qualified education expenses, Eligible educational institution, and Modified adjusted gross income. How do you file a tax extension for free   Even though the same term, such as qualified education expenses, is used to label a basic component of many of the education benefits, the same expenses are not necessarily allowed for each benefit. How do you file a tax extension for free For example, the cost of room and board is a qualified education expense for the qualified tuition program, but not for the education savings bond program. How do you file a tax extension for free   Many of the terms used in the publication are defined in the glossary near the end of the publication. How do you file a tax extension for free The glossary is not intended to be a substitute for reading the chapter on a particular education benefit, but it will give you an overview of how certain terms are used in discussing the different benefits. How do you file a tax extension for free Comments and suggestions. How do you file a tax extension for free   We welcome your comments about this publication and your suggestions for future editions. How do you file a tax extension for free   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. How do you file a tax extension for free NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How do you file a tax extension for free Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How do you file a tax extension for free   You can send your comments from www. How do you file a tax extension for free irs. How do you file a tax extension for free gov/formspubs/. How do you file a tax extension for free Click on “More Information” and then on “Comment on Tax Forms and Publications”. How do you file a tax extension for free   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. How do you file a tax extension for free Ordering forms and publications. How do you file a tax extension for free   Visit www. How do you file a tax extension for free irs. How do you file a tax extension for free gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. How do you file a tax extension for free Internal Revenue Service 1201 N. How do you file a tax extension for free Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How do you file a tax extension for free   If you have a tax question, check the information available on IRS. How do you file a tax extension for free gov or call 1-800-829-1040. How do you file a tax extension for free We cannot answer tax questions sent to either of the above addresses. How do you file a tax extension for free Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1040 U. How do you file a tax extension for free S. How do you file a tax extension for free Individual Income Tax Return 1040A U. How do you file a tax extension for free S. How do you file a tax extension for free Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. How do you file a tax extension for free S. How do you file a tax extension for free Nonresident Alien Income Tax Return 1040NR-EZ U. How do you file a tax extension for free S. How do you file a tax extension for free Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 5329 Additional Taxes on Qualified Plans and Other Tax-Favored Accounts 8815 Exclusion of Interest From Series EE and I U. How do you file a tax extension for free S. How do you file a tax extension for free Savings Bonds Issued After 1989 8863 Education Credits 8917 Tuition and Fees Deduction Schedule A (Form 1040) Itemized Deductions  See chapter 13, How To Get Tax Help , for information about getting these publications and forms. How do you file a tax extension for free Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Hurricane Irene in New York

IRS e-File to Remain Open through Oct. 31 for Victims of Hurricane Irene

Updated 9/14/11 to include Herkimer county.
Updated 9/12/11 to include Bronx, Kings, Queens and Richmond counties.
Updated 9/911 to include Columbia, Putnam and Washington counties.
Updated 9/6/11 to include Clinton, Montgomery, Orange, Otsego, Rockland, Saratoga, Sullivan, Suffolk and Warren counties.
Updated 9/2/11 to include Nassau, Rensselaer and Westchester counties.

NY-2011-34, Sept. 1, 2011

NEW YORK — Victims of Hurricane Irene that began on Aug. 26, 2011, in parts of New York may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Albany, Bronx, Clinton, Columbia, Delaware, Dutchess, Essex, Greene, Herkimer, Kings, Montgomery, Nassau, Orange, Otsego, Putnam, Queens, Rensselaer, Richmond, Rockland, Saratoga, Schenectady, Schoharie, Suffolk, Sullivan, Ulster, Warren, Washington and Westchester. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 26 and on or before Oct. 31 have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 26 and on or before Sept. 12 as long as the deposits are made by Sept. 12, 2011.

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

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

Covered Disaster Area

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

Affected Taxpayers

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

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 26 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 26 and on or before Oct. 31.

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

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 26 and on or before Sept. 12 provided the taxpayer makes these deposits by Sept. 12.

Casualty Losses

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

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

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “New York/Hurricane Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

