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Amended Tax Return Forms

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Amended Tax Return Forms

Amended tax return forms Publication 600 - Main Contents Table of Contents Actual Expenses Optional Sales Tax Tables Instructions for the State and Local General Sales Tax Deduction WorksheetWhat if you lived in more than one state? What if you lived in more than one locality? What if your local general sales tax rate changed during 2006? What if you lived in more than one locality in the same state during 2006? Actual Expenses Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2006 if the tax rate was the same as the general sales tax rate. Amended tax return forms However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Amended tax return forms If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Amended tax return forms Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Amended tax return forms Also include any state and local general sales taxes paid for a leased motor vehicle. Amended tax return forms Do not include sales taxes paid on items used in your trade or business. Amended tax return forms To deduct your actual expenses, enter the amount on Schedule A, line 5, and enter “ST” on the dotted line to the left of the line 5 entry space. Amended tax return forms You must keep your actual receipts showing general sales taxes paid to use this method. Amended tax return forms Refund of general sales taxes. Amended tax return forms   If you received a refund of state or local general sales taxes in 2006 for amounts paid in 2006, reduce your actual 2006 state and local general sales taxes by this amount. Amended tax return forms If you received a refund of state or local general sales taxes in 2006 for prior year purchases, do not reduce your 2006 state and local general sales taxes by this amount. Amended tax return forms But if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Form 1040, line 21. Amended tax return forms See Recoveries in Pub. Amended tax return forms 525 for details. Amended tax return forms Optional Sales Tax Tables Instead of using your actual expenses, you can use the tables on pages 5 through 7 to figure your state and local general sales tax deduction. Amended tax return forms You may also be able to add the state and local general sales taxes paid on certain specified items. Amended tax return forms To figure your state and local general sales tax deduction using the tables, complete the worksheet below. Amended tax return forms If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you also must use the tables to figure your state and local general sales tax deduction. Amended tax return forms State and Local General Sales Tax Deduction Worksheet (See the instructions that begin on page 3. Amended tax return forms ) Before you begin: See the instructions for line 1 on page 3 if: You lived in more than one state during 2006, or You had any nontaxable income in 2006. Amended tax return forms   1. Amended tax return forms Enter your state general sales taxes from the applicable table on page 5 or 6 (see page 3 of the instructions) 1. Amended tax return forms $     Next. Amended tax return forms If, for all of 2006, you lived only in Connecticut, the District of Columbia, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island, Virginia, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Amended tax return forms Otherwise, go to line 2       2. Amended tax return forms Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only), Colorado, Georgia, Illinois, Louisiana, New York State, or North Carolina in 2006?         No. Amended tax return forms Enter -0-                   Yes. Amended tax return forms Enter your local general sales taxes from the applicable table on page 7 (see page 3 of the instructions)     2. Amended tax return forms $       3. Amended tax return forms Did your locality impose a local general sales tax in 2006? Residents of California, Nevada, and Texarkana, Arkansas, see page 3 of the instructions             No. Amended tax return forms Skip lines 3 through 5, enter -0- on line 6, and go to line 7             Yes. Amended tax return forms Enter your local general sales tax rate, but omit the percentage sign. Amended tax return forms For example, if your local general sales tax rate was 2. Amended tax return forms 5%, enter 2. Amended tax return forms 5. Amended tax return forms If your local general sales tax rate changed or you lived in more than one locality in the same state during 2006, see page 3 of the instructions. Amended tax return forms (If you do not know your local general sales tax rate, contact your local government. Amended tax return forms ) 3. Amended tax return forms . Amended tax return forms       4. Amended tax return forms Did you enter -0- on line 2 above?             No. Amended tax return forms Skip lines 4 and 5 and go to line 6             Yes. Amended tax return forms Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. Amended tax return forms For example, if your state general sales tax rate is 6%, enter 6. Amended tax return forms 0 4. Amended tax return forms . Amended tax return forms       5. Amended tax return forms Divide line 3 by line 4. Amended tax return forms Enter the result as a decimal (rounded to at least three places) 5. Amended tax return forms . Amended tax return forms       6. Amended tax return forms Did you enter -0- on line 2 above?             No. Amended tax return forms Multiply line 2 by line 3   6. Amended tax return forms $     Yes. Amended tax return forms Multiply line 1 by line 5. Amended tax return forms If you lived in more than one locality in the same state during 2006, see page 4 of the instructions           7. Amended tax return forms Enter your state and local general sales taxes paid on specified items, if any (see page 4 of the instructions) 7. Amended tax return forms $   8. Amended tax return forms Deduction for general sales taxes. Amended tax return forms Add lines 1, 6, and 7. Amended tax return forms Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5. Amended tax return forms Be sure to enter “ST” on the dotted line to the left of the entry space 8. Amended tax return forms $     Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. Amended tax return forms    If you lived in the same state for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional state sales tax table for your state on page 5 or 6. Amended tax return forms Read down the “At least-But less than” columns for your state and find the line that includes your 2006 income. Amended tax return forms If married filing separately, do not include your spouse's income. Amended tax return forms Your 2006 income is the amount shown on your Form 1040, line 38, plus any nontaxable items, such as the following. Amended tax return forms Tax-exempt interest. Amended tax return forms Veterans' benefits. Amended tax return forms Nontaxable combat pay. Amended tax return forms Workers' compensation. Amended tax return forms Nontaxable part of social security and railroad retirement benefits. Amended tax return forms Nontaxable part of IRA, pension, or annuity distributions. Amended tax return forms Do not include rollovers. Amended tax return forms Public assistance payments. Amended tax return forms The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Amended tax return forms Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Amended tax return forms What if you lived in more than one state?    If you lived in more than one state during 2006, look up the table amount for each state using the above rules. Amended tax return forms If there is no table for your state, the table amount is considered to be zero. Amended tax return forms Multiply the table amount for each state you lived in by a fraction. Amended tax return forms The numerator of the fraction is the number of days you lived in the state during 2006 and the denominator is the total number of days in the year (365). Amended tax return forms Enter the total of the prorated table amounts for each state on line 1. Amended tax return forms However, if you also lived in a locality during 2006 that imposed a local general sales tax, do not enter the total on line 1. Amended tax return forms Instead, complete a separate worksheet for each state you lived in and enter the prorated amount for that state on line 1. Amended tax return forms Example. Amended tax return forms You lived in State A from January 1 through August 31, 2006 (243 days), and in State B from September 1 through December 31, 2006 (122 days). Amended tax return forms The table amount for State A is $500. Amended tax return forms The table amount for State B is $400. Amended tax return forms You would figure your state general sales tax as follows. Amended tax return forms State A: $500 x 243/365 = $333   State B: $400 x 122/365 = 134   Total = $467   If none of the localities in which you lived during 2006 imposed a local general sales tax, enter $467 on line 1 of your worksheet. Amended tax return forms Otherwise, complete a separate worksheet for State A and State B. Amended tax return forms Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. Amended tax return forms Line 2. Amended tax return forms   If you checked the “No” box, enter -0- on line 2, and go to line 3. Amended tax return forms If you checked the “Yes” box and lived in the same locality for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional local sales tax table for your locality on page 7. Amended tax return forms Read down the “At least-But less than” columns for your locality and find the line that includes your 2006 income. Amended tax return forms See the line 1 instructions on this page to figure your 2006 income. Amended tax return forms The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Amended tax return forms Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Amended tax return forms What if you lived in more than one locality?   If you lived in more than one locality during 2006, look up the table amount for each locality using the above rules. Amended tax return forms If there is no table for your locality, the table amount is considered to be zero. Amended tax return forms Multiply the table amount for each locality you lived in by a fraction. Amended tax return forms The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Amended tax return forms If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prorated table amounts for each locality in that state on line 2. Amended tax return forms Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prorated table amount on line 2 of the applicable worksheet. Amended tax return forms Example. Amended tax return forms You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Amended tax return forms The table amount for Locality 1 is $100. Amended tax return forms The table amount for Locality 2 is $150. Amended tax return forms You would figure the amount to enter on line 2 as follows. Amended tax return forms Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. Amended tax return forms Locality 1: $100 x 243/365 = $67   Locality 2: $150 x 122/365 = 50   Total = $117   Line 3. Amended tax return forms   If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7. Amended tax return forms 25%. Amended tax return forms Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 7. Amended tax return forms 25%. Amended tax return forms   If you lived in Nevada, check the “No” box if your combined state and local general sales tax rate is 6. Amended tax return forms 5%. Amended tax return forms Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 6. Amended tax return forms 5%. Amended tax return forms   If you lived in Texarkana, Arkansas, check the “Yes” box and enter “4. Amended tax return forms 0” on line 3. Amended tax return forms Your local general sales tax rate of 4. Amended tax return forms 0% includes the additional 1. Amended tax return forms 0% Arkansas state sales tax rate for Texarkana and the 1. Amended tax return forms 5% sales tax rate for Miller County. Amended tax return forms What if your local general sales tax rate changed during 2006?    