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How To Amend Your Tax Return

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How To Amend Your Tax Return

How to amend your tax return Index A Absence, temporary, Temporary absences. How to amend your tax return Address, change of, Reminders Aliens (see Nonresident aliens) Alimony, Alimony. How to amend your tax return , Alimony, Instruments Executed Before 1985 Community income, Alimony (Community Income) Fees paid for getting, Fees for getting alimony. How to amend your tax return No exemption for spouse, Alimony paid. How to amend your tax return Annual exclusion, gift tax, Annual exclusion. How to amend your tax return Annulment decrees Absolute decree, Ending the Marital Community Amended return required, Unmarried persons. How to amend your tax return Considered unmarried, Unmarried persons. How to amend your tax return Archer MSA, Archer medical savings account (MSA). How to amend your tax return Assistance (see Tax help) B Basis Property received in settlement, Basis of property received. How to amend your tax return Benefits paid under QDROs, Benefits paid to a child or other dependent. How to amend your tax return , Benefits paid to a spouse or former spouse. How to amend your tax return Birth of dependent, Death or birth. How to amend your tax return C Change of address, Reminders Change of name, Reminders Change of withholding, Reminders Child custody, Custodial parent and noncustodial parent. How to amend your tax return Child support Alimony, difference from, Child support. How to amend your tax return Clearly associated with contingency, Clearly associated with a contingency. How to amend your tax return Contingency relating to child, Contingency relating to your child. How to amend your tax return Payment specifically designated as, Specifically designated as child support. How to amend your tax return Child support under pre-1985 agreement, Child support under pre-1985 agreement. How to amend your tax return Child tax credit, Exemptions for Dependents Children Birth of child Head of household, qualifying person to file as, Death or birth. How to amend your tax return Claiming parent, when child is head of household, Special rule for parent. How to amend your tax return Custody of, Custodial parent and noncustodial parent. How to amend your tax return Death of child Head of household, qualifying person to file as, Death or birth. How to amend your tax return Photographs of missing children, Reminders Community income, Community Income, Alimony (Community Income) Community property, Community Property, Alimony (Community Income) (see also Community income) Ending the marital community, Ending the Marital Community Laws disregarded, Certain community income not treated as community income by one spouse. How to amend your tax return States, Community property states. How to amend your tax return Costs of getting divorce, Costs of Getting a Divorce Fees for tax advice, Fees for tax advice. How to amend your tax return Nondeductible expenses, Nondeductible expenses. How to amend your tax return Custody of child, Custodial parent and noncustodial parent. How to amend your tax return D Death of dependent, Death or birth. How to amend your tax return Death of recipient spouse. How to amend your tax return , Alimony Requirements Debts of spouse Refund applied to, Tax refund applied to spouse's debts. How to amend your tax return Deductions Alimony paid, Deducting alimony paid. How to amend your tax return Alimony recapture, Deducting the recapture. How to amend your tax return Limits on IRAs, IRA contribution and deduction limits. How to amend your tax return Marital, Marital deduction. How to amend your tax return Dependents Exemption for, Exemptions for Dependents, Special Rule for Qualifying Child of More Than One Person Qualifying child, Exemptions for Dependents Qualifying child (Table 3), Table 3. How to amend your tax return Overview of the Rules for Claiming an Exemption for a Dependent Qualifying relative, Exemptions for Dependents Qualifying relative (Table 3), Table 3. How to amend your tax return Overview of the Rules for Claiming an Exemption for a Dependent Social security numbers, Reminders Divorce decrees Absolute decree, Ending the Marital Community Amended, Amended instrument. How to amend your tax return Costs of getting, Costs of Getting a Divorce Defined for purposes of alimony, Divorce or separation instrument. How to amend your tax return Invalid, Invalid decree. How to amend your tax return Unmarried persons, Unmarried persons. How to amend your tax return Divorced parents, Children of Divorced or Separated Parents (or Parents Who Live Apart) Child custody, Custodial parent and noncustodial parent. How to amend your tax return Domestic relations orders (see Qualified domestic relations orders (QDROs)) Domicile, Community Income E Earned income, Earned income. How to amend your tax return Equitable relief (see Relief from joint liability) Estimated tax, Tax Withholding and Estimated Tax Joint payments, Joint estimated tax payments. How to amend your tax return Exemptions, Exemptions, Special Rule for Qualifying Child of More Than One Person Dependents, Exemptions for Dependents, Special Rule for Qualifying Child of More Than One Person Personal, Personal Exemptions Spouse, Exemption for Your Spouse F Fees for tax advice, Fees for tax advice. How to amend your tax return Filing status, Filing Status, More information. How to amend your tax return Head of household, Requirements. How to amend your tax return Form 1040 Deducting alimony paid, Deducting alimony paid. How to amend your tax return Reporting alimony received, Reporting alimony received. How to amend your tax return Form 1040X Annulment, decree of, Unmarried persons. How to amend your tax return Form 8332 Release of exemption to noncustodial parent, Written declaration. How to amend your tax return Form 8379 Injured spouse, Injured spouse. How to amend your tax return Form 8857 Innocent spouse relief, Relief from joint liability. How to amend your tax return Form W-4 Withholding, Tax Withholding and Estimated Tax Form W-7 Individual taxpayer identification number (ITIN), Reminders Former spouse Defined for purposes of alimony, Spouse or former spouse. How to amend your tax return Free tax services, How To Get Tax Help G Gift tax, Gift Tax on Property Settlements, Annual exclusion. How to amend your tax return , Gift Tax Return H Head of household, Head of Household Health savings accounts (HSAs), Health savings account (HSA). How to amend your tax return Help (see Tax help) Home owned jointly Alimony payments for, Payments for jointly-owned home. How to amend your tax return Expenses for, as alimony (Table 4), Table 4. How to amend your tax return Expenses for a Jointly-Owned Home Sale of, Sale of home. How to amend your tax return HSAs (Health savings accounts), Health savings account (HSA). How to amend your tax return I Identification number, Reminders Income, Community Income (see also Community income) Alimony received, Reporting alimony received. How to amend your tax return Individual retirement arrangements (IRAs), Individual Retirement Arrangements, IRA contribution and deduction limits. How to amend your tax return Individual taxpayer identification numbers (ITINs), Reminders Injured spouse, Injured spouse. How to amend your tax return Innocent spouse relief, Relief from joint liability. How to amend your tax return Insurance premiums, Life insurance premiums. How to amend your tax return Invalid decree, Invalid decree. How to amend your tax return IRAs (Individual retirement arrangements), Individual Retirement Arrangements, IRA contribution and deduction limits. How to amend your tax return Itemized deductions on separate returns, Itemized deductions. How to amend your tax return ITINs (Individual