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

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

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

Related Information

Page Last Reviewed or Updated: 20-Mar-2014

The How Do You File A Tax Extension For Free

How do you file a tax extension for free 2. How do you file a tax extension for free   Roth IRAs Table of Contents What's New for 2013 What's New for 2014 Reminders Introduction What Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA?How Much Can Be Contributed? When Can You Make Contributions? What if You Contribute Too Much? Can You Move Amounts Into a Roth IRA?Conversions Rollover From Employer's Plan Into a Roth IRA Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments Rollover From a Roth IRA Rollover of Exxon Valdez Settlement Income Rollover of Airline Payments Are Distributions Taxable?What Are Qualified Distributions? Additional Tax on Early Distributions Ordering Rules for Distributions How Do You Figure the Taxable Part? Must You Withdraw or Use Assets?Minimum distributions. How do you file a tax extension for free Recognizing Losses on Investments Distributions After Owner's Death What's New for 2013 Roth IRA contribution limit. How do you file a tax extension for free  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. How do you file a tax extension for free If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. How do you file a tax extension for free However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. How do you file a tax extension for free For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this chapter. How do you file a tax extension for free Modified AGI limit for Roth IRA contributions increased. How do you file a tax extension for free  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. How do you file a tax extension for free Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. How do you file a tax extension for free You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. How do you file a tax extension for free Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. How do you file a tax extension for free You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. How do you file a tax extension for free Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. How do you file a tax extension for free You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. How do you file a tax extension for free See Can You Contribute to a Roth IRA? in this chapter. How do you file a tax extension for free Net Investment Income Tax. How do you file a tax extension for free  For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 457(b) plans, and IRAs). How do you file a tax extension for free However, these distributions are taken into account when determining the modified adjusted gross income threshold. How do you file a tax extension for free Distributions from a nonqualified retirement plan are included in net investment income. How do you file a tax extension for free See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. How do you file a tax extension for free What's New for 2014 Modified AGI limit for Roth IRA contributions increased. How do you file a tax extension for free  For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations. How do you file a tax extension for free Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $181,000. How do you file a tax extension for free You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more. How do you file a tax extension for free Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2014 and your modified AGI is at least $114,000. How do you file a tax extension for free You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more. How do you file a tax extension for free Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. How do you file a tax extension for free You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. How do you file a tax extension for free Reminders Deemed IRAs. How do you file a tax extension for free  For plan years beginning after 2002, a qualified employer plan (retirement plan) can maintain a separate account or annuity under the plan (a deemed IRA) to receive voluntary employee contributions. How do you file a tax extension for free If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. How do you file a tax extension for free An employee's account can be treated as a traditional IRA or a Roth IRA. How do you file a tax extension for free For this purpose, a “qualified employer plan” includes: A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan), A qualified employee annuity plan (section 403(a) plan), A tax-sheltered annuity plan (section 403(b) plan), and A deferred compensation plan (section 457 plan) maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. How do you file a tax extension for free Designated Roth accounts. How do you file a tax extension for free  Designated Roth accounts are separate accounts under 401(k), 403(b), or 457(b) plans that accept elective deferrals that are referred to as Roth contributions. How do you file a tax extension for free These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. How do you file a tax extension for free Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. How do you file a tax extension for free Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. How do you file a tax extension for free A contribution to one does not impact your eligibility to contribute to the other. How do you file a tax extension for free See Publication 575, for more information on designated Roth accounts. How do you file a tax extension for free Introduction Regardless of your age, you may be able to establish and make nondeductible contributions to an individual retirement plan called a Roth IRA. How do you file a tax extension for free Contributions not reported. How do you file a tax extension for free   You do not report Roth IRA contributions on your return. How do you file a tax extension for free What Is a Roth IRA? A Roth IRA is an individual retirement plan that, except as explained in this chapter, is subject to the rules that apply to a traditional IRA (defined next). How do you file a tax extension for free It can be either an account or an annuity. How do you file a tax extension for free Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened. How do you file a tax extension for free To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. How do you file a tax extension for free A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. How do you file a tax extension for free Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. How do you file a tax extension for free But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. How do you file a tax extension for free Contributions can be made to your Roth IRA after you reach age 70½ and you can leave amounts in your Roth IRA as long as you live. How do you file a tax extension for free Traditional IRA. How do you file a tax extension for free   A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. How do you file a tax extension for free Traditional IRAs are discussed in chapter 1. How do you file a tax extension for free When Can a Roth IRA Be Opened? You can open a Roth IRA at any time. How do you file a tax extension for free However, the time for making contributions for any year is limited. How do you file a tax extension for free See When Can You Make Contributions , later under Can You Contribute to a Roth IRA. How do you file a tax extension for free Can You Contribute to a Roth IRA? Generally, you can contribute to a Roth IRA if you have taxable compensation (defined later) and your modified AGI (defined later) is less than: $188,000 for married filing jointly or qualifying widow(er), $127,000 for single, head of household, or married filing separately and you did not live with your spouse at any time during the year, and $10,000 for married filing separately and you lived with your spouse at any time during the year. How do you file a tax extension for free You may be able to claim a credit for contributions to your Roth IRA. How do you file a tax extension for free For more information, see chapter 4. How do you file a tax extension for free Is there an age limit for contributions?   Contributions can be made to your Roth IRA regardless of your age. How do you file a tax extension for free Can you contribute to a Roth IRA for your spouse?   