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Irs Form Ez

Irs form ez Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. Irs form ez Gross monthly rate. Irs form ez Your cost. Irs form ez Choosing a survivor annuity after retirement. Irs form ez Canceling a survivor annuity after retirement. Irs form ez Annuity starting date after 1986. Irs form ez Annuity starting date before 1987. Irs form ez Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. Irs form ez Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. Irs form ez The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Irs form ez If the refund includes only your contributions, none of the refund is taxable. Irs form ez If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). Irs form ez If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Irs form ez See Rollover Rules in Part II for information on how to make a rollover. Irs form ez Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. Irs form ez Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Irs form ez If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Irs form ez If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. Irs form ez For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Irs form ez A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. Irs form ez Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. Irs form ez OPM will tell you how to make the choice. Irs form ez The choice for no withholding remains in effect until you change it. Irs form ez These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Irs form ez If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. Irs form ez You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. Irs form ez Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. Irs form ez For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Irs form ez Form CSA 1099R. Irs form ez   Form CSA 1099R is mailed to you by OPM each year. Irs form ez It will show any tax you had withheld. Irs form ez File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Irs form ez    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Irs form ez servicesonline. Irs form ez opm. Irs form ez gov. Irs form ez To log in, you will need your retirement CSA claim number and your personal identification number. Irs form ez Choosing no withholding on payments outside the United States. Irs form ez   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Irs form ez   To choose no withholding if you are a U. Irs form ez S. Irs form ez citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Irs form ez Otherwise, OPM has to withhold tax. Irs form ez For example, OPM must withhold if you provide a U. Irs form ez S. Irs form ez address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. Irs form ez S. Irs form ez home address. Irs form ez   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. Irs form ez S. Irs form ez citizen, a U. Irs form ez S. Irs form ez resident alien, or someone who left the United States to avoid tax. Irs form ez But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Irs form ez For details, see Publication 519, U. Irs form ez S. Irs form ez Tax Guide for Aliens. Irs form ez Withholding certificate. Irs form ez   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. Irs form ez The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Irs form ez If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Irs form ez To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Irs form ez C. Irs form ez calling area must call 202-606-0500). Irs form ez No special form is needed. Irs form ez You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Irs form ez If you have TTY/TDD equipment, call 1-855–887–4957. Irs form ez If you need a PIN, call OPM's Retirement Information Office. Irs form ez You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Irs form ez servicesonline. Irs form ez opm. Irs form ez gov. Irs form ez You will need your retirement CSA or CSF claim number and your PIN. Irs form ez Withholding from certain lump-sum payments. Irs form ez   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. Irs form ez Tax will be withheld at a 20% rate on the interest distributed. Irs form ez However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Irs form ez If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Irs form ez Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Irs form ez See Rollover Rules in Part II. Irs form ez If you receive only your contributions, no tax will be withheld. Irs form ez Withholding from Thrift Savings Plan payments. Irs form ez   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Irs form ez The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. Irs form ez  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Irs form ez By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. Irs form ez   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. Irs form ez The above document is also available in the “Forms & Publications” section of the TSP website at www. Irs form ez tsp. Irs form ez gov. Irs form ez Estimated tax. Irs form ez   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). Irs form ez The return must cover all 12 months. Irs form ez   You do not have to pay estimated tax for 2014 if you were a U. Irs form ez S. Irs form ez citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Irs form ez   Publication 505 contains information that you can use to help you figure your estimated tax payments. Irs form ez Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. Irs form ez The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Irs form ez Children. Irs form ez   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. Irs form ez   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. Irs form ez Form CSF 1099R. Irs form ez   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Irs form ez It will show the total amount of the annuity you received in the past year. Irs form ez It also should show, separately, the survivor annuity for a child or children. Irs form ez Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Irs form ez   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. Irs form ez    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Irs form ez servicesonline. Irs form ez opm. Irs form ez gov. Irs form ez To log in you will need your retirement CSF claim number and personal identification number. Irs form ez    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Irs form ez C. Irs form ez calling area must call 202-606-0500). Irs form ez You will need your CSF claim number and your social security number when you call. Irs form ez Taxable part of annuity. Irs form ez   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. Irs form ez To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. Irs form ez Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Irs form ez