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How To File A Late Tax Return 2011

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How To File A Late Tax Return 2011

How to file a late tax return 2011 Publication 939 - Introductory Material Table of Contents What's New Future developments. How to file a late tax return 2011 IntroductionSimplified Method. How to file a late tax return 2011 Ordering forms and publications. How to file a late tax return 2011 Tax questions. How to file a late tax return 2011 Useful Items - You may want to see: What's New Beginning in 2013, distributions from an annuity under a nonqualified plan are considered net investment income for the purpose of figuring the net investment income tax (NIIT). How to file a late tax return 2011 For more information, see the instructions for Form 8960, Net Investment Income Tax – Individuals, Estates and Trusts. How to file a late tax return 2011 Future developments. How to file a late tax return 2011 For the latest information about developments related to Publication 939, such as legislation enacted after it was published, go to www. How to file a late tax return 2011 IRS. How to file a late tax return 2011 gov/pub939. How to file a late tax return 2011 Introduction This publication gives you the information you need to determine the tax treatment of your pension and annuity income under the General Rule. How to file a late tax return 2011 Generally, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your net cost, and the taxable balance. How to file a late tax return 2011 What is the General Rule. How to file a late tax return 2011   The General Rule is one of the two methods used to figure the tax-free part of each annuity payment based on the ratio of your investment in the contract to the total expected return. How to file a late tax return 2011 The other method is the Simplified Method, which is discussed in Publication 575, Pension and Annuity Income. How to file a late tax return 2011 Who must use the General Rule. How to file a late tax return 2011   Use this publication if you receive pension or annuity payments from: A nonqualified plan (for example, a private annuity, a purchased commercial annuity, or a nonqualified employee plan), A qualified plan if: Your annuity starting date is before November 19, 1996 (and after July 1, 1986), and you do not qualify to use, or did not choose to use, the Simplified Method, or Your annuity starting date is after November 18, 1996, and as of that date you are age 75 or over and the annuity payments are guaranteed for at least 5 years. How to file a late tax return 2011 If your annuity starting date was between July 1, 1986 and November 19, 1996, you were able to elect to use the Simplified Method or the General Rule. How to file a late tax return 2011 This choice is irrevocable and applied to all later annuity payments. How to file a late tax return 2011 The following are qualified plans. How to file a late tax return 2011 A qualified employee plan. How to file a late tax return 2011 A qualified employee annuity. How to file a late tax return 2011 A tax-sheltered annuity (TSA) plan or contract. How to file a late tax return 2011 Simplified Method. How to file a late tax return 2011   If you receive pension or annuity payments from a qualified plan and you are not required to use the General Rule, you must use the Simplified Method to determine the tax-free part of each annuity payment. How to file a late tax return 2011 This method is described in Publication 575, Pension and Annuity Income. How to file a late tax return 2011   Also, if, at the time the annuity payments began, you were at least age 75 and were entitled to annuity payments from a qualified plan with fewer than 5 years of guaranteed payments, you must use the Simplified Method. How to file a late tax return 2011 Beginning in 2013, distributions from an annuity under a nonqualified plan are considered net investment income for the purpose of figuring the net investment income tax (NIIT). How to file a late tax return 2011 For more information, see the instructions for Form 8960, Net Investment Income Tax – Individuals, Estates and Trusts. How to file a late tax return 2011 Topics not covered in this publication. How to file a late tax return 2011   Certain topics related to pensions and annuities are not covered in this publication. How to file a late tax return 2011 They include: Simplified Method. How to file a late tax return 2011 This method is covered in Publication 575. How to file a late tax return 2011 That publication also covers nonperiodic payments (amounts not received as an annuity) from a qualified pension or annuity plan, rollovers, special averaging and capital gain treatment of lump-sum distributions, and special additional taxes on early distributions, excess distributions, and excess accumulations (not making required minimum distributions). How to file a late tax return 2011 Individual retirement arrangements (IRAs). How to file a late tax return 2011 Information on the tax treatment of amounts you receive from an IRA is included in Publication 590, Individual Retirement Arrangements (IRAs). How to file a late tax return 2011 Life insurance payments. How to file a late tax return 2011 If you receive life insurance payments because of the death of the insured person, get Publication 525, Taxable and Nontaxable Income, for information on the tax treatment of the proceeds. How to file a late tax return 2011 Help from IRS. How to file a late tax return 2011   If, after reading this publication, you need help to figure the taxable part of your pension or annuity, the IRS can do it for you for a fee. How to file a late tax return 2011 For information on this service, see Requesting a Ruling on Taxation of Annuity , later. How to file a late tax return 2011 Comments and suggestions. How to file a late tax return 2011   We welcome your comments about this publication and your suggestions for future editions. How to file a late tax return 2011   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. How to file a late tax return 2011 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. How to file a late tax return 2011 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. How to file a late tax return 2011   You can send your comments from www. How to file a late tax return 2011 irs. How to file a late tax return 2011 gov/formspubs/. How to file a late tax return 2011 Click on “More Information” and then on “Comment on Tax Forms and Publications”. How to file a late tax return 2011   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 late tax return 2011 Ordering forms and publications. How to file a late tax return 2011   Visit www. How to file a late tax return 2011 irs. How to file a late tax return 2011 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 late tax return 2011 Internal Revenue Service 1201 N. How to file a late tax return 2011 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. How to file a late tax return 2011   If you have a tax question, check the information available on IRS. How to file a late tax return 2011 gov or call 1-800-829-1040. How to file a late tax return 2011 We cannot answer tax questions sent to either of the above addresses. How to file a late tax return 2011 Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 525 Taxable and Nontaxable Income 571 Tax-Sheltered Annuity Plans (403(b) Plans) 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 721 Tax Guide to U. How to file a late tax return 2011 S. How to file a late tax return 2011 Civil Service Retirement Benefits 910 Guide To Free Tax Services Form (and Instructions) 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How to file a late tax return 2011 See How To Get Tax Help near the end of this publication for information about getting these publications and forms. How to file a late tax return 2011 Prev  Up  Next   Home   More Online Publications
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Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Hilo 

101 Aupuni St.
Hilo, HI 96720 

 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(808) 935-9475
Honolulu  300 Ala Moana Blvd.
Honolulu, HI 96850 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
 

Services Provided

(808) 524-5953 

 

Wailuku  2200 Main St.
