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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Penalty For Filing Taxes Late

Irs Gov 2010 Tax Forms1040 Ez Tax Forms1040ez BookletFile 2010 Taxes Free OnlineFree Turbo Tax 2013 DownloadWhat If I Didn T File Taxes In 2011H & R Block Free Tax FilingFree EfileWww Irs Gov Eo1040ez Form 2013 InstructionsFree Federal And State Tax Filing 2014Free State Tax Forms IncomeFree State Tax ExtensionAarp Org TaxaideH&r Block Free FileNeed 2009 Tax Return2011 Tax Forms 1040How To Amend Federal Income Tax ReturnHow To Refile Your TaxesTax Returns 2012Amended Tax Returns More:label_amended_20tax_20returns More:taxesE File 2012 Tax ReturnAmend Tax ReturnIrs 2012 Taxes QuestionsFree Tax CalculatorFree Federal And State Tax ReturnsFree State Tax E-fileIrs Gov Forms1040xH & R BlockFile Taxes OnlineHr Block Tax ReturnsFree Online 1040x FilingState Income Tax Form 2012How Do I File A Tax ExtensionTax Software For 2011File My 1040x ElectronicallyFree Tax Filing 2012How Do I File A Tax Extension OnlineOnline 1040xFile 2011 Taxes Free