If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. Irs form ez However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. Irs form ez Annuity statement. Irs form ez   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). Irs form ez You will use this information to figure the tax-free recovery of your cost. Irs form ez Annuity starting date. Irs form ez   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. Irs form ez If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. Irs form ez Gross monthly rate. Irs form ez   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. Irs form ez Your cost. Irs form ez   Your monthly annuity payment contains an amount on which you have previously paid income tax. Irs form ez This amount represents part of your contributions to the retirement plan. Irs form ez Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. Irs form ez   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Irs form ez If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Irs form ez (See Lump-sum credit under Alternative Annuity Option, later. Irs form ez )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. Irs form ez You cannot claim an interest deduction for any interest payments. Irs form ez You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Irs form ez Recovering your cost tax free. Irs form ez   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Irs form ez If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. Irs form ez If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). Irs form ez If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Irs form ez   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). Irs form ez The tax-free part is a fixed dollar amount. Irs form ez It remains the same, even if your annuity is increased. Irs form ez Generally, this rule applies as long as you receive your annuity. Irs form ez However, see Exclusion limit , later. Irs form ez Choosing a survivor annuity after retirement. Irs form ez    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. Irs form ez   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. Irs form ez To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Irs form ez Figure the expected return as of the date the reduced annuity begins. Irs form ez For details on the General Rule, see Publication 939. Irs form ez Canceling a survivor annuity after retirement. Irs form ez   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. Irs form ez The increased annuity does not change the cost recovery you figured at the annuity starting date. Irs form ez The tax-free part of each annuity payment remains the same. Irs form ez    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Irs form ez C. Irs form ez calling area must call 202-606-0500). Irs form ez Exclusion limit. Irs form ez   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Irs form ez Annuity starting date after 1986. Irs form ez   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. Irs form ez Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Irs form ez Example. Irs form ez Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Irs form ez If your cost is $12,000, the exclusion ends after 10 years (120 months). Irs form ez Thereafter, your entire annuity is generally fully taxable. Irs form ez Annuity starting date before 1987. Irs form ez   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. Irs form ez If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Irs form ez The total exclusion may be more than your cost. Irs form ez Deduction of unrecovered cost. Irs form ez   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. Irs form ez The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). Irs form ez If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Irs form ez Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. Irs form ez (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Irs form ez ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. Irs form ez The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Irs form ez Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. Irs form ez This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Irs form ez If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. Irs form ez Worksheet A. Irs form ez   Use Worksheet A. Irs form ez Simplified Method (near the end of this publication), to figure your taxable annuity. Irs form ez Be sure to keep the completed worksheet. Irs form ez It will help you figure your taxable amounts for later years. Irs form ez Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. Irs form ez However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Irs form ez Line 2. Irs form ez   See Your cost , earlier, for an explanation of your cost in the plan. Irs form ez If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. Irs form ez Line 3. Irs form ez   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Irs form ez If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. Irs form ez If your annuity starting date is before 1998, use Table 1. Irs form ez Line 6. Irs form ez   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. Irs form ez If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. Irs form ez Example. Irs form ez Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Irs form ez His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. Irs form ez He must use the Simplified Method to figure the tax-free part of his annuity benefits. Irs form ez Bill's monthly annuity benefit is $1,000. Irs form ez He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Irs form ez At his annuity starting date, he was 65 and Kathy was 57. Irs form ez Bill's completed Worksheet A is shown later. Irs form ez To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). Irs form ez Bill keeps a copy of the completed worksheet for his records. Irs form ez It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Irs form ez Bill's tax-free monthly amount is $100. Irs form ez (See line 4 of the worksheet. Irs form ez ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. Irs form ez If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. Irs form ez If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. Irs form ez General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. Irs form ez If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. Irs form ez If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. Irs form ez Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. Irs form ez Figuring this percentage is complex and requires the use of actuarial tables. Irs form ez For these tables and other information about using the General Rule, see Publication 939. Irs form ez Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. Irs form ez Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Irs form ez After your cost was recovered, all payments became fully