taxpayer identification numbers), Reminders J Joint liability Relief from, Reminders, Relief from joint liability. How to amend your tax return Joint returns, Married Filing Jointly Change from separate return, Joint return after separate returns. How to amend your tax return Change to separate return, Separate returns after joint return. How to amend your tax return Divorced taxpayers, Divorced taxpayers. How to amend your tax return Exemption for spouse, Joint return. How to amend your tax return Joint and individual liability, Joint and individual liability. How to amend your tax return Relief from joint liability, Relief from joint liability. How to amend your tax return Signing, Signing a joint return. How to amend your tax return Jointly-owned home Alimony payments for, Payments for jointly-owned home. How to amend your tax return Expenses for, as alimony (Table 4), Table 4. How to amend your tax return Expenses for a Jointly-Owned Home Sale of, Sale of Jointly-Owned Property, Sale of home. How to amend your tax return K Kidnapped child Head of household status and, Kidnapped child. How to amend your tax return L Liability for taxes (see Relief from joint liability) Life insurance premiums as alimony, Life insurance premiums. How to amend your tax return M Marital community, ending, Ending the Marital Community Marital status, Marital status. How to amend your tax return Married persons, Married persons. How to amend your tax return Medical savings accounts (MSAs), Archer medical savings account (MSA). How to amend your tax return Missing children, photographs of, Reminders More information (see Tax help) Mortgage payments as alimony, Payments for jointly-owned home. How to amend your tax return MSAs (Medical savings accounts), Archer medical savings account (MSA). How to amend your tax return N Name, change of, Reminders Nondeductible expenses, Nondeductible expenses. How to amend your tax return Nonresident aliens Joint returns, Nonresident alien. How to amend your tax return Withholding, Withholding on nonresident aliens. How to amend your tax return P Parent Head of household, claim for, Special rule for parent. How to amend your tax return Parents, divorced or separated, Children of Divorced or Separated Parents (or Parents Who Live Apart) Personal exemptions, Personal Exemptions Phaseout of Exemptions, Phaseout of Exemptions Property settlements, Property Settlements, Sale of home. How to amend your tax return Publications (see Tax help) Q Qualified domestic relations orders (QDROs), Qualified Domestic Relations Order, Benefits paid to a child or other dependent. How to amend your tax return , Benefits paid to a spouse or former spouse. How to amend your tax return Qualifying child, exemption for, Exemptions for Dependents Qualifying child, exemption for (Table 3), Table 3. How to amend your tax return Overview of the Rules for Claiming an Exemption for a Dependent Qualifying person, head of household, Qualifying person. How to amend your tax return Table 2, Table 2. How to amend your tax return Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Qualifying relative, exemption for, Exemptions for Dependents Qualifying relative, exemption for (Table 3), Table 3. How to amend your tax return Overview of the Rules for Claiming an Exemption for a Dependent R Recapture of alimony, Recapture of Alimony Refunds Injured spouse, community property, Injured spouse. How to amend your tax return Spouse's debts, applied to, Tax refund applied to spouse's debts. How to amend your tax return Release of exemption to noncustodial parent, Written declaration. How to amend your tax return Revocation, Revocation of release of claim to an exemption. How to amend your tax return Relief from joint liability, Reminders, Relief from joint liability. How to amend your tax return Relief from separate return liability Community income, Relief from liability arising from community property law. How to amend your tax return Reporting requirements Alimony received, Reporting alimony received. How to amend your tax return Returns Amended return required, Unmarried persons. How to amend your tax return Joint (see Joint returns) Separate (see Separate returns) Rollovers, Rollovers. How to amend your tax return S Sales of jointly-owned property, Sale of Jointly-Owned Property Section 1041 election, Basis of property received. How to amend your tax return Separate maintenance decrees, Unmarried persons. How to amend your tax return , Divorce or separation instrument. How to amend your tax return , Ending the Marital Community Separate returns, Married Filing Separately Change to or from joint return, Joint return after separate returns. How to amend your tax return Community or separate income, Community or separate income. How to amend your tax return Exemption for spouse, Separate return. How to amend your tax return Itemized deductions, Itemized deductions. How to amend your tax return Relief from liability, Relief from liability arising from community property law. How to amend your tax return Separate liability, Separate liability. How to amend your tax return Tax consequences, Separate returns may give you a higher tax. How to amend your tax return Separated parents, Children of Divorced or Separated Parents (or Parents Who Live Apart) Separation agreements, Ending the Marital Community Defined for purposes of alimony, Divorce or separation instrument. How to amend your tax return Separation of liability (see Relief from joint liability) Settlement of property (see Property settlements) Social security benefits, Social security benefits. How to amend your tax return Social security numbers (SSNs) Alimony recipient's number required, Alimony Dependents, Reminders Spousal IRA, Spousal IRA. How to amend your tax return Spouse Defined for purposes of alimony, Spouse or former spouse. How to amend your tax return Refund applied to debts, Tax refund applied to spouse's debts. How to amend your tax return Statute of limitations Amended return, Unmarried persons. How to amend your tax return Injured spouse allocation, Injured spouse. How to amend your tax return T Tables and figures Exemption for dependents (Table 3), Table 3. How to amend your tax return Overview of the Rules for Claiming an Exemption for a Dependent Itemized deductions on separate returns (Table 1), Table 1. How to amend your tax return Itemized Deductions on Separate Returns Jointly-owned home, expenses for, as alimony (Table 4), Table 4. How to amend your tax return Expenses for a Jointly-Owned Home Property transferred pursuant to divorce (Table 5), Table 5. How to amend your tax return Property Transferred Pursuant to Divorce Qualifying person for head of household (Table 2), Table 2. How to amend your tax return Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Tax advice fees, Fees for tax advice. How to amend your tax return Tax help, How To Get Tax Help Tax withholding (see Withholding) Taxpayer Advocate, The Taxpayer Advocate Service is Here to Help You. How to amend your tax return Taxpayer identification numbers, Reminders Third parties Alimony payments to, Payments to a third party. How to amend your tax return , Payments to a third party. How to amend your tax return Property settlements, transfers to, Transfers to third parties. How to amend your tax return Tiebreaker rules, Tiebreaker rules. How to amend your tax return TTY/TDD information, How To Get Tax Help U Underpayment of alimony, Underpayment. How to amend your tax return Unmarried persons, Unmarried persons. How to amend your tax return W Withholding Change of, Reminders, Tax Withholding and Estimated Tax Nonresident aliens, Withholding on nonresident aliens. How to amend your tax return Worksheets Recapture of alimony (Worksheet 1), How to figure and report the recapture. How to amend your tax return Prev  Up     Home   More Online Publications