Wailuku, HI 96793

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)
 

Services Provided

(808) 242-6450 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call 808-566-2950 in the Honolulu area or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
1099 Alakea St
12 Fl M/S HI208
Honolulu, HI 96813-4511

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The How To File A Late Tax Return 2011

How to file a late tax return 2011 2. How to file a late tax return 2011   Taxable and Nontaxable Income Table of Contents Compensation for Services Retirement Plan DistributionsIndividual Retirement Arrangements (IRAs) Pensions and Annuities Social Security and Equivalent Railroad Retirement BenefitsAre Any of Your Benefits Taxable? How Much Is Taxable? How To Report Your Benefits Lump-Sum Election Repayments More Than Gross Benefits Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Life Insurance ProceedsInstallments for life. How to file a late tax return 2011 Surviving spouse. How to file a late tax return 2011 Endowment Contract Proceeds Accelerated Death Benefits Sale of HomeMaximum Amount of Exclusion Ownership and Use Tests Married Persons Business Use or Rental of Home Reporting the Sale Reverse Mortgages Other ItemsWelfare benefits. How to file a late tax return 2011 Payments from a state fund for victims of crime. How to file a late tax return 2011 Home Affordable Modification Program (HAMP). How to file a late tax return 2011 Mortgage assistance payments. How to file a late tax return 2011 Payments to reduce cost of winter energy use. How to file a late tax return 2011 Nutrition Program for the Elderly. How to file a late tax return 2011 Reemployment Trade Adjustment Assistance (RTAA). How to file a late tax return 2011 Generally, income is taxable unless it is specifically exempt (not taxed) by law. How to file a late tax return 2011 Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds. How to file a late tax return 2011 Under special provisions of the law, certain items are partially or fully exempt from tax. How to file a late tax return 2011 Provisions that are of special interest to older taxpayers are discussed in this chapter. How to file a late tax return 2011 Compensation for Services Generally, you must include in gross income everything you receive in payment for personal services. How to file a late tax return 2011 In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options. How to file a late tax return 2011 You need not receive the compensation in cash for it to be taxable. How to file a late tax return 2011 Payments you receive in the form of goods or services generally must be included in gross income at their fair market value. How to file a late tax return 2011 Volunteer work. How to file a late tax return 2011   Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs. How to file a late tax return 2011 Retired Senior Volunteer Program (RSVP). How to file a late tax return 2011 Foster Grandparent Program. How to file a late tax return 2011 Senior Companion Program. How to file a late tax return 2011 Service Corps of Retired Executives (SCORE). How to file a late tax return 2011 Unemployment compensation. How to file a late tax return 2011   You must include in income all unemployment compensation you or your spouse (if married filing jointly) received. How to file a late tax return 2011 More information. How to file a late tax return 2011   See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income. How to file a late tax return 2011 Retirement Plan Distributions This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRA), employee pensions or annuities, and disability pensions or annuities. How to file a late tax return 2011 A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. How to file a late tax return 2011 A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. How to file a late tax return 2011 A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. How to file a late tax return 2011 More detailed information can be found in Publication 590, Individual Retirement Arrangements (IRAs), and Publication 575, Pension and Annuity Income. How to file a late tax return 2011 Individual Retirement Arrangements (IRAs) In general, distributions from a traditional IRA are taxable in the year you receive them. How to file a late tax return 2011 Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. How to file a late tax return 2011 These are discussed in Publication 590. How to file a late tax return 2011 If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. How to file a late tax return 2011 If you do not file Form 8606 with your return, you may have to pay a $50 penalty. How to file a late tax return 2011 Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. How to file a late tax return 2011 Early distributions. How to file a late tax return 2011   Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59½, or amounts you receive when you cash in retirement bonds before you are age  59½. How to file a late tax return 2011 You must include early distributions of taxable amounts in your gross income. How to file a late tax return 2011 These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. How to file a late tax return 2011 For purposes of the additional 10% tax, an IRA is a qualified retirement plan. How to file a late tax return 2011 For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later. How to file a late tax return 2011 After age 59½ and before age 70½. How to file a late tax return 2011   After you reach age 59½, you can receive distributions from your traditional IRA without having to pay the 10% additional tax. How to file a late tax return 2011 Even though you can receive distributions after you reach age 59½, distributions are not required until you reach  age 70½. How to file a late tax return 2011 Required distributions. How to file a late tax return 2011   If you are the owner of a traditional IRA, you generally must receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 70½. How to file a late tax return 2011 See When Must You Withdraw Assets? (Required Minimum Distributions) in Publication 590. How to file a late tax return 2011 If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay a 50% excise tax for that year on the amount not distributed as required. How to file a late tax return 2011 For purposes of the 50% excise tax, an IRA is a qualified retirement plan. How to file a late tax return 2011 For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. How to file a late tax return 2011 See also Excess Accumulations (Insufficient Distributions) in Publication 590. How to file a late tax return 2011 Pensions and Annuities Generally, if you did not pay any part of the cost of your employee pension or annuity, and your employer did not withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. How to file a late tax return 2011 However, see Insurance Premiums for Retired Public Safety Officers , later. How to file a late tax return 2011 If you paid part of the cost of your pension or annuity plan (see Cost , later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). How to file a late tax return 2011 This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. How to file a late tax return 2011 The rest of each payment is taxable. How to file a late tax return 2011 However, see Insurance Premiums for Retired Public Safety Officers , later. How to file a late tax return 2011 You figure the tax-free part of the payment using one of the following methods. How to file a late tax return 2011 Simplified Method. How to file a late tax return 2011 You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). How to file a late tax return 2011 You cannot use this method if your annuity is paid under a nonqualified plan. How to file a late tax return 2011 General Rule. How to file a late tax return 2011 You must use this method if your annuity is paid under a nonqualified plan. How to file a late tax return 2011 You generally cannot use this method if your annuity is paid under a qualified plan. How to file a late tax return 2011 Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan. How to file a late tax return 2011 You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost. How to file a late tax return 2011 Exclusion limit. How to file a late tax return 2011   If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost cannot exceed your total cost. How to file a late tax return 2011 Any unrecovered cost at your (or the last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. How to file a late tax return 2011 This deduction is not subject to the 2%-of-adjusted-gross-income limit on miscellaneous deductions. How to file a late tax return 2011   If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. How to file a late tax return 2011 If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. How to file a late tax return 2011 The total exclusion may be more than your cost. How to file a late tax return 2011 Cost. How to file a late tax return 2011   Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). How to file a late tax return 2011 Your total cost in the plan includes