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

Turbotax 2011 Free Federal Edition

H & R Block Free Online Taxes1040ez Instructions 2012Free State Tax Filing 2014File Your State Taxes FreeFree Turbo Tax 2011E File Tax ReturnsFile 2010 Taxes Online1040 Ez Tax Form 20121040 ExFile 2012 Taxes FreeIrs Amended Tax Form 1040xHow To File An Ammended ReturnTurbo Tax 2010Free File For State Taxes2009 Tax FormIrs Amendment Form InstructionsFree E File 2011 TaxesH&r Block Tax ReturnsAarp Free Tax PreparationFree State Tax Returns With FederalFile Back Tax Returns2012 Irs Tax Forms 1040Tax Rates And TablesH&r Block Free FileTax 1040xTax Forms For 2012Irs Tax Amendment FormTurbo Tax 1040nrFiling Late Returns1040ez 2011 Online FormFree State Income Tax E FilePowered By Jforum Tax Help FreeFree E File State TaxesFree Federal And State Tax FilingFree Taxes For 20122012 Federal Tax Return FormsNavy FederalFree Taxes OnlineFree Tax Filing Federal And StateFree 2011 Tax Software

Turbotax 2011 Free Federal Edition

Turbotax 2011 free federal edition Publication 4492-B - Main Content Table of Contents DefinitionsMidwestern Disaster Areas Applicable Disaster Date Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Casualty and Theft LossesTime limit for making election. Turbotax 2011 free federal edition Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesEmployee Retention Credit Employer Housing Credit and Exclusion Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Turbotax 2011 free federal edition Definitions The following definitions are used throughout this publication. Turbotax 2011 free federal edition Midwestern Disaster Areas A Midwestern disaster area is an area for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of severe storms, tornadoes, or flooding that occurred on the applicable disaster date. Turbotax 2011 free federal edition See Tables 1 and 2 for a list of the counties included in the Midwestern disaster areas. Turbotax 2011 free federal edition Applicable Disaster Date The term “applicable disaster date” as used in this publication, refers to the date on which the severe storms, tornadoes, or flooding occurred in the Midwestern disaster areas. Turbotax 2011 free federal edition You will need to know this date when using this publication for the various tax provisions. Turbotax 2011 free federal edition Table 1 The counties listed in Table 1 below are eligible for all tax provisions shown in this publication. Turbotax 2011 free federal edition Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 05/02/2008through05/12/2008 Arkansas Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline, and Van Buren. Turbotax 2011 free federal edition 06/01/2008through07/22/2008 Illinois Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago. Turbotax 2011 free federal edition 05/30/2008through06/27/2008 Indiana Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne. Turbotax 2011 free federal edition 05/25/2008through08/13/2008 Iowa Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth, and Wright. Turbotax 2011 free federal edition 05/10/2008through05/11/2008 Missouri Barry, Jasper, and Newton. Turbotax 2011 free federal edition 06/01/2008through08/13/2008 Missouri Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. Turbotax 2011 free federal edition Charles, Stone, Taney, Vernon, and Webster. Turbotax 2011 free federal edition 05/22/2008through06/24/2008 Nebraska Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy, and Saunders. Turbotax 2011 free federal edition 06/05/2008through07/25/2008 Wisconsin Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago. Turbotax 2011 free federal edition *For more details, go to www. Turbotax 2011 free federal edition fema. Turbotax 2011 free federal edition gov Table 2 The counties listed in Table 2 below are eligible for all of the special tax provisions shown in this publication except the following. Turbotax 2011 free federal edition Charitable Giving Incentives. Turbotax 2011 free federal edition Net Operating Losses. Turbotax 2011 free federal edition Education Credits. Turbotax 2011 free federal edition Recapture of Federal Mortgage Subsidy. Turbotax 2011 free federal edition Tax Relief for Temporary Relocation. Turbotax 2011 free federal edition Employee Retention Credit. Turbotax 2011 free federal edition Employer Housing Credit and Exclusion. Turbotax 2011 free federal edition Demolition and Clean-up Costs. Turbotax 2011 free federal edition Increase in Rehabilitation Credit. Turbotax 2011 free federal edition Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 06/01/2008through07/22/2008 Illinois Greene, Madison, Monroe, Pike, Randolph, St. Turbotax 2011 free federal edition Clair, and Scott. Turbotax 2011 free federal edition 05/30/2008through06/27/2008 Indiana Benton, Boone, Fountain, Franklin, Jay, Montgomery, Ohio, Switzerland, Union, and Wabash. Turbotax 2011 free federal edition 05/25/2008through08/13/2008 Iowa Carroll, Cherokee, Lyon, Palo Alto, Pocahontas, Taylor, and Wayne. Turbotax 2011 free federal edition 05/22/2008through06/16/2008 Kansas Barber, Barton, Bourbon, Brown, Butler, Chautauqua, Cherokee, Clark, Clay, Comanche, Cowley, Crawford, Decatur, Dickinson, Edwards, Elk, Ellis, Ellsworth, Franklin, Gove, Graham, Harper, Haskell, Hodgeman, Jackson, Jewell, Kingman, Kiowa, Lane, Linn, Logan, Mitchell, Montgomery, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Reno, Republic, Riley, Rooks, Rush, Saline, Seward, Sheridan, Smith, Stafford, Sumner, Thomas, Trego, Wallace, and Wilson. Turbotax 2011 free federal edition 06/06/2008through06/13/2008 Michigan Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, Saginaw, and Wexford. Turbotax 2011 free federal edition 06/06/2008through06/12/2008 Minnesota Cook, Fillmore, Freeborn, Houston, Mower, and Nobles. Turbotax 2011 free federal edition 06/01/2008through08/13/2008 Missouri Atchison, Audrain, Bates, Buchanan, Cape Girardeau, Carroll, Christian, Daviess, Grundy, Howard, Jefferson, Knox, Mercer, Miller, Mississippi, Morgan, New Madrid, Pemiscot, Perry, Pettis, Platte, Polk, Randolph, Ray, Saline, Schuyler, Scotland, Shelby, St. Turbotax 2011 free federal edition Genevieve, St. Turbotax 2011 free federal edition Louis, the Independent City of St. Turbotax 2011 free federal edition Louis, Scott, Sullivan, and Worth. Turbotax 2011 free federal edition 04/23/2008through04/26/2008 Nebraska Gage, Johnson, Morrill, Nemaha, and Pawnee. Turbotax 2011 free federal edition 05/22/2008through06/24/2008 Nebraska Adams, Blaine, Boone, Boyd, Brown, Burt, Cass, Chase, Cherry, Cuming, Dundy, Fillmore, Frontier, Furnas, Garfield, Gosper, Greeley, Hall, Hayes, Howard, Johnson, Keya Paha, Lincoln, Logan, Loup, Merrick, McPherson, Morrill, Nance, Nemaha, Otoe, Phelps, Polk, Red Willow, Rock, Saline, Seward, Sherman, Stanton, Thayer, Thomas, Thurston, Valley, Webster, Wheeler, and York. Turbotax 2011 free federal edition 06/27/2008 Nebraska Dodge, Douglas, Sarpy, and Saunders. Turbotax 2011 free federal edition 06/05/2008through07/25/2008 Wisconsin Lafayette. Turbotax 2011 free federal edition * For more details, go to www. Turbotax 2011 free federal edition fema. Turbotax 2011 free federal edition gov Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition Individuals. Turbotax 2011 free federal edition   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% of adjusted gross income (AGI) limit. Turbotax 2011 free federal edition A qualified contribution is a charitable contribution paid in cash or by check to a 50% limit organization if you make an election to have the 50% limit not apply to these contributions. Turbotax 2011 free federal edition   A qualified contribution must also meet all of the following requirements. Turbotax 2011 free federal edition Be paid after May 1, 2008, and before January 1, 2009. Turbotax 2011 free federal edition The contribution must be for relief efforts in one or more Midwestern disaster areas. Turbotax 2011 free federal edition Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Turbotax 2011 free federal edition   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Turbotax 2011 free federal edition You can carry over any contributions you are not able to deduct for 2008 because of this limit. Turbotax 2011 free federal edition In 2009, the carryover of your unused qualified contributions is subject to the 50% of AGI limit. Turbotax 2011 free federal edition Exception. Turbotax 2011 free federal edition   Qualified contributions do not include contributions to certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund. Turbotax 2011 free federal edition Corporations. Turbotax 2011 free federal edition   A corporation can elect to deduct qualified cash contributions without regard to the 10% of taxable income limit if the contributions were paid after May 1, 2008, and before January 1, 2009, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund), for relief efforts in one or more Midwestern disaster areas. Turbotax 2011 free federal edition Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Turbotax 2011 free federal edition The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Turbotax 2011 free federal edition Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% of taxable income limit. Turbotax 2011 free federal edition Partners and shareholders. Turbotax 2011 free federal edition   Each partner in a partnership and each shareholder in an S corporation must make a separate election to have the appropriate limit not apply. Turbotax 2011 free federal edition More information. Turbotax 2011 free federal edition   For more information, see Publication 526 or Publication 542, Corporations. Turbotax 2011 free federal edition Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Turbotax 2011 free federal edition Standard Mileage Rate for Charitable Use of Vehicles This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition The following are special standard mileage rates in effect for 2008 for the cost of operating your vehicle for providing charitable services related only to the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition 36 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Turbotax 2011 free federal edition 41 cents per mile for the period July 1 through December 31, 2008. Turbotax 2011 free federal edition Mileage Reimbursements to Charitable Volunteers This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger vehicle for the benefit of a qualified charitable organization in providing relief related to the severe storms, tornadoes, or flooding during the period beginning on the applicable disaster date, and ending on December 31, 2008. Turbotax 2011 free federal edition You cannot claim a deduction or credit for amounts you exclude. Turbotax 2011 free federal edition You must keep records of miles driven, time, place (or use), and purpose of the mileage. Turbotax 2011 free federal edition The amount you can exclude cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Turbotax 