Topic 352 - Which Form – 1040, 1040A or 1040EZ?

The three forms used for filing individual federal income tax returns are Form 1040EZ (PDF), Form 1040A (PDF), and Form 1040 (PDF).

Form 1040EZ is the simplest form to fill out. You may use Form 1040EZ if you meet all the following conditions:

  1. Your filing status is single or married filing jointly
  2. You claim no dependents
  3. You, and your spouse if filing a joint return, were under age 65 on January 1, 2014, and not blind at the end of 2013
  4. You have only wages, salaries, tips, taxable scholarship and fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500
  5. Your taxable income is less than $100,000
  6. Your earned tips, if any, are included in boxes 5 and 7 of your Form W-2
  7. You do not owe any household employment taxes on wages you paid to a household employee
  8. You are not a debtor in a Chapter 11 bankruptcy case filed after October 16, 2005
  9. You do not claim any adjustments to income, such as a deduction for IRA contributions, a student loan interest deduction, an educator expenses deduction, or a tuition and fees deduction
  10. You do not claim any credits other than the earned income credit

If you file Form 1040EZ, you cannot itemize deductions or claim any adjustments to income or tax credits (other than the earned income credit).

Form 1040EZ Links

References:

Form 1040EZ Instructions (PDF)

Return Preparation and Filing Options

If you cannot use Form 1040EZ, you may be able to use Form 1040A if:

  1. Your income is only from wages, salaries, tips, taxable scholarships and fellowship grants, interest, or ordinary dividends, capital gain distributions, pensions, annuities, IRAs, unemployment compensation, taxable social security or railroad retirement benefits, and Alaska Permanent Fund dividends
  2. Your taxable income is less than $100,000
  3. You do not itemize deductions
  4. You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option
  5. Your taxes are only from the Tax Table, the alternative minimum tax, recapture of an education credit, Form 8615 (PDF) or the Qualified Dividends and Capital Gain Tax Worksheet
  6. Your only adjustments to income are the IRA deduction, the student loan interest deduction, the educator expenses deduction, the tuition and fees deduction, and
  7. The only credits you are claiming are the credit for child and dependent care expenses, the earned income credit, the credit for the elderly or the disabled, education credits, the child tax credit, the additional child tax credit, or the retirement savings contribution credit

You can also use Form 1040A if you received dependent care benefits.

Form 1040A Links

References:

Form 1040A Instructions (PDF)

Return Preparation and Filing Options

Often used Schedules:

Form 1040A or 1040, Schedule B (PDF) - Interest and Ordinary Dividends

Form 1040A or 1040, Schedule R (PDF) - Credit for the Elderly or the Disabled

Form 1040A or 1040, Schedule EIC (PDF) - Earned Income Credit

Form 1040A or 1040, Schedule 8812 (PDF) - Child Tax Credit

Often used Forms:

Form 8917 (PDF) - Tuition and Fees Deduction

Form 2441 (PDF) - Child and Dependent Care Expenses

Form 8863 (PDF) - Education Credits (American Opportunity and Lifetime Learning Credits)

Form 8888 (PDF) - Allocation of Refund (Including Savings Bond Purchases)

Finally, you must use Form 1040 under certain circumstances, such as:

  1. Your taxable income is $100,000 or more
  2. You have certain types of income such as unreported tips; certain nontaxable distributions; self-employment earnings; or income received as a partner, a shareholder in an "S" Corporation, or a beneficiary of an estate or trust
  3. You itemize deductions or claim certain tax credits or adjustments to income, or
  4. You owe household employment taxes

A complete list of conditions outlining when Form 1040 must be used is in the Form 1040A Instructions (PDF).