You can contribute to a Roth IRA for your spouse provided the contributions satisfy the Kay Bailey Hutchison Spousal IRA limit discussed in chapter 1 under How Much Can Be Contributed, you file jointly, and your modified AGI is less than $188,000. How do you file a tax extension for free Compensation. How do you file a tax extension for free   Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services. How do you file a tax extension for free It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. How do you file a tax extension for free For more information, see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1. How do you file a tax extension for free Modified AGI. How do you file a tax extension for free   Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments. How do you file a tax extension for free Use Worksheet 2-1 , later, to determine your modified AGI. How do you file a tax extension for free    Do not subtract conversion income when figuring your other AGI-based phaseouts and taxable income, such as your deduction for medical and dental expenses. How do you file a tax extension for free Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes. How do you file a tax extension for free How Much Can Be Contributed? The contribution limit for Roth IRAs generally depends on whether contributions are made only to Roth IRAs or to both traditional IRAs and Roth IRAs. How do you file a tax extension for free Worksheet 2-1. How do you file a tax extension for free Modified Adjusted Gross Income for Roth IRA Purposes Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes. How do you file a tax extension for free 1. How do you file a tax extension for free Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37 1. How do you file a tax extension for free   2. How do you file a tax extension for free Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA (included on Form 1040, line 15b, Form 1040A, line 11b, or Form 1040NR, line 16b) and a rollover from a qualified retirement plan to a Roth IRA (included on Form 1040, line 16b, Form 1040A, line 12b, or Form 1040NR, line 17b) 2. How do you file a tax extension for free   3. How do you file a tax extension for free Subtract line 2 from line 1 3. How do you file a tax extension for free   4. How do you file a tax extension for free Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 4. How do you file a tax extension for free   5. How do you file a tax extension for free Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 5. How do you file a tax extension for free   6. How do you file a tax extension for free Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 6. How do you file a tax extension for free   7. How do you file a tax extension for free Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 7. How do you file a tax extension for free   8. How do you file a tax extension for free Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 8. How do you file a tax extension for free   9. How do you file a tax extension for free Enter any foreign housing deduction from Form 2555, line 50 9. How do you file a tax extension for free   10. How do you file a tax extension for free Enter any excludable qualified savings bond interest from Form 8815, line 14 10. How do you file a tax extension for free   11. How do you file a tax extension for free Enter any excluded employer-provided adoption benefits from Form 8839, line 28 11. How do you file a tax extension for free   12. How do you file a tax extension for free Add the amounts on lines 3 through 11 12. How do you file a tax extension for free   13. How do you file a tax extension for free Enter: $188,000 if married filing jointly or qualifying widow(er), $10,000 if married filing separately and you lived with your spouse at any time during the year, or $127,000 for all others 13. How do you file a tax extension for free   Is the amount on line 12 more than the amount on line 13? If yes, see the note below. How do you file a tax extension for free  If no, the amount on line 12 is your modified adjusted gross income for Roth IRA purposes. How do you file a tax extension for free       Note. How do you file a tax extension for free If the amount on line 12 is more than the amount on line 13 and you have other income or loss items, such as social security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your modified AGI for Roth IRA purposes. How do you file a tax extension for free (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI. How do you file a tax extension for free ) Then go to line 3 above in this Worksheet 2-1 to refigure your modified AGI. How do you file a tax extension for free If you do not have other income or loss items subject to AGI-based phaseouts, your modified adjusted gross income for Roth IRA purposes is the amount on line 12 above. How do you file a tax extension for free Roth IRAs only. How do you file a tax extension for free   If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation. How do you file a tax extension for free   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced . How do you file a tax extension for free Roth IRAs and traditional IRAs. How do you file a tax extension for free   If contributions are made to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. How do you file a tax extension for free Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. How do you file a tax extension for free   This means that your contribution limit is the lesser of: $5,500 ($6,500 if you are age 50 or older) minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs, or Your taxable compensation minus all contributions (other than employer contributions under a SEP or SIMPLE IRA plan) for the year to all IRAs other than Roth IRAs. How do you file a tax extension for free   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained below under Contribution limit reduced . How do you file a tax extension for free   Simplified employee pensions (SEPs) are discussed in Publication 560. How do you file a tax extension for free Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3. How do you file a tax extension for free Repayment of reservist distributions. How do you file a tax extension for free   You can repay qualified reservist distributions even if the repayments would cause your total contributions to the Roth IRA to be more than the general limit on contributions. How do you file a tax extension for free However, the total repayments cannot be more than the amount of your distribution. How do you file a tax extension for free Note. How do you file a tax extension for free If you make repayments of qualified reservist distributions to a Roth IRA, increase your basis in the Roth IRA by the amount of the repayment. How do you file a tax extension for free For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. How do you file a tax extension for free Contribution limit reduced. How do you file a tax extension for free   If your modified AGI is above a certain amount, your contribution limit is gradually reduced. How do you file a tax extension for free Use Table 2-1, later, to determine if this reduction applies to you. How do you file a tax extension for free Table 2-1. How do you file a tax extension for free Effect of Modified AGI on Roth IRA Contribution This table shows whether your contribution to a Roth IRA is affected by the amount of your modified adjusted gross income (modified AGI). How do you file a tax extension for free IF you have taxable compensation and your filing status is . How do you file a tax extension for free . How do you file a tax extension for free . How do you file a tax extension for free AND your modified AGI is . How do you file a tax extension for free . How do you file a tax extension for free . How do you file a tax extension for free THEN . How do you file a tax extension for free . How do you file a tax extension for free . How do you file a tax extension for free married filing jointly or  qualifying widow(er) less than $178,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . How do you file a tax extension for free at least $178,000 but less than $188,000 the amount you can contribute is reduced as explained under Contribution limit reduced . How do you file a tax extension for free $188,000 or more you cannot contribute to a Roth IRA. How do you file a tax extension for free married filing separately and you lived with your spouse at any time during the year zero (-0-) you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . How do you file a tax extension for free more than zero (-0-) but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced . How do you file a tax extension for free $10,000 or more you cannot contribute to a Roth IRA. How do you file a tax extension for free single, head of household,  or married filing separately and you did not live with your spouse at any time during the year less than $112,000 you can contribute up to $5,500 ($6,500 if you are age 50 or older) as explained under How Much Can Be Contributed . How do you file a tax extension for free at least $112,000 but less than $127,000 the amount you can contribute is reduced as explained