2011 free federal edition 50. Turbotax 2011 free federal edition 5 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Turbotax 2011 free federal edition 58. Turbotax 2011 free federal edition 5 cents per mile for the period July 1 through December 31, 2008. Turbotax 2011 free federal edition Casualty and Theft Losses This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition The following paragraphs explain changes to casualty and theft losses that were caused by the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Turbotax 2011 free federal edition For more information, see Publication 547. Turbotax 2011 free federal edition Limits on personal casualty or theft losses. Turbotax 2011 free federal edition   Losses of personal use property that arose in a Midwestern disaster area on or after the applicable disaster date are not subject to the $100 or 10% of AGI limits. Turbotax 2011 free federal edition Qualifying losses include losses from casualties and thefts that arose in a Midwestern disaster area that were attributable to the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition When completing Form 4684, do not include on line 17 any losses that arose in a Midwestern disaster area. Turbotax 2011 free federal edition A loss arising in a Midwestern disaster area is not considered a loss attributable to a federally declared disaster for purposes of that line and cannot be added to your standard deduction. Turbotax 2011 free federal edition When to deduct the loss. Turbotax 2011 free federal edition   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. Turbotax 2011 free federal edition However, you can elect to deduct losses caused by the severe storms, tornadoes, or flooding on your return for the prior year. Turbotax 2011 free federal edition Special instructions for individuals who elect to claim a Midwestern disaster area casualty or theft loss for 2007. Turbotax 2011 free federal edition   Individuals filing or amending their 2007 tax return for casualty or theft losses that were attributable to the severe storms, tornadoes, or flooding should: Enter “Midwestern Disaster Area” at the top of Form 1040 or Form 1040X, and Complete the 2008 version of Form 4684. Turbotax 2011 free federal edition Cross out “2008” and enter “2007” at the top of Form 4684. Turbotax 2011 free federal edition Time limit for making election. Turbotax 2011 free federal edition   You must make this election to claim your casualty or theft loss in 2007 by the later of the following dates. Turbotax 2011 free federal edition The due date (without extensions) for filing your 2008 income tax return. Turbotax 2011 free federal edition The due date (with extensions) for filing your 2007 income tax return. Turbotax 2011 free federal edition Example. Turbotax 2011 free federal edition If you are a calendar year individual taxpayer, you have until April 15, 2009, to amend your 2007 tax return to claim a casualty or theft loss that occurred during 2008. Turbotax 2011 free federal edition Replacement Period for Nonrecognition of Gain This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Turbotax 2011 free federal edition Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a federally declared disaster area). Turbotax 2011 free federal edition However, for property that was involuntarily converted on or after the applicable disaster date, as a result of the severe storms, tornadoes, or flooding, a 5-year replacement period applies if substantially all of the use of the replacement property is in a Midwestern disaster area. Turbotax 2011 free federal edition For more information, see the Instructions for Form 4684. Turbotax 2011 free federal edition Net Operating Losses This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition Qualified disaster recovery assistance loss. Turbotax 2011 free federal edition   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Turbotax 2011 free federal edition However, the portion of an NOL that is a qualified disaster recovery assistance loss can be carried back to the 5 tax years before the NOL year. Turbotax 2011 free federal edition In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Turbotax 2011 free federal edition   A qualified disaster recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified disaster recovery assistance casualty loss (as defined below), Moving expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the employment of an individual whose main home was in a Midwestern disaster area before the applicable disaster date, who was unable to remain in that home because of the severe storms, tornadoes, or flooding, and whose main job location (after the move) is in a Midwestern disaster area, Temporary housing expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, to house employees of the taxpayer whose main job location is in a Midwestern disaster area, Depreciation or amortization allowable for any qualified disaster recovery assistance property (even if you elected not to claim the special disaster recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred on or after the applicable disaster date, and before January 1, 2011, for any damage from the severe storms, tornadoes, or flooding to property located in a Midwestern disaster area. Turbotax 2011 free federal edition Qualified disaster recovery assistance casualty loss. Turbotax 2011 free federal edition   A qualified disaster recovery assistance casualty loss is any deductible section 1231 loss of property located in a Midwestern disaster area if the loss was caused by the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the severe storms, tornadoes, or flooding of property located in a Midwestern disaster area. Turbotax 2011 free federal edition Any such loss taken into account in figuring your qualified disaster recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. Turbotax 2011 free federal edition More information. Turbotax 2011 free federal edition   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Turbotax 2011 free federal edition IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Definitions Qualified disaster recovery assistance distribution. Turbotax 2011 free federal edition   A qualified disaster recovery assistance distribution is any distribution you received from an eligible retirement plan if all of the following apply. Turbotax 2011 free federal edition The distribution was made on or after the applicable disaster date and before January 1, 2010. Turbotax 2011 free federal edition Your main home was located in a Midwestern disaster area on the applicable disaster date. Turbotax 2011 free federal edition You sustained an economic loss because of the severe storms, tornadoes, or flooding and your main home was in a Midwestern disaster area on the applicable disaster date. Turbotax 2011 free federal edition Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Turbotax 2011 free federal edition   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Qualified disaster recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. Turbotax 2011 free federal edition   The total of your qualified disaster recovery assistance distributions from all plans is limited to $100,000. Turbotax 2011 free federal edition If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you can allocate the $100,000 limit among the plans any way you choose. Turbotax 2011 free federal edition   A reduction or offset (on or after the applicable disaster date) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified disaster recovery assistance distribution. Turbotax 2011 free federal edition Eligible retirement plan. Turbotax 2011 free federal edition   An eligible retirement plan can be any of the following. Turbotax 2011 free federal edition A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Turbotax 2011 free federal edition A qualified annuity plan. Turbotax 2011 free federal edition A tax-sheltered annuity contract. Turbotax 2011 free federal edition A governmental section 457 deferred compensation plan. Turbotax 2011 free federal edition A traditional, SEP, SIMPLE, or Roth IRA. Turbotax 2011 free federal edition Main home. Turbotax 2011 free federal edition   Generally, your main home is the home where you live most of the time. Turbotax 2011 free federal edition A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Turbotax 2011 free federal edition Taxation of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition Qualified disaster recovery assistance distributions are included in income in equal amounts over three years. Turbotax 2011 free federal edition However, if you elect, you can include the entire distribution in your income in the year it was received. Turbotax 2011 free federal edition Qualified disaster recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Turbotax 2011 free federal edition However, any distributions you receive in excess of the $100,000 qualified disaster recovery assistance distribution limit may be subject to the additional tax on early distributions. Turbotax 2011 free federal edition For more information, see Form 8930. Turbotax 2011 free federal edition Repayment of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition If you choose, you generally can repay any portion of a qualified disaster recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Turbotax 2011 free federal edition Also, you can repay a qualified disaster recovery assistance distribution made on account of a hardship from a retirement plan. Turbotax 2011 free federal edition However, see Exceptions later for qualified disaster recovery assistance distributions you cannot repay. Turbotax 2011 free federal edition You have three years from the day after the date you received the distribution to make a repayment. Turbotax 2011 free federal edition Amounts that are repaid are treated as a qualified rollover and are not included in income. Turbotax 2011 free federal edition Also, a repayment of a qualified disaster recovery assistance distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Turbotax 2011 free federal edition See Form 8930 for more information on how to report repayments. Turbotax 2011 free federal edition Exceptions. Turbotax 2011 free federal edition   You cannot repay the following types of distributions. Turbotax 2011 free federal edition Qualified disaster recovery assistance distributions received as a beneficiary (other than a surviving spouse). Turbotax 2011 free federal edition Required minimum distributions. Turbotax 2011 free federal edition Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Turbotax 2011 free federal edition Repayment of Qualified Distributions for the Purchase or Construction of a Main Home This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition If you received a qualified distribution to purchase or construct a main home in a Midwestern disaster area, you can repay part or all of that distribution on or after the applicable disaster date, but no later than March 3, 2009, to an