taxable. Irs form ez You cannot use another rule to again exclude amounts from income. Irs form ez The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Irs form ez Worksheet A. Irs form ez Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Irs form ez 1. Irs form ez Enter the total pension or annuity payments received this year. Irs form ez Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Irs form ez $ 8,000 2. Irs form ez Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Irs form ez See Your cost in Part II, Rules for Retirees, earlier 2. Irs form ez 31,000 Note: 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). Irs form ez Otherwise, go to line 3. Irs form ez   3. Irs form ez Enter the appropriate number from Table 1 below. Irs form ez 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. Irs form ez 3. Irs form ez 310 4. Irs form ez Divide line 2 by the number on line 3 4. Irs form ez 100 5. Irs form ez Multiply line 4 by the number of months for which this year's payments were made. Irs form ez If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Irs form ez Otherwise, go to line 6 5. Irs form ez 800 6. Irs form ez Enter any amounts previously recovered tax free in years after 1986. Irs form ez This is the amount shown on line 10 of your worksheet for last year 6. Irs form ez 0 7. Irs form ez Subtract line 6 from line 2 7. Irs form ez 31,000 8. Irs form ez Enter the smaller of line 5 or line 7 8. Irs form ez 800 9. Irs form ez Taxable amount for year. Irs form ez Subtract line 8 from line 1. Irs form ez Enter the result, but not less than zero. Irs form ez Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Irs form ez If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Irs form ez If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Irs form ez If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Irs form ez $7,200 10. Irs form ez Was your annuity starting date before 1987?   Yes. Irs form ez Do not complete the rest of this worksheet. Irs form ez    No. Irs form ez Add lines 6 and 8. Irs form ez This is the amount you have recovered tax free through 2013. Irs form ez You will need this number if you need to fill out this worksheet next year 10. Irs form ez 800 11. Irs form ez Balance of cost to be recovered. Irs form ez Subtract line 10 from line 2. Irs form ez If zero, you will not have to complete this worksheet next year. Irs form ez The payments you receive next year will generally be fully taxable 11. Irs form ez $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   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   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Irs form ez Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Irs form ez If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Irs form ez You are eligible to make this choice if you meet all of the following requirements. Irs form ez You are retiring, but not on disability. Irs form ez You have a life-threatening illness or other critical medical condition. Irs form ez You do not have a former spouse entitled to court ordered benefits based on your service. Irs form ez If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. Irs form ez Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Irs form ez The tax-free part represents part of your cost. Irs form ez The taxable part represents part of the earnings on your annuity contract. Irs form ez Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. Irs form ez Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Irs form ez Your taxable amount may therefore be more than the lump-sum payment you receive. Irs form ez You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. Irs form ez If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Irs form ez See Rollover Rules , later, for information on how to make a rollover. Irs form ez OPM can make a direct rollover only up to the amount of the lump-sum payment. Irs form ez Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Irs form ez The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Irs form ez It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. Irs form ez For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Irs form ez Worksheet B. Irs form ez   Use Worksheet B. Irs form ez Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Irs form ez Be sure to keep the completed worksheet for your records. Irs form ez   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Irs form ez Lump-sum credit. Irs form ez   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Irs form ez However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. Irs form ez Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Irs form ez Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Irs form ez You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. Irs form ez Present value of your annuity contract. Irs form ez   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Irs form ez If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. Irs form ez Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Irs form ez , NW Washington, DC 20224-0002 Example. Irs form ez David Brown retired from the federal government in 2013, one month after his 55th birthday. Irs form ez He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. Irs form ez The present value of his annuity contract was $155,000. Irs form ez The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Irs form ez The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. Irs form ez See Reduced Annuity , later. Irs form ez Worksheet B. Irs form ez Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Irs form ez  1. Irs form ez Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Irs form ez $ 31,000 2. Irs form ez Enter the present value of your annuity contract 2. Irs form ez 155,000 3. Irs form ez Divide line 1 by line 2 3. Irs form ez . Irs form ez 20 4. Irs form ez Tax-free amount. Irs form ez Multiply line 1 by line 3. Irs form ez (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Irs form ez ) 4. Irs form ez $6,200 5. Irs form ez Taxable amount (net cost in the plan). Irs form ez Subtract line 4 from line 1. Irs form ez Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Irs form ez Also, enter this amount on line 2 of Worksheet A in this publication. Irs form ez 5. Irs form ez $24,800   Lump-sum payment in installments. Irs form ez   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Irs form ez You will receive the first installment after you make the choice upon retirement. Irs form ez The second installment will be paid to you, with interest, in the next calendar year. Irs form ez (Exceptions to the installment rule are provided for cases of critical medical need. Irs form ez )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. Irs form ez If the payment has a tax-free part, you must treat the taxable part as received first. Irs form ez How to report. Irs