If you checked the “Yes” box and your local general sales tax rate changed during 2006, figure the rate to enter on line 3 as follows. Amended tax return forms Multiply each tax rate for the period it was in effect by a fraction. Amended tax return forms The numerator of the fraction is the number of days the rate was in effect during 2006 and the denominator is the total number of days in the year (365). Amended tax return forms Enter the total of the prorated tax rates on line 3. Amended tax return forms Example. Amended tax return forms Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2006 (273 days). Amended tax return forms The rate increased to 1. Amended tax return forms 75% for the period from October 1 through December 31, 2006 (92 days). Amended tax return forms You would enter “1. Amended tax return forms 189” on line 3, figured as follows. Amended tax return forms January 1 - September 30: 1. Amended tax return forms 00 x 273/365 = 0. Amended tax return forms 748   October 1 - December 31: 1. Amended tax return forms 75 x 92/365 = 0. Amended tax return forms 441   Total = 1. Amended tax return forms 189   What if you lived in more than one locality in the same state during 2006?    Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one locality in the same state during 2006 and either of the following applies. Amended tax return forms Each locality did not have the same local general sales tax rate. Amended tax return forms You lived in Texarkana, AR, or Los Angeles County, CA. Amended tax return forms   To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the table on page 7 to figure your local general sales tax deduction), multiply the local general sales tax rate by a fraction. Amended tax return forms The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Amended tax return forms Example. Amended tax return forms You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Amended tax return forms The local general sales tax rate for Locality 1 is 1%. Amended tax return forms The rate for Locality 2 is 1. Amended tax return forms 75%. Amended tax return forms You would enter “0. Amended tax return forms 666” on line 3 for the Locality 1 worksheet and “0. Amended tax return forms 585” for the Locality 2 worksheet, figured as follows. Amended tax return forms Locality 1: 1. Amended tax return forms 00 x 243/365 = 0. Amended tax return forms 666   Locality 2: 1. Amended tax return forms 75 x 122/365 = 0. Amended tax return forms 585   Line 6. Amended tax return forms   If you lived in more than one locality in the same state during 2006, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2006. Amended tax return forms If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Amended tax return forms Line 7. Amended tax return forms    Enter on line 7 any state and local general sales taxes paid on the following specified items. Amended tax return forms If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets. Amended tax return forms A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Amended tax return forms Also include any state and local general sales taxes paid for a leased motor vehicle. Amended tax return forms If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate. Amended tax return forms An aircraft or boat, if the tax rate was the same as the general sales tax rate. Amended tax return forms A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. Amended tax return forms Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. Amended tax return forms You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. Amended tax return forms Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. Amended tax return forms The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. Amended tax return forms In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly. Amended tax return forms   Do not include sales taxes paid on items used in your trade or business. Amended tax return forms If you received a refund of state or local general sales taxes in 2006, see Refund of general sales taxes on page 1. Amended tax return forms Prev  Up  Next   Home   More Online Publications
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The Amended Tax Return Forms

Amended tax return forms 17. Amended tax return forms   Individual Retirement Arrangements (IRAs) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? What's New Traditional IRA contribution and deduction limit. Amended tax return forms  The contribution limit to your traditional IRA for 2013 will be increased to the smaller of the following amounts: $5,500, or Your taxable compensation for the year. Amended tax return forms If you were age 50 or older before 2014, the most that can be contributed to your traditional IRA for 2013 will be the smaller of the following amounts: $6,500, or Your taxable compensation for the year. Amended tax return forms For more information, see How Much Can Be Contributed? later. Amended tax return forms Roth IRA contribution limit. Amended tax return forms  If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $5,500, or Your taxable compensation for the year. Amended tax return forms If you were age 50 or older before 2014 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2013 will generally be the lesser of: $6,500, or Your taxable compensation for the year. Amended tax return forms However, if your modified adjusted gross income (AGI) is above a certain amount, your contribution limit may be reduced. Amended tax return forms For more information, see How Much Can Be Contributed? under Can You Contribute to a Roth IRA? later. Amended tax return forms Modified AGI limit for traditional IRA contributions increased. Amended tax return forms  For 2013, if you were covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $95,000 but less than $115,000 for a married couple filing a joint return or a qualifying widow(er), More than $59,000 but less than $69,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. Amended tax return forms If you either lived with your spouse or file a joint return, and your spouse was covered by a retirement plan at work, but you were not, your deduction is phased out if your modified AGI is more than $178,000 but less than $188,000. Amended tax return forms If your modified AGI is $188,000 or more, you cannot take a deduction for contributions to a traditional IRA. Amended tax return forms See How Much Can You Deduct , later. Amended tax return forms Modified AGI limit for Roth IRA contributions increased. Amended tax return forms  For 2013, your Roth IRA contribution limit is reduced (phased out) in the following situations. Amended tax return forms Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $178,000. Amended tax return forms You cannot make a Roth IRA contribution if your modified AGI is $188,000 or more. Amended tax return forms Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2013 and your modified AGI is at least $112,000. Amended tax return forms You cannot make a Roth IRA contribution if your modified AGI is $127,000 or more. Amended tax return forms Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than -0-. Amended tax return forms You cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. Amended tax return forms See Can You Contribute to a Roth IRA , later. Amended tax return forms Net Investment Income Tax. Amended tax return forms   For purposes of the Net Investment Income Tax (NIIT), net investment income does not include distributions from a qualified retirement plan including IRAs (for example; 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). Amended tax return forms However, these distributions are taken into account when determining the modified adjusted gross income threshold. Amended tax return forms Distributions from a nonqualified retirement plan are included in net investment income. Amended tax return forms See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. Amended tax return forms Name change. Amended tax return forms  All spousal IRAs have been renamed Kay Bailey Hutchison Spousal IRAs. Amended tax return forms There are no changes to the rules regarding these IRAs. Amended tax return forms See Kay Bailey Hutchison Spousal IRA Limit , later, for more information. Amended tax return forms Reminders 2014 limits. Amended tax return forms   You can find information about the 2014 contribution and AGI limits in Publication 590. Amended tax return forms Contributions to both traditional and Roth IRAs. Amended tax return forms   For information on your combined contribution limit if you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can Be Contributed? in Roth IRAs, later. Amended tax return forms Statement of required minimum distribution. Amended tax return forms  If a minimum distribution from your IRA is required, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the required minimum distribution to you, or offer to calculate it for you. Amended tax return forms The report or offer must include the date by which the amount must be distributed. Amended tax return forms The report is due January 31 of the year in which the minimum distribution is required. Amended tax return forms It can be provided with the year-end fair market value statement that you normally get each year. Amended tax return forms No report is required for IRAs of owners who have died. Amended tax return forms IRA interest. Amended tax return forms  Although interest earned from your IRA is generally not taxed in the year earned, it is not tax-exempt interest. Amended tax return forms Tax on your traditional IRA is generally deferred until you take a distribution. Amended tax return forms Do not report this interest on your tax return as tax-exempt interest. Amended tax return forms Form 8606. Amended tax return forms   To designate contributions as nondeductible, you must file Form 8606, Nondeductible IRAs. Amended tax return forms The term “50 or older” is used several times in this chapter. Amended tax return forms It refers to an IRA owner who is age 50 or older by the end of the tax year. Amended tax return forms Introduction An individual retirement arrangement (IRA) is a personal savings plan that gives you tax advantages for setting aside money for your retirement. Amended tax return forms This chapter discusses the following topics. Amended tax return forms The rules for a traditional IRA (any IRA that is not a Roth or SIMPLE IRA). Amended tax return forms The Roth IRA, which features nondeductible contributions and tax-free distributions. Amended tax return forms Simplified Employee Pensions (SEPs) and Savings Incentive Match Plans for Employees (SIMPLEs) are not discussed in this chapter. Amended tax return forms For more information on these plans and employees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Publications 560 and 590. Amended tax return forms For information about contributions, deductions, withdrawals, transfers, rollovers, and other transactions, see Publication 590. Amended tax return forms Useful Items - You may want to see: Publication 560 Retirement Plans for Small Business 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 5329 Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts 8606 Nondeductible IRAs Traditional IRAs In this chapter, the original IRA (sometimes called an ordinary or regular IRA) is referred to as a “traditional IRA. Amended tax return forms ” A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Amended tax return forms Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed. Amended tax return forms Who Can Open a Traditional IRA? You can open and make contributions to a traditional IRA if: You (or, if you file a joint return, your spouse) received taxable compensation during the year, and You were not age 70½ by the end of the year. Amended tax return forms What is compensation?   