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Tax Planning Us 1040a

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Tax Planning Us 1040a

Tax planning us 1040a Publication 547 - Additional Material Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Massachusetts Office of the Attorney General

Website: Massachusetts Office of the Attorney General

Address: Massachusetts Office of the Attorney General
Public Inquiry and Assistance Center
One Ashburton Pl., 18th Floor
Boston, MA 02108-1518

Phone Number: 617-727-8400 (Consumer Hotline)

TTY: 617-727-4765

Office of Consumer Affairs and Business Regulation

Website: Office of Consumer Affairs and Business Regulation

Address: Office of Consumer Affairs and Business Regulation
10 Park Plaza, Suite 5170
Boston, MA 02116

Phone Number: 617-973-8700

Toll-free: 1-888-283-3757 (MA, Consumer Hotline)

TTY: 1-800-720-3480

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Regional Consumer Protection Offices

Office of the Attorney General- Central Massachusetts Region

Website: Office of the Attorney General- Central Massachusetts Region

Address: Office of the Attorney General- Central Massachusetts Region
Public Inquiry and Assistance Center
10 Mechanic St.
Suite 301
Worcester, MA 01608

Phone Number: 508-792-7600

TTY: 617-727-4765

Office of the Attorney General- Southern Massachusetts Region

Website: Office of the Attorney General- Southern Massachusetts Region

Address: Office of the Attorney General- Southern Massachusetts Region
Public Inquiry and Assistance Center
105 William St., 1st Floor
New Bedford, MA 02740-6257

Phone Number: 508-990-9700 617-727-8400 (Hotline)

TTY: 617-727-4765

Office of the Attorney General- Western Massachusetts Region

Website: Office of the Attorney General- Western Massachusetts Region

Address: Office of the Attorney General- Western Massachusetts Region
Consumer Protection Division
1350 Main St., 4th Floor
Springfield, MA 01103-1629

Phone Number: 413-784-1240 617-727-8400 (Hotline)

TTY: 617-727-4765

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County Consumer Protection Offices

Springfield Mayors Office of Consumer Information

Website: Springfield Mayors Office of Consumer Information

Address: Springfield Mayors Office of Consumer Information
City Hall, Room 315
36 Court St.
Springfield, MA 01103

Phone Number: 413-787-6437

TTY: 413-787-6154

Norfolk District Attorney's Office

Website: Norfolk District Attorney's Office

Address: Norfolk District Attorney's Office
Consumer Protection Division
45 Shawmut Rd.
Canton, MA 02021

Phone Number: 781-830-4800 ext. 279

TTY: 617-727-0434

Northwestern District Attorneys Office - Franklin County

Website: Northwestern District Attorneys Office - Franklin County

Address: Northwestern District Attorneys Office - Franklin County
Consumer Protection Unit
13 Conway St.
Greenfield, MA 01301

Phone Number: 413-774-3186

Northwestern District Attorneys Office - Hampshire County

Website: Northwestern District Attorneys Office - Hampshire County

Address: Northwestern District Attorneys Office - Hampshire County
Consumer Protection Division
One Gleason Plaza
Northampton, MA 01060

Phone Number: 413-586-9225

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City Consumer Protection Offices

Boston Consumer Affairs and Licensing

Website: Boston Consumer Affairs and Licensing

Address: Boston Consumer Affairs and Licensing
One City Hall Square, Room 817
Boston, MA 02201-2039

Phone Number: 617-635-3834

Cambridge Consumers Council

Website: Cambridge Consumers Council

Address: Cambridge Consumers Council
831 Massachusetts Ave., 1st Floor
Cambridge, MA 02139

Phone Number: 617-349-6150

TTY: 617-349-6112

Newton-Brookline Consumer Office

Website: Newton-Brookline Consumer Office

Address: Newton-Brookline Consumer Office
Newton City Hall
1000 Commonwealth Ave.
Newton Centre, MA 02459

Phone Number: 617-796-1292

TTY: 617-796-1089

Revere Consumer Affairs Office

Website: Revere Consumer Affairs Office

Address: Revere Consumer Affairs Office
281 Broadway
Revere, MA 02151

Phone Number: 781-286-8114

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Office of Consumer Affairs and Business Regulation