Form 1040 Links

References:

Form 1040 Instructions (PDF)

1040 Central

Return Preparation and Filing Options

Often used Schedules:

Form 1040, Schedule A (PDF) - Itemized Deductions

Form 1040A or 1040, Schedule B (PDF) - Interest and Ordinary Dividends

Form 1040, Schedule C (PDF) - Profit or Loss From Business (Sole Proprietorship)

Form 1040, Schedule C-EZ (PDF) - Net Profit From Business

Form 1040, Schedule D (PDF) - Capital Gains and Losses

Form 1040, Schedule E (PDF) - Supplemental Income and Loss

Form 1040A or 1040, Schedule EIC (PDF) - Earned Income Credit

Form 1040A or 1040, Schedule 8812 (PDF) - Child Tax Credit

Form 1040A or 1040, Schedule R (PDF) - Credit for the Elderly or the Disabled

Often used Forms:

Form 8917 (PDF) - Tuition and Fees Deduction

Form 2441 (PDF) - Child and Dependent Care Expenses

Form 8863 (PDF) - Education Credits (American Opportunity and Lifetime Learning Credits)

Form 8888 (PDF) - Allocation of Refund (Including Savings Bond Purchases)

Form 8949 (PDF) - Sales and Other Dispositions of Capital Assets

If you were a nonresident alien during the tax year and you were married to a U.S. citizen or resident alien, you may use any one of these three forms, based on your circumstances, only if you elect to file a joint return with your spouse. Other nonresident aliens may have to file Form 1040NR (PDF) or Form 1040NR-EZ (PDF). For more information on resident and nonresident aliens, refer to Topic 851 and Publication 519, U.S. Tax Guide for Aliens.