Penalty For Filing Taxes Late

Penalty for filing taxes late 4. Penalty for filing taxes late   Deductions Table of Contents Standard DeductionStandard Deduction for Dependents Itemized DeductionsMedical and Dental Expenses Most taxpayers have a choice of taking a standard deduction or itemizing their deductions. Penalty for filing taxes late You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. Penalty for filing taxes late If you have a choice, you should use the method that gives you the lower tax. Penalty for filing taxes late Standard Deduction The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. Penalty for filing taxes late Generally, the standard deduction amounts are adjusted each year for inflation. Penalty for filing taxes late In most cases, you can use Worksheet 4-1 to figure your standard deduction amount. Penalty for filing taxes late Persons not eligible for the standard deduction. Penalty for filing taxes late   Your standard deduction is zero and you should itemize any deductions you have if: You are married and filing a separate return, and your spouse itemizes deductions, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. Penalty for filing taxes late You are considered a dual-status alien if you were both a nonresident alien and a resident alien during the year. Penalty for filing taxes late   If you are a nonresident alien who is married to a U. Penalty for filing taxes late S. Penalty for filing taxes late citizen or resident alien at the end of the year, you can choose to be treated as a U. Penalty for filing taxes late S. Penalty for filing taxes late resident. Penalty for filing taxes late See Publication 519, U. Penalty for filing taxes late S. Penalty for filing taxes late Tax Guide for Aliens. Penalty for filing taxes late If you make this choice, you can take the standard deduction. Penalty for filing taxes late Decedent's final return. Penalty for filing taxes late   The amount of the standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. Penalty for filing taxes late However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. Penalty for filing taxes late Higher standard deduction for age (65 or older). Penalty for filing taxes late   If you do not itemize deductions, you are entitled to a higher standard deduction if you are age 65 or older at the end of the year. Penalty for filing taxes late You are considered age 65 on the day before your 65th birthday. Penalty for filing taxes late Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. Penalty for filing taxes late Higher standard deduction for blindness. Penalty for filing taxes late   If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. Penalty for filing taxes late You qualify for this benefit if you are totally or partly blind. Penalty for filing taxes late Not totally blind. Penalty for filing taxes late   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is not more than 20 degrees. Penalty for filing taxes late   If your eye condition will never improve beyond these limits, the statement should include this fact. Penalty for filing taxes late You must keep the statement in your records. Penalty for filing taxes late   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. Penalty for filing taxes late Spouse 65 or older or blind. Penalty for filing taxes late   You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and an exemption for your spouse could not be claimed by another taxpayer. Penalty for filing taxes late    You cannot claim the higher standard deduction for an individual other than yourself and your spouse. Penalty for filing taxes late Example. Penalty for filing taxes late This example illustrates how to determine your standard deduction using Worksheet 4-1. Penalty for filing taxes late Bill and Lisa are filing a joint return for 2013. Penalty for filing taxes late Both are over age 65. Penalty for filing taxes late Neither is blind, and neither can be claimed as a dependent. Penalty for filing taxes late They do not itemize deductions, so they use Worksheet 4-1. Penalty for filing taxes late Because they are married filing jointly, they enter $12,200 on line 1. Penalty for filing taxes late They check the “No” box on line 2, so they also enter $12,200 on line 4. Penalty for filing taxes late Because they are both over age 65, they enter $2,400 ($1,200 × 2) on line 5. Penalty for filing taxes late They enter $14,600 ($12,200 + $2,400) on line 6, so their standard deduction is $14,600. Penalty for filing taxes late Standard Deduction for Dependents The standard deduction for an individual for whom an exemption can be claimed on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). Penalty for filing taxes late However, the standard deduction may be higher if the individual is 65 or older or blind. Penalty for filing taxes late If an exemption for you (or your spouse if you are filing jointly) can be claimed on someone else's return, use Worksheet 4-1, if applicable, to determine your standard deduction. Penalty for filing taxes late Worksheet 4-1. Penalty for filing taxes late 2013 Standard Deduction Worksheet Caution. Penalty for filing taxes late If you are married filing separately and your spouse itemizes deductions, or if you are a dual-status alien, do not complete this worksheet. Penalty for filing taxes late If you were born before January 2, 1949, and/or blind, check the correct number of boxes below. Penalty for filing taxes late Put the total number of boxes checked in box c and go to line 1. Penalty for filing taxes late a. Penalty for filing taxes late You   Born before  January 2, 1949     Blind b. Penalty for filing taxes late Your spouse, if claiming  spouse's exemption   Born before January 2, 1949     Blind c. Penalty for filing taxes late Total boxes checked             1. Penalty for filing taxes late Enter the amount shown below for your filing status. Penalty for filing taxes late               Single or married filing separately — $6,100 Married filing jointly or Qualifying widow(er) — $12,200 Head of household — $8,950   1. Penalty for filing taxes late           2. Penalty for filing taxes late Can you (or your spouse if filing jointly) be claimed as a dependent on someone else's return?  No. Penalty for filing taxes late Skip line 3; enter the amount from line 1 on line 4. Penalty for filing taxes late   Yes. Penalty for filing taxes late Go to line 3. Penalty for filing taxes late         3. Penalty for filing taxes late Is your earned income* more than $650?               