everything that you paid. How to file a late tax return 2011 It also includes amounts your employer contributed that were taxable to you when paid. How to file a late tax return 2011 However, see Foreign employment contributions , later. How to file a late tax return 2011   From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment. How to file a late tax return 2011   The annuity starting date is the later of the first day of the first period for which you received a payment from the plan or the date on which the plan's obligations became fixed. How to file a late tax return 2011    The amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How to file a late tax return 2011 , that you receive. How to file a late tax return 2011 Foreign employment contributions. How to file a late tax return 2011   If you worked abroad, certain amounts your employer paid into your retirement plan that were not includible in your gross income may be considered part of your cost. How to file a late tax return 2011 For details, see Foreign employment contributions in Publication 575. How to file a late tax return 2011 Withholding. How to file a late tax return 2011   The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. How to file a late tax return 2011 However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. How to file a late tax return 2011 (These are distributions that are eligible for rollover treatment but are not paid directly to another qualified retirement plan or to a traditional IRA. How to file a late tax return 2011 ) See Withholding Tax and Estimated Tax and Rollovers in Publication 575 for more information. How to file a late tax return 2011   For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Pension or Annuity Payments. How to file a late tax return 2011 Simplified Method. How to file a late tax return 2011   Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. How to file a late tax return 2011 For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. How to file a late tax return 2011 For any other annuity, this number is the number of monthly annuity payments under the contract. How to file a late tax return 2011 Who must use the Simplified Method. How to file a late tax return 2011   You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you receive your pension or annuity payments from a qualified plan or annuity, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments (defined next). How to file a late tax return 2011   In addition, if your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use the Simplified Method for payments from a qualified plan, unless you were at least 75 years old and entitled to at least 5 years of guaranteed payments. How to file a late tax return 2011 If you chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. How to file a late tax return 2011 Guaranteed payments. How to file a late tax return 2011   Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant do not live to receive the minimum. How to file a late tax return 2011 If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments. How to file a late tax return 2011 Who cannot use the Simplified Method. How to file a late tax return 2011   You cannot use the Simplified Method and must use the General Rule if you receive pension or annuity payments from: A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan, or A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above). How to file a late tax return 2011   In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. How to file a late tax return 2011 If you did not have to use the General Rule, you could have chosen to use it. How to file a late tax return 2011 You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you did not qualify to use the Three-Year Rule. How to file a late tax return 2011   If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost. How to file a late tax return 2011   Unless your annuity starting date was before 1987, once you have recovered all of your non-taxable investment, all of each remaining payment you receive is fully taxable. How to file a late tax return 2011 Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method. How to file a late tax return 2011   Complete information on the General Rule, including the actuarial tables you need, is contained in Publication 939, General Rule for Pensions and Annuities. How to file a late tax return 2011 How to use the Simplified Method. How to file a late tax return 2011   Complete the Simplified Method Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions or in Publication 575 to figure your taxable annuity for 2013. How to file a late tax return 2011 Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. How to file a late tax return 2011   To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. How to file a late tax return 2011 How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. How to file a late tax return 2011 For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. How to file a late tax return 2011    You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. How to file a late tax return 2011 Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet. How to file a late tax return 2011 Single-life annuity. How to file a late tax return 2011   If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. How to file a late tax return 2011 Enter on line 3 the number shown for your age on your annuity starting date. How to file a late tax return 2011 This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. How to file a late tax return 2011 Multiple-lives annuity. How to file a late tax return 2011   If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. How to file a late tax return 2011 Enter on line 3 the number shown for the annuitants' combined ages on the annuity starting date. How to file a late tax return 2011 For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. How to file a late tax return 2011 For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. How to file a late tax return 2011 Do not treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death. How to file a late tax return 2011   However, if your annuity starting date is before 1998, do not use Table 2 and do not combine the annuitants' ages. How to file a late tax return 2011 Instead, you must use Table 1 at the bottom of the worksheet and enter on line 3 the number shown for the primary annuitant's age on the annuity starting date. How to file a late tax return 2011 This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. How to file a late tax return 2011 Fixed-period annuities. How to file a late tax return 2011   If your annuity does not depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line 3 of the worksheet is the number of monthly annuity payments under the contract. How to file a late tax return 2011 Line 6. How to file a late tax return 2011   The amount on line 6 should include all amounts that could have been recovered in prior years. How to file a late tax return 2011 If you did not recover an amount in a prior year, you may be able to amend your returns for the affected years. How to file a late tax return 2011    Be sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years. How to file a late tax return 2011 Example. How to file a late tax return 2011 Bill Smith, age 65, began receiving retirement benefits in 2013, under a joint and survivor annuity. How to file a late tax return 2011 Bill's annuity starting date is January 1, 2013. How to file a late tax return 2011 The benefits are to be paid over the joint lives of Bill and his wife, Kathy, age 65. How to file a late tax return 2011 Bill had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. How to file a late tax return 2011 Bill is to receive a retirement benefit of $1,200 a month, and Kathy is to receive a monthly survivor benefit of $600 upon Bill's death. How to file a late tax return 2011 Bill must use the Simplified Method to figure his taxable annuity because his payments are from a qualified plan and he is under age 75. How to file a late tax return 2011 See the illustrated Worksheet 2-A, Simplified Method Worksheet, later. How to file a late tax return 2011 You can find a blank version of this worksheet in Publication 575. How to file a late tax return 2011 (The references in the illustrated worksheet are to sections in Publication 575). How to file a late tax return 2011 His annuity is payable over the lives of more than one annuitant, so Bill uses his and Kathy's combined ages, 130 (65 + 65), and Table 2 at the bottom of the worksheet in completing line 3 of the worksheet and finds the line 3 amount to be 310. How to file a late tax return 2011 Bill's tax-free monthly amount is $100 ($31,000 ÷ 310 as shown on line 4 of the worksheet). How to file a late tax return 2011 Upon Bill's death, if Bill has not recovered the full $31,000 investment, Kathy will also exclude $100 from her $600 monthly payment. How to file a late tax return 2011 The full amount of any annuity payments received after 310 payments are paid must generally be included in gross income. How to file a late tax return 2011 If Bill and Kathy die before 