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Turbotax Free State Efile

Turbotax free state efile Publication 1542 - Introductory Material Table of Contents What's New IntroductionOrdering forms and publications. Turbotax free state efile Tax questions. Turbotax free state efile What's New Future developments. Turbotax free state efile  The IRS has created a page on IRS. Turbotax free state efile gov for information about Publication 1542, at www. Turbotax free state efile irs. Turbotax free state efile gov/pub1542. Turbotax free state efile Information about any future developments affecting Publication 1542 (such as legislation enacted after we release it) will be posted on that page. Turbotax free state efile Introduction This publication is for employers who pay a per diem allowance to employees for business travel away from home within the continental United States (CONUS) (the 48 contiguous states), on or after October 1, 2010, and before January 1, 2011. Turbotax free state efile It gives the maximum per diem rate you can use without treating part of the per diem allowance as wages for tax purposes. Turbotax free state efile For a detailed discussion on the tax treatment of a per diem allowance, see chapter 11 of Publication 535, Business Expenses, or Revenue Procedure 2011-47, 2011-42 I. Turbotax free state efile R. Turbotax free state efile B. Turbotax free state efile 520, which can be found on the Internet at www. Turbotax free state efile irs. Turbotax free state efile gov/irb/2011-42_IRB/ar12. Turbotax free state efile html. Turbotax free state efile Per diem rates on the Internet. Turbotax free state efile   You will find links to per diem rates at www. Turbotax free state efile gsa. Turbotax free state efile gov/perdiem, including links to: CONUS per diem rates; Per diem rates for areas outside the continental United States (OCONUS), such as Alaska, Hawaii, Puerto Rico, and U. Turbotax free state efile S. Turbotax free state efile possessions; and Foreign per diem rates. Turbotax free state efile Publication 1542 revisions. Turbotax free state efile   Publication 1542 is available only on the Internet at IRS. Turbotax free state efile gov. Turbotax free state efile Print copies can no longer be ordered. Turbotax free state efile   During the year, as changes to the federal per diem rates (updates) are announced by the General Services Administration (GSA), we will incorporate the changes into Publication 1542. Turbotax free state efile An article on IRS. Turbotax free state efile gov will alert you to which locations have updated rates. Turbotax free state efile To reach these articles, go to www. Turbotax free state efile irs. Turbotax free state efile gov/formspubs and click on “Changes to Current Tax Products,” under Important Changes. Turbotax free state efile You will find the new rates in Table 4. Turbotax free state efile   We will also incorporate mid-year changes to the high-low rates into Publication 1542. Turbotax free state efile You will be alerted to these changes by a similar article on IRS. Turbotax free state efile gov and can find the changes in Table 2 of the revised publication. Turbotax free state efile   The annual changes, both federal per diem and high-low rates, will be incorporated into the publication as soon as possible after being announced by GSA and the IRS. Turbotax free state efile The annual issue of the publication should be available each year in mid- to late-October. Turbotax free state efile Comments and suggestions. Turbotax free state efile   We welcome your comments about this publication and your suggestions for future editions. Turbotax free state efile   You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Turbotax free state efile NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Turbotax free state efile Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Turbotax free state efile   You can email us at taxforms@irs. Turbotax free state efile gov. Turbotax free state efile Please put “Publications Comment” on the subject line. Turbotax free state efile You can also send us comments from www. Turbotax free state efile irs. Turbotax free state efile gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information about. Turbotax free state efile ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Turbotax free state efile Ordering forms and publications. Turbotax free state efile   Visit www. Turbotax free state efile irs. Turbotax free state efile gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Turbotax free state efile Internal Revenue Service 1201 N. Turbotax free state efile Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Turbotax free state efile   If you have a tax question, check the information available on IRS. Turbotax free state efile gov or call 1-800-829-1040. Turbotax free state efile We cannot answer tax questions sent to either of the above addresses. Turbotax free state efile Prev  Up  Next   Home   More Online Publications
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Understanding your CP259D Notice

We sent you this notice because our records indicate you did not file a required Form 990-T, Exempt Organization Business Income Tax Return.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).
 


