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Tax Form For Students

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Tax Form For Students

Tax form for students Publication 721 - Main Content Table of Contents Part I General InformationRefund of Contributions Tax Withholding and Estimated Tax Filing Requirements Part II Rules for RetireesAnnuity starting date. Tax form for students Gross monthly rate. Tax form for students Your cost. Tax form for students Choosing a survivor annuity after retirement. Tax form for students Canceling a survivor annuity after retirement. Tax form for students Annuity starting date after 1986. Tax form for students Annuity starting date before 1987. Tax form for students Simplified Method General Rule Three-Year Rule Alternative Annuity Option Federal Gift Tax Retirement During the Past Year Reemployment After Retirement Nonresident Aliens Thrift Savings Plan Rollover Rules Distributions Used To Pay Insurance Premiums for Public Safety Officers How To Report Benefits Part III Rules for Disability Retirement and Credit for the Elderly or the DisabledDisability Annuity Other Benefits Credit for the Elderly or the Disabled Part IV Rules for Survivors of Federal EmployeesFERS Death Benefit CSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Thrift Savings Plan Federal Estate Tax Part V Rules for Survivors of Federal RetireesCSRS or FERS Survivor Annuity Lump-Sum CSRS or FERS Payment Voluntary Contributions Thrift Savings Plan Federal Estate Tax Income Tax Deduction for Estate Tax Paid How To Get Tax HelpLow Income Taxpayer Clinics Part I General Information This part of the publication contains information that can apply to most recipients of civil service retirement benefits. Tax form for students Refund of Contributions If you leave federal government service or transfer to a job not under the CSRS or FERS and you are not eligible for an immediate annuity, you can choose to receive a refund of the money in your CSRS or FERS retirement account. Tax form for students The refund will include both regular and voluntary contributions you made to the fund, plus any interest payable. Tax form for students If the refund includes only your contributions, none of the refund is taxable. Tax form for students If it includes any interest, the interest is taxable unless you roll it over directly into another qualified plan or a traditional individual retirement arrangement (IRA). Tax form for students If you do not have the Office of Personnel Management (OPM) transfer the interest to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Tax form for students See Rollover Rules in Part II for information on how to make a rollover. Tax form for students Interest is not paid on contributions to the CSRS for service after 1956 unless your service was for more than 1 year but not more than 5 years. Tax form for students Therefore, many employees who withdraw their contributions under the CSRS do not get interest and do not owe any tax on their refund. Tax form for students If you do not roll over interest included in your refund, it may qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Tax form for students If you separate from service before the calendar year in which you reach age 55, it may be subject to an additional 10% tax on early distributions. Tax form for students For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Tax form for students A lump-sum distribution is eligible for capital gain treatment or the 10-year tax option only if the plan participant was born before January 2, 1936. Tax form for students Tax Withholding and Estimated Tax The CSRS or FERS annuity you receive is subject to federal income tax withholding, unless you choose not to have tax withheld. Tax form for students OPM will tell you how to make the choice. Tax form for students The choice for no withholding remains in effect until you change it. Tax form for students These withholding rules also apply to a disability annuity, whether received before or after minimum retirement age. Tax form for students If you choose not to have tax withheld, or if you do not have enough tax withheld, you may have to make estimated tax payments. Tax form for students You may owe a penalty if the total of your withheld tax and estimated tax does not cover most of the tax shown on your return. Tax form for students Generally, you will owe the penalty for 2014 if the additional tax you must pay with your return is $1,000 or more and more than 10% of the tax to be shown on your 2014 return. Tax form for students For more information, including exceptions to the penalty, see chapter 4 of Publication 505, Tax Withholding and Estimated Tax. Tax form for students Form CSA 1099R. Tax form for students   Form CSA 1099R is mailed to you by OPM each year. Tax form for students It will show any tax you had withheld. Tax form for students File a copy of Form CSA 1099R with your tax return if any federal income tax was withheld. Tax form for students    You also can view and download your Form CSA 1099R by visiting the OPM website at  www. Tax form for students servicesonline. Tax form for students opm. Tax form for students gov. Tax form for students To log in, you will need your retirement CSA claim number and your personal identification number. Tax form for students Choosing no withholding on payments outside the United States. Tax form for students   The choice for no withholding generally cannot be made for annuity payments to be delivered outside the United States and its possessions. Tax form for students   To choose no withholding if you are a U. Tax form for students S. Tax form for students citizen or resident alien, you must provide OPM with your home address in the United States or its possessions. Tax form for students Otherwise, OPM has to withhold tax. Tax form for students For example, OPM must withhold if you provide a U. Tax form for students S. Tax form for students address for a nominee, trustee, or agent (such as a bank) to whom the benefits are to be delivered, but you do not provide