310 payments are made, a miscellaneous itemized deduction will be allowed for the unrecovered cost on the final income tax return of the last to die. How to file a late tax return 2011 This deduction is not subject to the 2%-of-adjusted-gross-income limit. How to file a late tax return 2011 Worksheet 2-A. How to file a late tax return 2011 Simplified Method Worksheet—Illustrated 1. How to file a late tax return 2011 Enter the total pension or annuity payments received this year. How to file a late tax return 2011 Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. How to file a late tax return 2011 $ 14,400 2. How to file a late tax return 2011 Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion* See Cost (Investment in the Contract), earlier 2. How to file a late tax return 2011 31,000   Note. How to file a late tax return 2011 If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). How to file a late tax return 2011 Otherwise, go to line 3. How to file a late tax return 2011     3. How to file a late tax return 2011 Enter the appropriate number from Table 1 below. How to file a late tax return 2011 But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3. How to file a late tax return 2011 310 4. How to file a late tax return 2011 Divide line 2 by the number on line 3 4. How to file a late tax return 2011 100 5. How to file a late tax return 2011 Multiply line 4 by the number of months for which this year's payments were made. How to file a late tax return 2011 If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. How to file a late tax return 2011 Otherwise, go to line 6 5. How to file a late tax return 2011 1,200 6. How to file a late tax return 2011 Enter any amount previously recovered tax free in years after 1986. How to file a late tax return 2011 This is the amount shown on line 10 of your worksheet for last year 6. How to file a late tax return 2011 0 7. How to file a late tax return 2011 Subtract line 6 from line 2 7. How to file a late tax return 2011 31,000 8. How to file a late tax return 2011 Enter the smaller of line 5 or line 7 8. How to file a late tax return 2011 1,200 9. How to file a late tax return 2011 Taxable amount for year. How to file a late tax return 2011 Subtract line 8 from line 1. How to file a late tax return 2011 Enter the result, but not less than zero. How to file a late tax return 2011 Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. How to file a late tax return 2011 Note. How to file a late tax return 2011 If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. How to file a late tax return 2011 If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers, earlier, before entering an amount on your tax return. How to file a late tax return 2011 9. How to file a late tax return 2011 $ 13,200 10. How to file a late tax return 2011 Was your annuity starting date before 1987? □ Yes. How to file a late tax return 2011 STOP. How to file a late tax return 2011 Do not complete the rest of this worksheet. How to file a late tax return 2011  ☑ No. How to file a late tax return 2011 Add lines 6 and 8. How to file a late tax return 2011 This is the amount you have recovered tax free through 2013. How to file a late tax return 2011 You will need this number if you need to fill out this worksheet next year. How to file a late tax return 2011 10. How to file a late tax return 2011 1,200 11. How to file a late tax return 2011 Balance of cost to be recovered. How to file a late tax return 2011 Subtract line 10 from line 2. How to file a late tax return 2011 If zero, you will not have to complete this worksheet next year. How to file a late tax return 2011 The payments you receive next year will generally be fully taxable 11. How to file a late tax return 2011 $ 29,800 * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. How to file a late tax return 2011   Table 1 for Line 3 Above       AND your annuity starting date was—   IF your age on your annuity starting date was . How to file a late tax return 2011 . How to file a late tax return 2011 . How to file a late tax return 2011   BEFORE November 19, 1996, enter on line 3 . How to file a late tax return 2011 . How to file a late tax return 2011 . How to file a late tax return 2011 AFTER November 18, 1996, enter on line 3 . How to file a late tax return 2011 . How to file a late tax return 2011 . How to file a late tax return 2011   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the annuitants' combined ages on your annuity starting date were . How to file a late tax return 2011 . How to file a late tax return 2011 . How to file a late tax return 2011   THEN enter on line 3 . How to file a late tax return 2011 . How to file a late tax return 2011 . How to file a late tax return 2011         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Survivors of retirees. How to file a late tax return 2011   Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income. How to file a late tax return 2011   If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. How to file a late tax return 2011 The retiree's cost has already been recovered tax free. How to file a late tax return 2011   If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. How to file a late tax return 2011 The resulting tax-free amount will then remain fixed. How to file a late tax return 2011 Any increases in the survivor annuity are fully taxable. How to file a late tax return 2011   If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. How to file a late tax return 2011 See Simplified Method , earlier. How to file a late tax return 2011 How to report. How to file a late tax return 2011   If you file Form 1040, report your total annuity on line 16a, and the taxable part on line 16b. How to file a late tax return 2011 If your pension or annuity is fully taxable, enter it on line 16b. How to file a late tax return 2011 Do not make an entry on line 16a. How to file a late tax return 2011   If you file Form 1040A, report your total annuity on line 12a, and the taxable part on line 12b. How to file a late tax return 2011 If your pension or annuity is fully taxable, enter it on line 12b. How to file a late tax return 2011 Do not make an entry on line 12a. How to file a late tax return 2011   If you file Form 1040NR, report your total annuity on line 17a, and the taxable part on line 17b. How to file a late tax return 2011 If your pension or annuity is fully taxable, enter it on line 17b. How to file a late tax return 2011 Do not make an entry on line 17a. How to file a late tax return 2011 Example. How to file a late tax return 2011 You are a Form 1040 filer and you received monthly payments totaling $1,200 (12 months x $100) during 2013 from a pension plan that was completely financed by your employer. How to file a late tax return 2011 You had paid no tax on the payments that your employer made to the plan, and the payments were not used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers ). How to file a late tax return 2011 The entire $1,200 is taxable. How to file a late tax return 2011 You include $1,200 only on Form 1040, line 16b. How to file a late tax return 2011 Joint return. How to file a late tax return 2011   If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line 16a of Form 1040, line 12a of Form 1040A, or line 17a of Form 1040NR. How to file a late tax return 2011 Report the total of the taxable parts on line 16b of Form 1040, line 12b of Form 1040A, or line 17b of Form 1040NR. How to file a late tax return 2011 Form 1099-R. How to file a late tax return 2011   You should receive a Form 1099-R for your pension or annuity. How to file a late tax return 2011 Form 1099-R shows your pension or annuity for the year and any income tax withheld. How to file a late tax return 2011 You should receive a Form W-2 if you receive distributions from certain nonqualified plans. How to file a late tax return 2011 You must attach Forms 1099-R or Forms W-2 to your 2013 tax return if federal income tax was withheld. How to file a late tax return 2011 Generally, you should be sent these forms by January 31, 2014. How to file a late tax return 2011 Nonperiodic Distributions If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. How to file a late tax return 2011 Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. How to file a late tax return 2011 For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Publication 575. How to file a late tax return 2011 The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. How to file a late tax return 2011 See Tax on Early Distributions, later. How to file a late tax return 2011 Lump-sum distributions. How to file a late tax return 2011   If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. How to file a late tax return 2011 The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. How to file a late tax return 2011 The part from participation after 1973 (and any part from participation before 1974 that you do not report as capital gain) is ordinary income. How to file a late tax return 2011 You may be able to use the 10-year tax option to figure tax on the ordinary income part. How to file a late tax return 2011 Form 1099-R. How