Page Last Reviewed or Updated: December 12, 2013

The How To Amend Your Tax Return

How to amend your tax return 2. How to amend your tax return   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 to amend your tax return Recognizing Losses on Investments Distributions After Owner's Death What's New for 2013 Roth IRA contribution limit. How to amend your tax return  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 to amend your tax return 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 to amend your tax return However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. How to amend your tax return For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? in this chapter. How to amend your tax return Modified AGI limit for Roth IRA contributions increased. How to amend your tax return  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. How to amend your tax return Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. How to amend your tax return You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. How to amend your tax return 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 to amend your tax return You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. How to amend your tax return 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 to amend your tax return You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. How to amend your tax return See Can You Contribute to a Roth IRA? in this chapter. How to amend your tax return Net Investment Income Tax. How to amend your tax return  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 to amend your tax return However, these distributions are taken into account when determining the modified adjusted gross income threshold. How to amend your tax return Distributions from a nonqualified retirement plan are included in net investment income. How to amend your tax return See Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions for more information. How to amend your tax return What's New for 2014 Modified AGI limit for Roth IRA contributions increased. How to amend your tax return  For 2014, your Roth IRA contribution limit is reduced (phased out) in the following situations. How to amend your tax return Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $181,000. How to amend your tax return You cannot make a Roth IRA contribution if your modified AGI is $191,000 or more. How to amend your tax return 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 to amend your tax return You cannot make a Roth IRA contribution if your modified AGI is $129,000 or more. How to amend your tax return 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 to amend your tax return You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. How to amend your tax return Reminders Deemed IRAs. How to amend your tax return  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 to amend your tax return If the separate account or annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. How to amend your tax return An employee's account can be treated as a traditional IRA or a Roth IRA. How to amend your tax return 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 to amend your tax return Designated Roth accounts. How to amend your tax return  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 to amend your tax return These elective deferrals are included in your income, but qualified distributions from these accounts are not included in your income. How to amend your tax return Designated Roth accounts are not IRAs and should not be confused with Roth IRAs. How to amend your tax return Contributions, up to their respective limits, can be made to Roth IRAs and designated Roth accounts according to your eligibility to participate. How to amend your tax return A contribution to one does not impact your eligibility to contribute to the other. How to amend your tax return See Publication 575, for more information on designated Roth accounts. How to amend your tax return 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 to amend your tax return Contributions not reported. How to amend your tax return   You do not report Roth IRA contributions on your return. How to amend your tax return 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 to amend your tax return It can be either an account or an annuity. How to amend your tax return Individual retirement accounts and annuities are described in chapter 1 under How Can a Traditional IRA Be Opened. How to amend your tax return To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is opened. How to amend your tax return 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 to amend your tax return Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. How to amend your tax return But, if you satisfy the requirements, qualified distributions (discussed later) are tax free. How to amend your tax return 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 to amend your tax return Traditional IRA. How to amend your tax return   A traditional IRA is any IRA that is not a Roth IRA or SIMPLE IRA. How to amend your tax return Traditional IRAs are discussed in chapter 1. How to amend your tax return When Can a Roth IRA Be Opened? You can open a Roth IRA at any time. How to amend your tax return However, the time for making contributions for any year is limited. How to amend your tax return See When Can You Make Contributions , later under Can You Contribute to a Roth IRA. How to amend your tax return 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 to amend your tax return You may be able to claim a credit for contributions to your Roth IRA. How to amend your tax return For more information, see chapter 4. How to amend your tax return Is there an age limit for contributions?   Contributions can be made to your Roth IRA regardless of your age. How to amend your tax return 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 to amend your tax return Compensation. How to amend your tax return   Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services. How to amend your tax return It also includes commissions, self-employment income, nontaxable combat pay, military differential pay, and taxable alimony and separate maintenance payments. How to amend your tax return For more information, see What Is Compensation? under Who Can Open a Traditional IRA? in chapter 1. How to amend your tax return Modified AGI. How to amend your tax return   Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments. How to amend your tax return Use Worksheet 2-1 , later, to determine your modified AGI. How to amend your tax return    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 to amend your tax return Subtract them from AGI only for the purpose of figuring your modified AGI for Roth IRA purposes. How to amend your tax return 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 to amend your tax return Worksheet 2-1. How to amend your tax return Modified Adjusted Gross Income for Roth IRA Purposes Use this worksheet to figure your modified adjusted gross income for Roth IRA purposes. How to amend your tax return 1. How to amend your tax return Enter your adjusted gross income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37 1. How to amend your tax return   2. How to amend your tax return 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 to amend your tax return   3. How to amend your tax return Subtract line 2 from line 1 3. How to amend your tax return   4. How to amend your tax return Enter any traditional IRA deduction from Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32 4. How to amend your tax return   5. How to amend your tax return Enter any student loan interest deduction from Form 1040, line 33; Form 1040A, line 18; or Form 1040NR, line 33 5. How to amend your tax return   6. How to amend your tax return Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 6. How to amend your tax return   7. How to amend your tax return Enter any domestic production activities deduction from Form 1040, line 35, or Form 1040NR, line 34 7. How to amend your tax return   8. How to amend your tax return Enter any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 8. How to amend your tax return   9. How to amend your tax return Enter any foreign housing deduction from Form 2555, line 50 9. How to amend your tax return   10. How to amend your tax return Enter any excludable qualified savings bond interest from Form 8815, line 14 10. How to amend your tax return   11. How to amend your tax return Enter any excluded employer-provided adoption benefits from Form 8839, line 28 11. How to amend your tax return   12. How to amend your tax return Add the amounts on lines 3 through 11 12. How to amend your tax return   13. How to amend your tax return 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 to amend your tax return   Is the amount on line 12 more than the amount on line 13? If yes, see the note below. How to amend your tax return  If no, the amount on line 12 is your modified adjusted gross income for Roth IRA purposes. How to amend your tax return       Note. How to amend your tax return 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 to amend your tax return (If you receive social security benefits, use Worksheet 1 in Appendix B to refigure your AGI. How to amend your tax return ) Then go to line 3 above in this Worksheet 2-1 to refigure your modified AGI. How to amend your tax return 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 to amend your tax return Roth IRAs only. How to amend your tax return   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 to amend your tax return   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced . How to amend your tax return Roth IRAs and traditional IRAs. How to amend your tax return   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 to amend your tax return Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit. How to amend your tax