eligible retirement plan. Turbotax 2011 free federal edition For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Turbotax 2011 free federal edition To be a qualified distribution, the distribution must meet all of the following requirements. Turbotax 2011 free federal edition The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Turbotax 2011 free federal edition The distribution was received after the date that was 6 months before the day after the applicable disaster date. Turbotax 2011 free federal edition The distribution was to be used to purchase or construct a main home in a Midwestern disaster area that was not purchased or constructed because of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Amounts that are repaid before March 4, 2009, are treated as a qualified rollover and are not included in income. Turbotax 2011 free federal edition Also, a repayment of a qualified distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Turbotax 2011 free federal edition A qualified distribution not repaid before March 4, 2009, may be taxable for 2007 or 2008 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Turbotax 2011 free federal edition You must file Form 8930 if you received a qualified distribution that you repaid, in whole or in part, before March 4, 2009. Turbotax 2011 free federal edition Loans From Qualified Plans This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition The following benefits are available to qualified individuals. Turbotax 2011 free federal edition Increases to the limits for distributions treated as loans from employer plans. Turbotax 2011 free federal edition A 1-year suspension for payments due on plan loans. Turbotax 2011 free federal edition Qualified individual. Turbotax 2011 free federal edition   You are a qualified individual if your main home was located in a Midwestern disaster area on the applicable disaster date and you had an economic loss because of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Turbotax 2011 free federal edition Limits on plan loans. Turbotax 2011 free federal edition   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Turbotax 2011 free federal edition In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Turbotax 2011 free federal edition If your main home was located in a Midwestern disaster area, the higher limits apply only to loans received during the period beginning on October 3, 2008, and ending on December 31, 2009. Turbotax 2011 free federal edition One-year suspension of loan payments. Turbotax 2011 free federal edition   Payments on plan loans outstanding on or after the applicable disaster date, may be suspended for 1 year by the plan administrator. Turbotax 2011 free federal edition To qualify for the suspension, the due date for any loan payment must occur during the period beginning on the applicable disaster date and ending on December 31, 2009. Turbotax 2011 free federal edition Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition You can elect to use your 2007 earned income to figure your earned income credit (EIC) and additional child tax credit for 2008 if: Your 2008 earned income is less than your 2007 earned income, and At least one of the following statements is true. Turbotax 2011 free federal edition Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 1. Turbotax 2011 free federal edition Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 2, and you were displaced from that home because of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Earned income. Turbotax 2011 free federal edition    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Turbotax 2011 free federal edition If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Turbotax 2011 free federal edition Joint returns. Turbotax 2011 free federal edition   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Turbotax 2011 free federal edition If you make the election, your 2007 earned income is the sum of your 2007 earned income and your spouse's 2007 earned income. Turbotax 2011 free federal edition Making the election. Turbotax 2011 free federal edition   If you make the election to use your 2007 earned income, the election applies for figuring both the EIC and the additional child tax credit. Turbotax 2011 free federal edition However, you can make the election for the additional child tax credit even if you do not take the EIC. Turbotax 2011 free federal edition   Electing to use your 2007 earned income can increase or decrease your EIC. Turbotax 2011 free federal edition Take the following steps to decide whether to make the election. Turbotax 2011 free federal edition Figure your 2008 EIC using your 2007 earned income. Turbotax 2011 free federal edition Figure your 2008 additional child tax credit using your 2007 earned income for EIC purposes. Turbotax 2011 free federal edition Add the results of (1) and (2). Turbotax 2011 free federal edition Figure your 2008 EIC using your 2008 earned income. Turbotax 2011 free federal edition Figure your 2008 additional child tax credit using your 2008 earned income for additional child tax credit purposes. Turbotax 2011 free federal edition Add the results of (4) and (5). Turbotax 2011 free federal edition Compare the results of (3) and (6). Turbotax 2011 free federal edition If (3) is larger than (6), it is to your benefit to make the election. Turbotax 2011 free federal edition If (3) is equal to or smaller than (6), making the election will not help you. Turbotax 2011 free federal edition   If you elect to use your 2007 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2007 earned income on the dotted line next to line 64a of Form 1040, on the line next to line 40a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Turbotax 2011 free federal edition   If you elect to use your 2007 earned income and you are claiming the additional child tax credit, enter your 2007 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Turbotax 2011 free federal edition Getting your 2007 tax return information. Turbotax 2011 free federal edition   If you do not have your 2007 tax records, you can get the amount of earned income used to figure your 2007 EIC by calling 1-866-562-5227. Turbotax 2011 free federal edition You can also get this information by visiting the IRS website at www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov. Turbotax 2011 free federal edition   If you prefer to figure your 2007 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Turbotax 2011 free federal edition See Request for Copy or Transcript of Tax Return on page 11. Turbotax 2011 free federal edition Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition You can claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition The additional exemption amount is claimed on Form 8914. Turbotax 2011 free federal edition You can claim an additional exemption amount only one time for a specific individual. Turbotax 2011 free federal edition If you claimed an additional exemption amount for an individual in 2008, you cannot claim that amount again for the same individual in 2009. Turbotax 2011 free federal edition The maximum additional exemption amount you can claim for all displaced individuals is $2,000. Turbotax 2011 free federal edition Any additional exemption amount you claimed for displaced individuals in 2008 will reduce the $2,000 maximum for 2009. Turbotax 2011 free federal edition The $2,000 limit applies to a husband and wife, whether the husband and wife file joint returns or separate returns. Turbotax 2011 free federal edition If married filing separately, the $2,000 can be divided in $500 increments between the spouses. Turbotax 2011 free federal edition For example, if one spouse claims an additional exemption amount for one displaced individual, the other spouse, if otherwise eligible, can claim additional exemption amounts for three different displaced individuals. Turbotax 2011 free federal edition If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Turbotax 2011 free federal edition In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Turbotax 2011 free federal edition To qualify as a displaced individual, the individual: Must have had his or her main home in a Midwestern disaster area on the applicable disaster date, and he or she must have been displaced from that home. Turbotax 2011 free federal edition If the individual's main home was located in a Midwestern disaster area as shown in Table 2, that home must have been damaged by the severe storms, tornadoes, or flooding or the individual must have been evacuated from that home because of the severe storms, tornadoes, or flooding, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Turbotax 2011 free federal edition You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Turbotax 2011 free federal edition You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Turbotax 2011 free federal edition Food, clothing, or personal items consumed or used by the displaced individual. Turbotax 2011 free federal edition Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Turbotax 2011 free federal edition Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Turbotax 2011 free federal edition However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Turbotax 2011 free federal edition Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Turbotax 2011 free federal edition For more information, see Form 8914. Turbotax 2011 free federal edition Education Credits This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition The education credits have been expanded for students attending an eligible educational institution located in a Midwestern disaster area (Midwestern disaster area students) for any tax year beginning in 2008 or 2009. Turbotax 2011 free federal edition The Hope credit for a Midwestern disaster area student is increased to 100% of the first $2,400 in qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. Turbotax 2011 free federal edition The lifetime learning credit rate for a Midwestern disaster area student is increased from 20% to 40%. Turbotax 2011 free federal edition The definition of qualified education expenses for a Midwestern disaster area student also has been expanded. Turbotax 2011 free federal edition This expanded definition also applies to the tuition and fees deduction claimed on Form 8917. Turbotax 2011 free federal edition In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a Midwestern disaster area student include the following. Turbotax 2011 free federal edition Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Turbotax 2011 free federal edition For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Turbotax 2011 free federal edition For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Turbotax 2011 free federal edition 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. Turbotax 2011 free federal edition The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Turbotax 2011 free federal edition You will need to contact the eligible