Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

How To File A 1040ez Online

2012 State Taxes Online FreeForm 1040x 2013Us Irs E File Free1040nr Instructions 20122013 Tax Return1040x Online FormEfile For 2012 Tax YearFree Tax Preparation OrganizerForm 1040x FillableTax Cut 2011 SoftwareWww Taxact ComFree File Fillable FormsWww Mifastfile OrgState Tax Forms FreeTurbotax Home & Business Federal E File State 2011 Old Version1040nr Online Filing2012 Tax Forms 1040ez1040 Ez 2010Amended Us Tax Form 1040xHow To File 2010 Taxes OnlineFile 2010 Tax ReturnFree Online Tax Filing For 20112010 Form 1040Taxact 20121040ez Worksheet Line 5H&r Block Free TaxHow To Amend Income Tax ReturnWww Irs Gov VitaCollege Student TaxesFree 1040xFile Taxes Electronically 20112010 Tax Forms 10401040ez Tax BookletIrs Forms Amended Tax ReturnFreetaxusa Coupon State ReturnFree Federal Tax Forms 2011Tax Forms Download Ez 1040A Software With 1040xFree Tax 2011Where To File State Taxes

How To File A 1040ez Online

How to file a 1040ez online Publication 587 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. How to file a 1040ez online Tax questions. How to file a 1040ez online Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 587, such as legislation enacted after it was published, go to www. How to file a 1040ez online irs. How to file a 1040ez online gov/pub587. How to file a 1040ez online What's New The IRS now provides a simplified method to determine your expenses for business use of your home. How to file a 1040ez online The simplified method is an alternative to calculating and substantiating actual expenses. How to file a 1040ez online For more information, see Using the Simplified Method under Figuring the Deduction, later. How to file a 1040ez online Reminders Photographs of missing children. How to file a 1040ez online  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. How to file a 1040ez online Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. How to file a 1040ez online 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 to file a 1040ez online Introduction The purpose of this publication is to provide information on figuring and claiming the deduction for business use of your home. How to file a 1040ez online The term “home” includes a house, apartment, condominium, mobile home, boat, or similar property which provides basic living accommodations. How to file a 1040ez online It also includes structures on the property, such as an unattached garage, studio, barn, or greenhouse. How to file a 1040ez online However, it does not include any part of your property used exclusively as a hotel, motel, inn, or similar establishment. How to file a 1040ez online Qualifying for a Deduction gives the requirements for qualifying to deduct expenses for the business use of your home (including special rules for employees and special rules for storing inventory or product samples). How to file a 1040ez online For special rules that apply to daycare providers, see Daycare Facility . How to file a 1040ez online After you determine that you qualify for the deduction, Figuring the Deduction explains the expenses you can deduct using either your actual expenses or the simplified method. How to file a 1040ez online The simplified method is an alternative to calculating and substantiating actual expenses. How to file a 1040ez online Where To Deduct explains where a self-employed person, employee, or partner will report the deduction. How to file a 1040ez online This publication also includes information on the following. How to file a 1040ez online Selling a home that was used partly for business. How to file a 1040ez online Deducting expenses for furniture and equipment used in your business. How to file a 1040ez online Records you should keep. How to file a 1040ez online Finally, this publication contains worksheets to help you figure the amount of your deduction if you use your home in your farming business and you are filing Schedule F (Form 1040), you use your home for work as an employee, or you are a partner and the use of your home resulted in unreimbursed ordinary and necessary expenses that you are required to pay under the partnership agreement. How to file a 1040ez online If you used your home for business and you are filing Schedule C (Form 1040), you will use either Form 8829 or the Simplified Method Worksheet in your Instructions for Schedule C. How to file a 1040ez online The rules in this publication apply to individuals. How to file a 1040ez online If you need information on deductions for renting out your property, see Publication 527, Residential Rental Property. How to file a 1040ez online Comments and suggestions. How to file a 1040ez online   We welcome your comments about this publication and your suggestions for future editions. How to file a 1040ez online   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. How to file a 1040ez online NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How to file a 1040ez online Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to file a 1040ez online   You can send your comments from www. How to file a 1040ez online irs. How to file a 1040ez online gov/formspubs/. How to file a 1040ez online Click on “More Information” and then on “Comment on Tax Forms and Publications. How to file a 1040ez online ”   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 to file a 1040ez online Ordering forms and publications. How to file a 1040ez online   Visit www. How to file a 1040ez online irs. How to file a 1040ez online 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 to file a 1040ez online Internal Revenue Service 1201 N. How to file a 1040ez online Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How to file a 1040ez online   If you have a tax question, check the information available on IRS. How to file a 1040ez online gov or call 1-800-829-1040. How to file a 1040ez online We cannot answer tax questions sent to either of the above addresses. How to file a 1040ez online Useful Items - You may want to see: Publications 523 Selling Your Home 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Forms (and Instructions) Schedule C (Form 1040) Profit or Loss from Business 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization 8829 Expenses for Business Use of Your Home  See How To Get Tax Help , near the end of this publication for information about getting publications and forms. How to file a 1040ez online Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

IRS Continues Smooth Start to Filing Season

 

IR-2014-20, Feb. 27, 2014

WASHINGTON — The IRS announced today that, three weeks into the filing season, it has received about one-third of the individual income tax returns that it expects to receive during 2014. The IRS has processed almost 98 percent of the 49.6 million returns received so far. Each week this filing season, the IRS has processed a greater percentage of the returns received than during comparable weeks last year.

More taxpayers are filing their returns electronically this year. Overall, 46.6 million returns have been e-filed this year, up one percent from the same time last year. As in prior years, the greatest increase is among individuals filing from their home computers. Almost 22 million returns have been e-filed from home computers this year, an increase of almost 7 percent compared to the same time last year.

The IRS has issued more than 40 million tax refunds this year, an increase of more than six percent compared to the same time last year. Almost 90 percent of these refunds were directly deposited into taxpayers’ accounts.

 

Follow the IRS on New Media
Subscribe to IRS Newswire

2014 FILING SEASON STATISTICS

Cumulative statistics comparing 2/22/13 and 2/21/14

Individual Income Tax Returns:

2013

2014

% Change

Total Receipts

49,448,000

49,558,000

0.2

Total Processed

42,837,000

48,335,000

12.8

 

 

 

 

E-filing Receipts:

 

 

 

TOTAL           

46,149,000

46,641,000

1.1

Tax Professionals

25,618,000

24,687,000

-3.6

Self-prepared

20,531,000

21,954,000

6.9

 

 

 

 

Web Usage:

 

 

 

Visits to IRS.gov

155,167,572

145,881,766

-6.0

 

 

 

 

Total Refunds:

 

 

 

Number

38,042,000

40,389,000

6.2

Amount

$113.738

Billion

$125.831

Billion

10.6

Average refund

$2,990

$3,116

4.2

 

 

 

 

Direct Deposit Refunds:

 

 

 

Number

34,618,000

35,694,000

3.1

Amount

$107.228

Billion

$112.628

Billion

5.0

Average refund

$3,097

$3,155

1.9

 

Page Last Reviewed or Updated: 27-Feb-2014

The How To File A 1040ez Online

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