form ez   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Irs form ez Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. Irs form ez    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. Irs form ez Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. Irs form ez These annuity payments each will have a tax-free and a taxable part. Irs form ez To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Irs form ez For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Irs form ez To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. Irs form ez Enter as your net cost on line 2 the amount from Worksheet B, line 5. Irs form ez Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Irs form ez Example. Irs form ez The facts are the same as in the example for David Brown in the preceding discussion. Irs form ez In addition, David received 10 annuity payments in 2013 of $1,200 each. Irs form ez Using Worksheet A, he figures the taxable part of his annuity payments. Irs form ez He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Irs form ez His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Irs form ez He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Irs form ez David's filled-in Worksheet A is shown on the next page. Irs form ez Worksheet A. Irs form ez Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Irs form ez 1. Irs form ez Enter the total pension or annuity payments received this year. Irs form ez Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Irs form ez $ 12,000 2. Irs form ez Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Irs form ez See Your cost in Part II, Rules for Retirees, earlier 2. Irs form ez 24,800 Note: 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). Irs form ez Otherwise, go to line 3. Irs form ez   3. Irs form ez Enter the appropriate number from Table 1 below. Irs form ez 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. Irs form ez 3. Irs form ez 360 4. Irs form ez Divide line 2 by the number on line 3 4. Irs form ez 68. Irs form ez 89 5. Irs form ez Multiply line 4 by the number of months for which this year's payments were made. Irs form ez If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Irs form ez Otherwise, go to line 6 5. Irs form ez 688. Irs form ez 90 6. Irs form ez Enter any amounts previously recovered tax free in years after 1986. Irs form ez This is the amount shown on line 10 of your worksheet for last year 6. Irs form ez 0 7. Irs form ez Subtract line 6 from line 2 7. Irs form ez 24,800 8. Irs form ez Enter the smaller of line 5 or line 7 8. Irs form ez 688. Irs form ez 90 9. Irs form ez Taxable amount for year. Irs form ez Subtract line 8 from line 1. Irs form ez Enter the result, but not less than zero. Irs form ez Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Irs form ez If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Irs form ez If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Irs form ez If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Irs form ez $11,311. Irs form ez 10 10. Irs form ez Was your annuity starting date before 1987?   Yes. Irs form ez Do not complete the rest of this worksheet. Irs form ez    No. Irs form ez Add lines 6 and 8. Irs form ez This is the amount you have recovered tax free through 2013. Irs form ez You will need this number if you need to fill out this worksheet next year 10. Irs form ez 688. Irs form ez 90 11. Irs form ez Balance of cost to be recovered. Irs form ez Subtract line 10 from line 2. Irs form ez If zero, you will not have to complete this worksheet next year. Irs form ez The payments you receive next year will generally be fully taxable 11. Irs form ez $24,111. Irs form ez 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   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   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Irs form ez Reemployment after choosing the alternative annuity option. Irs form ez If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. Irs form ez If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. Irs form ez Annuity starting date before November 19, 1996. Irs form ez   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. Irs form ez Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. Irs form ez However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Irs form ez Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. Irs form ez The gift may be taxable for gift tax purposes. Irs form ez The value of the gift is equal to the value of the annuity. Irs form ez Joint and survivor annuity. Irs form ez   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. Irs form ez This will eliminate any gift tax liability with regard to that gift. Irs form ez   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. Irs form ez This may result in a taxable gift. Irs form ez More information. Irs form ez   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. Irs form ez Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. Irs form ez Annual leave. Irs form ez   A payment for accrued annual leave received on retirement is a salary payment. Irs form ez It is taxable as wages in the tax year you receive it. Irs form ez Voluntary contributions. Irs form ez   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Irs form ez They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. Irs form ez Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Irs form ez See Thrift Savings Plan , later. Irs form ez Additional annuity benefit. Irs form ez   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. Irs form ez This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Irs form ez It does not matter that you receive only one monthly check covering both benefits. Irs form ez Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. Irs form ez   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. Irs form ez Refund of voluntary contributions. Irs form ez   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. Irs form ez If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. Irs form ez See Rollover Rules , later. Irs form ez The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Irs form ez It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. Irs form ez For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Irs form ez Community property laws. Irs form ez   State community property laws apply to your annuity. Irs form ez These laws will affect your income tax only if you file a return separately from your spouse. Irs form ez   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. Irs form ez Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. Irs form ez   At any time, you have only one domicile even though you may have more than one home. Irs form ez Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Irs form ez The question of your domicile is mainly a matter of your intentions as indicated by your actions. Irs