What you need to do

  • Disregard this notice if you have filed the return within the last four weeks using the same name and EIN listed on the notice.
  • Otherwise, file your required Form 990-T immediately according to the instructions on the notice.
    • If you don't think you need to file, complete the Response form enclosed with your notice and mail it to us using the envelope provided.
    • If you filed more than four weeks ago or used a different name or EIN, complete the Response form enclosed with your notice and mail it to us in the envelope provided along with a signed and dated copy of the return.

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Answers to Common Questions

Who must file a Form 990-T?
Form 990-T must be filed by any organization that is tax-exempt under section 501(a) or section 529(a), if it has gross unrelated business income of $1,000 or more for a given tax year. A list of other entities who must file Form 990-T is shown in the Who Must File section of the General Instructions of Form 990-T.

When is the Form 990-T due?
For an employees' trust defined in section 401(a), an IRA (including SEPs and SIMPLEs), a Roth IRA, a Coverdell ESA, or an Archer MSA, the Form 990-T is due by the 15th day of the 4th month after the end of its tax year. All other organizations must file Form 990-T by the 15th day of the 5th month after the end of their tax year. If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day.

Can I get help over the phone?
If you have questions and/or need help completing this form, please call 1-877-829-5500. Personal assistance is available Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.

Where can I go for more information about tax-exempt organizations?
For more information on tax-exempt organizations see Tax Information for Charities & Other Non-Profits.


Tips for next year

Review the tax-exempt organization resources at Form 990 Resources and Tools for Exempt Organizations.


Understanding your notice

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

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Page Last Reviewed or Updated: 29-Mar-2014