Yes. Penalty for filing taxes late Add $350 to your earned income. Penalty for filing taxes late Enter the total   3. Penalty for filing taxes late         No. Penalty for filing taxes late Enter $1,000 4. Penalty for filing taxes late Enter the smaller of line 1 or line 3 4. Penalty for filing taxes late   5. Penalty for filing taxes late If born before January 2, 1949, or blind, multiply the number in box c by $1,200 ($1,500 if single or head of household). Penalty for filing taxes late Enter the result here. Penalty for filing taxes late Otherwise, enter -0- 5. Penalty for filing taxes late   6. Penalty for filing taxes late Add lines 4 and 5. Penalty for filing taxes late This is your standard deduction for 2013. Penalty for filing taxes late 6. Penalty for filing taxes late   * Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Penalty for filing taxes late It also includes any amount received as a scholarship that you must include in your income. Penalty for filing taxes late Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 27 (or the amount you reported on Form 1040A, line 7). Penalty for filing taxes late Itemized Deductions Some individuals should itemize their deductions because it will save them money. Penalty for filing taxes late Others should itemize because they do not qualify for the standard deduction. Penalty for filing taxes late See the discussion under Standard Deduction , earlier, to decide if it would be to your advantage to itemize deductions. Penalty for filing taxes late You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than $150,000. Penalty for filing taxes late For more information, see Overall limitation, later. Penalty for filing taxes late Medical and dental expenses, some taxes, certain interest expenses, charitable contributions, casualty and theft losses, and certain other miscellaneous expenses may be itemized as deductions on Schedule A (Form 1040). Penalty for filing taxes late You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Cannot take the standard deduction, Had uninsured medical or dental expenses that are more than 10% of your adjusted gross income (or more than 7. Penalty for filing taxes late 5% of your adjusted gross income if either you or your spouse is age 65 or older), Paid interest on your home, Paid real estate or personal property taxes, Paid mortgage insurance premiums, Paid state and local income or general sales taxes, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities (see Publication 526, Charitable Contributions), or Have total itemized deductions that are more than the standard deduction that applies to you. Penalty for filing taxes late See the Schedule A (Form 1040) instructions for more information. Penalty for filing taxes late Overall limitation. Penalty for filing taxes late   You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than: $150,000, if married filing separately, $250,000, if single, $275,000, if head of household, or $300,000, if married filing jointly or qualifying widow(er). Penalty for filing taxes late  If your adjusted gross income exceeds the applicable amount, you will use the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040) to figure your total itemized deductions. Penalty for filing taxes late Medical and Dental Expenses You can deduct certain medical and dental expenses you paid for yourself, your spouse, and your dependent(s) if you itemize your deductions on Schedule A (Form 1040). Penalty for filing taxes late Table 4-1 shows some common items that you can or cannot include in figuring your medical expense deduction. Penalty for filing taxes late For more information, see the following discussions of selected items, which are presented in alphabetical order. Penalty for filing taxes late A more extensive list of items and further details can be found in Publication 502, Medical and Dental Expenses. Penalty for filing taxes late Table 4-1. Penalty for filing taxes late Medical and Dental Expenses Checklist You can include: You cannot include: Bandages Capital expenses for equipment or improvements to your home needed for medical care (see Publication 502) Certain weight-loss expenses for obesity Diagnostic devices Expenses of an organ donor Eye surgery—to promote the correct function of the eye Guide dogs or other animals aiding the blind, deaf, and disabled Hospital services fees (lab work, therapy, nursing services, surgery, etc. Penalty for filing taxes late ) Lead-based paint removal (see Publication 502) Long-term care contracts, qualified (see Publication 502) Meals and lodging provided by a hospital during medical treatment Medical and hospital insurance premiums Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners) Medicare Part D premiums Oxygen equipment and oxygen Part of life-care fee paid to retirement home designated for medical care Prescription medicines (prescribed by a doctor) and insulin Psychiatric and psychological treatment Social security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (see Publication 502) Special items (artificial limbs, false teeth, eyeglasses, contact lenses, hearing aids, crutches, wheelchair, etc. Penalty for filing taxes late ) Special education for mentally or physically disabled persons (see Publication 502) Stop-smoking programs Transportation for needed medical care Treatment at a drug or alcohol center (includes meals and lodging provided by the center) Wages for nursing services (see Publication 502) Contributions to Archer MSAs (see Publication 969) Bottled water Diaper service Expenses for your general health (even if following your doctor's advice) such as: —Health club dues —Household help (even if recommended by a doctor) —Social activities, such as dancing or swimming lessons —Trip for general health improvement Flexible spending account reimbursements for medical expenses (if contributions were on a pretax basis) (see Publication 502) Funeral, burial, or cremation expenses Health savings account payments for medical expenses (see Publication 502) Illegal operation or treatment Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc. Penalty for filing taxes late Medical insurance included in a car insurance policy covering all persons injured in or by your car Medicine you buy without a prescription Nursing care for a healthy baby Prescription drugs you brought in (or ordered shipped) from another country, in most cases (see Publication 502) Surgery for purely cosmetic reasons (see Publication 502) Toothpaste, toiletries, cosmetics, etc. Penalty for filing taxes late Teeth whitening Weight-loss expenses not for the treatment of obesity or other disease You can deduct only the amount of your medical and dental expenses that is more than 10% of your adjusted gross income (or that is more than 7. Penalty for filing taxes late 5% of your adjusted gross income if you or your spouse is age 65 or older). Penalty for filing taxes late What to include. Penalty for filing taxes late   