to file a late tax return 2011   If you receive a total distribution from a plan, you should receive a Form 1099-R. How to file a late tax return 2011 If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. How to file a late tax return 2011 The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part. How to file a late tax return 2011 More information. How to file a late tax return 2011   For more detailed information on lump-sum distributions, see Publication 575 or Form 4972, Tax on Lump-Sum Distributions. How to file a late tax return 2011 Tax on Early Distributions Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59½ are subject to an additional tax of 10%. How to file a late tax return 2011 The tax applies to the taxable part of the distribution. How to file a late tax return 2011 For this purpose, a qualified retirement plan is: A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)), A qualified employee annuity plan, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA). How to file a late tax return 2011  An IRA is also a qualified retirement plan for purposes of this tax. How to file a late tax return 2011 General exceptions to tax. How to file a late tax return 2011   The early distribution tax does not apply to any distributions that are: Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service), Made because you are totally and permanently disabled, or Made on or after the death of the plan participant or contract holder. How to file a late tax return 2011 Additional exceptions. How to file a late tax return 2011   There are additional exceptions to the early distribution tax for certain distributions from qualified retirement plans and nonqualified annuity contracts. How to file a late tax return 2011 See Publication 575 for details. How to file a late tax return 2011 Reporting tax. How to file a late tax return 2011   If you owe only the tax on early distributions and distribution code 1 (early distribution, no known exception) is correctly shown in Form 1099-R, box 7, multiply the taxable part of the early distribution by 10% (. How to file a late tax return 2011 10) and enter the result on Form 1040, line 58, or Form 1040NR, line 56. How to file a late tax return 2011 See the instructions for line 58 of Form 1040 or line 56 of Form 1040NR for more information about reporting the early distribution tax. How to file a late tax return 2011 Tax on Excess Accumulation To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. How to file a late tax return 2011 Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of: The calendar year in which you reach age 70½, or The calendar year in which you retire from employment with the employer maintaining the plan. How to file a late tax return 2011 However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach 70½, even if you have not retired. How to file a late tax return 2011 For this purpose, a qualified retirement plan includes: A qualified employee plan, A qualified employee annuity plan, An eligible section 457 deferred compensation plan, or A tax-sheltered annuity plan (403(b) plan) (for benefits accruing after 1986). How to file a late tax return 2011  An IRA is also a qualified retirement plan for purposes of this tax. How to file a late tax return 2011 An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan. How to file a late tax return 2011 5% owners. How to file a late tax return 2011   If you own (or are considered to own under section 318 of the Internal Revenue Code) more than 5% of the company maintaining your qualified retirement plan, you must begin to receive distributions from the plan by April 1 of the year after the calendar year in which you reach age 70½. How to file a late tax return 2011 See Publication 575 for more information. How to file a late tax return 2011 Amount of tax. How to file a late tax return 2011   If you do not receive the required minimum distribution, you are subject to an additional tax. How to file a late tax return 2011 The tax equals 50% of the difference between the amount that must be distributed and the amount that was distributed during the tax year. How to file a late tax return 2011 You can get this excise tax excused if you establish that the shortfall in distributions was due to reasonable error and that you are taking reasonable steps to remedy the shortfall. How to file a late tax return 2011 Form 5329. How to file a late tax return 2011   You must file a Form 5329 if you owe a tax because you did not receive a minimum required distribution from your qualified retirement plan. How to file a late tax return 2011 Additional information. How to file a late tax return 2011   For more detailed information on the tax on excess accumulation, see Publication 575. How to file a late tax return 2011 Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. How to file a late tax return 2011 The premiums can be for coverage for you, your spouse, or dependent(s). How to file a late tax return 2011 The distribution must be made directly from the plan to the insurance provider. How to file a late tax return 2011 You can exclude from income the smaller of the amount of the insurance premiums or $3,000. How to file a late tax return 2011 You can only make this election for amounts that would otherwise be included in your income. How to file a late tax return 2011 The amount excluded from your income cannot be used to claim a medical expense deduction. How to file a late tax return 2011 An eligible retirement plan is a governmental plan that is a: Qualified trust, Section 403(a) plan, Section 403(b) annuity, or Section 457(b) plan. How to file a late tax return 2011 If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. How to file a late tax return 2011 The taxable amount shown in box 2a of any Form 1099-R that you receive does not reflect the exclusion. How to file a late tax return 2011 Report your total distributions on Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. How to file a late tax return 2011 Report the taxable amount on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. How to file a late tax return 2011 Enter “PSO” next to the appropriate line on which you report the taxable amount. How to file a late tax return 2011 Railroad Retirement Benefits Benefits paid under the Railroad Retirement Act fall into two categories. How to file a late tax return 2011 These categories are treated differently for income tax purposes. How to file a late tax return 2011 Social security equivalent benefits. How to file a late tax return 2011   The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. How to file a late tax return 2011 This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. How to file a late tax return 2011 (See Social Security and Equivalent Railroad Retirement Benefits , later. How to file a late tax return 2011 ) Non-social security equivalent benefits. How to file a late tax return 2011   The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). How to file a late tax return 2011 It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. How to file a late tax return 2011 This category of benefits is treated as an amount received from a qualified employee plan. How to file a late tax return 2011 This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. How to file a late tax return 2011 Vested dual benefits and supplemental annuity benefits are non-contributory pensions and are fully taxable. How to file a late tax return 2011 More information. How to file a late tax return 2011   For more information about railroad retirement benefits, see Publication 575. How to file a late tax return 2011 Military Retirement Pay Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, lines 16a and 16b; on Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b. How to file a late tax return 2011 But, certain military and government disability pensions that are based on a percentage of disability from active service in the Armed Forces of any country generally are not taxable. How to file a late tax return 2011 For more information, including information about veterans' benefits and insurance, see Publication 525. How to file a late tax return 2011 Social Security and Equivalent Railroad Retirement Benefits This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. How to file a late tax return 2011 Social security benefits include monthly retirement, survivor, and disability benefits. How to file a late tax return 2011 They do not include supplemental security income (SSI) payments, which are not taxable. How to file a late tax return 2011 Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. How to file a late tax return 2011 They commonly are called the social security equivalent benefit (SSEB) portion of tier 1 benefits. How to file a late tax return 2011 If you received these benefits during 2013, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien), showing the amount of the benefits. How to file a late tax return 2011 Are Any of Your Benefits Taxable? Note. How to file a late tax return 2011 When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. How to file a late tax return 2011  