under Contribution limit reduced . How do you file a tax extension for free $127,000 or more you cannot contribute to a Roth IRA. How do you file a tax extension for free Figuring the reduction. How do you file a tax extension for free   If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit. How do you file a tax extension for free Worksheet 2-2. How do you file a tax extension for free Determining Your Reduced Roth IRA Contribution Limit Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. How do you file a tax extension for free If it is, use this worksheet to determine how much it is reduced. How do you file a tax extension for free 1. How do you file a tax extension for free Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. How do you file a tax extension for free   2. How do you file a tax extension for free Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. How do you file a tax extension for free   3. How do you file a tax extension for free Subtract line 2 from line 1 3. How do you file a tax extension for free   4. How do you file a tax extension for free Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. How do you file a tax extension for free   5. How do you file a tax extension for free Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). How do you file a tax extension for free If the result is 1. How do you file a tax extension for free 000 or more, enter 1. How do you file a tax extension for free 000 5. How do you file a tax extension for free   6. How do you file a tax extension for free Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. How do you file a tax extension for free   7. How do you file a tax extension for free Multiply line 5 by line 6 7. How do you file a tax extension for free   8. How do you file a tax extension for free Subtract line 7 from line 6. How do you file a tax extension for free Round the result up to the nearest $10. How do you file a tax extension for free If the result is less than $200, enter $200 8. How do you file a tax extension for free   9. How do you file a tax extension for free Enter contributions for the year to other IRAs 9. How do you file a tax extension for free   10. How do you file a tax extension for free Subtract line 9 from line 6 10. How do you file a tax extension for free   11. How do you file a tax extension for free Enter the lesser of line 8 or line 10. How do you file a tax extension for free This is your reduced Roth IRA contribution limit 11. How do you file a tax extension for free      Round your reduced contribution limit up to the nearest $10. How do you file a tax extension for free If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. How do you file a tax extension for free Example. How do you file a tax extension for free You are a 45-year-old, single individual with taxable compensation of $113,000. How do you file a tax extension for free You want to make the maximum allowable contribution to your Roth IRA for 2013. How do you file a tax extension for free Your modified AGI for 2013 is $113,000. How do you file a tax extension for free You have not contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $5,500. How do you file a tax extension for free You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. How do you file a tax extension for free Example—Illustrated, later. How do you file a tax extension for free   Worksheet 2-2. How do you file a tax extension for free Example—Illustrated Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. How do you file a tax extension for free If it is, use this worksheet to determine how much it is reduced. How do you file a tax extension for free 1. How do you file a tax extension for free Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. How do you file a tax extension for free 113,000 2. How do you file a tax extension for free Enter: $178,000 if filing a joint return or qualifying widow(er), $-0- if married filing a separate return and you lived with your spouse at any time in 2013, or $112,000 for all others 2. How do you file a tax extension for free 112,000 3. How do you file a tax extension for free Subtract line 2 from line 1 3. How do you file a tax extension for free 1,000 4. How do you file a tax extension for free Enter: $10,000 if filing a joint return or qualifying widow(er) or married filing a separate return and you lived with your spouse at any time during the year, or $15,000 for all others 4. How do you file a tax extension for free 15,000 5. How do you file a tax extension for free Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). How do you file a tax extension for free If the result is 1. How do you file a tax extension for free 000 or more, enter 1. How do you file a tax extension for free 000 5. How do you file a tax extension for free . How do you file a tax extension for free 067 6. How do you file a tax extension for free Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. How do you file a tax extension for free 5,500 7. How do you file a tax extension for free Multiply line 5 by line 6 7. How do you file a tax extension for free 369 8. How do you file a tax extension for free Subtract line 7 from line 6. How do you file a tax extension for free Round the result up to the nearest $10. How do you file a tax extension for free If the result is less than $200, enter $200 8. How do you file a tax extension for free 5,140 9. How do you file a tax extension for free Enter contributions for the year to other IRAs 9. How do you file a tax extension for free 0 10. How do you file a tax extension for free Subtract line 9 from line 6 10. How do you file a tax extension for free 5,500 11. How do you file a tax extension for free Enter the lesser of line 8 or line 10. How do you file a tax extension for free This is your reduced Roth IRA contribution limit 11. How do you file a tax extension for free 5,140 When Can You Make Contributions? You can make contributions to a Roth IRA for a year at any time during the year or by the due date of your return for that year (not including extensions). How do you file a tax extension for free You can make contributions for 2013 by the due date (not including extensions) for filing your 2013 tax return. How do you file a tax extension for free This means that most people can make contributions for 2013 by April 15, 2014. How do you file a tax extension for free What if You Contribute Too Much? A 6% excise tax applies to any excess contribution to a Roth IRA. How do you file a tax extension for free Excess contributions. How do you file a tax extension for free   These are the contributions to your Roth IRAs for a year that equal the total of: Amounts contributed for the tax year to your Roth IRAs (other than amounts properly and timely rolled over from a Roth IRA or properly converted from a traditional IRA or rolled over from a qualified retirement plan, as described later) that are more than your contribution limit for the year (explained earlier under How Much Can Be Contributed? ), plus Any excess contributions for the preceding year, reduced by the total of: Any distributions out of your Roth IRAs for the year, plus Your contribution limit for the year minus your contributions to all your IRAs for the year. How do you file a tax extension for free Withdrawal of excess contributions. How do you file a tax extension for free   For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. How do you file a tax extension for free This treatment only applies if any earnings on the contributions are also withdrawn. How do you file a tax extension for free The earnings are considered earned and received in the year the excess contribution was made. How do you file a tax extension for free   If you timely filed your 2013 tax return without withdrawing a contribution that you made in 2013, you can still have the contribution returned to you within 6 months of the due date of your 2013 tax return, excluding extensions. How do you file a tax extension for free If you do, file an amended return with “Filed pursuant to section 301. How do you file a tax extension for free 9100-2” written at the top. How do you file a tax extension for free Report any related earnings on the amended return and include an explanation of the withdrawal. How do you file a tax extension for free Make any other necessary changes on the amended return. How do you file a tax extension for free Applying excess contributions. How do you file a tax extension for free    If contributions to your Roth IRA for a year were more than the limit, you can apply the excess contribution in one year to a later year if the contributions for that later year are less than the maximum allowed for that year. How do you file a tax extension for free Can You Move Amounts Into a Roth IRA? You may be able to convert amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. How