Website: Office of Consumer Affairs and Business Regulation

Address: Office of Consumer Affairs and Business Regulation
Division of Banks
Consumer Assistance Unit

1000 Washington St., 10th Floor
Boston, MA 02118-6400

Phone Number: 617-956-1500

Toll-free: 1-800-495-2265 (MA)

TTY: 617-956-1577

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Division of Insurance

Website: Division of Insurance

Address: Division of Insurance
Consumer Services Section
1000 Washington St., Suite 810
Boston, MA 02118-6200

Phone Number: 617-521-7794

Toll-free: 1-877-563-4467 (MA)

TTY: 617-521-7490

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Office of the Secretary of the Commonwealth

Website: Office of the Secretary of the Commonwealth

Address: Office of the Secretary of the Commonwealth
Securities Division
One Ashburton Pl., 17th Floor
McCormack Building
Boston, MA 02108

Phone Number: 617-727-3548

Toll-free: 1-800-269-5428 (MA)

TTY: 617-878-3889

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Department of Public Utilities

Website: Department of Public Utilities

Address: Department of Public Utilities
Consumer Division
One South Station, Suite 2
Boston, MA 02110

Phone Number: 617-737-2836

Toll-free: 1-877-886-5066

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The Tax Planning Us 1040a

Tax planning us 1040a 8. Tax planning us 1040a   Qualified Tuition Program (QTP) Table of Contents Introduction What Is a Qualified Tuition ProgramDesignated beneficiary. Tax planning us 1040a Half-time student. Tax planning us 1040a How Much Can You Contribute Are Distributions TaxableFiguring the Taxable Portion of a Distribution Additional Tax on Taxable Distributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Introduction Qualified tuition programs (QTPs) are also called “529 plans. Tax planning us 1040a ” States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student's qualified education expenses at a postsecondary institution. Tax planning us 1040a Eligible educational institutions may establish and maintain programs that allow you to prepay a student's qualified education expenses. Tax planning us 1040a If you prepay tuition, the student (designated beneficiary) will be entitled to a waiver or a payment of qualified education expenses. Tax planning us 1040a You cannot deduct either payments or contributions to a QTP. Tax planning us 1040a For information on a specific QTP, you will need to contact the state agency or eligible educational institution that established and maintains it. Tax planning us 1040a What is the tax benefit of a QTP. Tax planning us 1040a   No tax is due on a distribution from a QTP unless the amount distributed is greater than the beneficiary's adjusted qualified education expenses. Tax planning us 1040a See Are Distributions Taxable , later, for more information. Tax planning us 1040a    Even if a QTP is used to finance a student's education, the student or the student's parents still may be eligible to claim the American opportunity credit or the lifetime learning credit. Tax planning us 1040a See Coordination With American Opportunity and Lifetime Learning Credits, later. Tax planning us 1040a What Is a Qualified Tuition Program A qualified tuition program is a program set up to allow you to either prepay, or contribute to an account established for paying, a student's qualified education expenses at an eligible educational institution. Tax planning us 1040a QTPs can be established and maintained by states (or agencies or instrumentalities of a state) and eligible educational institutions. Tax planning us 1040a The program must meet certain requirements. Tax planning us 1040a Your state government or the eligible educational institution in which you are interested can tell you whether or not they participate in a QTP. Tax planning us 1040a Qualified education expenses. Tax planning us 1040a   These are expenses related to enrollment or attendance at an Eligible educational institution (defined later). Tax planning us 1040a As shown in the following list, to be qualified, some of the expenses must be required by the institution and some must be incurred by students who are enrolled at least half-time. Tax planning us 1040a See Half-time student , later. Tax planning us 1040a The following expenses must be required for enrollment or attendance of a Designated beneficiary (defined later) at an eligible educational institution. Tax planning us 1040a Tuition and fees. Tax planning us 1040a Books, supplies, and equipment. Tax planning us 1040a Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible educational institution. Tax planning us 1040a Expenses for room and board must be incurred by students who are enrolled at least half-time. Tax planning us 1040a The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Tax planning us 1040a The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Tax planning us 1040a The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Tax planning us 1040a You will need to