To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. How to file a late tax return 2011 When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. How to file a late tax return 2011 S. How to file a late tax return 2011 savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned in American Samoa or Puerto Rico by bona fide residents. How to file a late tax return 2011 Figuring total income. How to file a late tax return 2011   To figure the total of one-half of your benefits plus your other income, use Worksheet 2-B. How to file a late tax return 2011 If that total amount is more than your base amount, part of your benefits may be taxable. How to file a late tax return 2011 If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. How to file a late tax return 2011 Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. How to file a late tax return 2011 If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. How to file a late tax return 2011 If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. How to file a late tax return 2011 Worksheet 2-B. How to file a late tax return 2011 A Quick Way To Check if Your Benefits May Be Taxable A. How to file a late tax return 2011 Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. How to file a late tax return 2011 Include  the full amount of any lump-sum benefit payments received in 2013, for 2013 and  earlier years. How to file a late tax return 2011 (If you received more than one form, combine the amounts from box 5  and enter the total. How to file a late tax return 2011 ) A. How to file a late tax return 2011     Note. How to file a late tax return 2011 If the amount on line A is zero or less, stop here; none of your benefits are  taxable this year. How to file a late tax return 2011     B. How to file a late tax return 2011 Enter one-half of the amount on line A B. How to file a late tax return 2011   C. How to file a late tax return 2011 Enter your taxable pensions, wages, interest, dividends, and other taxable income C. How to file a late tax return 2011   D. How to file a late tax return 2011 Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for: •Interest from qualified U. How to file a late tax return 2011 S. How to file a late tax return 2011 savings bonds, •Employer-provided adoption benefits, •Foreign earned income or foreign housing, or •Income earned in American Samoa or Puerto Rico by bona fide residents D. How to file a late tax return 2011   E. How to file a late tax return 2011 Add lines B, C, and D and enter the total E. How to file a late tax return 2011   F. How to file a late tax return 2011 If you are: •Married filing jointly, enter $32,000 •Single, head of household, qualifying widow(er), or married filing separately and you  lived apart from your spouse for all of 2013, enter $25,000 •Married filing separately and you lived with your spouse at any time during 2013,  enter -0- F. How to file a late tax return 2011   G. How to file a late tax return 2011 Is the amount on line F less than or equal to the amount on line E? □ No. How to file a late tax return 2011 None of your benefits are taxable this year. How to file a late tax return 2011  □ Yes. How to file a late tax return 2011 Some of your benefits may be taxable. How to file a late tax return 2011 To figure how much of your benefits  are taxable, see Which worksheet to use under How Much Is Taxable. How to file a late tax return 2011     Base Amount Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er) with dependent child, $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $0 if you are married filing separately and lived with your spouse at any time during 2013. How to file a late tax return 2011 Repayment of Benefits Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. How to file a late tax return 2011 It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. How to file a late tax return 2011 If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. How to file a late tax return 2011 Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. How to file a late tax return 2011 Your repayments are shown in box 4. How to file a late tax return 2011 The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). How to file a late tax return 2011 Use the amount in box 5 to figure whether any of your benefits are taxable. How to file a late tax return 2011 Tax Withholding and Estimated Tax You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. How to file a late tax return 2011 If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request. How to file a late tax return 2011 If you do not choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. How to file a late tax return 2011 For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. How to file a late tax return 2011 How Much Is Taxable? If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. How to file a late tax return 2011 Generally, the higher that total amount, the greater the taxable part of your benefits. How to file a late tax return 2011 Maximum taxable part. How to file a late tax return 2011   The taxable part of your benefits usually cannot be more than 50%. How to file a late tax return 2011 However, up to 85% of your benefits can be taxable if either of the following situations applies to you. How to file a late tax return 2011 The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). How to file a late tax return 2011 You are married filing separately and lived with your spouse at any time during 2013. How to file a late tax return 2011   If you are a nonresident alien, 85% of your benefits are taxable. How to file a late tax return 2011 However, this income is exempt under some tax treaties. How to file a late tax return 2011 Which worksheet to use. How to file a late tax return 2011   A worksheet to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. How to file a late tax return 2011 However, you will need to use a different worksheet(s) if any of the following situations applies to you. How to file a late tax return 2011 You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse were covered by a retirement plan at work. How to file a late tax return 2011 In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. How to file a late tax return 2011 Situation (1) does not apply and you take one or more of the following exclusions. How to file a late tax return 2011 Interest from qualified U. How to file a late tax return 2011 S. How to file a late tax return 2011 savings bonds (Form 8815). How to file a late tax return 2011 Employer-provided adoption benefits (Form 8839). How to file a late tax return 2011 Foreign earned income or housing (Form 2555 or Form 2555-EZ). How to file a late tax return 2011 Income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. How to file a late tax return 2011 In these situations, you must use Worksheet 1 in Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure your taxable benefits. How to file a late tax return 2011 You received a lump-sum payment for an earlier year. How to file a late tax return 2011 In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. How to file a late tax return 2011 See Lump-Sum Election , later. How to file a late tax return 2011 How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040, Form 1040A, or Form 1040NR. How to file a late tax return 2011 You cannot use Form 1040EZ. How to file a late tax return 2011 Reporting on Form 1040. How to file a late tax return 2011   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 20a and the taxable part on line 20b. How to file a late tax return 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. How to file a late tax return 2011 Reporting on Form 1040A. How to file a late tax return 2011   Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line 14a and the taxable part on line 14b. How to file a late tax return 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. How to file a late tax return 2011 Reporting on Form 1040NR. How to file a late tax return 2011   Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Form 1040NR, Schedule NEC, line 8. How to file a late tax return 2011 Benefits not taxable. How to file a late tax return 2011   If you are filing Form 1040EZ, do not report any benefits on your tax return. How to file a late tax return 2011 If you are filing Form 1040 or Form 1040A, report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. How to file a late tax return 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to file a late tax return 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. How to file a late tax return 2011 Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. How to file a late tax return 2011 This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. How to file a late tax return 2011 No part of the lump-sum death benefit is subject to tax. How to file a late tax return 2011 For more information about the lump-sum death benefit, visit the Social Security Administration website at www. How to file a late tax return 2011 SSA. How to file a late tax return 2011 gov, and use keyword: death benefit. How to file a late tax return 2011 Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. How to file a