form ez   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Irs form ez The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Irs form ez   For more information, see Publication 555, Community Property. Irs form ez Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. Irs form ez The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Irs form ez This amount is taxable as wages. Irs form ez Your annuity will continue to be taxed just as it was before. Irs form ez If you are still recovering your cost, you continue to do so. Irs form ez If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Irs form ez Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. Irs form ez A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Irs form ez Special rule for figuring your total contributions. Irs form ez   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Irs form ez You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. Irs form ez For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Irs form ez Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Irs form ez   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. Irs form ez Limit on taxable amount. Irs form ez   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. Irs form ez Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Irs form ez The numerator of the fraction is the retiree's total U. Irs form ez S. Irs form ez Government basic pay, other than tax-exempt pay for services performed outside the United States. Irs form ez The denominator is the retiree's total U. Irs form ez S. Irs form ez Government basic pay for all services. Irs form ez    Basic pay includes regular pay plus any standby differential. Irs form ez It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Irs form ez   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Irs form ez (For an annuity, first complete Worksheet A in this publication. Irs form ez ) Worksheet C. Irs form ez Limited Taxable Amount for Nonresident Alien 1. Irs form ez Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Irs form ez   2. Irs form ez Enter the total U. Irs form ez S. Irs form ez Government basic pay other than tax-exempt pay for services performed outside the United States 2. Irs form ez   3. Irs form ez Enter the total U. Irs form ez S. Irs form ez Government basic pay for all services 3. Irs form ez   4. Irs form ez Divide line 2 by line 3 4. Irs form ez   5. Irs form ez Limited taxable amount. Irs form ez Multiply line 1 by line 4. Irs form ez Enter this amount on Form 1040NR, line 17b 5. Irs form ez   Example 1. Irs form ez You are a nonresident alien who performed all services for the U. Irs form ez S. Irs form ez Government abroad as a nonresident alien. Irs form ez You retired and began to receive a monthly annuity of $200. Irs form ez Your total basic pay for all services for the U. Irs form ez S. Irs form ez Government was $100,000. Irs form ez All of your basic pay was tax exempt because it was not U. Irs form ez S. Irs form ez source income. Irs form ez The taxable amount of your annuity using Worksheet A in this publication is $720. Irs form ez You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Irs form ez Worksheet C. Irs form ez Limited Taxable Amount for Nonresident Alien — Example 1 1. Irs form ez Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Irs form ez $ 720 2. Irs form ez Enter the total U. Irs form ez S. Irs form ez Government basic pay other than tax-exempt pay for services performed outside the United States 2. Irs form ez 0 3. Irs form ez Enter the total U. Irs form ez S. Irs form ez Government basic pay for all services 3. Irs form ez 100,000 4. Irs form ez Divide line 2 by line 3 4. Irs form ez 0 5. Irs form ez Limited taxable amount. Irs form ez Multiply line 1 by line 4. Irs form ez Enter this amount on Form 1040NR, line 17b 5. Irs form ez 0 Example 2. Irs form ez You are a nonresident alien who performed services for the U. Irs form ez S. Irs form ez Government as a nonresident alien both within the United States and abroad. Irs form ez You retired and began to receive a monthly annuity of $240. Irs form ez Your total basic pay for your services for the U. Irs form ez S. Irs form ez Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. Irs form ez The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Irs form ez S. Irs form ez source income. Irs form ez The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Irs form ez You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Irs form ez Worksheet C. Irs form ez Limited Taxable Amount for Nonresident Alien — Example 2 1. Irs form ez Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Irs form ez $ 1,980 2. Irs form ez Enter the total U. Irs form ez S. Irs form ez Government basic pay other than tax-exempt pay for services performed outside the United States 2. Irs form ez 40,000 3. Irs form ez Enter the total U. Irs form ez S. Irs form ez Government basic pay for all services 3. Irs form ez 120,000 4. Irs form ez Divide line 2 by line 3 4. Irs form ez . Irs form ez 333 5. Irs form ez Limited taxable amount. Irs form ez Multiply line 1 by line 4. Irs form ez Enter this amount on Form 1040NR, line 17b 5. Irs form ez 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Irs form ez (However, see Roth TSP balance and Uniformed services TSP accounts, next. Irs form ez ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Irs form ez The way that you withdraw your account balance determines when you must pay the tax. Irs form ez Roth TSP balance. Irs form ez   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Irs form ez This means Roth TSP contributions are included in your income. Irs form ez The contribution limits are the same as the traditional TSP. Irs form ez You can elect to have part or all of your TSP contributions designated as a Roth TSP. Irs form ez Agency contributions will be part of your traditional TSP balance. Irs form ez Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Irs form ez   Qualified distributions from your Roth TSP are not included in income. Irs form ez This applies to both your cost in the account and income earned on that account. Irs form ez A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Irs form ez   For more information, go to the TSP website, www. Irs form ez tsp. Irs form ez gov, or the TSP Service Office. Irs form ez See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Irs form ez Uniformed services TSP accounts. Irs form ez   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Irs form ez However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Irs form ez See Roth TSP balance discussed previously to get more information about Roth contributions. Irs form ez The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. Irs form ez You can get more information from the TSP website, www. Irs form ez tsp. Irs form ez gov, or the TSP Service Office. Irs form