educational institution for qualified room and board costs. Turbotax 2011 free federal edition For more information, see Form 8863. Turbotax 2011 free federal edition See Form 8917 for the tuition and fees deduction. Turbotax 2011 free federal edition Recapture of Federal Mortgage Subsidy This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Turbotax 2011 free federal edition However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Turbotax 2011 free federal edition This amount is increased to $150,000 if the loan was provided before 2011 and was used to alter, repair, or improve an existing owner-occupied residence in a Midwestern disaster area as shown in Table 1. Turbotax 2011 free federal edition Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Turbotax 2011 free federal edition Generally, discharges of nonbusiness debts (such as mortgages) made on or after the applicable disaster date and before January 1, 2010, are excluded from income for individuals whose main home was in a Midwestern disaster area on the applicable disaster date. Turbotax 2011 free federal edition If the individual's main home was located in a Midwestern disaster area as shown in Table 2, the individual also must have had an economic loss because of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Turbotax 2011 free federal edition This relief does not apply to any debt secured by real property located outside a Midwestern disaster area. Turbotax 2011 free federal edition You may also have to reduce certain tax attributes by the amount excluded. Turbotax 2011 free federal edition For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Turbotax 2011 free federal edition Tax Relief for Temporary Relocation This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition The IRS can adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2008 or 2009 as a result of a temporary relocation caused by the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Turbotax 2011 free federal edition The IRS has exercised this authority as follows. Turbotax 2011 free federal edition In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition You can treat as a student an individual who enrolled in school before the applicable disaster date, and who is unable to attend classes because of the severe storms, tornadoes, or flooding, for each month of the enrollment period that individual is prevented by the severe storms, tornadoes, or flooding from attending school as planned. Turbotax 2011 free federal edition Additional Tax Relief for Businesses Employee Retention Credit This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition An eligible employer who conducted an active trade or business in a Midwestern disaster area can claim the employee retention credit. Turbotax 2011 free federal edition The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Turbotax 2011 free federal edition Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Turbotax 2011 free federal edition Use Form 5884-A to claim the credit. Turbotax 2011 free federal edition Employers affected by the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition   The following definitions apply to employers affected by the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Eligible employer. Turbotax 2011 free federal edition   For this purpose, an eligible employer is any employer who meets all of the following. Turbotax 2011 free federal edition Employed an average of not more than 200 employees on business days during the tax year before the applicable disaster date. Turbotax 2011 free federal edition Conducted an active trade or business on the applicable disaster date in a Midwestern disaster area. Turbotax 2011 free federal edition Whose trade or business was inoperable on any day after the applicable disaster date and before January 1, 2009, because of the damage caused by the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Eligible employee. Turbotax 2011 free federal edition   For this purpose, an eligible employee is an employee whose principal place of employment on the applicable disaster date with such eligible employer was in a Midwestern disaster area. Turbotax 2011 free federal edition An employee is not an eligible employee for purposes of the severe storms, tornadoes, or flooding if the employee is treated as an eligible employee for the work opportunity credit. Turbotax 2011 free federal edition Qualified wages. Turbotax 2011 free federal edition   Qualified wages are wages (up to $6,000 per employee) you paid or incurred before January 1, 2009, for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable disaster, and ending on the date your trade or business resumed significant operations at that place. Turbotax 2011 free federal edition In addition, the wages must have been paid or incurred after the applicable disaster date. Turbotax 2011 free federal edition    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Turbotax 2011 free federal edition    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Turbotax 2011 free federal edition Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Turbotax 2011 free federal edition Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Turbotax 2011 free federal edition   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Turbotax 2011 free federal edition For a special rule that applies to railroad employees, see section 51(h)(1)(B). Turbotax 2011 free federal edition   Qualified wages do not include the following. Turbotax 2011 free federal edition Wages paid to your dependent or a related individual. Turbotax 2011 free federal edition See section 51(i)(1). Turbotax 2011 free federal edition Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Turbotax 2011 free federal edition Wages for services of replacement workers during a strike or lockout. Turbotax 2011 free federal edition   For more information, see Form 5884-A. Turbotax 2011 free federal edition Employer Housing Credit and Exclusion This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition An employer who conducted an active trade or business in a Midwestern disaster area can claim the employer housing credit. Turbotax 2011 free federal edition The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from November 1, 2008, through May 1, 2009. Turbotax 2011 free federal edition The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Turbotax 2011 free federal edition Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Turbotax 2011 free federal edition The employer must use Form 5884-A to claim the credit. Turbotax 2011 free federal edition A qualified employee is an individual who had a main home in a Midwestern disaster area on the applicable disaster date, and who performs substantially all employment services in a Midwestern disaster area for the employer furnishing the lodging. Turbotax 2011 free federal edition The employee cannot be your dependent or a related individual. Turbotax 2011 free federal edition See section 51(i)(1). Turbotax 2011 free federal edition For more information, see Form 5884-A. Turbotax 2011 free federal edition Demolition and Clean-up Costs This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition You can elect to deduct 50% of any qualified disaster recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Turbotax 2011 free federal edition Qualified disaster recovery assistance clean-up costs are any amounts paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the removal of debris from, or the demolition of structures on, real property located in a Midwestern disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Turbotax 2011 free federal edition Qualified disaster recovery assistance clean-up costs are limited to amounts necessary due to damage attributable to the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Turbotax 2011 free federal edition Increase in Rehabilitation Tax Credit This benefit applies only to the counties in Table 1. Turbotax 2011 free federal edition The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred on or after the applicable disaster date, and before January 1, 2012, on buildings located in a Midwestern disaster area as follows. Turbotax 2011 free federal edition For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Turbotax 2011 free federal edition For certified historic structures, the credit percentage is increased from 20% to 26%. Turbotax 2011 free federal edition For more information, see Form 3468, Investment Credit. Turbotax 2011 free federal edition Request for Copy or Transcript of Tax Return Request for copy of tax return. Turbotax 2011 free federal edition   You can use Form 4506 to order a copy of your tax return. Turbotax 2011 free federal edition Generally, there is a $57 fee for requesting each copy of a tax return. Turbotax 2011 free federal edition If your main home, principal place of business, or tax records are located in a Midwestern disaster area, the fee will be waived if “Midwestern Disaster Area” is written in red across the top of the form when filed. Turbotax 2011 free federal edition Request for transcript of tax return. Turbotax 2011 free federal edition   You can use Form 4506-T to order a free transcript of your tax return. Turbotax 2011 free federal edition A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Turbotax 2011 free federal edition You can also call 1-800-829-1040 to order a transcript. Turbotax 2011 free federal edition How To Get Tax Help Special IRS assistance. Turbotax 2011 free federal edition   The IRS is providing special help for those affected by the severe storms, tornadoes, or flooding, as well as survivors and personal representatives of the victims. Turbotax 2011 free federal edition We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by recent federally declared disasters, or who have other tax issues related to the severe storms, tornadoes, or flooding. Turbotax 2011 free federal edition Call 1-866-562-5227 Monday through FridayIn English–7 a. Turbotax 2011 free federal edition m. Turbotax 2011 free federal edition to 10 p. Turbotax 2011 free federal edition m. Turbotax 2011 free federal edition local timeIn Spanish–8 a. Turbotax 2011 free federal edition m. Turbotax 2011 free federal edition to 9:30 p. Turbotax 2011 free federal edition m. Turbotax 2011 free federal edition local time   The IRS website at www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov has notices and other tax relief information. Turbotax 2011 free federal edition Check it periodically for any new guidance. Turbotax 2011 free federal edition You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Turbotax 2011 free federal edition By selecting the method that is best for you, you will have quick and easy access to tax help. Turbotax 2011 free federal edition Contacting your Taxpayer Advocate. Turbotax 2011 free federal edition   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Turbotax 2011 free federal edition Here are seven things every taxpayer should know about TAS: TAS is your voice at the IRS. Turbotax 2011 free federal edition Our service is free, confidential, and tailored to meet your needs. Turbotax 2011 free federal edition You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. Turbotax 2011 free federal edition TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. Turbotax 2011 free federal edition This includes businesses as well as individuals. Turbotax 2011 free federal edition TAS employees know the IRS and how to navigate it. Turbotax 2011 free federal edition We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. Turbotax 2011 free federal edition TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. Turbotax 2011 free federal edition You can call your local advocate, whose number is in your phone book, in Pub. Turbotax 2011 free federal edition 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov/advocate. Turbotax 2011 free federal edition You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Turbotax 2011 free federal edition You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. Turbotax 2011 free federal edition taxtoolkit. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov. Turbotax 2011 free federal edition Low Income Taxpayer Clinics (LITCs). Turbotax 2011 free federal edition   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. Turbotax 2011 free federal edition LITCs are independent from the IRS. Turbotax 2011 free federal edition Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. Turbotax 2011 free federal edition If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. Turbotax 2011 free federal edition For more information, see Publication 4134, Low Income Taxpayer Clinic List. Turbotax 2011 free federal edition This publication is available at www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. Turbotax 2011 free federal edition Free tax services. Turbotax 2011 free federal edition   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Turbotax 2011 free federal edition It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. Turbotax 2011 free federal edition It also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on your telephone. Turbotax 2011 free federal edition   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Turbotax 2011 free federal edition Free help with your return. Turbotax 2011 free federal edition   Free help in preparing your return is available nationwide from IRS-trained volunteers. Turbotax 2011 free federal edition The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Turbotax 2011 free federal edition Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Turbotax 2011 free federal edition To find the nearest VITA or TCE site, call 1-800-829-1040. Turbotax 2011 free federal edition   As part of the TCE program, AARP offers the Tax-Aide counseling program. Turbotax 2011 free federal edition To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website atwww. Turbotax 2011 free federal edition aarp. Turbotax 2011 free federal edition org/money/taxaide. Turbotax 2011 free federal edition   For more information on these programs, go to www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov and enter keyword “VITA” in the upper right-hand corner. Turbotax 2011 free federal edition Internet. Turbotax 2011 free federal edition You can access the IRS website at www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov 24 hours a day, 7 days a week to: E-file your return. Turbotax 2011 free federal edition Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Turbotax 2011 free federal edition Check the status of your 2009 refund. Turbotax 2011 free federal edition Go to www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov and click on Where's My Refund. Turbotax 2011 free federal edition Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Turbotax 2011 free federal edition If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Turbotax 2011 free federal edition Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Turbotax 2011 free federal edition Download forms, instructions, and publications. Turbotax 2011 free federal edition Order IRS products online. Turbotax 2011 free federal edition Research your tax questions online. Turbotax 2011 free federal edition Search publications online by topic or keyword. Turbotax 2011 free federal edition Use the online Internal Revenue Code, Regulations, or other official guidance. Turbotax 2011 free federal edition View Internal Revenue Bulletins (IRBs) published in the last few years. Turbotax 2011 free federal edition Figure your withholding allowances using the withholding calculator online at www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov/individuals. Turbotax 2011 free federal edition Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant. Turbotax 2011 free federal edition Sign up to receive local and national tax news by email. Turbotax 2011 free federal edition Get information on starting and operating a small business. Turbotax 2011 free federal edition Phone. Turbotax 2011 free federal edition Many services are available by phone. Turbotax 2011 free federal edition Ordering forms, instructions, and publications. Turbotax 2011 free federal edition Call 1-800-TAX FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Turbotax 2011 free federal edition You should receive your order within 10 days. Turbotax 2011 free federal edition Asking tax questions. Turbotax 2011 free federal edition Call the IRS with your tax questions at 1-800-829-1040. Turbotax 2011 free federal edition Solving problems. Turbotax 2011 free federal edition You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Turbotax 2011 free federal edition An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Turbotax 2011 free federal edition Call your local Taxpayer Assistance Center for an appointment. Turbotax 2011 free federal edition To find the number, go to www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Turbotax 2011 free federal edition TTY/TDD equipment. Turbotax 2011 free federal edition If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Turbotax 2011 free federal edition TeleTax topics. Turbotax 2011 free federal edition Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Turbotax 2011 free federal edition Refund information. Turbotax 2011 free federal edition To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Turbotax 2011 free federal edition Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Turbotax 2011 free federal edition If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Turbotax 2011 free federal edition Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Turbotax 2011 free federal edition Refunds are sent out weekly on Fridays. Turbotax 2011 free federal edition If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Turbotax 2011 free federal edition Other refund information. Turbotax 2011 free federal edition To check the status of a prior year refund or amended return refund, call 1-800-829-1954. Turbotax 2011 free federal edition Evaluating the quality of our telephone services. Turbotax 2011 free federal edition To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Turbotax 2011 free federal edition One method is for a second IRS representative to listen in on or record random telephone calls. Turbotax 2011 free federal edition Another is to ask some callers to complete a short survey at the end of the call. Turbotax 2011 free federal edition Walk-in. Turbotax 2011 free federal edition Many products and services are available on a walk-in basis. Turbotax 2011 free federal edition Products. Turbotax 2011 free federal edition You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Turbotax 2011 free federal edition Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Turbotax 2011 free federal edition Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Turbotax 2011 free federal edition Services. Turbotax 2011 free federal edition You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Turbotax 2011 free federal edition An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Turbotax 2011 free federal edition If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Turbotax 2011 free federal edition No appointment is necessary—just walk in. Turbotax 2011 free federal edition If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Turbotax 2011 free federal edition A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Turbotax 2011 free federal edition If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Turbotax 2011 free federal edition All other issues will be handled without an appointment. Turbotax 2011 free federal edition To find the number of your local office, go to www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Turbotax 2011 free federal edition Mail. Turbotax 2011 free federal edition You can send your order for forms, instructions, and publications to the address below. Turbotax 2011 free federal edition You should receive a response within 10 days after your request is received. Turbotax 2011 free federal edition Internal Revenue Service1201 N. Turbotax 2011 free federal edition Mitsubishi MotorwayBloomington, IL 61705-6613 DVD for tax products. Turbotax 2011 free federal edition You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Turbotax 2011 free federal edition Prior-year forms, instructions, and publications. Turbotax 2011 free federal edition Tax Map: an electronic research tool and finding aid. Turbotax 2011 free federal edition Tax law frequently asked questions. Turbotax 2011 free federal edition Tax Topics from the IRS telephone response system. Turbotax 2011 free federal edition Internal Revenue Code—Title 26 of the U. Turbotax 2011 free federal edition S. Turbotax 2011 free federal edition Code. Turbotax 2011 free federal edition Fill-in, print, and save features for most tax forms. Turbotax 2011 free federal edition Internal Revenue Bulletins. Turbotax 2011 free federal edition Toll-free and email technical support. Turbotax 2011 free federal edition Two releases during the year. Turbotax 2011 free federal edition – The first release will ship the beginning of January 2010. Turbotax 2011 free federal edition – The final release will ship the beginning of March 2010. Turbotax 2011 free federal edition Purchase the DVD from National Technical Information Service (NTIS) at www. Turbotax 2011 free federal edition irs. Turbotax 2011 free federal edition gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Turbotax 2011 free federal edition Prev  Up  Next   Home   More Online Publications
Español

USA.gov News and Media

Sign up for e-mail updates or RSS feeds from USA.gov; view public service announcements, and more.

  • E-mail Updates from USA.gov  – Sign up to get free e-mails on your favorite USA.gov topics, including benefits, consumer protection, disasters and emergencies, health and nutrition, and more.
  • RSS Feeds from USA.gov  – Stay on top of important government news, recalls, information, and apps.