your own U. Tax form for students S. Tax form for students home address. Tax form for students   If you do not provide a home address in the United States or its possessions, you can choose not to have tax withheld only if you certify to OPM that you are not a U. Tax form for students S. Tax form for students citizen, a U. Tax form for students S. Tax form for students resident alien, or someone who left the United States to avoid tax. Tax form for students But if you so certify, you may be subject to the 30% flat rate withholding that applies to nonresident aliens. Tax form for students For details, see Publication 519, U. Tax form for students S. Tax form for students Tax Guide for Aliens. Tax form for students Withholding certificate. Tax form for students   If you give OPM a Form W-4P-A, Election of Federal Income Tax Withholding, you can choose not to have tax withheld or you can choose to have tax withheld. Tax form for students The amount of tax withheld depends on your marital status, the number of withholding allowances, and any additional amount you designate to be withheld. Tax form for students If you do not make either of these choices, OPM must withhold as if you were married with three withholding allowances. Tax form for students To change the amount of tax withholding or to stop withholding, call OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Tax form for students C. Tax form for students calling area must call 202-606-0500). Tax form for students No special form is needed. Tax form for students You will need your retirement CSA or CSF claim number, your social security number, and your personal identification number (PIN) when you call. Tax form for students If you have TTY/TDD equipment, call 1-855–887–4957. Tax form for students If you need a PIN, call OPM's Retirement Information Office. Tax form for students You also can change the amount of withholding or stop withholding online by visiting the OPM website at www. Tax form for students servicesonline. Tax form for students opm. Tax form for students gov. Tax form for students You will need your retirement CSA or CSF claim number and your PIN. Tax form for students Withholding from certain lump-sum payments. Tax form for students   If you leave the federal government before becoming eligible to retire and you apply for a refund of your CSRS or FERS contributions, or you die without leaving a survivor eligible for an annuity, you or your beneficiary will receive a distribution of your contributions to the retirement plan plus any interest payable. Tax form for students Tax will be withheld at a 20% rate on the interest distributed. Tax form for students However, tax will not be withheld if you have OPM transfer (roll over) the interest directly to your traditional IRA or other qualified plan. Tax form for students If you have OPM transfer (roll over) the interest directly to a Roth IRA, the entire amount will be taxed in the current year. Tax form for students Because no income tax will be withheld at the time of the transfer, you may want to increase your withholding or pay estimated taxes. Tax form for students See Rollover Rules in Part II. Tax form for students If you receive only your contributions, no tax will be withheld. Tax form for students Withholding from Thrift Savings Plan payments. Tax form for students   Generally, a distribution that you receive from the TSP is subject to federal income tax withholding. Tax form for students The amount withheld is: 20% if the distribution is an eligible rollover distribution, 10% if it is a nonperiodic distribution other than an eligible rollover distribution, or An amount determined as if you were married with three withholding allowances, unless you submit a withholding certificate (Form W-4P), if it is a periodic distribution. Tax form for students  However, you usually can choose not to have tax withheld from TSP payments other than eligible rollover distributions. Tax form for students By January 31 after the end of the year in which you receive a distribution, the TSP will issue Form 1099-R showing the total distributions you received in the prior year and the amount of tax withheld. Tax form for students   For a detailed discussion of withholding on distributions from the TSP, see Important Tax Information About Payments From Your TSP Account, available from your agency personnel office or from the TSP. Tax form for students The above document is also available in the “Forms & Publications” section of the TSP website at www. Tax form for students tsp. Tax form for students gov. Tax form for students Estimated tax. Tax form for students   Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 (after subtracting your withholding and credits) and you expect your withholding and your credits to be less than the smaller of: 90% of the tax to be shown on your income tax return for 2014, or 100% of the tax shown on your 2013 income tax return (110% of that amount if the adjusted gross income shown on the return was more than $150,000 ($75,000 if your filing status for 2014 will be married filing separately)). Tax form for students The return must cover all 12 months. Tax form for students   You do not have to pay estimated tax for 2014 if you were a U. Tax form for students S. Tax form for students citizen or resident alien for all of 2013 and you had no tax liability for the full 12-month 2013 tax year. Tax form for students   Publication 505 contains information that you can use to help you figure your estimated tax payments. Tax form for students Filing Requirements If your gross income, including the taxable part of your annuity, is less than a certain amount, you generally do not have to file a federal income tax return for that year. Tax form for students The gross income filing requirements for the tax year are in the instructions to Form 1040, 1040A, or 1040EZ. Tax form for students Children. Tax form for students   If you are the surviving spouse of a federal employee or retiree and your monthly annuity check includes a survivor annuity for one or more