late tax return 2011 However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. How to file a late tax return 2011 You can elect this method if it lowers your taxable benefits. How to file a late tax return 2011 See Publication 915 for more information. How to file a late tax return 2011 Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. How to file a late tax return 2011 If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. How to file a late tax return 2011 If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. How to file a late tax return 2011 If you have any questions about this negative figure, contact your local Social Security Administration office or your local U. How to file a late tax return 2011 S. How to file a late tax return 2011 Railroad Retirement Board field office. How to file a late tax return 2011 Joint return. How to file a late tax return 2011   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's does not, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. How to file a late tax return 2011 You do this to get your net benefits when figuring if your combined benefits are taxable. How to file a late tax return 2011 Repayment of benefits received in an earlier year. How to file a late tax return 2011   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. How to file a late tax return 2011   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. How to file a late tax return 2011 Claim it on Schedule A (Form 1040), line 23. How to file a late tax return 2011   If this deduction is more than $3,000, you have to follow some special instructions. How to file a late tax return 2011 See Publication 915 for those instructions. How to file a late tax return 2011 Sickness and Injury Benefits Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. How to file a late tax return 2011 If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. How to file a late tax return 2011 However, certain payments may not be taxable to you. How to file a late tax return 2011 Some of these payments are discussed later in this section. How to file a late tax return 2011 Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Publication 525. How to file a late tax return 2011 Cost paid by you. How to file a late tax return 2011   If you pay the entire cost of an accident or health plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. How to file a late tax return 2011 If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. How to file a late tax return 2011 Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. How to file a late tax return 2011 You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. How to file a late tax return 2011 Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. How to file a late tax return 2011 If you were 65 or older by the end of 2013 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. How to file a late tax return 2011 See Credit for the Elderly or the Disabled, later. How to file a late tax return 2011 For more information on this credit, see Publication 524, Credit for the Elderly or the Disabled. How to file a late tax return 2011 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. How to file a late tax return 2011 Report the payments on lines 16a and 16b of Form 1040, on lines 12a and 12b of Form 1040A, or on lines 17a and 17b of Form 1040NR. How to file a late tax return 2011 For more information on pensions and annuities, see Publication 575. How to file a late tax return 2011 Retirement and profit-sharing plans. How to file a late tax return 2011   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. How to file a late tax return 2011 The payments must be reported as a pension or annuity. How to file a late tax return 2011 Accrued leave payment. How to file a late tax return 2011   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. How to file a late tax return 2011 The payment is not a disability payment. How to file a late tax return 2011 Include it in your income in the tax year you receive it. How to file a late tax return 2011 Long-Term Care Insurance Contracts In most cases, long-term care insurance contracts generally are treated as accident and health insurance contracts. How to file a late tax return 2011 Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. How to file a late tax return 2011 However, the amount you can exclude may be limited. How to file a late tax return 2011 Long-term care insurance contracts are discussed in more detail in Publication 525. How to file a late tax return 2011 Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. How to file a late tax return 2011 The exemption also applies to your survivors. How to file a late tax return 2011 The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. How to file a late tax return 2011 If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. How to file a late tax return 2011 For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. How to file a late tax return 2011 Return to work. How to file a late tax return 2011   If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. How to file a late tax return 2011 Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. How to file a late tax return 2011 Federal Employees' Compensation Act (FECA). How to file a late tax return 2011   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. How to file a late tax return 2011 However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. How to file a late tax return 2011 Report this income on Form 1040, line 7; Form 1040A, line 7; on Form 1040EZ, line 1; or Form 1040NR, line 8. How to file a late tax return 2011 Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. How to file a late tax return 2011    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. How to file a late tax return 2011 For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier. How to file a late tax return 2011 Other compensation. How to file a late tax return 2011   Many other amounts you receive as compensation for sickness or injury are not taxable. How to file a late tax return 2011 These include the following amounts. How to file a late tax return 2011 Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. How to file a late tax return 2011 Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. How to file a late tax return 2011 Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). How to file a late tax return 2011 This compensation must be based only on the injury and not on the period of your absence from work. How to file a late tax return 2011 These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. How to file a late tax return 2011 Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. How to file a late tax return 2011 This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. How to file a late tax return 2011 Proceeds not received in installments. How to file a late tax return 2011   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. How to file a late tax return 2011 If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. How to file a late tax return 2011 Proceeds received in installments. How to file a late tax return 2011   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. How to file a late tax return 2011   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. How to file a late tax return 2011 Include anything over this excluded part in your income as interest. How to file a late tax return 2011 Installments for life. How to file a late tax return 2011   If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, you figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. How to file a late tax return 2011 If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee. How to file a late tax return 2011 Surviving spouse. How to file a late tax return 2011   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. How to file a late tax return 2011 If you remarry, you can continue to take the exclusion. How to file a late tax return 2011 Surrender of policy for cash. How to file a late tax return 2011   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. How to file a late tax return 2011 In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. How to file a late tax return 2011 You should receive a Form 1099-R showing the total proceeds and the taxable part. How to file a late tax return 2011 Report these amounts on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or Form 1040NR, lines 17a and 17b. How to file a late tax return 2011 Endowment Contract Proceeds An endowment contract is a policy that pays over to you a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. How to file a late tax return 2011 Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. How to file a late tax return 2011 To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. How to file a late tax return 2011 Include in your income the part of the lump-sum payment that is more than your cost. How to file a late tax return 2011 Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. How to file a late tax return 2011 The tax treatment of an annuity is explained in Publication 575. How to file a late tax return 2011 