Generally, compensation is what you earn from working. Amended tax return forms Compensation includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. Amended tax return forms The IRS treats as compensation any amount properly shown in box 1 (Wages, tips, other compensation) of Form W-2, Wage and Tax Statement, provided that amount is reduced by any amount properly shown in box 11 (Nonqualified plans). Amended tax return forms   Scholarship and fellowship payments are compensation for this purpose only if shown in box 1 of Form W-2. Amended tax return forms   Compensation also includes commissions and taxable alimony and separate maintenance payments. Amended tax return forms Self-employment income. Amended tax return forms   If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of: The deduction for contributions made on your behalf to retirement plans, and The deductible part of your self-employment tax. Amended tax return forms   Compensation includes earnings from self-employment even if they are not subject to self-employment tax because of your religious beliefs. Amended tax return forms Nontaxable combat pay. Amended tax return forms   For IRA purposes, if you were a member of the U. Amended tax return forms S. Amended tax return forms Armed Forces, your compensation includes any nontaxable combat pay you receive. Amended tax return forms What is not compensation?   Compensation does not include any of the following items. Amended tax return forms Earnings and profits from property, such as rental income, interest income, and dividend income. Amended tax return forms Pension or annuity income. Amended tax return forms Deferred compensation received (compensation payments postponed from a past year). Amended tax return forms Income from a partnership for which you do not provide services that are a material income-producing factor. Amended tax return forms Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b. Amended tax return forms Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs. Amended tax return forms When and How Can a Traditional IRA Be Opened? You can open a traditional IRA at any time. Amended tax return forms However, the time for making contributions for any year is limited. Amended tax return forms See When Can Contributions Be Made , later. Amended tax return forms You can open different kinds of IRAs with a variety of organizations. Amended tax return forms You can open an IRA at a bank or other financial institution or with a mutual fund or life insurance company. Amended tax return forms You can also open an IRA through your stockbroker. Amended tax return forms Any IRA must meet Internal Revenue Code requirements. Amended tax return forms Kinds of traditional IRAs. Amended tax return forms   Your traditional IRA can be an individual retirement account or annuity. Amended tax return forms It can be part of either a simplified employee pension (SEP) or an employer or employee association trust account. Amended tax return forms How Much Can Be Contributed? There are limits and other rules that affect the amount that can be contributed to a traditional IRA. Amended tax return forms These limits and other rules are explained below. Amended tax return forms Community property laws. Amended tax return forms   Except as discussed later under Kay Bailey Hutchison Spousal IRA limit , each spouse figures his or her limit separately, using his or her own compensation. Amended tax return forms This is the rule even in states with community property laws. Amended tax return forms Brokers' commissions. Amended tax return forms   Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. Amended tax return forms Trustees' fees. Amended tax return forms   Trustees' administrative fees are not subject to the contribution limit. Amended tax return forms Qualified reservist repayments. Amended tax return forms   If you are (or were) a member of a reserve component and you were ordered or called to active duty after September 11, 2001, you may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions you received. Amended tax return forms You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. Amended tax return forms To be eligible to make these repayment contributions, you must have received a qualified reservist distribution from an IRA or from a section 401(k) or 403(b) plan or similar arrangement. Amended tax return forms   For more information, see Qualified reservist repayments under How Much Can Be Contributed? in chapter 1 of Publication 590. Amended tax return forms Contributions on your behalf to a traditional IRA reduce your limit for contributions to a Roth IRA. Amended tax return forms (See Roth IRAs, later. Amended tax return forms ) General limit. Amended tax return forms   For 2013, the most that can be contributed to your traditional IRA generally is the smaller of the following amounts. Amended tax return forms $5,500 ($6,500 if you are 50 or older). Amended tax return forms Your taxable compensation (defined earlier) for the year. Amended tax return forms This is the most that can be contributed regardless of whether the contributions are to one or more traditional IRAs or whether all or part of the contributions are nondeductible. Amended tax return forms (See Nondeductible Contributions , later. Amended tax return forms ) Qualified reservist repayments do not affect this limit. Amended tax return forms Example 1. Amended tax return forms Betty, who is 34 years old and single, earned $24,000 in 2013. Amended tax return forms Her IRA contributions for 2013 are limited to $5,500. Amended tax return forms Example 2. Amended tax return forms John, an unmarried college student working part time, earned $3,500 in 2013. Amended tax return forms His IRA contributions for 2013 are limited to $3,500, the amount of his compensation. Amended tax return forms Kay Bailey Hutchison Spousal IRA limit. Amended tax return forms   For 2013, if you file a joint return and your taxable compensation is less than that of your spouse, the most that can be contributed for the year to your IRA is the smaller of the following amounts. Amended tax return forms $5,500 ($6,500 if you are 50 or older). Amended tax return forms The total compensation includible in the gross income of both you and your spouse for the year, reduced by the following two amounts. Amended tax return forms Your spouse's IRA contribution for the year to a traditional IRA. Amended tax return forms Any contribution for the year to a Roth IRA on behalf of your spouse. Amended tax return forms This means that the total combined contributions that can be made for the year to your IRA and your spouse's IRA can be as much as $11,000 ($12,000 if only one of you is 50 or older, or $13,000 if both of you are 50 or older). Amended tax return forms When Can Contributions Be Made? As soon as you open your traditional IRA, contributions can be made to it through your chosen sponsor (trustee or other administrator). Amended tax return forms Contributions must be in the form of money (cash, check, or money order). Amended tax return forms Property cannot be contributed. Amended tax return forms Contributions must be made by due date. Amended tax return forms   Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. Amended tax return forms Age 70½ rule. Amended tax return forms   Contributions cannot be made to your traditional IRA for the year in which you reach age 70½ or for any later year. Amended tax return forms   You attain age 70½ on the date that is 6 calendar months after the 70th anniversary of your birth. Amended tax return forms If you were born on or before June 30, 1943, you cannot contribute for 2013 or any later year. Amended tax return forms Designating year for which contribution is made. Amended tax return forms   If an amount is contributed to your traditional IRA between January 1 and April 15, you should tell the sponsor which year (the current year or the previous year) the contribution is for. Amended tax return forms If you do not tell the sponsor which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Amended tax return forms Filing before a contribution is made. Amended tax return forms   You can file your return claiming a traditional IRA contribution before the contribution is actually made. Amended tax return forms Generally, the contribution must be made by the due date of your return, not including extensions. Amended tax return forms Contributions not required. Amended tax return forms   You do not have to contribute to your traditional IRA for every tax year, even if you can. Amended tax return forms How Much Can You Deduct? Generally, you can deduct the lesser of: The contributions to your traditional IRA for the year, or The general limit (or the Kay Bailey Hutchison Spousal IRA limit, if it applies). Amended tax return forms However, if you or your spouse was covered by an employer retirement plan, you may not be able to deduct this amount. Amended tax return forms See Limit If Covered by Employer Plan , later. Amended tax return forms You may be able to claim a credit for contributions to your traditional IRA. Amended tax return forms For more information, see chapter 37. Amended tax return forms Trustees' fees. Amended tax return forms   Trustees' administrative fees that are billed separately and paid in connection with your traditional IRA are not deductible as IRA contributions. Amended tax return forms However, they may be deductible as a miscellaneous itemized deduction on Schedule A (Form 1040). Amended tax return forms See chapter 28. Amended tax return forms Brokers' commissions. Amended tax return forms   Brokers' commissions are part of your IRA contribution and, as such, are deductible subject to the limits. Amended tax return forms Full deduction. Amended tax return forms   If neither you nor your spouse was covered for any part of the year by an employer retirement plan, you can take a deduction for total contributions to one or more traditional