children, each child's annuity counts as his or her own income (not yours) for federal income tax purposes. Tax form for students   If your child can be claimed as a dependent, treat the taxable part of his or her annuity as unearned income when applying the filing requirements for dependents. Tax form for students Form CSF 1099R. Tax form for students   Form CSF 1099R will be mailed to you by January 31 after the end of each tax year. Tax form for students It will show the total amount of the annuity you received in the past year. Tax form for students It also should show, separately, the survivor annuity for a child or children. Tax form for students Only the part that is each individual's survivor annuity should be shown on that individual's Form 1040 or 1040A. Tax form for students   If your Form CSF 1099R does not show separately the amount paid to you for a child or children, attach a statement to your return, along with a copy of Form CSF 1099R, explaining why the amount shown on the tax return differs from the amount shown on Form CSF 1099R. Tax form for students    You also can view and download your Form CSF 1099R by visiting the OPM website at  www. Tax form for students servicesonline. Tax form for students opm. Tax form for students gov. Tax form for students To log in you will need your retirement CSF claim number and personal identification number. Tax form for students    You may request a Summary of Payments, showing the amounts paid to you for your child(ren), from OPM by calling OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Tax form for students C. Tax form for students calling area must call 202-606-0500). Tax form for students You will need your CSF claim number and your social security number when you call. Tax form for students Taxable part of annuity. Tax form for students   To find the taxable part of a retiree's annuity when applying the filing requirements, see the discussion in Part II, Rules for Retirees , or Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled , whichever applies. Tax form for students To find the taxable part of each survivor annuity when applying the filing requirements, see the discussion in Part IV, Rules for Survivors of Federal Employees , or Part V, Rules for Survivors of Federal Retirees , whichever applies. Tax form for students Part II Rules for Retirees This part of the publication is for retirees who retired on nondisability retirement. Tax form for students If you retired on disability before you reached your minimum retirement age, see Part III, Rules for Disability Retirement and Credit for the Elderly or the Disabled. Tax form for students However, on the day after you reach your minimum retirement age, use the rules in this section to report your disability retirement and begin recovering your cost. Tax form for students Annuity statement. Tax form for students   The statement you received from OPM when your CSRS or FERS annuity was approved shows the commencing date (the annuity starting date), the gross monthly rate of your annuity benefit, and your total contributions to the retirement plan (your cost). Tax form for students You will use this information to figure the tax-free recovery of your cost. Tax form for students Annuity starting date. Tax form for students   If you retire from federal government service on a regular annuity, your annuity starting date is the commencing date on your annuity statement from OPM. Tax form for students If something delays payment of your annuity, such as a late application for retirement, it does not affect the date your annuity begins to accrue or your annuity starting date. Tax form for students Gross monthly rate. Tax form for students   This is the amount you were to get after any adjustment for electing a survivor's annuity or for electing the lump-sum payment under the alternative annuity option (if either applied) but before any deduction for income tax withholding, insurance premiums, etc. Tax form for students Your cost. Tax form for students   Your monthly annuity payment contains an amount on which you have previously paid income tax. Tax form for students This amount represents part of your contributions to the retirement plan. Tax form for students Even though you did not receive the money that was contributed to the plan, it was included in your gross income for federal income tax purposes in the years it was taken out of your pay. Tax form for students   The cost of your annuity is the total of your contributions to the retirement plan, as shown on your annuity statement from OPM. Tax form for students If you elected the alternative annuity option, it includes any deemed deposits and any deemed redeposits that were added to your lump-sum credit. Tax form for students (See Lump-sum credit under Alternative Annuity Option, later. Tax form for students )   If you repaid contributions that you had withdrawn from the retirement plan earlier, or if you paid into the plan to receive full credit for service not subject to retirement deductions, the entire repayment, including any interest, is a part of your cost. Tax form for students You cannot claim an interest deduction for any interest payments. Tax form for students You cannot treat these payments as voluntary contributions; they are considered regular employee contributions. Tax form for students Recovering your cost tax free. Tax form for students   How you figure the tax-free recovery of the cost of your CSRS or FERS annuity depends on your annuity starting date. Tax form for students If your annuity starting date is before July 2, 1986, either the Three-Year Rule or the General Rule (both discussed later) applies to your annuity. Tax form for students If your annuity starting date is after July 1, 1986, and before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method (discussed later). Tax form for students If your annuity starting date is after November 18, 1996, you must use the Simplified Method. Tax form for students   Under both the General Rule and the Simplified Method, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your