For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. How to file a late tax return 2011 This election must be made within 60 days after the lump-sum payment first becomes payable to you. How to file a late tax return 2011 Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. How to file a late tax return 2011 However, see Exception , later. How to file a late tax return 2011 For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. How to file a late tax return 2011 Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit. How to file a late tax return 2011 In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received also is excluded from income. How to file a late tax return 2011 Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill. How to file a late tax return 2011 To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. How to file a late tax return 2011 Terminally or chronically ill defined. How to file a late tax return 2011   A terminally ill person is one who has been certified by a physician as having an illness or physical condition that reasonably can be expected to result in death within 24 months from the date of the certification. How to file a late tax return 2011 A chronically ill person is one who is not terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions. How to file a late tax return 2011 The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity. How to file a late tax return 2011 The person requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment. How to file a late tax return 2011 Exception. How to file a late tax return 2011   The exclusion does not apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the other person, or Has a financial interest in the business of the other person. How to file a late tax return 2011 Sale of Home You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. How to file a late tax return 2011 Generally, if you can exclude all of the gain, you do not need to report the sale on your tax return. How to file a late tax return 2011 You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. How to file a late tax return 2011 Main home. How to file a late tax return 2011   Usually, your main home is the home you live in most of the time and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. How to file a late tax return 2011 Repaying the first-time homebuyer credit because you sold your home. How to file a late tax return 2011   If you claimed a first-time homebuyer credit for your main home and you sell it, you may have to repay the credit. How to file a late tax return 2011 For a home purchased in 2008 and used as your main home until sold in 2013, you must file Form 5405 and repay the balance of the unpaid credit on your 2013 tax return. How to file a late tax return 2011   For a home purchased after 2008, you generally must repay the entire credit if the home was sold (or otherwise ceased to be your main home) within 36 months of the purchase date. How to file a late tax return 2011 If you purchased your home in 2009 and used it as your main home until sold in 2013, you do not have to repay the credit or file Form 5405. How to file a late tax return 2011 If you purchased your home in 2010 and used it as your main home until sold in 2013, you may have to file Form 5405 and repay the entire credit on your 2013 tax return. How to file a late tax return 2011   See the Instructions for Form 5405 for more information about repaying the credit and exceptions to repayment that may apply to you. How to file a late tax return 2011 Maximum Amount of Exclusion You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. How to file a late tax return 2011 You meet the ownership test. How to file a late tax return 2011 You meet the use test. How to file a late tax return 2011 During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. How to file a late tax return 2011 You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . How to file a late tax return 2011 Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. How to file a late tax return 2011 This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). How to file a late tax return 2011 Exception to ownership and use tests. How to file a late tax return 2011   If you owned and lived in the property as your main home for less than 2 years, you still can claim an exclusion in some cases. How to file a late tax return 2011 Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. How to file a late tax return 2011 The maximum amount you can exclude will be reduced. How to file a late tax return 2011 See Publication 523, Selling Your Home, for more information. How to file a late tax return 2011 Exception to use test for individuals with a disability. How to file a late tax return 2011   There is an exception to the use test if, during the 5-year period before the sale of your home: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year. How to file a late tax return 2011 Under this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition. How to file a late tax return 2011   If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. How to file a late tax return 2011 Exception to ownership test for property acquired in a like-kind exchange. How to file a late tax return 2011   You must have owned your main home for at least 5 years to qualify for the exclusion if you acquired your main home in a like-kind exchange. How to file a late tax return 2011 This special 5-year ownership rule continues to apply to a home you acquired in a like-kind exchange and gave to another person. How to file a late tax return 2011 A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment. How to file a late tax return 2011 See Publication 523 for more information. How to file a late tax return 2011 Period of nonqualified use. How to file a late tax return 2011   Generally, the gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. How to file a late tax return 2011 Nonqualified use is any period after December 31, 2008, during which the property is not used as the main home. How to file a late tax return 2011 See Publication 523 for more information. How to file a late tax return 2011 Married Persons In the special situations discussed below, if you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use test, you can exclude up to $250,000 of gain. How to file a late tax return 2011 However, see Special rules for joint returns , next. How to file a late tax return 2011 Special rules for joint returns. How to file a late tax return 2011   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. How to file a late tax return 2011 You are married and file a joint return for the year. How to file a late tax return 2011 Either you or your spouse meets the ownership test. How to file a late tax return 2011 Both you and your spouse meet the use test. How to file a late tax return 2011 During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home. How to file a late tax return 2011 Sale of home by surviving spouse. How to file a late tax return 2011   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. How to file a late tax return 2011   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2013. How to file a late tax return 2011 The sale or exchange took place no more than 2 years after the date of death of your spouse. How to file a late tax return 2011 You have not remarried. How to file a late tax return 2011 You and your spouse met the use test at the time of your spouse's death. How to file a late tax return 2011 You or your spouse met the ownership test at the time of your spouse's death. How to file a late tax return 2011 Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. How to file a late tax return 2011 Home transferred from spouse. How to file a late tax return 2011   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. How to file a late tax return 2011 Use of home after divorce. How to file a late tax return 2011   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. How to file a late tax return 2011 Business Use or Rental of Home You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. How to file a late tax return 2011 However, you must meet the ownership and use tests. How to file a late tax return 2011 See Publication 523 for more information. How to file a late tax return 2011 Depreciation after May 6, 1997. How to file a late tax return 2011   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. How to file a late tax return 2011 See Publication 523 for more information. How to file a late tax return 2011 Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and you choose not to exclude it, or You received Form 1099-S. How to file a late tax return 2011 If you have a gain that you cannot or choose not to exclude, if you received a Form 1099-S, or if you have a deductible loss, report the sale on your tax return. How to file a late tax return 2011 Report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. How to file a late tax return 2011 If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. How to file a late tax return 2011 See Publication 523 for more information. How to file a late tax return 2011 Reverse Mortgages A revers