return   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 to amend your tax return   However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained below under Contribution limit reduced . How to amend your tax return   Simplified employee pensions (SEPs) are discussed in Publication 560. How to amend your tax return Savings incentive match plans for employees (SIMPLEs) are discussed in chapter 3. How to amend your tax return Repayment of reservist distributions. How to amend your tax return   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 to amend your tax return However, the total repayments cannot be more than the amount of your distribution. How to amend your tax return Note. How to amend your tax return 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 to amend your tax return For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1. How to amend your tax return Contribution limit reduced. How to amend your tax return   If your modified AGI is above a certain amount, your contribution limit is gradually reduced. How to amend your tax return Use Table 2-1, later, to determine if this reduction applies to you. How to amend your tax return Table 2-1. How to amend your tax return 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 to amend your tax return IF you have taxable compensation and your filing status is . How to amend your tax return . How to amend your tax return . How to amend your tax return AND your modified AGI is . How to amend your tax return . How to amend your tax return . How to amend your tax return THEN . How to amend your tax return . How to amend your tax return . How to amend your tax return 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 to amend your tax return at least $178,000 but less than $188,000 the amount you can contribute is reduced as explained under Contribution limit reduced . How to amend your tax return $188,000 or more you cannot contribute to a Roth IRA. How to amend your tax return 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 to amend your tax return more than zero (-0-) but less than $10,000 the amount you can contribute is reduced as explained under Contribution limit reduced . How to amend your tax return $10,000 or more you cannot contribute to a Roth IRA. How to amend your tax return 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 to amend your tax return at least $112,000 but less than $127,000 the amount you can contribute is reduced as explained under Contribution limit reduced . How to amend your tax return $127,000 or more you cannot contribute to a Roth IRA. How to amend your tax return Figuring the reduction. How to amend your tax return   If the amount you can contribute must be reduced, use Worksheet 2-2, later, to figure your reduced contribution limit. How to amend your tax return Worksheet 2-2. How to amend your tax return 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 to amend your tax return If it is, use this worksheet to determine how much it is reduced. How to amend your tax return 1. How to amend your tax return Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. How to amend your tax return   2. How to amend your tax return 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 to amend your tax return   3. How to amend your tax return Subtract line 2 from line 1 3. How to amend your tax return   4. How to amend your tax return 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 to amend your tax return   5. How to amend your tax return Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). How to amend your tax return If the result is 1. How to amend your tax return 000 or more, enter 1. How to amend your tax return 000 5. How to amend your tax return   6. How to amend your tax return Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. How to amend your tax return   7. How to amend your tax return Multiply line 5 by line 6 7. How to amend your tax return   8. How to amend your tax return Subtract line 7 from line 6. How to amend your tax return Round the result up to the nearest $10. How to amend your tax return If the result is less than $200, enter $200 8. How to amend your tax return   9. How to amend your tax return Enter contributions for the year to other IRAs 9. How to amend your tax return   10. How to amend your tax return Subtract line 9 from line 6 10. How to amend your tax return   11. How to amend your tax return Enter the lesser of line 8 or line 10. How to amend your tax return This is your reduced Roth IRA contribution limit 11. How to amend your tax return      Round your reduced contribution limit up to the nearest $10. How to amend your tax return If your reduced contribution limit is more than $0, but less than $200, increase the limit to $200. How to amend your tax return Example. How to amend your tax return You are a 45-year-old, single individual with taxable compensation of $113,000. How to amend your tax return You want to make the maximum allowable contribution to your Roth IRA for 2013. How to amend your tax return Your modified AGI for 2013 is $113,000. How to amend your tax return You have not contributed to any traditional IRA, so the maximum contribution limit before the modified AGI reduction is $5,500. How to amend your tax return You figure your reduced Roth IRA contribution of $5,140 as shown on Worksheet 2-2. How to amend your tax return Example—Illustrated, later. How to amend your tax return   Worksheet 2-2. How to amend your tax return Example—Illustrated Before using this worksheet, check Table 2-1, earlier, to determine whether or not your Roth IRA contribution limit is reduced. How to amend your tax return If it is, use this worksheet to determine how much it is reduced. How to amend your tax return 1. How to amend your tax return Enter your modified AGI for Roth IRA purposes (Worksheet 2-1, line 12) 1. How to amend your tax return 113,000 2. How to amend your tax return 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 to amend your tax return 112,000 3. How to amend your tax return Subtract line 2 from line 1 3. How to amend your tax return 1,000 4. How to amend your tax return 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 to amend your tax return 15,000 5. How to amend your tax return Divide line 3 by line 4 and enter the result as a decimal (rounded to at least three places). How to amend your tax return If the result is 1. How to amend your tax return 000 or more, enter 1. How to amend your tax return 000 5. How to amend your tax return . How to amend your tax return 067 6. How to amend your tax return Enter the lesser of: $5,500 ($6,500 if you are age 50 or older), or Your taxable compensation 6. How to amend your tax return 5,500 7. How to amend your tax return Multiply line 5 by line 6 7. How to amend your tax return 369 8. How to amend your tax return Subtract line 7 from line 6. How to amend your tax return Round the result up to the nearest $10. How to amend your tax return If the result is less than $200, enter $200 8. How to amend your tax return 5,140 9. How to amend your tax return Enter contributions for the year to other IRAs 9. How to amend your tax return 0 10. How to amend your tax return Subtract line 9 from line 6 10. How to amend your tax return 5,500 11. How to amend your tax return Enter the lesser of line 8 or line 10. How to amend your tax return This is your reduced Roth IRA contribution limit 11. How to amend your tax return 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 to amend your tax return You can make contributions for 2013 by the due date (not including extensions) for filing your 2013 tax return. How to amend your tax return This means that most people can make contributions for 2013 by April 15, 2014. How to amend your tax return What if You Contribute Too Much? A 6% excise tax applies to any excess contribution to a Roth IRA. How to amend your tax return Excess contributions. How to amend your tax return   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 to amend your tax return Withdrawal of excess contributions. How to amend your tax return   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 to amend your tax return This treatment only applies if any earnings on the contributions are also withdrawn. How to amend your tax return The earnings are considered earned and received in the year the excess contribution was made. How to amend your tax return   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 to amend your tax return If you do, file an amended return with “Filed pursuant to section 301. How to amend your tax return 9100-2” written at the top. How to amend your tax return Report any related earnings on the amended return and include an explanation of the withdrawal. How to amend your tax return Make any other necessary changes on the amended return. How to amend your tax return Applying excess contributions. How to amend your tax return    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 to amend your tax return 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 to amend your tax return You may be able to roll over amounts from a qualified retirement plan to a Roth IRA. How to amend your tax return You may be able to recharacterize contributions made to one IRA as having been made directly to a different IRA. How to amend your tax return You can roll amounts over from a designated Roth account or from one Roth IRA to another Roth IRA. How to amend your tax return Conversions You can convert a traditional IRA to a Roth IRA. How to amend your tax return The conversion is treated as a rollover, regardless of the conversion method used. How to amend your tax return Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. How to amend your tax return However, the 1-year waiting period does not apply. How to amend your tax return Conversion methods. How to amend your tax return   You can convert amounts from a traditional IRA to a Roth IRA in any of the following three ways. How