IRAs of up to the lesser of: $5,500 ($6,500 if you are age 50 or older in 2013). Amended tax return forms 100% of your compensation. Amended tax return forms This limit is reduced by any contributions made to a 501(c)(18) plan on your behalf. Amended tax return forms Kay Bailey Hutchison Spousal IRA. Amended tax return forms   In the case of a married couple with unequal compensation who file a joint return, the deduction for contributions to the traditional IRA of the spouse with less compensation is limited to the lesser of the following amounts. Amended tax return forms $5,500 ($6,500 if the spouse with the lower compensation is age 50 or older in 2013). Amended tax return forms The total compensation includible in the gross income of both spouses for the year reduced by the following three amounts. Amended tax return forms The IRA deduction for the year of the spouse with the greater compensation. Amended tax return forms Any designated nondeductible contribution for the year made on behalf of the spouse with the greater compensation. Amended tax return forms Any contributions for the year to a Roth IRA on behalf of the spouse with the greater compensation. Amended tax return forms This limit is reduced by any contributions to a 501(c)(18) plan on behalf of the spouse with the lesser compensation. Amended tax return forms Note. Amended tax return forms If you were divorced or legally separated (and did not remarry) before the end of the year, you cannot deduct any contributions to your spouse's IRA. Amended tax return forms After a divorce or legal separation, you can deduct only contributions to your own IRA. Amended tax return forms Your deductions are subject to the rules for single individuals. Amended tax return forms Covered by an employer retirement plan. Amended tax return forms   If you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, your deduction may be further limited. Amended tax return forms This is discussed later under Limit If Covered by Employer Plan . Amended tax return forms Limits on the amount you can deduct do not affect the amount that can be contributed. Amended tax return forms See Nondeductible Contributions , later. Amended tax return forms Are You Covered by an Employer Plan? The Form W-2 you receive from your employer has a box used to indicate whether you were covered for the year. Amended tax return forms The “Retirement plan” box should be checked if you were covered. Amended tax return forms Reservists and volunteer firefighters should also see Situations in Which You Are Not Covered by an Employer Plan , later. Amended tax return forms If you are not certain whether you were covered by your employer's retirement plan, you should ask your employer. Amended tax return forms Federal judges. Amended tax return forms   For purposes of the IRA deduction, federal judges are covered by an employer retirement plan. Amended tax return forms For Which Year(s) Are You Covered by an Employer Plan? Special rules apply to determine the tax years for which you are covered by an employer plan. Amended tax return forms These rules differ depending on whether the plan is a defined contribution plan or a defined benefit plan. Amended tax return forms Tax year. Amended tax return forms   Your tax year is the annual accounting period you use to keep records and report income and expenses on your income tax return. Amended tax return forms For almost all people, the tax year is the calendar year. Amended tax return forms Defined contribution plan. Amended tax return forms   Generally, you are covered by a defined contribution plan for a tax year if amounts are contributed or allocated to your account for the plan year that ends with or within that tax year. Amended tax return forms   A defined contribution plan is a plan that provides for a separate account for each person covered by the plan. Amended tax return forms Types of defined contribution plans include profit-sharing plans, stock bonus plans, and money purchase pension plans. Amended tax return forms Defined benefit plan. Amended tax return forms   If you are eligible to participate in your employer's defined benefit plan for the plan year that ends within your tax year, you are covered by the plan. Amended tax return forms This rule applies even if you: Declined to participate in the plan, Did not make a required contribution, or Did not perform the minimum service required to accrue a benefit for the year. Amended tax return forms   A defined benefit plan is any plan that is not a defined contribution plan. Amended tax return forms Defined benefit plans include pension plans and annuity plans. Amended tax return forms No vested interest. Amended tax return forms   If you accrue a benefit for a plan year, you are covered by that plan even if you have no vested interest in (legal right to) the accrual. Amended tax return forms Situations in Which You Are Not Covered by an Employer Plan Unless you are covered under another employer plan, you are not covered by an employer plan if you are in one of the situations described below. Amended tax return forms Social security or railroad retirement. Amended tax return forms   Coverage under social security or railroad retirement is not coverage under an employer retirement plan. Amended tax return forms Benefits from a previous employer's plan. Amended tax return forms   If you receive retirement benefits from a previous employer's plan, you are not covered by that plan. Amended tax return forms Reservists. Amended tax return forms   If the only reason you participate in a plan is because you are a member of a reserve unit of the armed forces, you may not be covered by the plan. Amended tax return forms You are not covered by the plan if both of the following conditions are met. Amended tax return forms The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Amended tax return forms You did not serve more than 90 days on active duty during the year (not counting duty for training). Amended tax return forms Volunteer firefighters. Amended tax return forms   If the only reason you participate in a plan is because you are a volunteer firefighter, you may not be covered by the plan. Amended tax return forms You are not covered by the plan if both of the following conditions are met. Amended tax return forms The plan you participate in is established for its employees by: The United States, A state or political subdivision of a state, or An instrumentality of either (a) or (b) above. Amended tax return forms Your accrued retirement benefits at the beginning of the year will not provide more than $1,800 per year at retirement. Amended tax return forms Limit If Covered by Employer Plan If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depending on your income and your filing status. Amended tax return forms Your deduction begins to decrease (phase out) when your income rises above a certain amount and is eliminated altogether when it reaches a higher amount. Amended tax return forms These amounts vary depending on your filing status. Amended tax return forms To determine if your deduction is subject to phaseout, you must determine your modified adjusted gross income (AGI) and your filing status. Amended tax return forms See Filing status and Modified adjusted gross income (AGI) , later. Amended tax return forms Then use Table 17-1 or 17-2 to determine if the phaseout applies. Amended tax return forms Social security recipients. Amended tax return forms   Instead of using Table 17-1 or Table 17-2, use the worksheets in Appendix B of Publication 590 if, for the year, all of the following apply. Amended tax return forms You received social security benefits. Amended tax return forms You received taxable compensation. Amended tax return forms Contributions were made to your traditional IRA. Amended tax return forms You or your spouse was covered by an employer retirement plan. Amended tax return forms Use those worksheets to figure your IRA deduction, your nondeductible contribution, and the taxable portion, if any, of your social security benefits. Amended tax return forms Deduction phaseout. Amended tax return forms   If you were covered by an employer retirement plan and you did not receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI as shown in Table 17-1. Amended tax return forms Table 17-1. Amended tax return forms Effect of Modified AGI1 on Deduction if You Are Covered by Retirement Plan at Work If you are covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Amended tax return forms IF your filing status is. Amended tax return forms . Amended tax return forms . Amended tax return forms   AND your modified AGI is. Amended tax return forms . Amended tax return forms . Amended tax return forms   THEN you can take. Amended tax return forms . Amended tax return forms . Amended tax return forms single   or  head of household   $59,000 or less   a full deduction. Amended tax return forms   more than $59,000 but less than $69,000   a partial deduction. Amended tax return forms   $69,000 or more   no deduction. Amended tax return forms married filing jointly   or  qualifying widow(er)   $95,000 or less   a full deduction. Amended tax return forms   more than $95,000 but less than $115,000   a partial deduction. Amended tax return forms   $115,000 or more   no deduction. Amended tax return forms married filing separately2   less than $10,000   a partial deduction. Amended tax return forms   $10,000 or more   no deduction. Amended tax return forms 1Modified AGI (adjusted gross income). Amended tax return forms See Modified adjusted gross income (AGI) . Amended tax return forms 2If you did not live with your spouse at any time during the year, your filing status is considered Single for this purpose (therefore, your IRA deduction is determined under the “Single” column). Amended tax return forms If your spouse is covered. Amended tax return forms   If you are not covered by an employer retirement plan, but your spouse is, and you did not receive any social security benefits, your IRA deduction may be reduced or eliminated entirely depending on your filing status and modified AGI as shown in Table 17-2. Amended tax return forms Filing status. Amended tax return forms   Your filing status depends primarily on your marital status. Amended tax return forms For this purpose, you need to know if your filing status is single or head of household, married filing jointly or qualifying widow(er), or married filing separately. Amended tax return forms If you need more information on filing status, see chapter 2. Amended tax return forms Lived apart from spouse. Amended tax return forms   If you did not live with your spouse at any time during the year and you file a separate return, your filing status, for this purpose, is single. Amended tax return forms Table 17-2. Amended tax return forms Effect of Modified AGI1 on Deduction if You Are NOT Covered by Retirement Plan at Work If you are not covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction. Amended tax return forms IF your filing status is. Amended tax return forms . Amended tax return forms . Amended tax return forms   AND your modified AGI is. Amended tax return forms . Amended tax return forms . Amended tax return forms   THEN you can take. Amended tax return forms . Amended tax return forms . Amended tax return forms single, head