Generally, you can include only the medical and dental expenses you paid this year, regardless of when the services were provided. Penalty for filing taxes late If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Penalty for filing taxes late If you use a pay-by-phone or online account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. Penalty for filing taxes late You can include medical expenses you charge to your credit card in the year the charge is made. Penalty for filing taxes late It does not matter when you actually pay the amount charged. Penalty for filing taxes late Home Improvements You can include in medical expenses amounts you pay for home improvements if their main purpose is medical care for you, your spouse, or your dependent. Penalty for filing taxes late Only reasonable costs to accommodate a home to your disabled condition (or that of your spouse or your dependent(s) who live with you) are considered medical care. Penalty for filing taxes late Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. Penalty for filing taxes late Publication 502 contains additional information and examples, including a capital expense worksheet, to assist you in figuring the amount of the capital expense that you can include in your medical expenses. Penalty for filing taxes late Also, see Publication 502 for information about deductible operating and upkeep expenses related to such capital expense items, and for information about improvements, for medical reasons, to property rented by a person with disabilities. Penalty for filing taxes late Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. Penalty for filing taxes late This is a personal expense that is not deductible. Penalty for filing taxes late However, you may be able to include certain expenses paid to a person providing nursing-type services. Penalty for filing taxes late For more information, see Nursing Services , later. Penalty for filing taxes late Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Penalty for filing taxes late For more information, see Qualified long-term care services under Long-Term Care, later. Penalty for filing taxes late Hospital Services You can include in medical expenses amounts you pay for the cost of inpatient care at a hospital or similar institution if a principal reason for being there is to receive medical care. Penalty for filing taxes late This includes amounts paid for meals and lodging. Penalty for filing taxes late Also, see Meals and Lodging , later. Penalty for filing taxes late Long-Term Care You can include in medical expenses amounts paid for qualified long-term care services and premiums paid for qualified long-term care insurance contracts. Penalty for filing taxes late Qualified long-term care services. Penalty for filing taxes late   Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are: Required by a chronically ill individual, and Provided under a plan of care prescribed by a licensed health care practitioner. Penalty for filing taxes late Chronically ill individual. Penalty for filing taxes late    An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions. Penalty for filing taxes late He or she is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Penalty for filing taxes late Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. Penalty for filing taxes late He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Penalty for filing taxes late Maintenance and personal care services. Penalty for filing taxes late    Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment). Penalty for filing taxes late Qualified long-term care insurance contracts. Penalty for filing taxes late   A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. Penalty for filing taxes late The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract must be used only to reduce future premiums or increase future benefits, and Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses. Penalty for filing taxes late   The amount of qualified long-term care premiums you can include is limited. Penalty for filing taxes late You can include the following as medical expenses on Schedule A (Form 1040). Penalty for filing taxes late Qualified long-term care premiums up to the following amounts. Penalty for filing taxes late Age 40 or under – $360. Penalty for filing taxes late Age 41 to 50 – $680. Penalty for filing taxes late Age 51 to 60 – $1,360. Penalty for filing taxes late Age 61 to 70 – $3,640. Penalty for filing taxes late Age 71 or over – $4,550. Penalty for filing taxes late Unreimbursed expenses for qualified long-term care services. Penalty for filing taxes late Note. Penalty for filing taxes late The limit on premiums is for each person. Penalty for filing taxes late Meals and Lodging You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if your main reason for being there is to receive medical care. Penalty for filing taxes late You may be able to include in medical expenses the cost of lodging (but not meals) not provided in a hospital or similar institution. Penalty for filing taxes late You can include the cost of such lodging while away from home if all of the following requirements are met. Penalty for filing taxes late The lodging is primarily for, and essential to, medical care. Penalty for filing taxes late The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital. Penalty for filing taxes late The lodging is not lavish or extravagant under the circumstances. Penalty for filing taxes late There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Penalty for filing taxes late The amount you include in medical expenses for lodging cannot be more than $50 per night for each person. Penalty for filing taxes late You can include lodging for a person traveling with the person receiving the medical care. Penalty for filing taxes late For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Penalty for filing taxes late (Meals are not included. Penalty for filing taxes late ) Nursing home. Penalty for filing taxes late   You can include in medical expenses the cost of medical care in a nursing home or a home for the aged for yourself, your spouse, or your dependent(s). Penalty for filing taxes late This includes the cost of meals and lodging in the home if a main reason for being there is to get medical care. Penalty for filing taxes late   Do not include the cost of meals and lodging if the reason for being in the home is personal. Penalty for filing taxes late However, you can include in medical expenses the part of the cost that is for medical or nursing care. Penalty for filing taxes late Medical Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Penalty for filing taxes late Policies can provide payment for: Hospitalization, surgical