The Turbotax Free State Efile

Turbotax free state efile 3. Turbotax free state efile   Limit on Annual Additions Table of Contents Ministers and church employees. Turbotax free state efile 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 free state efile 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 free state efile 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 free state efile More than one 403(b) account. Turbotax free state efile 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 free state efile Ministers and church employees. Turbotax free state efile   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 free state efile For more information, see chapter 5. Turbotax free state efile Participation in a qualified plan. Turbotax free state efile 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 free state efile You can use Part I of Worksheet 1 in chapter 9 to figure your limit on annual additions. Turbotax free state efile Includible Compensation for Your Most Recent Year of Service Definition. Turbotax free state efile   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 free state efile 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 free state efile This can happen if your tax year is not the same as your employer's annual work period. Turbotax free state efile 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 free state efile 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 free state efile Tax year different from employer's annual work period. Turbotax free state efile   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 free state efile Example. Turbotax free state efile 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 free state efile 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 free state efile 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 free state efile A full year of service is equal to full-time employment for your employer's annual work period. Turbotax free state efile 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 free state efile Part-time or employed only part of the year. Turbotax free state efile   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 free state efile 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 free state efile Example. Turbotax free state efile 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 free state efile 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 free state efile Not yet employed for 1 year. Turbotax free state efile   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 free state efile 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 free state efile Includible compensation is not the same as income included on your tax return. Turbotax free state efile Compensation is a combination of income and benefits received in exchange for services provided to your employer. Turbotax free state efile 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 free state efile Includible compensation includes the following amounts. Turbotax free state efile Elective deferrals (employer's contributions made on your behalf under a salary reduction agreement). Turbotax free state efile Amounts contributed or deferred by your employer under a section 125 cafeteria plan. Turbotax free state efile 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 free state efile  Note. Turbotax free state efile For information about treating elective deferrals under section 457 plans as Roth contributions, see Publication 575. Turbotax free state efile Wages, salaries, and fees for personal services earned with the employer maintaining your 403(b) account. Turbotax free state efile Income otherwise excluded under the foreign earned income exclusion. Turbotax free state efile Pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan. Turbotax free state efile Includible compensation does not include the following items. Turbotax free state efile Your employer's contributions to your 403(b) account. Turbotax free state efile Compensation earned while your employer was not an eligible employer. Turbotax free state efile Your employer's contributions to a qualified plan that: Are on your behalf, and Are excludable from income. Turbotax free state efile The cost of incidental life insurance. Turbotax free state efile See Cost of Incidental Life Insurance, later. Turbotax free state efile If you are a church employee or a foreign missionary, figure includible compensation using the rules explained in chapter 5. Turbotax free state efile Contributions after retirement. Turbotax free state efile   Nonelective contributions may be made for an employee for up to 5 years after retirement. Turbotax free state efile These contributions would be based on includible compensation for the last year of service before retirement. Turbotax free state efile Cost of Incidental Life Insurance Includible compensation does not include the cost of incidental life insurance. Turbotax free state efile If all of your 403(b) accounts invest only in mutual funds, then you have no incidental life insurance. Turbotax free state efile If you have an annuity contract, a portion of the cost of that contract may be for incidental life insurance. Turbotax free state efile 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 free state efile Your employer will include the cost of your insurance as taxable wages in box 1 of Form W-2. Turbotax free state efile Not all annuity contracts include life insurance. Turbotax free state efile Contact your plan administrator to determine if your contract includes incidental life insurance. Turbotax free state efile If it does, you will need to figure the cost of life insurance each year the policy is in effect. Turbotax free state efile Figuring the cost of incidental life insurance. Turbotax free state efile 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 free state efile To determine the amount of the life insurance premiums, you will need to know the following information. Turbotax free state efile The value of your life insurance contract, which is the amount payable upon your death. Turbotax free state efile The cash value of your life insurance contract at the end of the tax year. Turbotax free state efile Your age on your birthday nearest the beginning of the policy year. Turbotax free state efile 