ez Direct rollover by the TSP. Irs form ez   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. Irs form ez However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Irs form ez Also, see Rollover Rules , later. Irs form ez Direct rollover by the TSP to a Roth IRA. Irs form ez   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. Irs form ez However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Irs form ez Also, see Rollovers to Roth IRAs for more information, later. Irs form ez Note. Irs form ez A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. Irs form ez This is because you already paid tax on those contributions. Irs form ez You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Irs form ez TSP annuity. Irs form ez   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. Irs form ez The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Irs form ez However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. Irs form ez See Roth TSP balance , earlier. Irs form ez This is because you already paid tax on those contributions. Irs form ez Cash withdrawals. Irs form ez   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. Irs form ez (See Rollover Rules , later. Irs form ez ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. Irs form ez See Lump-Sum Distributions in Publication 575 for details. Irs form ez However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Irs form ez See Roth TSP balance , earlier. Irs form ez    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Irs form ez   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. Irs form ez If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. Irs form ez See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Irs form ez However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. Irs form ez See Roth TSP balance , earlier, for a discussion of those conditions. Irs form ez Tax on early distributions. Irs form ez   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. Irs form ez However, this additional tax does not apply in certain situations, including any of the following. Irs form ez You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Irs form ez You choose to receive your account balance in monthly payments based on your life expectancy. Irs form ez You are totally and permanently disabled. Irs form ez You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Irs form ez The earnings may be subject to the 10% tax depending on whether you met certain conditions. Irs form ez See Roth TSP balance , earlier. Irs form ez   For more information, see Tax on Early Distributions in Publication 575. Irs form ez Outstanding loan. Irs form ez   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. Irs form ez The distribution also may be subject to the additional 10% tax on early distributions. Irs form ez However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. Irs form ez See Rollover Rules , later. Irs form ez   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. Irs form ez However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Irs form ez See Roth TSP balance , earlier. Irs form ez More information. Irs form ez   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Irs form ez Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). Irs form ez    The above documents are also available on the TSP website at www. Irs form ez tsp. Irs form ez gov. Irs form ez Select “Forms & Publications. Irs form ez ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. Irs form ez You do not include the amount rolled over in your income, and you cannot take a deduction for it. Irs form ez The amount rolled over is taxed later as the new program pays that amount to you. Irs form ez If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. Irs form ez However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. Irs form ez To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Irs form ez You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Irs form ez Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. Irs form ez See Rollovers to Roth IRAs , later, for more information. Irs form ez Qualified retirement plan. Irs form ez   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. Irs form ez The CSRS, FERS, and TSP are considered qualified retirement plans. Irs form ez Distributions eligible for rollover treatment. Irs form ez   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. Irs form ez You cannot roll over any part of your CSRS or FERS annuity payments. Irs form ez   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. Irs form ez   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Irs form ez However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Irs form ez Direct rollover option. Irs form ez   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. Irs form ez   There is an automatic rollover requirement for mandatory distributions. Irs form ez A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Irs form ez The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Irs form ez You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. Irs form ez If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Irs form ez No tax withheld. Irs form ez   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. Irs form ez However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. Irs form ez Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Irs form ez Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Irs form ez Payment to you option. Irs form ez   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. Irs form ez However, the full amount is treated as distributed to you even though you actually receive only 80%. Irs form ez You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. Irs form ez Rollovers to Roth IRAs are generally included in income. Irs form ez Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Irs form ez If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. Irs form ez However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). Irs form ez Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Irs form ez See Roth TSP balance , earlier. Irs form ez Also, see Tax on Early Distributions in Publication 575. Irs form ez Exception to withholding. Irs form ez   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Irs form ez Partial rollovers. Irs form ez   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. Irs form ez See Lump-Sum Distributions in Publication 575. Irs form ez However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Irs form ez Rolling over more than amount received. Irs form ez   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). Irs form ez Example. Irs form ez You left government service at age 53. Irs form ez On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
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Understanding Your CP237A Notice