of household, or qualifying widow(er)   any amount   a full deduction. Amended tax return forms married filing jointly or separately with a spouse who is not covered by a plan at work   any amount   a full deduction. Amended tax return forms married filing jointly with a spouse who is covered by a plan at work   $178,000 or less   a full deduction. Amended tax return forms   more than $178,000 but less than $188,000   a partial deduction. Amended tax return forms   $188,000 or more   no deduction. Amended tax return forms married filing separately with a spouse who is covered by a plan at work2   less than $10,000   a partial deduction. Amended tax return forms   $10,000 or more   no deduction. Amended tax return forms 1Modified AGI (adjusted gross income). Amended tax return forms See Modified adjusted gross income (AGI) . Amended tax return forms 2You are entitled to the full deduction if you did not live with your spouse at any time during the year. Amended tax return forms Modified adjusted gross income (AGI). Amended tax return forms   How you figure your modified AGI depends on whether you are filing Form 1040 or Form 1040A. Amended tax return forms If you made contributions to your IRA for 2013 and received a distribution from your IRA in 2013, see Publication 590. Amended tax return forms You may be able to use Worksheet 17-1 to figure your modified AGI. Amended tax return forms    Do not assume that your modified AGI is the same as your compensation. Amended tax return forms Your modified AGI may include income in addition to your compensation (discussed earlier), such as interest, dividends, and income from IRA distributions. Amended tax return forms Form 1040. Amended tax return forms   If you file Form 1040, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following eight amounts. Amended tax return forms IRA deduction. Amended tax return forms Student loan interest deduction. Amended tax return forms Tuition and fees deduction. Amended tax return forms Domestic production activities deduction. Amended tax return forms Foreign earned income exclusion. Amended tax return forms Foreign housing exclusion or deduction. Amended tax return forms Exclusion of qualified savings bond interest shown on Form 8815, Exclusion of Interest From Series EE and I U. Amended tax return forms S. Amended tax return forms Savings Bonds Issued After 1989. Amended tax return forms Exclusion of employer-provided adoption benefits shown on Form 8839, Qualified Adoption Expenses. Amended tax return forms This is your modified AGI. Amended tax return forms Form 1040A. Amended tax return forms   If you file Form 1040A, refigure the amount on the page 1 “adjusted gross income” line without taking into account any of the following amounts. Amended tax return forms IRA deduction. Amended tax return forms Student loan interest deduction. Amended tax return forms Tuition and fees deduction. Amended tax return forms Exclusion of qualified savings bond interest shown on Form 8815. Amended tax return forms This is your modified AGI. Amended tax return forms Both contributions for 2013 and distributions in 2013. Amended tax return forms   If all three of the following apply, any IRA distributions you received in 2013 may be partly tax free and partly taxable. Amended tax return forms You received distributions in 2013 from one or more traditional IRAs. Amended tax return forms You made contributions to a traditional IRA for 2013. Amended tax return forms Some of those contributions may be nondeductible contributions. Amended tax return forms If this is your situation, you must figure the taxable part of the traditional IRA distribution before you can figure your modified AGI. Amended tax return forms To do this, you can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, in Publication 590. Amended tax return forms   If at least one of the above does not apply, figure your modified AGI using Worksheet 17-1, later. Amended tax return forms    How to figure your reduced IRA deduction. Amended tax return forms   You can figure your reduced IRA deduction for either Form 1040 or Form 1040A by using the worksheets in chapter 1 of Publication 590. Amended tax return forms Also, the instructions for Form 1040 and Form 1040A include similar worksheets that you may be able to use instead. Amended tax return forms Worksheet 17-1. Amended tax return forms Figuring Your Modified AGI Use this worksheet to figure your modified adjusted gross income for traditional IRA purposes. Amended tax return forms 1. Amended tax return forms Enter your adjusted gross income (AGI) from Form 1040, line 38, or Form 1040A, line 22, figured without taking into account the amount from Form 1040, line 32, or Form 1040A, line 17 1. Amended tax return forms   2. Amended tax return forms Enter any student loan interest deduction from Form 1040, line 33, or Form 1040A, line 18 2. Amended tax return forms   3. Amended tax return forms Enter any tuition and fees deduction from Form 1040, line 34, or Form 1040A, line 19 3. Amended tax return forms   4. Amended tax return forms Enter any domestic production activities deduction from Form 1040, line 35 4. Amended tax return forms   5. Amended tax return forms Enter any foreign earned income and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 5. Amended tax return forms   6. Amended tax return forms Enter any foreign housing deduction from Form 2555, line 50 6. Amended tax return forms   7. Amended tax return forms Enter any excludable savings bond interest from Form 8815, line 14 7. Amended tax return forms   8. Amended tax return forms Enter any excluded employer-provided adoption benefits from Form 8839, line 28 8. Amended tax return forms   9. Amended tax return forms Add lines 1 through 8. Amended tax return forms This is your Modified AGI for traditional IRA purposes 9. Amended tax return forms   Reporting Deductible Contributions If you file Form 1040, enter your IRA deduction on line 32 of that form. Amended tax return forms If you file Form 1040A, enter your IRA deduction on line 17. Amended tax return forms You cannot deduct IRA contributions on Form 1040EZ. Amended tax return forms Nondeductible Contributions Although your deduction for IRA contributions may be reduced or eliminated, contributions can be made to your IRA up to the general limit or, if it applies, the Kay Bailey Hutchison Spousal IRA limit. Amended tax return forms The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Amended tax return forms Example. Amended tax return forms Mike is 28 years old and single. Amended tax return forms In 2013, he was covered by a retirement plan at work. Amended tax return forms His salary was $57,312. Amended tax return forms His modified AGI was $70,000. Amended tax return forms Mike made a $5,500 IRA contribution for 2013. Amended tax return forms Because he was covered by a retirement plan and his modified AGI was over $69,000, he cannot deduct his $5,500 IRA contribution. Amended tax return forms He must designate this contribution as a nondeductible contribution by reporting it on Form 8606, as explained next. Amended tax return forms Form 8606. Amended tax return forms   To designate contributions as nondeductible, you must file Form 8606. Amended tax return forms   You do not have to designate a contribution as nondeductible until you file your tax return. Amended tax return forms When you file, you can even designate otherwise deductible contributions as nondeductible. Amended tax return forms   You must file Form 8606 to report nondeductible contributions even if you do not have to file a tax return for the year. Amended tax return forms A Form 8606 is not used for the year that you make a rollover from a qualified retirement plan to a traditional IRA and the rollover includes nontaxable amounts. Amended tax return forms In those situations, a Form 8606 is completed for the year you take a distribution from that IRA. Amended tax return forms See Form 8606 under Distributions Fully or Partly Taxable, later. Amended tax return forms Failure to report nondeductible contributions. Amended tax return forms   If you do not report nondeductible contributions, all of the contributions to your traditional IRA will be treated as deductible contributions when withdrawn. Amended tax return forms All distributions from your IRA will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made. Amended tax return forms Penalty for overstatement. Amended tax return forms   If you overstate the amount of nondeductible contributions on your Form 8606 for any tax year, you must pay a penalty of $100 for each overstatement, unless it was due to reasonable cause. Amended tax return forms Penalty for failure to file Form 8606. Amended tax return forms   You will have to pay a $50 penalty if you do not file a required Form 8606, unless you can prove that the failure was due to reasonable cause. Amended tax return forms    Tax on earnings on nondeductible contributions. Amended tax return forms   As long as contributions are within the contribution limits, none of the earnings or gains on contributions (deductible or nondeductible) will be taxed until they are distributed. Amended tax return forms See When Can You Withdraw or Use IRA Assets , later. Amended tax return forms Cost basis. Amended tax return forms   You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Amended tax return forms Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions. Amended tax return forms Inherited IRAs If you inherit a traditional IRA, you are called a beneficiary. Amended tax return forms A beneficiary can be any person or entity the owner chooses to receive the benefits of the IRA after he or she dies. Amended tax return forms Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. Amended tax return forms Inherited from spouse. Amended tax return forms   If you inherit a traditional IRA from your spouse, you generally have the following three choices. Amended tax return forms You can: Treat it as your own IRA by designating yourself as the account owner. Amended tax return forms Treat it as your own by rolling it over into your IRA, or to the extent it is taxable, into a: Qualified employer plan, Qualified employee annuity plan (section 403(a) plan), Tax-sheltered annuity plan (section 403(b) plan), or Deferred compensation plan of a state or local government (section 457 plan). Amended tax return forms Treat yourself as the beneficiary rather than treating the IRA as your own. Amended tax return forms Treating it as your own. Amended tax return forms   You will be considered to have chosen to treat the IRA as your own if: Contributions (including rollover contributions) are made to the inherited IRA, or You do not take the required minimum distribution for a year as a beneficiary of the IRA. Amended tax return forms You will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. Amended tax return forms   However, if you receive a distribution from your deceased spouse's IRA, you can roll that distribution over into your own IRA within the 60-day time limit, as long as the distribution is not a required distribution, even if you are not the sole beneficiary of your deceased spouse's IRA. Amended tax return forms Inherited from someone other than spouse. Amended tax return forms   If you inherit a traditional IRA from anyone other