contact the eligible educational institution for qualified room and board costs. Tax planning us 1040a    For tax years after 2010, the purchase of computer technology or equipment is only a qualified education expense if the computer technology or equipment is required for enrollment or attendance at an eligible institution. Tax planning us 1040a Designated beneficiary. Tax planning us 1040a   The designated beneficiary is generally the student (or future student) for whom the QTP is intended to provide benefits. Tax planning us 1040a The designated beneficiary can be changed after participation in the QTP begins. Tax planning us 1040a If a state or local government or certain tax-exempt organizations purchase an interest in a QTP as part of a scholarship program, the designated beneficiary is the person who receives the interest as a scholarship. Tax planning us 1040a Half-time student. Tax planning us 1040a   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic workload for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Tax planning us 1040a Eligible educational institution. Tax planning us 1040a   For purposes of a QTP, this is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Tax planning us 1040a S. Tax planning us 1040a Department of Education. Tax planning us 1040a It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Tax planning us 1040a The educational institution should be able to tell you if it is an eligible educational institution. Tax planning us 1040a   Certain educational institutions located outside the United States also participate in the U. Tax planning us 1040a S. Tax planning us 1040a Department of Education's Federal Student Aid (FSA) programs. Tax planning us 1040a   How Much Can You Contribute Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified education expenses of the beneficiary. Tax planning us 1040a There are no income restrictions on the individual contributors. Tax planning us 1040a You can contribute to both a QTP and a Coverdell ESA in the same year for the same designated beneficiary. Tax planning us 1040a   Are Distributions Taxable The part of a distribution representing the amount paid or contributed to a QTP does not have to be included in income. Tax planning us 1040a This is a return of the investment in the plan. Tax planning us 1040a The designated beneficiary generally does not have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified education expenses (defined under Figuring the Taxable Portion of a Distribution , later). Tax planning us 1040a Earnings and return of investment. Tax planning us 1040a    You will receive a Form 1099-Q, from each of the programs from which you received a QTP distribution in 2013. Tax planning us 1040a The amount of your gross distribution (box 1) shown on each form will be divided between your earnings (box 2) and your basis, or return of investment (box 3). Tax planning us 1040a Form 1099-Q should be sent to you by January 31, 2014. Tax planning us 1040a Figuring the Taxable Portion of a Distribution To determine if total distributions for the year are more or less than the amount of qualified education expenses, you must compare the total of all QTP distributions for the tax year to the adjusted qualified education expenses. Tax planning us 1040a Adjusted qualified education expenses. Tax planning us 1040a   This amount is the total qualified education expenses reduced by any tax-free educational assistance. Tax planning us 1040a Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Tax planning us 1040a Taxable earnings. Tax planning us 1040a   Use the following steps to figure the taxable part. Tax planning us 1040a Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. Tax planning us 1040a The numerator is the adjusted qualified education expenses paid during the year and the denominator is the total amount distributed during the year. Tax planning us 1040a Subtract the amount figured in (1) from the total distributed earnings. Tax planning us 1040a The result is the amount the beneficiary must include in income. Tax planning us 1040a Report it on Form 1040 or Form 1040NR, line 21. Tax planning us 1040a Example 1. Tax planning us 1040a In 2007, Sara Clarke's parents opened a savings account for her with a QTP maintained by their state government. Tax planning us 1040a Over the years they contributed $18,000 to the account. Tax planning us 1040a The total balance in the account was $27,000 on the date the distribution was made. Tax planning us 1040a In the summer of 2013, Sara enrolled in college and had $8,300 of qualified education expenses for the rest of the year. Tax planning us 1040a She paid her college expenses from the following sources. Tax planning us 1040a   Gift from parents $1,600     Partial tuition scholarship (tax-free) 3,100     QTP distribution 5,300           Before Sara can determine the taxable part of her QTP distribution, she must reduce her total qualified education expenses by any tax-free educational assistance. Tax planning us 