  • TV and Video Clips from USA.gov  – See Transitions, USA.gov's public service announcement being broadcast on television stations across the country.
  • Radio Ads from USA.gov  – Listen to USA.gov's radio ads, or read the transcript.
  • Print Ads from USA.gov  – USA.gov print ads in color, black and white, and various sizes.
  • Consumer Publication of the Week  – Each week USA.gov features a free or low-cost publication to help you find government services, and solve consumer problems.

The Turbotax 2011 Free Federal Edition

Turbotax 2011 free federal edition 3. Turbotax 2011 free federal edition   Limit on Annual Additions Table of Contents Ministers and church employees. Turbotax 2011 free federal edition Includible Compensation for Your Most Recent Year of ServiceMost Recent Year of Service Includible Compensation The first component of MAC is the limit on annual additions. Turbotax 2011 free federal edition This is a limit on the total contributions (elective deferrals, nonelective contributions, and after-tax contributions) that can be made to your 403(b) account. Turbotax 2011 free federal edition The limit on annual additions generally is the lesser of: $51,000 for 2013 and $52,000 for 2014, or 100% of your includible compensation for your most recent year of service. Turbotax 2011 free federal edition More than one 403(b) account. Turbotax 2011 free federal edition If you contributed to more than one 403(b) account, you must combine the contributions made to all 403(b) accounts on your behalf by your employer. Turbotax 2011 free federal edition Ministers and church employees. Turbotax 2011 free federal edition   If you are a minister or a church employee, you may be able to increase your limit on annual additions or use different rules when figuring your limit on annual additions. Turbotax 2011 free federal edition For more information, see chapter 5. Turbotax 2011 free federal edition Participation in a qualified plan. Turbotax 2011 free federal edition If you participated in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pensions of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. Turbotax 2011 free federal edition You can use Part I of Worksheet 1 in chapter 9 to figure your limit on annual additions. Turbotax 2011 free federal edition Includible Compensation for Your Most Recent Year of Service Definition. Turbotax 2011 free federal edition   Generally, includible compensation for your most recent year of service is the amount of taxable wages and benefits you received from the employer that maintained a 403(b) account for your benefit during your most recent year of service. Turbotax 2011 free federal edition When figuring your includible compensation for your most recent year of service, keep in mind that your most recent year of service may not be the same as your employer's most recent annual work period. Turbotax 2011 free federal edition This can happen if your tax year is not the same as your employer's annual work period. Turbotax 2011 free federal edition When figuring includible compensation for your most recent year of service, do not mix compensation or service of one employer with compensation or service of another employer. Turbotax 2011 free federal edition Most Recent Year of Service Your most recent year of service is your last full year of service, ending on the last day of your tax year that you worked for the employer that maintained a 403(b) account on your behalf. Turbotax 2011 free federal edition Tax year different from employer's annual work period. Turbotax 2011 free federal edition   If your tax year is not the same as your employer's annual work period, your most recent year of service is made up of parts of at least two of your employer's annual work periods. Turbotax 2011 free federal edition Example. Turbotax 2011 free federal edition A professor who reports her income on a calendar-year basis is employed on a full-time basis by a university that operates on an academic year (October through May). Turbotax 2011 free federal edition To figure her includible compensation for 2013, the professor's most recent year of service is her service from January through May 2013 and from October through December 2013. Turbotax 2011 free federal edition Figuring Your Most Recent Year of Service To figure your most recent year of service, begin by determining what is a full year of service for your position. Turbotax 2011 free federal edition A full year of service is equal to full-time employment for your employer's annual work period. Turbotax 2011 free federal edition After identifying a full year of service, begin counting the service you have provided for your employer starting with the service provided in the current year. Turbotax 2011 free federal edition Part-time or employed only part of the year. Turbotax 2011 free federal edition   If you are a part-time or a full-time employee who is employed for only part of the year, your most recent year of service is your service this year and your service for as many previous years as is necessary to total 1 full year of service. Turbotax 2011 free federal edition To determine your most recent year of service, add the following periods of service: Your service during the year for which you are figuring the limit on annual additions, and Your service during your preceding tax years until the total service equals 1 year of service or you have figured all of your service with the employer. Turbotax 2011 free federal edition Example. Turbotax 2011 free federal edition You were employed on a full-time basis from July through December 2011 (1/2 year of service), July through December 2012 (1/2 year of service), and October through December 2013 (1/4 year of service). Turbotax 2011 free federal edition Your most recent year of service for computing your limit on annual additions for 2013 is the total of your service during 2013 (1/4 year of service), your service during 2012 (1/2 year of service), and your service during the months October through December 2011 (1/4 year of service). Turbotax 2011 free federal edition Not yet employed for 1 year. Turbotax 2011 free federal edition   If, at the close of the year, you have not yet worked for your employer for 1 year (including time you worked for the same employer in all earlier years), use the period of time you have worked for the employer as your most recent year of service. Turbotax 2011 free federal edition Includible Compensation After identifying your most recent year of service, the next step is to identify the includible compensation associated with that full year of service. Turbotax 2011 free federal edition Includible compensation is not the same as income included on your tax return. Turbotax 2011 free federal edition Compensation is a combination of income and benefits received in exchange for services provided to your employer. Turbotax 2011 free federal edition Generally, includible compensation is the amount of income and benefits: Received from the employer who maintains your 403(b) account, and Must be included in your income. Turbotax 2011 free federal edition Includible compensation includes the following amounts. Turbotax 2011 free federal edition Elective deferrals (employer's contributions made on your behalf under a salary reduction agreement). Turbotax 2011 free federal edition Amounts contributed or deferred by your employer under a section 125 cafeteria plan. Turbotax 2011 free federal edition Amounts contributed or deferred, at the election of the employee, under an eligible section 457 nonqualified deferred compensation plan (state or local government or tax-exempt organization plan). Turbotax 2011 free federal edition  Note. Turbotax 2011 free federal edition For information about treating elective deferrals under section 457 plans as Roth contributions, see Publication 575. Turbotax 2011 free federal edition Wages, salaries, and fees for personal services earned with the employer maintaining your 403(b) account. Turbotax 2011 free federal edition Income otherwise excluded under the foreign earned income exclusion. Turbotax 2011 free federal edition Pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan. Turbotax 2011 free federal edition Includible compensation does not include the following items. Turbotax 2011 free federal edition Your employer's contributions to your 403(b) account. Turbotax 2011 free federal edition Compensation earned while your employer was not an eligible employer. Turbotax 2011 free federal edition Your employer's contributions to a qualified plan that: Are on your behalf, and Are excludable from income. Turbotax 2011 free federal edition The cost of incidental life insurance. Turbotax 2011 free federal edition See Cost of Incidental Life Insurance, later. Turbotax 2011 free federal edition If you are a church employee or a foreign missionary, figure includible compensation using the rules explained in chapter 5. Turbotax 2011 free federal edition Contributions after retirement. Turbotax 2011 free federal edition   Nonelective contributions may be made for an employee for up to 5 years after retirement. Turbotax 2011 free federal edition These contributions would be based on includible compensation for the last year of service before retirement. Turbotax 2011 free federal edition Cost of Incidental Life Insurance Includible compensation does not include the cost of incidental life