than your deceased spouse, you cannot treat the inherited IRA as your own. Amended tax return forms This means that you cannot make any contributions to the IRA. Amended tax return forms It also means you cannot roll over any amounts into or out of the inherited IRA. Amended tax return forms However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary. Amended tax return forms For more information, see the discussion of inherited IRAs under Rollover From One IRA Into Another, later. Amended tax return forms Can You Move Retirement Plan Assets? You can transfer, tax free, assets (money or property) from other retirement plans (including traditional IRAs) to a traditional IRA. Amended tax return forms You can make the following kinds of transfers. Amended tax return forms Transfers from one trustee to another. Amended tax return forms Rollovers. Amended tax return forms Transfers incident to a divorce. Amended tax return forms Transfers to Roth IRAs. Amended tax return forms   Under certain conditions, you can move assets from a traditional IRA or from a designated Roth account to a Roth IRA. Amended tax return forms You can also move assets from a qualified retirement plan to a Roth IRA. Amended tax return forms See Can You Move Amounts Into a Roth IRA? under Roth IRAs, later. Amended tax return forms Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, is not a rollover. Amended tax return forms Because there is no distribution to you, the transfer is tax free. Amended tax return forms Because it is not a rollover, it is not affected by the 1-year waiting period required between rollovers, discussed later under Rollover From One IRA Into Another . Amended tax return forms For information about direct transfers to IRAs from retirement plans other than IRAs, see Can You Move Retirement Plan Assets? in chapter 1 and Can You Move Amounts Into a Roth IRA? in chapter 2 of Publication 590. Amended tax return forms Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute (roll over) to another retirement plan. Amended tax return forms The contribution to the second retirement plan is called a “rollover contribution. Amended tax return forms ” Note. Amended tax return forms An amount rolled over tax free from one retirement plan to another is generally includible in income when it is distributed from the second plan. Amended tax return forms Kinds of rollovers to a traditional IRA. Amended tax return forms   You can roll over amounts from the following plans into a traditional IRA: A traditional IRA, An employer's qualified retirement plan for its employees, A deferred compensation plan of a state or local government (section 457 plan), or A tax-sheltered annuity plan (section 403(b) plan). Amended tax return forms Treatment of rollovers. Amended tax return forms   You cannot deduct a rollover contribution, but you must report the rollover distribution on your tax return as discussed later under Reporting rollovers from IRAs and under Reporting rollovers from employer plans . Amended tax return forms Kinds of rollovers from a traditional IRA. Amended tax return forms   You may be able to roll over, tax free, a distribution from your traditional IRA into a qualified plan. Amended tax return forms These plans include the federal Thrift Savings Fund (for federal employees), deferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (section 403(b) plans). Amended tax return forms The part of the distribution that you can roll over is the part that would otherwise be taxable (includible in your income). Amended tax return forms Qualified plans may, but are not required to, accept such rollovers. Amended tax return forms Time limit for making a rollover contribution. Amended tax return forms   You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. Amended tax return forms The IRS may waive the 60-day requirement where the failure to do so would be against equity or good conscience, such as in the event of a casualty, disaster, or other event beyond your reasonable control. Amended tax return forms For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Amended tax return forms Extension of rollover period. Amended tax return forms   If an amount distributed to you from a traditional IRA or a qualified employer retirement plan is a frozen deposit at any time during the 60-day period allowed for a rollover, special rules extend the rollover period. Amended tax return forms For more information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Amended tax return forms More information. Amended tax return forms   For more information on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Amended tax return forms Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. Amended tax return forms Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. Amended tax return forms Waiting period between rollovers. Amended tax return forms   Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. Amended tax return forms You also cannot make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. Amended tax return forms   The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Amended tax return forms Example. Amended tax return forms You have two traditional IRAs, IRA-1 and IRA-2. Amended tax return forms You make a tax-free rollover of a distribution from IRA-1 into a new traditional IRA (IRA-3). Amended tax return forms You cannot, within 1 year of the distribution from IRA-1, make a tax-free rollover of any distribution from either IRA-1 or IRA-3 into another traditional IRA. Amended tax return forms However, the rollover from IRA-1 into IRA-3 does not prevent you from making a tax-free rollover from IRA-2 into any other traditional IRA. Amended tax return forms This is because you have not, within the last year, rolled over, tax free, any distribution from IRA-2 or made a tax-free rollover into IRA-2. Amended tax return forms Exception. Amended tax return forms   For an exception for distributions from failed financial institutions, see Rollover From One IRA Into Another under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Amended tax return forms Partial rollovers. Amended tax return forms   If you withdraw assets from a traditional IRA, you can roll over part of the withdrawal tax free and keep the rest of it. Amended tax return forms The amount you keep will generally be taxable (except for the part that is a return of nondeductible contributions). Amended tax return forms The amount you keep may be subject to the 10% additional tax on early distributions, discussed later under What Acts Result in Penalties or Additional Taxes? . Amended tax return forms Required distributions. Amended tax return forms   Amounts that must be distributed during a particular year under the required distribution rules (discussed later) are not eligible for rollover treatment. Amended tax return forms Inherited IRAs. Amended tax return forms   If you inherit a traditional IRA from your spouse, you generally can roll it over, or you can choose to make the inherited IRA your own. Amended tax return forms See Treating it as your own , earlier. Amended tax return forms Not inherited from spouse. Amended tax return forms   If you inherit a traditional IRA from someone other than your spouse, you cannot roll it over or allow it to receive a rollover contribution. Amended tax return forms You must withdraw the IRA assets within a certain period. Amended tax return forms For more information, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Amended tax return forms Reporting rollovers from IRAs. Amended tax return forms   Report any rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b, Form 1040, or lines 11a and 11b, Form 1040A, as follows. Amended tax return forms   Enter the total amount of the distribution on Form 1040, line 15a, or Form 1040A, line 11a. Amended tax return forms If the total amount on Form 1040, line 15a, or Form 1040A, line 11a, was rolled over, enter zero on Form 1040, line 15b, or Form 1040A, line 11b. Amended tax return forms If the total distribution was not rolled over, enter the taxable portion of the part that was not rolled over on Form 1040, line 15b, or Form 1040A, line 11b. Amended tax return forms Put “Rollover” next to Form 1040, line 15b, or Form 1040A, line 11b. Amended tax return forms See your tax return instructions. Amended tax return forms   If you rolled over the distribution into a qualified plan (other than an IRA) or you make the rollover in 2014, attach a statement explaining what you did. Amended tax return forms Rollover From Employer's Plan Into an IRA You can roll over into a traditional IRA all or part of an eligible rollover distribution you receive from your (or your deceased spouse's): Employer's qualified pension, profit-sharing, or stock bonus plan; Annuity plan; Tax-sheltered annuity plan (section 403(b) plan); or Governmental deferred compensation plan (section 457 plan). Amended tax return forms A qualified plan is one that meets the requirements of the Internal Revenue Code. Amended tax return forms Eligible rollover distribution. Amended tax return forms   Generally, an eligible rollover distribution is any distribution of all or part of the balance to your credit in a qualified retirement plan except the following. Amended tax return forms A required minimum distribution (explained later under When Must You Withdraw IRA Assets? (Required Minimum Distributions) ). Amended tax return forms A hardship distribution. Amended tax return forms Any of a series of substantially equal periodic distributions paid at least once a year over: Your lifetime or life expectancy, The lifetimes or life expectancies of you and your beneficiary, or A period of 10 years or more. Amended tax return forms Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or of excess annual additions and any allocable gains. Amended tax return forms A loan treated as a distribution because it does not satisfy certain requirements either when made or later (such as upon default), unless the participant's accrued benefits are reduced (offset) to repay the loan. Amended tax return forms Dividends on employer securities. Amended tax return forms The cost of life insurance coverage. Amended tax return forms Any nontaxable amounts that you roll over into your traditional IRA become part of your basis (cost) in your IRAs. Amended tax return forms To recover your basis when you take distributions from your IRA, you must complete Form 8606 for the year of the distribution. Amended tax return forms See Form 8606 under Distributions Fully or Partly Taxable, later. Amended tax return forms Rollover by nonspouse beneficiary. Amended tax return forms   A direct transfer from a deceased employee's qualified pension, profit-sharing, or stock bonus plan; annuity plan; tax-sheltered annuity (section 403(b)) plan; or governmental deferred compensation (section 457) plan to an IRA set up to receive the distribution on your behalf can be treated as an eligible rollover distribution if you are the designated beneficiary of the plan and not the employee's spouse. Amended tax return forms The IRA is treated as an inherited IRA. Amended tax return forms For more information about inherited IRAs, see Inherited IRAs , earlier. Amended tax return forms Reporting rollovers from employer plans. Amended tax return forms    Enter the total distribution (before income tax or other deductions were withheld) on Form 1040, line 16a, or Form 1040A, line 12a. Amended tax return forms This amount should be shown in box 1 of Form 1099-R. Amended tax return forms From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R) that were taxable to you when made. Amended tax return forms From that result, subtract the amount that was rolled over either directly or within 60 days of receiving the distribution. Amended tax return forms Enter the remaining amount, even if zero, on Form 1040, line 16b, or Form 1040A, line 12b. Amended tax return forms Also, enter "Rollover" next to Form 1040, line 16b, or Form 1040A, line 12b. Amended tax return forms Transfers Incident to Divorce If an interest in a traditional IRA is transferred from your spouse or former spouse to you by a divorce or separate maintenance decree or a written document related to such a decree, the interest in the IRA, starting from the date of the transfer, is treated as your IRA. Amended tax return forms The transfer is tax free. Amended tax return forms For detailed information, see Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Amended tax return forms Converting From Any Traditional IRA to a Roth IRA Allowable conversions. Amended tax return forms   You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. Amended tax return forms The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. Amended tax return forms If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. Amended tax return forms However, a part or all of the conversion contribution from your traditional IRA is included in your gross income. Amended tax return forms Required distributions. Amended tax return forms   You cannot convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 70½) under the required distribution rules (discussed later). Amended tax return forms Income. Amended tax return forms   You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you had not converted them into a Roth IRA. Amended tax return forms These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. Amended tax return forms   You do not include in gross income any part of a distribution from a traditional IRA that is a return of your basis, as discussed later. Amended tax return forms   You must file Form 8606 to report 2013 conversions from traditional, SEP, or SIMPLE IRAs to a Roth IRA in 2013 (unless you recharacterized the entire amount) and to figure the amount to include in income. Amended tax return forms   If you must include any amount in your gross income, you may have to increase your withholding or make estimated tax payments. Amended tax return forms See chapter 4. Amended tax return forms Recharacterizations You may be able to treat a contribution made to one type of IRA as having been made to a different type of IRA. Amended tax return forms This is called recharacterizing the contribution. Amended tax return forms See Can You Move Retirement Plan Assets? in chapter 1 of Publication 590 for more detailed information. Amended tax return forms How to recharacterize a contribution. Amended tax return forms   To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. Amended tax return forms If the transfer is made by the due date (including extensions) for your tax return for the year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. Amended tax return forms If you recharacterize your contribution, you must do all three of the following. Amended tax return forms Include in the transfer any net income allocable to the contribution. Amended tax return forms If there was a loss, the net income you must transfer may be a negative amount. Amended tax return forms Report the recharacterization on your tax return for the year during which the contribution was made. Amended tax return forms Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA. Amended tax return forms No deduction allowed. Amended tax return forms   You cannot deduct the contribution to the first IRA. Amended tax return forms Any net income you transfer with the recharacterized contribution is treated as earned in the second IRA. Amended tax return forms Required notifications. Amended tax return forms   To recharacterize a contribution, you must notify both the trustee of the first IRA (the one to which the contribution was actually made) and the trustee of the second IRA (the one to which the contribution is being moved) that you have elected to treat the contribution as having been made to the second IRA rather than the first. Amended tax return forms You must make the notifications by the date of the transfer. Amended tax return forms Only one notification is required if both IRAs are maintained by the same trustee. Amended tax return forms The notification(s) must include all of the following information. Amended tax return forms The type and amount of the contribution to the first IRA that is to be recharacterized. Amended tax return forms The date on which the contribution was made to the first IRA and the year for which it was made. Amended tax return forms A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the amount of the contribution and any net income (or loss) allocable to the contribution to the trustee of the second IRA. Amended tax return forms The name of the trustee of the first IRA and the name of the trustee of the second IRA. Amended tax return forms Any additional information needed to make the transfer. Amended tax return forms Reporting a recharacterization. Amended tax return forms   If you elect to recharacterize a contribution to one IRA as a contribution to another IRA, you must report the recharacterization on your tax return as directed by Form 8606 and its instructions. Amended tax return forms You must treat the contribution as having been made to the second IRA. Amended tax return forms When Can You Withdraw or Use IRA Assets? There are rules limiting use of your IRA assets and distributions from it. Amended tax return forms Violation of the rules generally results in additional taxes in the year of violation. Amended tax return forms See What Acts Result in Penalties or Additional Taxes , later. Amended tax return forms Contributions returned before the due date of return. Amended tax return forms   If you made IRA contributions in 2013, you can withdraw them tax free by the due date of your return. Amended tax return forms If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. Amended tax return forms You can do this if, for each contribution you withdraw, both of the following conditions apply. Amended tax return forms You did not take a deduction for the contribution. Amended tax return forms You withdraw any interest or other income earned on the contribution. Amended tax return forms You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Amended tax return forms If there was a loss, the net income earned on the contribution may be a negative amount. Amended tax return forms Note. Amended tax return forms To calculate the amount you must withdraw, see Worksheet 1-4 under When Can You Withdraw or Use Assets? in chapter 1 of Publication 590. Amended tax return forms Earnings includible in income. Amended tax return forms   You must include in income any earnings on the contributions you withdraw. Amended tax return forms Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them. Amended tax return forms Generally, except for any part of a withdrawal that is a return of nondeductible contributions (basis), any withdrawal of your contributions after the due date (or extended due date) of your return will be treated as a taxable distribution. Amended tax return forms Excess contributions can also be recovered tax free as discussed under What Acts Result in Penalties or Additional Taxes?, later. Amended tax return forms    Early distributions tax. Amended tax return forms   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. Amended tax return forms However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. Amended tax return forms When Must You Withdraw IRA Assets? (Required Minimum Distributions) You cannot keep funds in a traditional IRA indefinitely. Amended tax return forms Eventually they must be distributed. Amended tax return forms If there are no distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. Amended tax return forms See Excess Accumulations (Insufficient Distributions) , later. Amended tax return forms The requirements for distributing IRA funds differ depending on whether you are the IRA owner or the beneficiary of a decedent's IRA. Amended tax return forms Required minimum distribution. Amended tax return forms   The amount that must be distributed each year is referred to as the required minimum distribution. Amended tax return forms Required distributions not eligible for rollover. Amended tax return forms   Amounts that must be distributed (required minimum distributions) during a particular year are not eligible for rollover treatment. Amended tax return forms IRA owners. Amended tax return forms   If you are the owner of a traditional IRA, you must generally start receiving distributions from your IRA by April 1 of the year following the year in which you reach age 70½. Amended tax return forms April 1 of the year following the year in which you reach age 70½ is referred to as the required beginning date. Amended tax return forms Distributions by the required beginning date. Amended tax return forms   You must receive at least a minimum amount for each year starting with the year you reach age 70½ (your 70½ year). Amended tax return forms If you do not (or did not) receive that minimum amount in your 70½ year, then you must receive distributions for your 70½ year by April 1 of the next year. Amended tax return forms   If an IRA owner dies after reaching age 70½, but before April 1 of the next year, no minimum distribution is required because death occurred before the required beginning date. Amended tax return forms Even if you begin receiving distributions before you attain age 70½, you must begin calculating and receiving required minimum distributions by your required beginning date. Amended tax return forms Distributions after the required beginning date. Amended tax return forms   The required minimum distribution for any year after the year you turn 70½ must be made by December 31 of that later year. Amended tax return forms    Beneficiaries. Amended tax return forms   If you are the beneficiary of a decedent's traditional IRA, the requirements for distributions from that IRA generally depend on whether the IRA owner died before or after the required beginning date for distributions. Amended tax return forms More information. Amended tax return forms   For more information, including how to figure your minimum required distribution each year and how to figure your required distribution if you are a beneficiary of a decedent's IRA, see When Must You Withdraw Assets? in chapter 1 of Publication 590. Amended tax return forms Are Distributions Taxable? In general, distributions from a traditional IRA are taxable in the year you receive them. Amended tax return forms Exceptions. Amended tax return forms   Exceptions to distributions from traditional IRAs being taxable in the year you receive them are: Rollovers, Qualified charitable distributions (QCD), discussed later, Tax-free withdrawals of