fees, X-rays, Prescription drugs and insulin, Dental care, Replacement of lost or damaged contact lenses, and Qualified long-term care insurance contracts (subject to the additional limits included in the discussion on qualified long-term care insurance contracts under Long-Term Care , earlier). Penalty for filing taxes late If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. Penalty for filing taxes late The cost of the medical portion must be separately stated in the insurance contract or given to you in a separate statement. Penalty for filing taxes late Medicare Part A. Penalty for filing taxes late   If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare Part A. Penalty for filing taxes late The payroll tax paid for Medicare Part A is not a medical expense. Penalty for filing taxes late If you are not covered under social security (or were not a government employee who paid Medicare tax), you can enroll voluntarily in Medicare Part A. Penalty for filing taxes late In this situation you can include the premiums you paid for Medicare Part A as a medical expense. Penalty for filing taxes late Medicare Part B. Penalty for filing taxes late   Medicare Part B is a supplemental medical insurance. Penalty for filing taxes late Premiums you pay for Medicare Part B are a medical expense. Penalty for filing taxes late If you applied for it at age 65 or after you became disabled, you can include in medical expenses the monthly premiums you paid. Penalty for filing taxes late If you were over age 65 or disabled when you first enrolled, check with your local Social Security Administration office, or go to their website at www. Penalty for filing taxes late SSA. Penalty for filing taxes late gov, to find out your premium. Penalty for filing taxes late Medicare Part D. Penalty for filing taxes late   Medicare Part D is a voluntary prescription drug insurance program for persons with Medicare Part A or Part B. Penalty for filing taxes late You can include as a medical expense premiums you pay for Medicare Part D. Penalty for filing taxes late Prepaid insurance premiums. Penalty for filing taxes late   Insurance premiums you pay before you are age 65 for medical care for yourself, your spouse, or your dependents after you reach age 65 are medical care expenses in the year paid if they are: Payable in equal yearly installments, or more often, and Payable for at least 10 years, or until you reach age 65 (but not for less than 5 years). Penalty for filing taxes late Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. Penalty for filing taxes late A prescribed drug is one that requires a prescription by a doctor for its use by an individual. Penalty for filing taxes late You can also include amounts you pay for insulin. Penalty for filing taxes late Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Penalty for filing taxes late Imported medicines and drugs. Penalty for filing taxes late   If you import medicines or drugs from other countries, see Medicines and Drugs From Other Countries, under What Expenses Are Not Includible, in Publication 502. Penalty for filing taxes late Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. Penalty for filing taxes late The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. Penalty for filing taxes late This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. Penalty for filing taxes late These services can be provided in your home or another care facility. Penalty for filing taxes late Generally, only the amount spent for nursing services is a medical expense. Penalty for filing taxes late If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. Penalty for filing taxes late However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Penalty for filing taxes late See Maintenance and personal care services under Qualified long-term care services, earlier. Penalty for filing taxes late Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. Penalty for filing taxes late See Child and Dependent Care Credit , later, and Publication 503, Child and Dependent Care Expenses. Penalty for filing taxes late You can also include in medical expenses part of the amount you pay for that attendant's meals. Penalty for filing taxes late Divide the food expense among the household members to find the cost of the attendant's food. Penalty for filing taxes late Then divide that cost in the same manner as in the preceding paragraph. Penalty for filing taxes late If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. Penalty for filing taxes late This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. Penalty for filing taxes late Employment taxes. Penalty for filing taxes late   You can include as a medical expense social security tax, FUTA, Medicare tax, and state employment taxes you pay for a nurse, attendant, or other person who provides medical care. Penalty for filing taxes late If the attendant also provides personal and household services, you can include as a medical expense only the amount of employment taxes paid for medical services as explained earlier under Nursing Services. Penalty for filing taxes late For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. Penalty for filing taxes late Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Penalty for filing taxes late Car expenses. Penalty for filing taxes late    You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. Penalty for filing taxes late You cannot include depreciation, insurance, general repair, or maintenance expenses. Penalty for filing taxes late   If you do not want to use your actual expenses for 2013, you can use the standard medical mileage rate of 24 cents a mile. Penalty for filing taxes late   You can also include parking fees and tolls. Penalty for filing taxes late You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate. Penalty for filing taxes late You can also include:    Bus, taxi, train, or plane fares or ambulance service, and Transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone. Penalty for filing taxes late Do not include transportation expenses if, for purely personal reasons, you choose to travel to another city for an operation or other medical care prescribed by your doctor. Penalty for filing taxes late Prev  Up  Next   Home   More Online Publications
Español

House Office of Inspector General

The Office of Inspector General conducts audits of the financial and administrative operations of the House of Representatives.

Contact the Agency or Department

Website: House Office of Inspector GeneralHouse Office of Inspector General

E-mail:

Address: 386 Ford Building
Washington, DC 20515-9990

Phone Number: (202) 226-1250

The Penalty For Filing Taxes Late

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