do you file a tax extension for free You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. How do you file a tax extension for free You may be able to recharacterize contributions made to one IRA as having been made directly to a different IRA. How do you file a tax extension for free You can roll amounts over from a designated Roth account or from one Roth IRA to another Roth IRA. How do you file a tax extension for free Conversions You can convert a traditional IRA to a Roth IRA. How do you file a tax extension for free The conversion is treated as a rollover, regardless of the conversion method used. How do you file a tax extension for free Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. How do you file a tax extension for free However, the 1-year waiting period does not apply. How do you file a tax extension for free Conversion methods. How do you file a tax extension for free   You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. How do you file a tax extension for free Rollover. How do you file a tax extension for free You can receive a distribution from a traditional IRA and roll it over (contribute it) to a Roth IRA within 60 days after the distribution. How do you file a tax extension for free Trustee-to-trustee transfer. How do you file a tax extension for free You can direct the trustee of the traditional IRA to transfer an amount from the traditional IRA to the trustee of the Roth IRA. How do you file a tax extension for free Same trustee transfer. How do you file a tax extension for free If the trustee of the traditional IRA also maintains the Roth IRA, you can direct the trustee to transfer an amount from the traditional IRA to the Roth IRA. How do you file a tax extension for free Same trustee. How do you file a tax extension for free   Conversions made with the same trustee can be made by redesignating the traditional IRA as a Roth IRA, rather than opening a new account or issuing a new contract. How do you file a tax extension for free Income. How do you file a tax extension for free   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. How do you file a tax extension for free These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. How do you file a tax extension for free If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. How do you file a tax extension for free See Publication 505, Tax Withholding and Estimated Tax. How do you file a tax extension for free More information. How do you file a tax extension for free   For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. How do you file a tax extension for free Rollover From Employer's Plan Into a Roth IRA You can roll over into a Roth IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan); Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). How do you file a tax extension for free Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. How do you file a tax extension for free See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. How do you file a tax extension for free Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan. How do you file a tax extension for free Rollover methods. How do you file a tax extension for free   You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the following ways. How do you file a tax extension for free Rollover. How do you file a tax extension for free You can receive a distribution from a qualified retirement plan and roll it over (contribute) to a Roth IRA within 60 days after the distribution. How do you file a tax extension for free Since the distribution is paid directly to you, the payer generally must withhold 20% of it. How do you file a tax extension for free Direct rollover option. How do you file a tax extension for free Your employer's qualified plan must give you the option to have any part of an eligible rollover distribution paid directly to a Roth IRA. How do you file a tax extension for free Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the Roth IRA. How do you file a tax extension for free Rollover by nonspouse beneficiary. How do you file a tax extension for free   If you are a designated beneficiary (other than a surviving spouse) of a deceased employee, you can roll over all or part of an eligible rollover distribution from one of the types of plans listed above into a Roth IRA. How do you file a tax extension for free You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. How do you file a tax extension for free   You will determine your required minimum distributions in years after you make the rollover based on whether the employee died before his or her required beginning date for taking distributions from the plan. How do you file a tax extension for free For more information, see Distributions after the employee’s death under Tax on Excess Accumulation in Publication 575. How do you file a tax extension for free Income. How do you file a tax extension for free   You must include in your gross income distributions from a qualified retirement plan that you would have had to include in income if you had not rolled them over into a Roth IRA. How do you file a tax extension for free You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of contributions (after-tax contributions) to the plan that were taxable to you when paid. How do you file a tax extension for free These amounts are normally included in income on your return for the year of the rollover from the qualified employer plan to a Roth IRA. How do you file a tax extension for free If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. How do you file a tax extension for free See Publication 505, Tax Withholding and Estimated Tax. How do you file a tax extension for free For more information on eligible rollover distributions from qualified retirement plans and withholding, see Rollover From Employer's Plan Into an IRA in chapter 1. How do you file a tax extension for free Military Death Gratuities and Servicemembers' Group Life Insurance (SGLI) Payments If you received a military death gratuity or SGLI payment with respect to a death from injury that occurred after October 6, 2001, you can contribute (roll over) all or part of the amount received to your Roth IRA. How do you file a tax extension for free The contribution is treated as a qualified rollover contribution. How do you file a tax extension for free The amount you can roll over to your Roth IRA cannot exceed the total amount that you received reduced by any part of that amount that was contributed to a Coverdell ESA or another Roth IRA. How do you file a tax extension for free Any military death gratuity or SGLI payment contributed to a Roth IRA is disregarded for purposes of the 1-year waiting period between rollovers. How do you file a tax extension for free The rollover must be completed before the end of the 1-year period beginning on the date you received the payment. How do you file a tax extension for free The amount contributed to your Roth IRA is treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. How do you file a tax extension for free Rollover From a Roth IRA You can withdraw, tax free, all or part of the assets from one Roth IRA if you contribute them within 60 days to another Roth IRA. How do you file a tax extension for free Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. How do you file a tax extension for free However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. How do you file a tax extension for free A rollover from a Roth IRA to an employer retirement plan is not allowed. How do you file a tax extension for free A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. How do you file a tax extension for free If you roll over an amount from one Roth IRA to another Roth IRA, the 5-year period used to determine qualified distributions does not change. How do you file a tax extension for free The 5-year period begins with the first taxable year for which the contribution was made to the initial Roth IRA. How do you file a tax extension for free See What are Qualified Distributions , later. How do you file a tax extension for free Rollover of Exxon Valdez Settlement Income If you are a qualified taxpayer (defined in chapter 1, earlier) and you received qualified settlement income (defined in chapter 1, earlier), you can contribute all or part of the amount received to an eligible retirement plan which includes a Roth IRA. How do you file a tax extension for free The rules for contributing qualified settlement income to a Roth IRA are the same as the rules for contributing qualified settlement income to a traditional IRA with the following exception. How do you file a tax extension for free Qualified settlement income that is contributed to a Roth IRA, or to a designated Roth account, will be: Included in your taxable income for the year the qualified