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 free state efile You can use Worksheet A, in chapter 9, to determine the cost of your incidental life insurance. Turbotax free state efile Example. Turbotax free state efile Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Turbotax free state efile Your cash value in the contract at the end of the first year is zero. Turbotax free state efile Your current life insurance protection for the first year is $10,000 ($10,000 − 0). Turbotax free state efile 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 free state efile 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 free state efile The premium rate is determined based on your age on your birthday nearest the beginning of the policy year. Turbotax free state efile Figure 3-1. Turbotax free state efile Table of One-Year Term Premiums for $1,000 Life Insurance Protection Age Cost   Age Cost   Age Cost 0 $0. Turbotax free state efile 70   35 $0. Turbotax free state efile 99   70 $20. Turbotax free state efile 62 1 0. Turbotax free state efile 41   36 1. Turbotax free state efile 01   71 22. Turbotax free state efile 72 2 0. Turbotax free state efile 27   37 1. Turbotax free state efile 04   72 25. Turbotax free state efile 07 3 0. Turbotax free state efile 19   38 1. Turbotax free state efile 06   73 27. Turbotax free state efile 57 4 0. Turbotax free state efile 13   39 1. Turbotax free state efile 07   74 30. Turbotax free state efile 18 5 0. Turbotax free state efile 13   40 1. Turbotax free state efile 10   75 33. Turbotax free state efile 05 6 0. Turbotax free state efile 14   41 1. Turbotax free state efile 13   76 36. Turbotax free state efile 33 7 0. Turbotax free state efile 15   42 1. Turbotax free state efile 20   77 40. Turbotax free state efile 17 8 0. Turbotax free state efile 16   43 1. Turbotax free state efile 29   78 44. Turbotax free state efile 33 9 0. Turbotax free state efile 16   44 1. Turbotax free state efile 40   79 49. Turbotax free state efile 23 10 0. Turbotax free state efile 16   45 1. Turbotax free state efile 53   80 54. Turbotax free state efile 56 11 0. Turbotax free state efile 19   46 1. Turbotax free state efile 67   81 60. Turbotax free state efile 51 12 0. Turbotax free state efile 24   47 1. Turbotax free state efile 83   82 66. Turbotax free state efile 74 13 0. Turbotax free state efile 28   48 1. Turbotax free state efile 98   83 73. Turbotax free state efile 07 14 0. Turbotax free state efile 33   49 2. Turbotax free state efile 13   84 80. Turbotax free state efile 35 15 0. Turbotax free state efile 38   50 2. Turbotax free state efile 30   85 88. Turbotax free state efile 76 16 0. Turbotax free state efile 52   51 2. Turbotax free state efile 52   86 99. Turbotax free state efile 16 17 0. Turbotax free state efile 57   52 2. Turbotax free state efile 81   87 110. Turbotax free state efile 40 18 0. Turbotax free state efile 59   53 3. Turbotax free state efile 20   88 121. Turbotax free state efile 85 19 0. Turbotax free state efile 61   54 3. Turbotax free state efile 65   89 133. Turbotax free state efile 40 20 0. Turbotax free state efile 62   55 4. Turbotax free state efile 15   90 144. Turbotax free state efile 30 21 0. Turbotax free state efile 62   56 4. Turbotax free state efile 68   91 155. Turbotax free state efile 80 22 0. Turbotax free state efile 64   57 5. Turbotax free state efile 20   92 168. Turbotax free state efile 75 23 0. Turbotax free state efile 66   58 5. Turbotax free state efile 66   93 186. Turbotax free state efile 44 24 0. Turbotax free state efile 68   59 6. Turbotax free state efile 06   94 206. Turbotax free state efile 70 25 0. Turbotax free state efile 71   60 6. Turbotax free state efile 51   95 228. Turbotax free state efile 35 26 0. Turbotax free state efile 73   61 7. Turbotax free state efile 11   96 250. Turbotax free state efile 01 27 0. Turbotax free state efile 76   62 7. Turbotax free state efile 96   97 265. Turbotax free state efile 09 28 0. Turbotax free state efile 80   63 9. Turbotax free state efile 08   98 270. Turbotax free state efile 11 29 0. Turbotax free state efile 83   64 10. Turbotax free state efile 41   99 281. Turbotax free state efile 05 30 0. Turbotax free state efile 87   65 11. Turbotax free state efile 90       31 0. Turbotax free state efile 90   66 13. Turbotax free state efile 51       32 0. Turbotax free state efile 93   67 15. Turbotax free state efile 20       33 0. Turbotax free state efile 96   68 16. Turbotax free state efile 92       34 0. Turbotax free state efile 98   69 18. Turbotax free state efile 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 free state efile Example 1. Turbotax free state efile 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 free state efile 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 free state efile Using the facts presented we can determine the cost of Lynne's life insurance protection as shown in Table 3-1. Turbotax free state efile Lynne's employer has included $28 for the cost of the life insurance protection in her current year's income. Turbotax free state efile When figuring her includible compensation for this year, Lynne will subtract $28. Turbotax free state efile Table 3-1. Turbotax free state efile Worksheet A. Turbotax free state efile Cost of Incidental Life Insurance Note. Turbotax free state efile Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Turbotax free state efile This amount will be used to figure includible compensation for your most recent year of service. Turbotax free state efile 1. Turbotax free state efile Enter the value of the contract (amount payable upon your death) 1. Turbotax free state efile $20,000. Turbotax free state efile 00 2. Turbotax free state efile Enter the cash value in the contract at the end of the year 2. Turbotax free state efile 0. Turbotax free state efile 00 3. Turbotax free state efile Subtract line 2 from line 1. Turbotax free state efile This is the value of your current life insurance protection 3. Turbotax free state efile $20,000. Turbotax free state efile 00 4. Turbotax free state efile Enter your age on your birthday nearest the beginning of the policy year 4. Turbotax free state efile 44 5. Turbotax free state efile Enter the 1-year term premium for $1,000 of life insurance based on your age. Turbotax free state efile (From Figure 