1040a   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Equals: Adjusted qualified  education expenses (AQEE) $5,200   Since the remaining expenses ($5,200) are less than the QTP distribution, part of the earnings will be taxable. Tax planning us 1040a Sara's Form 1099-Q shows that $950 of the QTP distribution is earnings. Tax planning us 1040a Sara figures the taxable part of the distributed earnings as follows. Tax planning us 1040a   1. Tax planning us 1040a $950 (earnings) × $5,200 AQEE  $5,300 distribution           =$932 (tax-free earnings)     2. Tax planning us 1040a $950 (earnings)−$932 (tax-free earnings)     =$18 (taxable earnings)  Sara must include $18 in income (Form 1040, line 21) as distributed QTP earnings not used for adjusted qualified education expenses. Tax planning us 1040a Coordination With American Opportunity and Lifetime Learning Credits An American opportunity or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Tax planning us 1040a This means that after the beneficiary reduces qualified education expenses by tax-free educational assistance, he or she must further reduce them by the expenses taken into account in determining the credit. Tax planning us 1040a Example 2. Tax planning us 1040a Assume the same facts as in Example 1 , except that Sara's parents claimed an American opportunity credit of $2,500 (based on $4,000 expenses). Tax planning us 1040a   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Minus: Expenses taken into account  in figuring American opportunity credit −4,000     Equals: Adjusted qualified  education expenses (AQEE) $1,200           The taxable part of the distribution is figured as follows. Tax planning us 1040a   1. Tax planning us 1040a $950 (earnings) × $1,200 AQEE  $5,300 distribution           =$215 (tax-free earnings)     2. Tax planning us 1040a $950 (earnings)−$215 (tax-free earnings)     =$735 (taxable earnings)       Sara must include $735 in income (Form 1040, line 21). Tax planning us 1040a This represents distributed earnings not used for adjusted qualified education expenses. Tax planning us 1040a Coordination With Coverdell ESA Distributions If a designated beneficiary receives distributions from both a QTP and a Coverdell ESA in the same year, and the total of these distributions is more than the beneficiary's adjusted qualified higher education expenses, the expenses must be allocated between the distributions. Tax planning us 1040a For purposes of this allocation, disregard any qualified elementary and secondary education expenses. Tax planning us 1040a Example 3. Tax planning us 1040a Assume the same facts as in Example 2 , except that instead of receiving a $5,300 distribution from her QTP, Sara received $4,600 from that account and $700 from her Coverdell ESA. Tax planning us 1040a In this case, Sara must allocate her $1,200 of adjusted qualified higher education expenses (AQHEE) between the two distributions. Tax planning us 1040a   $1,200 AQHEE × $700 ESA distribution  $5,300 total distribution = $158 AQHEE (ESA)     $1,200 AQHEE × $4,600 QTP distribution  $5,300 total distribution = $1,042 AQHEE (QTP)   Sara then figures the taxable portion of her Coverdell ESA distribution based on qualified higher education expenses of $158, and the taxable portion of her QTP distribution based on the other $1,042. Tax planning us 1040a Note. Tax planning us 1040a If you are required to allocate your expenses between Coverdell ESA and QTP distributions, and you have adjusted qualified elementary and secondary education expenses, see the examples in chapter 7, Coverdell Education Savings Account under Coordination With Qualified Tuition Program (QTP) Distributions . Tax planning us 1040a Coordination With Tuition and Fees Deduction. Tax planning us 1040a   A tuition and fees deduction can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Tax planning us 1040a Losses on QTP Investments If you have a loss on your investment in a QTP account, you may be able to take the loss on your income tax return. Tax planning us 1040a You can take the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Tax planning us 1040a Your basis is the total amount of contributions to that QTP account. Tax planning us 1040a You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. Tax planning us 1040a If you have distributions from more than one QTP account during a year, you must combine the information (amount of distribution, basis, etc. Tax planning us 1040a ) from all such accounts in order to determine your taxable earnings for the year. Tax planning us 1040a By doing this, the loss from one QTP account reduces the distributed earnings (if any) from any other QTP accounts. Tax planning us 1040a Example 1. Tax planning us 1040a In 2013, Taylor received a final distribution of $1,000 from QTP #1. Tax planning us 1040a His unrecovered basis in that account before the distribution was $3,000. Tax planning us 1040a If Taylor itemizes his deductions, he can claim the $2,000 loss on Schedule A (Form 