settlement income was received, and Treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable when distributed. How do you file a tax extension for free For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. How do you file a tax extension for free Rollover of Airline Payments If you are a qualified airline employee (defined next), you may contribute any portion of an airline payment (defined below) you receive to a Roth IRA. How do you file a tax extension for free The contribution must be made within 180 days from the date you received the payment. How do you file a tax extension for free The contribution will be treated as a qualified rollover contribution. How do you file a tax extension for free The rollover contribution is included in income to the extent it would be included in income if it were not part of the rollover contribution. How do you file a tax extension for free Also, any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can contribute to your Roth IRA. How do you file a tax extension for free Qualified airline employee. How do you file a tax extension for free    A current or former employee of a commercial airline carrier who was a participant in a qualified defined benefit plan maintained by the carrier which was terminated or became subject to restrictions under Section 402(b) of the Pension Protection Act of 2006. How do you file a tax extension for free These provisions also apply to surviving spouses of qualified airline employees. How do you file a tax extension for free Airline payment. How do you file a tax extension for free    An airline payment is any payment of money or other property that is paid to a qualified airline employee from a commercial airline carrier. How do you file a tax extension for free The payment also must be made both: Under the approval of an order of federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, and In respect of the qualified airline employee’s interest in a bankruptcy claim against the airline carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount. How do you file a tax extension for free Any reduction in the airline payment amount on account of employment taxes shall be disregarded when figuring the amount you can roll over to your traditional IRA. How do you file a tax extension for free Also, an airline payment shall not include any amount payable on the basis of the airline carrier’s future earnings or profits. How do you file a tax extension for free Are Distributions Taxable? You do not include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s). How do you file a tax extension for free You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. How do you file a tax extension for free You may have to include part of other distributions in your income. How do you file a tax extension for free See Ordering Rules for Distributions , later. How do you file a tax extension for free Basis of distributed property. How do you file a tax extension for free   The basis of property distributed from a Roth IRA is its fair market value (FMV) on the date of distribution, whether or not the distribution is a qualified distribution. How do you file a tax extension for free Withdrawals of contributions by due date. How do you file a tax extension for free   If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them. How do you file a tax extension for free If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. How do you file a tax extension for free The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions. How do you file a tax extension for free What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. How do you file a tax extension for free It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and The payment or distribution is: Made on or after the date you reach age 59½, Made because you are disabled (defined earlier), Made to a beneficiary or to your estate after your death, or One that meets the requirements listed under First home under Exceptions in chapter 1 (up to a $10,000 lifetime limit). How do you file a tax extension for free Additional Tax on Early Distributions If you receive a distribution that is not a qualified distribution, you may have to pay the 10% additional tax on early distributions as explained in the following paragraphs. How do you file a tax extension for free Distributions of conversion and certain rollover contributions within 5-year period. How do you file a tax extension for free   If, within the 5-year period starting with the first day of your tax year in which you convert an amount from a traditional IRA or rollover an amount from a qualified retirement plan to a Roth IRA, you take a distribution from a Roth IRA, you may have to pay the 10% additional tax on early distributions. How do you file a tax extension for free You generally must pay the 10% additional tax on any amount attributable to the part of the amount converted or rolled over (the conversion or rollover contribution) that you had to include in income (recapture amount). How do you file a tax extension for free A separate 5-year period applies to each conversion and rollover. How do you file a tax extension for free See Ordering Rules for Distributions , later, to determine the recapture amount, if any. How do you file a tax extension for free   The 5-year period used for determining whether the 10% early distribution tax applies to a distribution from a conversion or rollover contribution is separately determined for each conversion and rollover, and is not necessarily the same as the 5-year period used for determining whether a distribution is a qualified distribution. How do you file a tax extension for free See What Are Qualified Distributions , earlier. How do you file a tax extension for free   For example, if a calendar-year taxpayer makes a conversion contribution on February 25, 2013, and makes a regular contribution for 2012 on the same date, the 5-year period for the conversion begins January 1, 2013, while the 5-year period for the regular contribution begins on January 1, 2012. How do you file a tax extension for free   Unless one of the exceptions listed later applies, you must pay the additional tax on the portion of the distribution attributable to the part of the conversion or rollover contribution that you had to include in income because of the conversion or rollover. How do you file a tax extension for free   You must pay the 10% additional tax in the year of the distribution, even if you had included the conversion or rollover contribution in an earlier year. How do you file a tax extension for free You also must pay the additional tax on any portion of the distribution attributable to earnings on contributions. How do you file a tax extension for free Other early distributions. How do you file a tax extension for free   Unless one of the exceptions listed below applies, you must pay the 10% additional tax on the taxable part of any distributions that are not qualified distributions. How do you file a tax extension for free Exceptions. How do you file a tax extension for free   You may not have to pay the 10% additional tax in the following situations. How do you file a tax extension for free You have reached age 59½. How do you file a tax extension for free You are totally and permanently disabled. How do you file a tax extension for free You are the beneficiary of a deceased IRA owner. How do you file a tax extension for free You use the distribution to buy, build, or rebuild a first home. How do you file a tax extension for free The distributions are part of a series of substantially equal payments. How do you file a tax extension for free You have unreimbursed medical expenses that are more than 10% (or 7. How do you file a tax extension for free 5% if you or your spouse was born before January 2, 1949) of your adjusted gross income (defined earlier) for the year. How do you file a tax extension for free You are paying medical insurance premiums during a period of unemployment. How do you file a tax extension for free The distributions are not more than your qualified higher education expenses. How do you file a tax extension for free The distribution is due to an IRS levy of the qualified plan. How do you file a tax extension for free The distribution is a qualified reservist distribution. How do you file a tax extension for free Most of these exceptions are discussed earlier in chapter 1 under Early Distributions . How do you file a tax extension for free Please click here for the text description of the image. How do you file a tax extension for free Is Roth Distributions a Qualified Distribution? Ordering Rules for Distributions If you receive a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. How do you file a tax extension for free There is a set order in which contributions (including