to amend your tax return Rollover. How to amend your tax return 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 to amend your tax return Trustee-to-trustee transfer. How to amend your tax return 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 to amend your tax return Same trustee transfer. How to amend your tax return 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 to amend your tax return Same trustee. How to amend your tax return   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 to amend your tax return Income. How to amend your tax return   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 to amend your tax return 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 to amend your tax return If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. How to amend your tax return See Publication 505, Tax Withholding and Estimated Tax. How to amend your tax return More information. How to amend your tax return   For more information on conversions, see Converting From Any Traditional IRA Into a Roth IRA in chapter 1. How to amend your tax return 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 to amend your tax return Any amount rolled over is subject to the same rules for converting a traditional IRA into a Roth IRA. How to amend your tax return See Converting From Any Traditional IRA Into a Roth IRA in chapter 1. How to amend your tax return Also, the rollover contribution must meet the rollover requirements that apply to the specific type of retirement plan. How to amend your tax return Rollover methods. How to amend your tax return   You can roll over amounts from a qualified retirement plan to a Roth IRA in one of the following ways. How to amend your tax return Rollover. How to amend your tax return 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 to amend your tax return Since the distribution is paid directly to you, the payer generally must withhold 20% of it. How to amend your tax return Direct rollover option. How to amend your tax return 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 to amend your tax return Generally, no tax is withheld from any part of the designated distribution that is directly paid to the trustee of the Roth IRA. How to amend your tax return Rollover by nonspouse beneficiary. How to amend your tax return   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 to amend your tax return You must make the rollover by a direct trustee-to-trustee transfer into an inherited Roth IRA. How to amend your tax return   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 to amend your tax return For more information, see Distributions after the employee’s death under Tax on Excess Accumulation in Publication 575. How to amend your tax return Income. How to amend your tax return   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 to amend your tax return 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 to amend your tax return 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 to amend your tax return If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. How to amend your tax return See Publication 505, Tax Withholding and Estimated Tax. How to amend your tax return 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 to amend your tax return 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 to amend your tax return The contribution is treated as a qualified rollover contribution. How to amend your tax return 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 to amend your tax return 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 to amend your tax return The rollover must be completed before the end of the 1-year period beginning on the date you received the payment. How to amend your tax return 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 to amend your tax return 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 to amend your tax return Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another , apply to these rollovers. How to amend your tax return However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. How to amend your tax return A rollover from a Roth IRA to an employer retirement plan is not allowed. How to amend your tax return A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA. How to amend your tax return 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 to amend your tax return The 5-year period begins with the first taxable year for which the contribution was made to the initial Roth IRA. How to amend your tax return See What are Qualified Distributions , later. How to amend your tax return 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 to amend your tax return 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 to amend your tax return 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 to amend your tax return For more information, see Rollover of Exxon Valdez Settlement Income in chapter 1. How to amend your tax return 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 to amend your tax return The contribution must be made within 180 days from the date you received the payment. How to amend your tax return The contribution will be treated as a qualified rollover contribution. How to amend your tax return 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 to amend your tax return 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 to amend your tax return Qualified airline employee. How to amend your tax return    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 to amend your tax return These provisions also apply to surviving spouses of qualified airline employees. How to amend your tax return Airline payment. How to amend your tax return    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 to amend your tax return 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 to amend your tax return 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 to amend your tax return Also, an airline payment shall not include any amount payable on the basis of the airline carrier’s future earnings or profits. How to amend your tax return 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 to amend your tax return You also do not include distributions from your Roth IRA that you roll over tax free into another Roth IRA. How to amend your tax return You may have to include part of other distributions in your income. How to amend your tax return See Ordering Rules for Distributions , later. How to amend your tax return Basis of distributed property. How to amend your tax return   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 to amend your tax return Withdrawals of contributions by due date. How to amend your tax return   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 to amend your tax return If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. How to amend your tax return 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 to amend your tax return What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. How to amend your tax return 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 to amend your tax return 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 to amend your tax return Distributions of conversion and certain rollover contributions within 5-year period. How to amend your tax return   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 to amend your tax return 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 to amend your tax return A separate 5-year period applies to each conversion and rollover. How to amend your tax return See Ordering Rules for Distributions , later, to determine the recapture amount, if any. How to amend your tax return   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 to amend your tax return See What Are Qualified Distributions , earlier. How to amend your tax return   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 to amend your tax return   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 to amend your tax return   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 to amend your tax return You also must pay the additional tax on any portion of the distribution attributable to earnings on contributions. How to amend your tax return Other early distributions. How to amend your tax return   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 to amend your tax return Exceptions. How to amend your tax return   You may not have to pay the 10% additional tax in the following situations. How to amend your tax return You have reached age 59½. How to amend your tax return You are totally and permanently disabled. How to amend your tax return You are the beneficiary of a deceased IRA owner. How to amend your tax return You use the distribution to buy, build, or rebuild a first home. How to amend your tax return The distributions are part of a series of substantially equal payments. How to amend your tax return You have unreimbursed medical expenses that are more than 10% (or 7. How to amend your tax return 5% if you or your spouse was born before January 2, 1949) of your adjusted gross income (defined earlier) for the year. How to amend your tax return You are paying medical insurance premiums during a period of unemployment. How to amend your tax return The distributions are not more than your qualified higher education expenses. How to amend your tax return The distribution is due to an IRS levy of the qualified plan. How to amend your tax return The distribution is a qualified reservist distribution. How to amend your tax return Most of these exceptions are discussed earlier in chapter 1 under Early Distributions . How to amend your tax return Please click here for the text description of the image. How to amend your tax return 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 to amend your tax return 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 to amend your tax return For these purposes, disregard the withdrawal of excess contributions and the earnings on them (discussed earlier under What if You Contribute Too Much ). How to amend your tax return Order the distributions as follows. How to amend your tax return Regular contributions. How to amend your tax return Conversion and rollover contributions, on a first-in, first-out basis (generally, total conversions and rollovers from the earliest year first). How to amend your tax return See Aggregation (grouping and adding) rules, later. How to amend your tax return 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 to amend your tax return Earnings on contributions. How to amend your tax return Disregard rollover contributions from other Roth IRAs for this purpose. How to amend your tax return Aggregation (grouping and adding) rules. How to amend your tax return   Determine the taxable amounts distributed (withdrawn), distributions, and contributions by grouping and adding them together as follows. How to amend your tax return Add all distributions from all your Roth IRAs during the year together. How to amend your tax return 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 to amend your tax return Add this total to the total undistributed regular contributions made in prior years. How to amend your tax return Add all conversion and rollover contributions made during the year together. How to amend your tax return 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 to amend your tax return 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 to amend your tax return   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 to amend your tax return Also disregard any amount withdrawn to correct an excess contribution (including the earnings withdrawn) for this purpose. How to amend your tax return Example. How to amend your tax return On October 15, 2009, Justin converted all $80,000 in his traditional IRA to his Roth IRA. How to amend your tax return His Forms 8606 from prior years show that $20,000 of the amount converted is his basis. How to amend your tax return Justin included $60,000 ($80,000 − $20,000) in his gross income. How to amend your tax return On February 23, 2013, Justin made a regular contribution of $5,000 to a Roth IRA. How to amend your tax return On November 8, 2013, at age 60, Justin took a $7,000 distribution from his Roth IRA. How to amend your tax return The first $5,000 of the distribution is a return of Justin's regular contribution and is not includible in his income. How to amend your tax return The next $2,000 of the distribution is not includible in income because it was included previously. How to amend your tax return Figuring your recapture amount. How to amend your tax return   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 to amend your tax return 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 to amend your tax return   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 to amend your tax return 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 to amend your tax return Note. How to amend your tax return Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. How to amend your tax return See the Example , earlier. How to amend your tax return 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 to amend your tax return  **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 to amend your tax return Amount to include on Form 5329, line 1. How to amend your tax return   Include on line 1 of your 2013 Form 5329 the following four amounts from the Recapture Amount—Allocation Chart that you filled out. How to amend your tax return The amount you allocated to line 20 of your 2013 Form 8606. How to amend your tax return The amount(s) allocated to your 2009 through 2013 Forms 8606, line 18, and your 2010 Form 8606, line 23. How to amend your tax return 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 to amend your tax return The amount from your 2013 Form 8606, line 25. How to amend your tax return   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 to amend your tax return Example. How to amend your tax return Ishmael, age 32, opened a Roth IRA in 2000. How to amend your tax return He made the maximum contributions to it every year. How to amend your tax return In addition, he made the following transactions into his Roth IRA. How to amend your tax return In 2005, he converted $10,000 from his traditional IRA into his Roth IRA. How to amend your tax return He filled out a 2005 Form 8606 and attached it with his 2005 Form 1040. How to amend your tax return 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 to amend your tax return He entered $10,000 on line 18 of Form 8606. How to amend your tax return In 2011, he rolled over the entire balance of his qualified retirement plan, $20,000, into a Roth IRA when he changed jobs. How to amend your tax return He used a 2011 Form 1040 to file his taxes. How to amend your tax return 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 to amend your tax return 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 to amend your tax return He entered $20,000 on line 16b of Form 1040 since that is the taxable amount that was rolled over in 2011. How to amend your tax return 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 to amend your tax return He has not taken any early distribution from his Roth IRA before 2013. How to amend your tax return In 2013, he made the maximum contribution of $5,500 to his Roth IRA. How to amend your tax return 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 to amend your tax return See his filled out Illustrated Recapture Amount—Allocation Chart, later, to see how he allocated the amounts from the above transactions. How to amend your tax return 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 to amend your tax return 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 to amend your tax return 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 to amend your tax return   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 to amend your tax return 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 to amend your tax return Note. How to amend your tax return Once you have allocated the full amount from your 2013 Form 8606, line 19, STOP. How to amend your tax return See the Example , earlier. How to amend your tax return 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 to amend your tax return  **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 to amend your tax return 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 to amend your tax return Must You Withdraw or Use Assets? You are not required to take distributions from your Roth IRA at any age. How to amend your tax return The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive. How to amend your tax return 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 to amend your tax return Minimum distributions. How to amend your tax return   You cannot use your Roth IRA to satisfy minimum distribution requirements for your traditional IRA. How to amend your tax return Nor can you use distributions from traditional IRAs for required distributions from Roth IRAs. How to amend your tax return See Distributions to beneficiaries , later. How to amend your tax return 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 to amend your tax return Your basis is the total amount of contributions in your Roth IRAs. How to amend your tax return 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 to amend your tax return Any such losses are added back to taxable income for purposes of calculating the alternative minimum tax. How to amend your tax return 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 to amend your tax return See When Can You Withdraw or Use Assets? in chapter 1. How to amend your tax return Distributions to beneficiaries. How to amend your tax return   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 to amend your tax return (See When Must You Withdraw Assets? (Required Minimum Distributions) in chapter 1. How to amend your tax return )   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 to amend your tax return Distributions from another Roth IRA cannot be substituted for these distributions unless the other Roth IRA was inherited from the same decedent. How to amend your tax return   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 to amend your tax return Combining with other Roth IRAs. How to amend your tax return   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 to amend your tax return Distributions that are not qualified distributions. How to amend your tax return   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 to amend your tax return   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 to amend your tax return See Ordering Rules for Distributions , earlier in this chapter under Are Distributions Taxable. How to amend your tax return Example. How to amend your tax return When Ms. How to amend your tax return 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 to amend your tax return No distributions had been made from her IRA. How to amend your tax return She had no basis in the conversion contribution in 2009. How to amend your tax return When she established this Roth IRA (her first) in 2009, she named each of her four children as equal beneficiaries. How to amend your tax return Each child will receive one-fourth of each type of contribution and one-fourth of the earnings. How to amend your tax return 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 to amend your tax return 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 to amend your tax return 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 to amend your tax return 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 to amend your tax return 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 to amend your tax return If this applies to you, substitute “Roth IRA” for “traditional IRA” in that discussion. How to amend your tax return Prev  Up  Next   Home   More Online Publications