contributions, discussed earlier, and The return of nondeductible contributions, discussed later under Distributions Fully or Partly Taxable . Amended tax return forms    Although a conversion of a traditional IRA is considered a rollover for Roth IRA purposes, it is not an exception to the rule that distributions from a traditional IRA are taxable in the year you receive them. Amended tax return forms Conversion distributions are includible in your gross income subject to this rule and the special rules for conversions explained in Converting From Any Traditional IRA Into a Roth IRA under Can You Move Retirement Plan Assets? in chapter 1 of Publication 590. Amended tax return forms Qualified charitable distributions (QCD). Amended tax return forms   A QCD is generally a nontaxable distribution made directly by the trustee of your IRA to an organization eligible to receive tax-deductible contributions. Amended tax return forms Special rules apply if you made a qualified charitable distribution in January 2013 that you elected to treat as made in 2012. Amended tax return forms See Qualified Charitable Distributions in Publication 590 for more information. Amended tax return forms Ordinary income. Amended tax return forms   Distributions from traditional IRAs that you include in income are taxed as ordinary income. Amended tax return forms No special treatment. Amended tax return forms   In figuring your tax, you cannot use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. Amended tax return forms Distributions Fully or Partly Taxable Distributions from your traditional IRA may be fully or partly taxable, depending on whether your IRA includes any nondeductible contributions. Amended tax return forms Fully taxable. Amended tax return forms   If only deductible contributions were made to your traditional IRA (or IRAs, if you have more than one), you have no basis in your IRA. Amended tax return forms Because you have no basis in your IRA, any distributions are fully taxable when received. Amended tax return forms See Reporting taxable distributions on your return , later. Amended tax return forms Partly taxable. Amended tax return forms    If you made nondeductible contributions or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. Amended tax return forms These nondeductible contributions are not taxed when they are distributed to you. Amended tax return forms They are a return of your investment in your IRA. Amended tax return forms   Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts (your cost basis) is tax free. Amended tax return forms If nondeductible contributions have been made or after-tax amounts have been rolled over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). Amended tax return forms Until all of your basis has been distributed, each distribution is partly nontaxable and partly taxable. Amended tax return forms Form 8606. Amended tax return forms   You must complete Form 8606 and attach it to your return if you receive a distribution from a traditional IRA and have ever made nondeductible contributions or rolled over after-tax amounts to any of your traditional IRAs. Amended tax return forms Using the form, you will figure the nontaxable distributions for 2013 and your total IRA basis for 2013 and earlier years. Amended tax return forms Note. Amended tax return forms If you are required to file Form 8606, but you are not required to file an income tax return, you still must file Form 8606. Amended tax return forms Send it to the IRS at the time and place you would otherwise file an income tax return. Amended tax return forms Distributions reported on Form 1099-R. Amended tax return forms   If you receive a distribution from your traditional IRA, you will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Amended tax return forms , or a similar statement. Amended tax return forms IRA distributions are shown in boxes 1 and 2a of Form 1099-R. Amended tax return forms A number or letter code in box 7 tells you what type of distribution you received from your IRA. Amended tax return forms Withholding. Amended tax return forms   Federal income tax is withheld from distributions from traditional IRAs unless you choose not to have tax withheld. Amended tax return forms See chapter 4. Amended tax return forms IRA distributions delivered outside the United States. Amended tax return forms   In general, if you are a U. Amended tax return forms S. Amended tax return forms citizen or resident alien and your home address is outside the United States or its possessions, you cannot choose exemption from withholding on distributions from your traditional IRA. Amended tax return forms Reporting taxable distributions on your return. Amended tax return forms    Report fully taxable distributions, including early distributions on Form 1040, line 15b, or Form 1040A, line 11b (no entry is required on Form 1040, line 15a, or Form 1040A, line 11a). Amended tax return forms If only part of the distribution is taxable, enter the total amount on Form 1040, line 15a, or Form 1040A, line 11a, and the taxable part on Form 1040, line 15b, or Form 1040A, line 11b. Amended tax return forms You cannot report distributions on Form 1040EZ. Amended tax return forms What Acts Result in Penalties or Additional Taxes? The tax advantages of using traditional IRAs for retirement savings can be offset by additional taxes and penalties if you do not follow the rules. Amended tax return forms There are additions to the regular tax for using your IRA funds in prohibited transactions. Amended tax return forms There are also additional taxes for the following activities. Amended tax return forms Investing in collectibles. Amended tax return forms Making excess contributions. Amended tax return forms Taking early distributions. Amended tax return forms Allowing excess amounts to accumulate (failing to take required distributions). Amended tax return forms There are penalties for overstating the amount of nondeductible contributions and for failure to file a Form 8606, if required. Amended tax return forms Prohibited Transactions Generally, a prohibited transaction is any improper use of your traditional IRA by you, your beneficiary, or any disqualified person. Amended tax return forms Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendent, and any spouse of a lineal descendent). Amended tax return forms The following are examples of prohibited transactions with a traditional IRA. Amended tax return forms Borrowing money from it. Amended tax return forms Selling property to it. Amended tax return forms Receiving unreasonable compensation for managing it. Amended tax return forms Using it as security for a loan. Amended tax return forms Buying property for personal use (present or future) with IRA funds. Amended tax return forms Effect on an IRA account. Amended tax return forms   Generally, if you or your beneficiary engages in a prohibited transaction in connection with your traditional IRA account at any time during the year, the account stops being an IRA as of the first day of that year. Amended tax return forms Effect on you or your beneficiary. Amended tax return forms   If your account stops being an IRA because you or your beneficiary engaged in a prohibited transaction, the account is treated as distributing all its assets to you at their fair market values on the first day of the year. Amended tax return forms If the total of those values is more than your basis in the IRA, you will have a taxable gain that is includible in your income. Amended tax return forms For information on figuring your gain and reporting it in income, see Are Distributions Taxable , earlier. Amended tax return forms The distribution may be subject to additional taxes or penalties. Amended tax return forms Taxes on prohibited transactions. Amended tax return forms   If someone other than the owner or beneficiary of a traditional IRA engages in a prohibited transaction, that person may be liable for certain taxes. Amended tax return forms In general, there is a 15% tax on the amount of the prohibited transaction and a 100% additional tax if the transaction is not corrected. Amended tax return forms More information. Amended tax return forms   For more information on prohibited transactions, see What Acts Result in Penalties or Additional Taxes? in chapter 1 of Publication 590. Amended tax return forms Investment in Collectibles If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. Amended tax return forms You may have to pay the 10% additional tax on early distributions, discussed later. Amended tax return forms Collectibles. Amended tax return forms   These include: Artworks, Rugs, Antiques, Metals, Gems, Stamps, Coins, Alcoholic beverages, and Certain other tangible personal property. Amended tax return forms Exception. Amended tax return forms    Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U. Amended tax return forms S. Amended tax return forms gold coins, or one-ounce silver coins minted by the Treasury Department. Amended tax return forms It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion. Amended tax return forms Excess Contributions Generally, an excess contribution is the amount contributed to your traditional IRA(s) for the year that is more than the smaller of: The maximum deductible amount for the year. Amended tax return forms For 2013, this is $5,500 ($6,500 if you are 50 or older), or Your taxable compensation for the year. Amended tax return forms Tax on excess contributions. Amended tax return forms   In general, if the excess contributions for a year are not withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. Amended tax return forms You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. Amended tax return forms The tax cannot be more than 6% of the combined value of all your IRAs as of the end of your tax year. Amended tax return forms Excess contributions withdrawn by due date of return. Amended tax return forms   You will not have to pay the 6% tax if you withdraw an excess contribution made during a tax year and you also withdraw interest or other income earned on the excess contribution. Amended tax return forms You must complete your withdrawal by the date your tax return for that year is due, including extensions. Amended tax return forms How to treat withdrawn contributions. Amended tax return forms   Do not include in your gross income an excess contribution that you withdraw from your traditional IRA before your tax return is due if both the following conditions are met. Amended tax return forms No deduction was allowed for the excess contribution. Amended tax return forms You withdraw the interest or other income earned on the excess contribution. Amended tax return forms You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. Amended tax return forms If there was a loss, the net income you must withdraw may be a negative amount. Amended tax return forms How to treat withdrawn interest or other income. Amended tax return forms   You must include in your gross income the interest or other income that was earned on the excess contribution. Amended tax return forms Report it on your return for the year in which the excess contribution was made. Amended tax return forms Your withdrawal of interest or other income may be subject to an additional 10% tax on early distributions, discus