3-1) 5. Turbotax free state efile $1. Turbotax free state efile 40 6. Turbotax free state efile Divide line 3 by $1,000 6. Turbotax free state efile 20 7. Turbotax free state efile Multiply line 6 by line 5. Turbotax free state efile This is the cost of your incidental life insurance 7. Turbotax free state efile $28. Turbotax free state efile 00 Example 2. Turbotax free state efile Lynne's cash value in the contract at the end of the second year is $1,000. Turbotax free state efile In year two, the cost of Lynne's life insurance is calculated as shown in Table 3-2. Turbotax free state efile In year two, Lynne's employer will include $29. Turbotax free state efile 07 in her current year's income. Turbotax free state efile Lynne will subtract this amount when figuring her includible compensation. Turbotax free state efile Table 3-2. Turbotax free state efile Worksheet A. Turbotax free state efile Cost of Incidental Life Insurance Note. Turbotax free state efile Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Turbotax free state efile This amount will be used to figure includible compensation for your most recent year of service. Turbotax free state efile 1. Turbotax free state efile Enter the value of the contract (amount payable upon your death) 1. Turbotax free state efile $20,000. Turbotax free state efile 00 2. Turbotax free state efile Enter the cash value in the contract at the end of the year 2. Turbotax free state efile $1,000. Turbotax free state efile 00 3. Turbotax free state efile Subtract line 2 from line 1. Turbotax free state efile This is the value of your current life insurance protection 3. Turbotax free state efile $19,000. Turbotax free state efile 00 4. Turbotax free state efile Enter your age on your birthday nearest the beginning of the policy year 4. Turbotax free state efile 45 5. Turbotax free state efile Enter the 1-year term premium for $1,000 of life insurance based on your age. Turbotax free state efile (From Figure 3-1) 5. Turbotax free state efile $1. Turbotax free state efile 53 6. Turbotax free state efile Divide line 3 by $1,000 6. Turbotax free state efile 19 7. Turbotax free state efile Multiply line 6 by line 5. Turbotax free state efile This is the cost of your incidental life insurance 7. Turbotax free state efile $29. Turbotax free state efile 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 free state efile Example. Turbotax free state efile Floyd has been periodically working full-time for a local hospital since September 2011. Turbotax free state efile He needs to figure his limit on annual additions for 2014. Turbotax free state efile The hospital's normal annual work period for employees in Floyd's general type of work runs from January to December. Turbotax free state efile 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 free state efile Additionally, the hospital has never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a cafeteria plan. Turbotax free state efile Floyd has never worked abroad and there is no life insurance provided under the plan. Turbotax free state efile 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 free state efile Table 3-3. Turbotax free state efile Floyd's Compensation Note. Turbotax free state efile This table shows information Floyd will use to figure includible compensation for his most recent year of service. Turbotax free state efile   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 free state efile 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 free state efile If the total time he worked is less than 1 year, Floyd will treat it as if it were 1 year. Turbotax free state efile He figures his most recent year of service shown in the following list. Turbotax free state efile Time he will work in 2014 is 6/12 of a year. Turbotax free state efile Time worked in 2013 is 4/12 of a year. Turbotax free state efile All of this time will be used to determine Floyd's most recent year of service. Turbotax free state efile Time worked in 2012 is 4/12 of a year. Turbotax free state efile Floyd only needs 2 months of the 4 months he worked in 2012 to have enough time to total 1 full year. Turbotax free state efile 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 free state efile 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 free state efile His includible compensation for his most recent year of service is figured as shown in Table 3-4. Turbotax free state efile 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 free state efile Table 3-4. Turbotax free state efile Worksheet B. Turbotax free state efile Includible Compensation for Your Most Recent Year of Service1 Note. Turbotax free state efile Use this worksheet to figure includible compensation for your most recent year of service. Turbotax free state efile 1. Turbotax free state efile Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Turbotax free state efile $66,000 2. Turbotax free state efile Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Turbotax free state efile 4,4753 3. Turbotax free state efile Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Turbotax free state efile -0- 4. Turbotax free state efile 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 free state efile -0- 5. Turbotax free state efile 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 free state efile -0- 6. Turbotax free state efile Enter your foreign earned income exclusion for your most recent year of service 6. Turbotax free state efile -0- 7. Turbotax free state efile Add lines 1, 2, 3, 4, 5, and 6 7. Turbotax free state efile 70,475 8. Turbotax free state efile Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Turbotax free state efile -0- 9. Turbotax free state efile 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 free state efile -0- 10. Turbotax free state efile Add lines 8 and 9 10. Turbotax free state efile -0- 11. Turbotax free state efile Subtract line 10 from line 7. Turbotax free state efile This is your includible compensation for your most recent year of service 11. Turbotax free state efile 70,475 1Use estimated amounts if figuring includible compensation before the end of the year. Turbotax free state efile 2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Turbotax free state efile  3$4,475 ($2,000 + $1,650 + $825). 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