1040). Tax planning us 1040a Example 2. Tax planning us 1040a Assume the same facts as in Example 1 , except that Taylor also had a distribution of $9,000 from QTP #2, giving him total distributions for 2013 of $10,000. Tax planning us 1040a His total basis in these distributions was $4,500 ($3,000 for QTP #1 and $1,500 for QTP #2). Tax planning us 1040a Taylor's adjusted qualified education expenses for 2013 totaled $6,000. Tax planning us 1040a In order to figure his taxable earnings, Taylor combines the two accounts and determines his taxable earnings as follows. Tax planning us 1040a   1. Tax planning us 1040a $10,000 (total distribution)−$4,500 (basis portion of distribution)     = $5,500 (earnings included in distribution)   2. Tax planning us 1040a $5,500 (earnings) x $6,000 AQEE  $10,000 distribution           =$3,300 (tax-free earnings)     3. Tax planning us 1040a $5,500 (earnings)−$3,300 (tax-free earnings)     =$2,200 (taxable earnings)                 Taylor must include $2,200 in income on Form 1040, line 21. Tax planning us 1040a Because Taylor's accounts must be combined, he cannot deduct his $2,000 loss (QTP #1) on Schedule A (Form 1040). Tax planning us 1040a Instead, the $2,000 loss reduces the total earnings that were distributed, thereby reducing his taxable earnings. Tax planning us 1040a Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. Tax planning us 1040a Exceptions. Tax planning us 1040a   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. Tax planning us 1040a Made because the designated beneficiary is disabled. Tax planning us 1040a A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. Tax planning us 1040a A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. Tax planning us 1040a Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Tax planning us 1040a Made on account of the attendance of the designated beneficiary at a U. Tax planning us 1040a S. Tax planning us 1040a military academy (such as the USNA at Annapolis). Tax planning us 1040a This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. Tax planning us 1040a S. Tax planning us 1040a Code) attributable to such attendance. Tax planning us 1040a Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier. Tax planning us 1040a ) Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. Tax planning us 1040a Figuring the additional tax. Tax planning us 1040a    Use Part II of Form 5329, to figure any additional tax. Tax planning us 1040a Report the amount on Form 1040, line 58, or Form 1040NR, line 56. Tax planning us 1040a Rollovers and Other Transfers Assets can be rolled over or transferred from one QTP to another. Tax planning us 1040a In addition, the designated beneficiary can be changed without transferring accounts. Tax planning us 1040a Rollovers Any amount distributed from a QTP is not taxable if it is rolled over to another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse). Tax planning us 1040a An amount is rolled over if it is paid to another QTP within 60 days after the date of the distribution. Tax planning us 1040a Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. Tax planning us 1040a These are not taxable distributions. Tax planning us 1040a Members of the beneficiary's family. Tax planning us 1040a   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. Tax planning us 1040a Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Tax planning us 1040a Brother, sister, stepbrother, or stepsister. Tax planning us 1040a Father or mother or ancestor of either. Tax planning us 1040a Stepfather or stepmother. Tax planning us 1040a Son or daughter of a brother or sister. Tax planning us 1040a Brother or sister of father or mother. Tax planning us 1040a Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Tax planning us 1040a The spouse of any individual listed above. Tax planning us 1040a First cousin. Tax planning us 1040a Example. Tax planning us 1040a When Aaron graduated from college last year he had $5,000 left in his QTP. Tax planning us 1040a He wanted to give this money to his younger brother, who was in junior high school. Tax planning us 1040a In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his brother's QTP within 60 days of the distribution. Tax planning us 1040a If the rollover is to another QTP for the same beneficiary, only one rollover is allowed within 12 months of a previous transfer to any QTP for that designated beneficiary. Tax planning us 1040a Changing the Designated Beneficiary There are no income tax consequences if the designated beneficiary of an account is changed to a member of the beneficiary's family. Tax planning us 1040a See Members of the beneficiary's family , earlier. Tax planning us 1040a Example. Tax planning us 1040a Assume the same situation as in the last example. Tax planning us 1040a Instead of closing his QTP and paying the distribution into his brother's QTP, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his brother. Tax planning us 1040a Prev  Up  Next   Home   More Online Publications