insurance. Turbotax 2011 free federal edition If all of your 403(b) accounts invest only in mutual funds, then you have no incidental life insurance. Turbotax 2011 free federal edition If you have an annuity contract, a portion of the cost of that contract may be for incidental life insurance. Turbotax 2011 free federal edition If so, the cost of the insurance is taxable to you in the year contributed and is considered part of your basis when distributed. Turbotax 2011 free federal edition Your employer will include the cost of your insurance as taxable wages in box 1 of Form W-2. Turbotax 2011 free federal edition Not all annuity contracts include life insurance. Turbotax 2011 free federal edition Contact your plan administrator to determine if your contract includes incidental life insurance. Turbotax 2011 free federal edition If it does, you will need to figure the cost of life insurance each year the policy is in effect. Turbotax 2011 free federal edition Figuring the cost of incidental life insurance. Turbotax 2011 free federal edition If you have determined that part of the cost of your annuity contract is for an incidental life insurance premium, you will need to determine the amount of the premium and subtract it from your includible compensation. Turbotax 2011 free federal edition To determine the amount of the life insurance premiums, you will need to know the following information. Turbotax 2011 free federal edition The value of your life insurance contract, which is the amount payable upon your death. Turbotax 2011 free federal edition The cash value of your life insurance contract at the end of the tax year. Turbotax 2011 free federal edition Your age on your birthday nearest the beginning of the policy year. Turbotax 2011 free federal edition Your current life insurance protection under an ordinary retirement income life insurance policy, which is the amount payable upon your death minus the cash value of the contract at the end of the year. Turbotax 2011 free federal edition You can use Worksheet A, in chapter 9, to determine the cost of your incidental life insurance. Turbotax 2011 free federal edition Example. Turbotax 2011 free federal edition Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Turbotax 2011 free federal edition Your cash value in the contract at the end of the first year is zero. Turbotax 2011 free federal edition Your current life insurance protection for the first year is $10,000 ($10,000 − 0). Turbotax 2011 free federal edition The cash value in the contract at the end of year two is $1,000, and the current life insurance protection for the second year is $9,000 ($10,000 – $1,000). Turbotax 2011 free federal edition The 1-year cost of the protection can be calculated by using Figure 3-1, Table of One-Year Term Premiums for $1,000 Life Insurance Protection . Turbotax 2011 free federal edition The premium rate is determined based on your age on your birthday nearest the beginning of the policy year. Turbotax 2011 free federal edition Figure 3-1. Turbotax 2011 free federal edition Table of One-Year Term Premiums for $1,000 Life Insurance Protection Age Cost   Age Cost   Age Cost 0 $0. Turbotax 2011 free federal edition 70   35 $0. Turbotax 2011 free federal edition 99   70 $20. Turbotax 2011 free federal edition 62 1 0. Turbotax 2011 free federal edition 41   36 1. Turbotax 2011 free federal edition 01   71 22. Turbotax 2011 free federal edition 72 2 0. Turbotax 2011 free federal edition 27   37 1. Turbotax 2011 free federal edition 04   72 25. Turbotax 2011 free federal edition 07 3 0. Turbotax 2011 free federal edition 19   38 1. Turbotax 2011 free federal edition 06   73 27. Turbotax 2011 free federal edition 57 4 0. Turbotax 2011 free federal edition 13   39 1. Turbotax 2011 free federal edition 07   74 30. Turbotax 2011 free federal edition 18 5 0. Turbotax 2011 free federal edition 13   40 1. Turbotax 2011 free federal edition 10   75 33. Turbotax 2011 free federal edition 05 6 0. Turbotax 2011 free federal edition 14   41 1. Turbotax 2011 free federal edition 13   76 36. Turbotax 2011 free federal edition 33 7 0. Turbotax 2011 free federal edition 15   42 1. Turbotax 2011 free federal edition 20   77 40. Turbotax 2011 free federal edition 17 8 0. Turbotax 2011 free federal edition 16   43 1. Turbotax 2011 free federal edition 29   78 44. Turbotax 2011 free federal edition 33 9 0. Turbotax 2011 free federal edition 16   44 1. Turbotax 2011 free federal edition 40   79 49. Turbotax 2011 free federal edition 23 10 0. Turbotax 2011 free federal edition 16   45 1. Turbotax 2011 free federal edition 53   80 54. Turbotax 2011 free federal edition 56 11 0. Turbotax 2011 free federal edition 19   46 1. Turbotax 2011 free federal edition 67   81 60. Turbotax 2011 free federal edition 51 12 0. Turbotax 2011 free federal edition 24   47 1. Turbotax 2011 free federal edition 83   82 66. Turbotax 2011 free federal edition 74 13 0. Turbotax 2011 free federal edition 28   48 1. Turbotax 2011 free federal edition 98   83 73. Turbotax 2011 free federal edition 07 14 0. Turbotax 2011 free federal edition 33   49 2. Turbotax 2011 free federal edition 13   84 80. Turbotax 2011 free federal edition 35 15 0. Turbotax 2011 free federal edition 38   50 2. Turbotax 2011 free federal edition 30   85 88. Turbotax 2011 free federal edition 76 16 0. Turbotax 2011 free federal edition 52   51 2. Turbotax 2011 free federal edition 52   86 99. Turbotax 2011 free federal edition 16 17 0. Turbotax 2011 free federal edition 57   52 2. Turbotax 2011 free federal edition 81   87 110. Turbotax 2011 free federal edition 40 18 0. Turbotax 2011 free federal edition 59   53 3. Turbotax 2011 free federal edition 20   88 121. Turbotax 2011 free federal edition 85 19 0. Turbotax 2011 free federal edition 61   54 3. Turbotax 2011 free federal edition 65   89 133. Turbotax 2011 free federal edition 40 20 0. Turbotax 2011 free federal edition 62   55 4. Turbotax 2011 free federal edition 15   90 144. Turbotax 2011 free federal edition 30 21 0. Turbotax 2011 free federal edition 62   56 4. Turbotax 2011 free federal edition 68   91 155. Turbotax 2011 free federal edition 80 22 0. Turbotax 2011 free federal edition 64   57 5. Turbotax 2011 free federal edition 20   92 168. Turbotax 2011 free federal edition 75 23 0. Turbotax 2011 free federal edition 66   58 5. Turbotax 2011 free federal edition 66   93 186. Turbotax 2011 free federal edition 44 24 0. Turbotax 2011 free federal edition 68   59 6. Turbotax 2011 free federal edition 06   94 206. Turbotax 2011 free federal edition 70 25 0. Turbotax 2011 free federal edition 71   60 6. Turbotax 2011 free federal edition 51   95 228. Turbotax 2011 free federal edition 35 26 0. Turbotax 2011 free federal edition 73   61 7. Turbotax 2011 free federal edition 11   96 250. Turbotax 2011 free federal edition 01 27 0. Turbotax 2011 free federal edition 76   62 7. Turbotax 2011 free federal edition 96   97 265. Turbotax 2011 free federal edition 09 28 0. Turbotax 2011 free federal edition 80   63 9. Turbotax 2011 free federal edition 08   98 270. Turbotax 2011 free federal edition 11 29 0. Turbotax 2011 free federal edition 83   64 10. Turbotax 2011 free federal edition 41   99 281. Turbotax 2011 free federal edition 05 30 0. Turbotax 2011 free federal edition 87   65 11. Turbotax 2011 free federal edition 90       31 0. Turbotax 2011 free federal edition 90   66 13. Turbotax 2011 free federal edition 51       32 0. Turbotax 2011 free federal edition 93   67 15. Turbotax 2011 free federal edition 20       33 0. Turbotax 2011 free federal edition 96   68 16. Turbotax 2011 free federal edition 92       34 0. Turbotax 2011 free federal edition 98   69 18. Turbotax 2011 free federal edition 70                       If the current published premium rates per $1,000 of insurance protection charged by an insurer for individual 1-year term life insurance premiums available to all standard risks are lower than those in the preceding table, you can use the lower rates for figuring the cost of insurance in connection with individual policies issued by the same insurer. Turbotax 2011 free federal edition Example 1. Turbotax 2011 free federal edition Lynne Green, age 44, and her employer enter into a 403(b) plan that will provide her with a $500 a month annuity upon retirement at age 65. Turbotax 2011 free federal edition The agreement also provides that if she should die before retirement, her beneficiary will receive the greater of $20,000 or the cash surrender value in the life insurance contract. Turbotax 2011 free federal edition Using the facts presented we can determine the cost of Lynne's life insurance protection as shown in Table 3-1. Turbotax 2011 free federal edition Lynne's employer has included $28 for the cost of the life insurance protection in her current year's income. Turbotax 2011 free federal edition When figuring her includible compensation for this year, Lynne will subtract $28. Turbotax 2011 free federal edition Table 3-1. Turbotax 2011 free federal edition Worksheet A. Turbotax 2011 free federal edition Cost of Incidental Life Insurance Note. Turbotax 2011 free federal edition Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Turbotax 2011 free federal edition This amount will be used to figure includible compensation for your most recent year of service. Turbotax 2011 free federal edition 1. Turbotax 2011 free federal edition Enter the