Call us to request your refund check.


What you need to do

  • Call us at 1-800-829-0115 to request a replacement check.
  • If you have the expired check, please destroy it.
  • When you receive the new check, remember to cash it.

You may want to...

  • Call 1-800-TAX-FORM (1-800-829-3676) to request forms and publications.

Answers to Common Questions

When will I receive my replacement check?

You should receive the replacement check within 30 days.

Can I request that you mail my refund check to an alternate address?

Refund checks are mailed only to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed.


Tips for next year

If you are not already doing so, consider filing your taxes electronically. Filing online can help you to avoid mistakes and find credits and deductions for which you may qualify. Learn more about how to file electronically here.


Tax publications you may find useful


How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered. You can also authorize someone (such as an accountant) to contact the IRS on your behalf using a Power of Attorney and Declaration of Representative (Form 2848).


Reading your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP237A, Page 1

 

Page Last Reviewed or Updated: 07-Aug-2013

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Irs Form Ez

Irs form ez Publication 1544(SP) - Introductory Material Table of Contents Qué Hay de Nuevo Introducción Qué Hay de Nuevo Acontecimientos futuros. Irs form ez  Si desea obtener la información más reciente sobre los acontecimientos relacionados con la Publicación 1544(SP), tal como legislación promulgada después que ésta fue impresa, acceda a www. Irs form ez irs. Irs form ez gov/pub1544, en inglés. Irs form ez Cómo enmendar un informe. Irs form ez  Puede enmendar un informe anterior marcando el encasillado 1a en la parte superior del Formulario 8300-SP. Irs form ez Vea Cómo enmendar un informe, más adelante. Irs form ez Introducción Si, en un período de 12 meses, usted recibe de un comprador más de $10,000 en efectivo producto de una transacción llevada a cabo en su ocupación o negocio, tiene que declarar la transacción al Servicio de Impuestos Internos (IRS, por sus siglas en inglés) y a la Financial Crimes Enforcement Network (Red para hacer cumplir la ley contra delitos financieros, o FinCEN, por su abreviatura en inglés) en el Formulario 8300-SP, Informe de Pagos en Efectivo en Exceso de $10,000 Recibidos en una Ocupación o Negocio, o en el Formulario 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, en inglés. Irs form ez En esta publicación se explica por qué, cuándo y dónde debe declarar estos pagos recibidos en efectivo, así como las multas considerables que se imponen por no declarar dichos pagos. Irs form ez Algunas organizaciones no tienen que presentar el Formulario 8300-SP, incluidas las instituciones financieras que deben presentar el Formulario 104 de la FinCEN (anteriormente Formulario 4789), Currency Transaction Report (Informe de transacciones en efectivo), en inglés, así como los casinos, los cuales deben presentar el Formulario 103 de la FinCEN (anteriormente Formulario 8362), Currency Transaction Report by Casinos (Informe de transacciones en efectivo hechas por casinos), también en inglés. Irs form ez Esta publicación no incluye información sobre estos dos últimos formularios. Irs form ez En esta publicación encontrará explicaciones sobre la terminología y los puntos más importantes relacionados con el Formulario 8300-SP. Irs form ez Lea las instrucciones adjuntas a este formulario, ya que explican lo que debe anotar en cada línea del mismo. Irs form ez Prev  Up  Next   Home   More Online Publications