conversion contributions and rollover contributions from qualified retirement plans) and earnings are considered to be distributed from your Roth IRA. How do you file a tax extension for free For these purposes, disregard the withdrawal of excess contributions and the earnings on them (discussed earlier under What if You Contribute Too Much ). How do you file a tax extension for free Order the distributions as follows. How do you file a tax extension for free Regular contributions. How do you file a tax extension for free Conversion and rollover contributions, on a first-in, first-out basis (generally, total conversions and rollovers from the earliest year first). How do you file a tax extension for free See Aggregation (grouping and adding) rules, later. How do you file a tax extension for free Take these conversion and rollover contributions into account as follows: Taxable portion (the amount required to be included in gross income because of the conversion or rollover) first, and then the Nontaxable portion. How do you file a tax extension for free Earnings on contributions. How do you file a tax extension for free Disregard rollover contributions from other Roth IRAs for this purpose. How do you file a tax extension for free Aggregation (grouping and adding) rules. How do you file a tax extension for free   Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them together as follows. How do you file a tax extension for free Add all distributions from all your Roth IRAs during the year together. How do you file a tax extension for free Add all regular contributions made for the year (including contributions made after the close of the year, but before the due date of your return) together. How do you file a tax extension for free Add this total to the total undistributed regular contributions made in prior years. How do you file a tax extension for free Add all conversion and rollover contributions made during the year together. How do you file a tax extension for free For purposes of the ordering rules, in the case of any conversion or rollover in which the conversion or rollover distribution is made in 2013 and the conversion or rollover contribution is made in 2014, treat the conversion or rollover contribution as contributed before any other conversion or rollover contributions made in 2014. How do you file a tax extension for free Add any recharacterized contributions that end up in a Roth IRA to the appropriate contribution group for the year that the original contribution would have been taken into account if it had been made directly to the Roth IRA. How do you file a tax extension for free   Disregard any recharacterized contribution that ends up in an IRA other than a Roth IRA for the purpose of grouping (aggregating) both contributions and distributions. How do you file a tax extension for free Also disregard any amount withdrawn to correct an excess contribution (including the earnings withdrawn) for this purpose. How do you file a tax extension for free Example. How do you file a tax extension for free On October 15, 2009, Justin converted all $80,000 in his traditional IRA to his Roth IRA. How do you file a tax extension for free His Forms 8606 from prior years show that $20,000 of the amount converted is his basis. How do you file a tax extension for free Justin included $60,000 ($80,000 − $20,000) in his gross income. How do you file a tax extension for free On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. How do you file a tax extension for free On November 8, 2013, at age 60, Justin took a $7,000 distribution from his Roth IRA. How do you file a tax extension for free The first $5,000 of the distribution is a return of Justin's regular contribution and is not includible in his income. How do you file a tax extension for free The next $2,000 of the distribution is not includible in income because it was included previously. How do you file a tax extension for free Figuring your recapture amount. How do you file a tax extension for free   If you had an early distribution from your Roth IRAs in 2013, you must allocate the early distribution by using the Recapture Amount—Allocation Chart, later. How do you file a tax extension for free Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19   Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. How do you file a tax extension for free   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). How do you file a tax extension for free The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. How do you file a tax extension for free Note. How do you file a tax extension for free Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. How do you file a tax extension for free See the Example , earlier. How do you file a tax extension for free Tax Year Your Form 2013 Form 8606, line 20   Form 8606, line 22   1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18   Form 8606, line 17   2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. How do you file a tax extension for free  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. How do you file a tax extension for free Amount to include on Form 5329, line 1. How do you file a tax extension for free   Include on line 1 of your 2013 Form 5329 the following four amounts from the Recapture Amount—Allocation Chart that you filled out. How do you file a tax extension for free The amount you allocated to line 20 of your 2013 Form 8606. How do you file a tax extension for free The amount(s) allocated to your 2009 through 2013 Forms 8606, line 18, and your 2010 Form 8606, line 23. How do you file a tax extension for free The amount(s) allocated to your 2009, 2011, 2012, and 2013 Forms 1040, line 16b; Forms 1040A, line 12b; and Forms 1040NR, line 17b. How do you file a tax extension for free The amount from your 2013 Form 8606, line 25. How do you file a tax extension for free   Also, include any amount you allocated to line 20 of your 2013 Form 8606 on your 2013 Form 5329, line 2, and enter exception number 09. How do you file a tax extension for free Example. How do you file a tax extension for free Ishmael, age 32, opened a Roth IRA in 2000. How do you file a tax extension for free He made the maximum contributions to it every year. How do you file a tax extension for free In addition, he made the following transactions into his Roth IRA. How do you file a tax extension for free In 2005, he converted $10,000 from his traditional IRA into his Roth IRA. How do you file a tax extension for free He filled out a 2005 Form 8606 and attached it with his 2005 Form 1040. How do you file a tax extension for free He entered $0 on line 17 of Form 8606 because he took a deduction for all the contributions to the traditional IRA, therefore he has no basis. How do you file a tax extension for free He entered $10,000 on line 18 of Form 8606. How do you file a tax extension for free In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he changed jobs. How do you file a tax extension for free He used a 2011 Form 1040 to file his taxes. How do you file a tax extension for free He entered $20,000 on line 16a of Form 1040 because that was the amount reported in box 1 of his 2011 Form 1099-R. How do you file a tax extension for free Box 5 of his 2011 Form 1099-R reported $0 since he did not make any after-tax contributions to the qualified retirement plan. How do you file a tax extension for free He entered $20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011. How do you file a tax extension for free The total balance in his Roth IRA as of January 1, 2013 was $105,000 ($50,000 in contributions from 2000 through 2012 + $10,000 from the 2005 conversion + $20,000 from the 2011 rollover + $25,000 from earnings). How do you file a tax extension for free He has not taken any early distribution from his Roth IRA before 2013. How do you file a tax extension for free In 2013, he made the maximum contribution of $5,500 to his Roth IRA. How do you file a tax extension for free In August of 2013, he took a $85,500 early distribution from his Roth IRA to use as a down payment on the purchase of his first home. How do you file a tax extension for free See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. How do you file a tax extension for free Based on his allocation, he would enter $20,000 on his 2013 Form 5329, line 1 (see Amount to include on Form 5329, line 1 , above). How do you file a tax extension for free He should also report $10,000 on his 2013 Form 5329, line 2, and enter exception 09 since that amount is not subject to the 10% additional tax on early distributions. How do you file a tax extension for free Illustrated Recapture Amount—Allocation Chart Enter the amount from your 2013 Form 8606, line 19 $85,500 Before you begin: You will need your prior year Form(s) 8606 and income tax return(s) if