value of the contract (amount payable upon your death) 1. Turbotax 2011 free federal edition $20,000. Turbotax 2011 free federal edition 00 2. Turbotax 2011 free federal edition Enter the cash value in the contract at the end of the year 2. Turbotax 2011 free federal edition 0. Turbotax 2011 free federal edition 00 3. Turbotax 2011 free federal edition Subtract line 2 from line 1. Turbotax 2011 free federal edition This is the value of your current life insurance protection 3. Turbotax 2011 free federal edition $20,000. Turbotax 2011 free federal edition 00 4. Turbotax 2011 free federal edition Enter your age on your birthday nearest the beginning of the policy year 4. Turbotax 2011 free federal edition 44 5. Turbotax 2011 free federal edition Enter the 1-year term premium for $1,000 of life insurance based on your age. Turbotax 2011 free federal edition (From Figure 3-1) 5. Turbotax 2011 free federal edition $1. Turbotax 2011 free federal edition 40 6. Turbotax 2011 free federal edition Divide line 3 by $1,000 6. Turbotax 2011 free federal edition 20 7. Turbotax 2011 free federal edition Multiply line 6 by line 5. Turbotax 2011 free federal edition This is the cost of your incidental life insurance 7. Turbotax 2011 free federal edition $28. Turbotax 2011 free federal edition 00 Example 2. Turbotax 2011 free federal edition Lynne's cash value in the contract at the end of the second year is $1,000. Turbotax 2011 free federal edition In year two, the cost of Lynne's life insurance is calculated as shown in Table 3-2. Turbotax 2011 free federal edition In year two, Lynne's employer will include $29. Turbotax 2011 free federal edition 07 in her current year's income. Turbotax 2011 free federal edition Lynne will subtract this amount when figuring her includible compensation. Turbotax 2011 free federal edition Table 3-2. Turbotax 2011 free federal edition Worksheet A. Turbotax 2011 free federal edition Cost of Incidental Life Insurance Note. Turbotax 2011 free federal edition Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Turbotax 2011 free federal edition This amount will be used to figure includible compensation for your most recent year of service. Turbotax 2011 free federal edition 1. Turbotax 2011 free federal edition Enter the value of the contract (amount payable upon your death) 1. Turbotax 2011 free federal edition $20,000. Turbotax 2011 free federal edition 00 2. Turbotax 2011 free federal edition Enter the cash value in the contract at the end of the year 2. Turbotax 2011 free federal edition $1,000. Turbotax 2011 free federal edition 00 3. Turbotax 2011 free federal edition Subtract line 2 from line 1. Turbotax 2011 free federal edition This is the value of your current life insurance protection 3. Turbotax 2011 free federal edition $19,000. Turbotax 2011 free federal edition 00 4. Turbotax 2011 free federal edition Enter your age on your birthday nearest the beginning of the policy year 4. Turbotax 2011 free federal edition 45 5. Turbotax 2011 free federal edition Enter the 1-year term premium for $1,000 of life insurance based on your age. Turbotax 2011 free federal edition (From Figure 3-1) 5. Turbotax 2011 free federal edition $1. Turbotax 2011 free federal edition 53 6. Turbotax 2011 free federal edition Divide line 3 by $1,000 6. Turbotax 2011 free federal edition 19 7. Turbotax 2011 free federal edition Multiply line 6 by line 5. Turbotax 2011 free federal edition This is the cost of your incidental life insurance 7. Turbotax 2011 free federal edition $29. Turbotax 2011 free federal edition 07 Figuring Includible Compensation for Your Most Recent Year of Service You can use Worksheet B in chapter 9 to determine your includible compensation for your most recent year of service. Turbotax 2011 free federal edition Example. Turbotax 2011 free federal edition Floyd has been periodically working full-time for a local hospital since September 2011. Turbotax 2011 free federal edition He needs to figure his limit on annual additions for 2014. Turbotax 2011 free federal edition The hospital's normal annual work period for employees in Floyd's general type of work runs from January to December. Turbotax 2011 free federal edition During the periods that Floyd was employed with the hospital, the hospital has always been eligible to provide a 403(b) plan to employees. Turbotax 2011 free federal edition Additionally, the hospital has never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a cafeteria plan. Turbotax 2011 free federal edition Floyd has never worked abroad and there is no life insurance provided under the plan. Turbotax 2011 free federal edition Table 3-3 shows the service Floyd provided to his employer, his compensation for the periods worked, his elective deferrals, and his taxable wages. Turbotax 2011 free federal edition Table 3-3. Turbotax 2011 free federal edition Floyd's Compensation Note. Turbotax 2011 free federal edition This table shows information Floyd will use to figure includible compensation for his most recent year of service. Turbotax 2011 free federal edition   Year Years of Service Taxable Wages Elective Deferrals 2014 6/12 of  a year $42,000 $2,000 2013 4/12 of  a year $16,000 $1,650 2012 4/12 of  a year $16,000 $1,650 Before Floyd can figure his limit on annual additions, he must figure includible compensation for his most recent year of service. Turbotax 2011 free federal edition Because Floyd is not planning to work the entire 2014 year, his most recent year of service will include the time he is planning to work in 2014 plus time he worked in the preceding 3 years until the time he worked for the hospital totals 1 year. Turbotax 2011 free federal edition If the total time he worked is less than 1 year, Floyd will treat it as if it were 1 year. Turbotax 2011 free federal edition He figures his most recent year of service shown in the following list. Turbotax 2011 free federal edition Time he will work in 2014 is 6/12 of a year. Turbotax 2011 free federal edition Time worked in 2013 is 4/12 of a year. Turbotax 2011 free federal edition All of this time will be used to determine Floyd's most recent year of service. Turbotax 2011 free federal edition Time worked in 2012 is 4/12 of a year. Turbotax 2011 free federal edition Floyd only needs 2 months of the 4 months he worked in 2012 to have enough time to total 1 full year. Turbotax 2011 free federal edition Because he needs only one-half of the actual time he worked, Floyd will use only one-half of his income earned during that period to calculate wages that will be used in figuring his includible compensation. Turbotax 2011 free federal edition Using the information provided in Table 3-3, wages for Floyd's most recent year of service are $66,000 ($42,000 + $16,000 + $8,000). Turbotax 2011 free federal edition His includible compensation for his most recent year of service is figured as shown in Table 3-4. Turbotax 2011 free federal edition After figuring his includible compensation, Floyd determines his limit on annual additions for 2014 to be $52,000, the lesser of his includible compensation, $70,475 (Table 3-4), and the maximum amount of $52,000. Turbotax 2011 free federal edition Table 3-4. Turbotax 2011 free federal edition Worksheet B. Turbotax 2011 free federal edition Includible Compensation for Your Most Recent Year of Service1 Note. Turbotax 2011 free federal edition Use this worksheet to figure includible compensation for your most recent year of service. Turbotax 2011 free federal edition 1. Turbotax 2011 free federal edition Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Turbotax 2011 free federal edition $66,000 2. Turbotax 2011 free federal edition Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Turbotax 2011 free federal edition 4,4753 3. Turbotax 2011 free federal edition Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Turbotax 2011 free federal edition -0- 4. Turbotax 2011 free federal edition Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government, or of a tax-exempt organization) for your most recent year of service 4. Turbotax 2011 free federal edition -0- 5. Turbotax 2011 free federal edition Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. Turbotax 2011 free federal edition -0- 6. Turbotax 2011 free federal edition Enter your foreign earned income exclusion for your most recent year of service 6. Turbotax 2011 free federal edition -0- 7. Turbotax 2011 free federal edition Add lines 1, 2, 3, 4, 5, and 6 7. Turbotax 2011 free federal edition 70,475 8. Turbotax 2011 free federal edition Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Turbotax 2011 free federal edition -0- 9. Turbotax 2011 free federal edition Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. Turbotax 2011 free federal edition -0- 10. Turbotax 2011 free federal edition Add lines 8 and 9 10. Turbotax 2011 free federal edition -0- 11. Turbotax 2011 free federal edition Subtract line 10 from line 7. Turbotax 2011 free federal edition This is your includible compensation for your most recent year of service 11. Turbotax 2011 free federal edition 70,475 1Use estimated amounts if figuring includible compensation before the end of the year. Turbotax 2011 free federal edition 2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Turbotax 2011 free federal edition  3$4,475 ($2,000 + $1,650 + $825). Turbotax 2011 free federal edition Prev  Up  Next   Home   More Online Publications