you entered an amount on any line(s) as indicated below. How do you file a tax extension for free   You will now allocate the amount you entered above (2013 Form 8606, line 19) in the order shown, to the amounts on the lines listed below (to the extent a prior year distribution was not allocable to the amount). How do you file a tax extension for free The maximum amount you can enter on each line below is the amount entered on the referenced lines of the form for that year. How do you file a tax extension for free Note. How do you file a tax extension for free Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. How do you file a tax extension for free See the Example , earlier. How do you file a tax extension for free Tax Year Your Form 2013 Form 8606, line 20 $10,000 Form 8606, line 22 $55,500 1998 Form 8606, line 16   Form 8606, line 15   1999 Form 8606, line 16   Form 8606, line 15   2000 Form 8606, line 16   Form 8606, line 15   2001 Form 8606, line 18   Form 8606, line 17   2002 Form 8606, line 18   Form 8606, line 17   2003 Form 8606, line 18   Form 8606, line 17   2004 Form 8606, line 18   Form 8606, line 17   2005 Form 8606, line 18 $10,000 Form 8606, line 17 $-0- 2006 Form 8606, line 18   Form 8606, line 17   2007 Form 8606, line 18   Form 8606, line 17   2008 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2009 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2010 Form 8606, lines 18 and 23   Form 8606, lines 17 and 22   2011 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b* $10,000 Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2012 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 18  and  Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b*   Form 8606, line 17  and  Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a**   2013 Form 8606, line 25       *Only include those amounts rolled over to a Roth IRA. How do you file a tax extension for free  **Only include any contributions (usually Form 1099-R, box 5) that were taxable to you when made and rolled over to a Roth IRA. How do you file a tax extension for free How Do You Figure the Taxable Part? To figure the taxable part of a distribution that is not a qualified distribution, complete Form 8606, Part III. How do you file a tax extension for free Must You Withdraw or Use Assets? You are not required to take distributions from your Roth IRA at any age. How do you file a tax extension for free The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive. How do you file a tax extension for free However, after the death of a Roth IRA owner, certain of the minimum distribution rules that apply to traditional IRAs also apply to Roth IRAs as explained later under Distributions After Owner's Death . How do you file a tax extension for free Minimum distributions. How do you file a tax extension for free   You cannot use your Roth IRA to satisfy minimum distribution requirements for your traditional IRA. How do you file a tax extension for free Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. How do you file a tax extension for free See Distributions to beneficiaries , later. How do you file a tax extension for free Recognizing Losses on Investments If you have a loss on your Roth IRA investment, you can recognize the loss on your income tax return, but only when all the amounts in all of your Roth IRA accounts have been distributed to you and the total distributions are less than your unrecovered basis. How do you file a tax extension for free Your basis is the total amount of contributions in your Roth IRAs. How do you file a tax extension for free You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions on Schedule A (Form 1040). How do you file a tax extension for free Any such losses are added back to taxable income for purposes of calculating the alternative minimum tax. How do you file a tax extension for free Distributions After Owner's Death If a Roth IRA owner dies, the minimum distribution rules that apply to traditional IRAs apply to Roth IRAs as though the Roth IRA owner died before his or her required beginning date. How do you file a tax extension for free See When Can You Withdraw or Use Assets? in chapter 1. How do you file a tax extension for free Distributions to beneficiaries. How do you file a tax extension for free   Generally, the entire interest in the Roth IRA must be distributed by the end of the fifth calendar year after the year of the owner's death unless the interest is payable to a designated beneficiary over the life or life expectancy of the designated beneficiary. How do you file a tax extension for free (See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. How do you file a tax extension for free )   If paid as an annuity, the entire interest must be payable over a period not greater than the designated beneficiary's life expectancy and distributions must begin before the end of the calendar year following the year of death. How do you file a tax extension for free Distributions from another Roth IRA cannot be substituted for these distributions unless the other Roth IRA was inherited from the same decedent. How do you file a tax extension for free   If the sole beneficiary is the spouse, he or she can either delay distributions until the decedent would have reached age 70½ or treat the Roth IRA as his or her own. How do you file a tax extension for free Combining with other Roth IRAs. How do you file a tax extension for free   A beneficiary can combine an inherited Roth IRA with another Roth IRA maintained by the beneficiary only if the beneficiary either: Inherited the other Roth IRA from the same decedent, or Was the spouse of the decedent and the sole beneficiary of the Roth IRA and elects to treat it as his or her own IRA. How do you file a tax extension for free Distributions that are not qualified distributions. How do you file a tax extension for free   If a distribution to a beneficiary is not a qualified distribution, it is generally includible in the beneficiary's gross income in the same manner as it would have been included in the owner's income had it been distributed to the IRA owner when he or she was alive. How do you file a tax extension for free   If the owner of a Roth IRA dies before the end of: The 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for the owner's benefit, or The 5-year period starting with the year of a conversion contribution from a traditional IRA or a rollover from a qualified retirement plan to a Roth IRA, each type of contribution is divided among multiple beneficiaries according to the pro-rata share of each. How do you file a tax extension for free See Ordering Rules for Distributions , earlier in this chapter under Are Distributions Taxable. How do you file a tax extension for free Example. How do you file a tax extension for free When Ms. How do you file a tax extension for free Hibbard died in 2013, her Roth IRA contained regular contributions of $4,000, a conversion contribution of $10,000 that was made in 2009, and earnings of $2,000. How do you file a tax extension for free No distributions had been made from her IRA. How do you file a tax extension for free She had no basis in the conversion contribution in 2009. How do you file a tax extension for free When she established this Roth IRA (her first) in 2009, she named each of her four children as equal beneficiaries. How do you file a tax extension for free Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. How do you file a tax extension for free An immediate distribution of $4,000 to each child will be treated as $1,000 from regular contributions, $2,500 from conversion contributions, and $500 from earnings. How do you file a tax extension for free In this case, because the distributions are made before the end of the applicable 5-year period for a qualified distribution, each beneficiary includes $500 in income for 2013. How do you file a tax extension for free The 10% additional tax on early distributions does not apply because the distribution was made to the beneficiaries as a result of the death of the IRA owner. How do you file a tax extension for free If distributions from an inherited Roth IRA are less than the required minimum distribution for the year, discussed in chapter 1 under When Must You Withdraw Assets? (Required Minimum Distributions), you may have to pay a 50% excise tax for that year on the amount not distributed as required. How do you file a tax extension for free For the tax on excess accumulations (insufficient distributions), see Excess Accumulations (Insufficient Distributions) under What Acts Result in Penalties or Additional Taxes? in chapter 1. How do you file a tax extension for free If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion. How do you file a tax extension for free Prev  Up  Next   Home   More Online Publications