cost, and the taxable part that is the amount of each payment that is more than the part that represents your cost (unless such payment is used for purposes discussed under Distributions Used To Pay Insurance Premiums for Public Safety Officers , later). Tax form for students The tax-free part is a fixed dollar amount. Tax form for students It remains the same, even if your annuity is increased. Tax form for students Generally, this rule applies as long as you receive your annuity. Tax form for students However, see Exclusion limit , later. Tax form for students Choosing a survivor annuity after retirement. Tax form for students    If you retired without a survivor annuity and report your annuity under the Simplified Method, do not change your tax-free monthly amount even if you later choose a survivor annuity. Tax form for students   If you retired without a survivor annuity and report your annuity under the General Rule, you must figure the tax-free part of your annuity using a new exclusion percentage if you later choose a survivor annuity and take reduced annuity payments. Tax form for students To figure the new exclusion percentage, reduce your cost by the amount you previously recovered tax free. Tax form for students Figure the expected return as of the date the reduced annuity begins. Tax form for students For details on the General Rule, see Publication 939. Tax form for students Canceling a survivor annuity after retirement. Tax form for students   If you retired with a survivor annuity payable to your spouse upon your death and you notify OPM that your marriage has ended, your annuity might be increased to remove the reduction for a survivor benefit. Tax form for students The increased annuity does not change the cost recovery you figured at the annuity starting date. Tax form for students The tax-free part of each annuity payment remains the same. Tax form for students    For more information about choosing or canceling a survivor annuity after retirement, contact OPM's Retirement Information Office at 1-888-767-6738 (customers within the local Washington, D. Tax form for students C. Tax form for students calling area must call 202-606-0500). Tax form for students Exclusion limit. Tax form for students   Your annuity starting date determines the total amount of annuity payments that you can exclude from income over the years. Tax form for students Annuity starting date after 1986. Tax form for students   If your annuity starting date is after 1986, the total amount of annuity income that you (or the survivor annuitant) can exclude over the years as a return of your cost cannot exceed your total cost. Tax form for students Annuity payments you or your survivors receive after the total cost in the plan has been recovered are generally fully taxable. Tax form for students Example. Tax form for students Your annuity starting date is after 1986 and you exclude $100 a month under the Simplified Method. Tax form for students If your cost is $12,000, the exclusion ends after 10 years (120 months). Tax form for students Thereafter, your entire annuity is generally fully taxable. Tax form for students Annuity starting date before 1987. Tax form for students   If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. Tax form for students If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. Tax form for students The total exclusion may be more than your cost. Tax form for students Deduction of unrecovered cost. Tax form for students   If your annuity starting date is after July 1, 1986, and the cost of your annuity has not been fully recovered at your (or the survivor annuitant's) death, a deduction is allowed for the unrecovered cost. Tax form for students The deduction is claimed on your (or your survivor's) final tax return as a miscellaneous itemized deduction (not subject to the 2%-of-adjusted-gross-income limit). Tax form for students If your annuity starting date is before July 2, 1986, no tax benefit is allowed for any unrecovered cost at death. Tax form for students Simplified Method If your annuity starting date is after November 18, 1996, you must use the Simplified Method to figure the tax-free part of your CSRS or FERS annuity. Tax form for students (OPM has figured the taxable amount of your annuity shown on your Form CSA 1099R using the Simplified Method. Tax form for students ) You could have chosen to use either the Simplified Method or the General Rule if your annuity starting date is after July 1, 1986, but before November 19, 1996. Tax form for students The Simplified Method does not apply if your annuity starting date is before July 2, 1986. Tax form for students Under the Simplified Method, you figure the tax-free part of each full monthly payment by dividing your cost by a number of months based on your age. Tax form for students This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996. Tax form for students If your annuity starting date is after 1997 and your annuity includes a survivor benefit for your spouse, this number is based on your combined ages. Tax form for students Worksheet A. Tax form for students   Use Worksheet A. Tax form for students Simplified Method (near the end of this publication), to figure your taxable annuity. Tax form for students Be sure to keep the completed worksheet. Tax form for students It will help you figure your taxable amounts for later years. Tax form for students Instead of Worksheet A, you generally can use the Simplified Method Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR to figure your taxable annuity. Tax form for students However, you must use Worksheet A and Worksheet B in this publication if you chose the alternative annuity option, discussed later. Tax form for students Line 2. Tax form for students   See Your cost , earlier, for an explanation of your cost in the plan. Tax form for students If your annuity starting date is after November 18, 1996, and you chose the alternative annuity option (explained later), you must reduce your cost by the tax-free part of the lump-sum payment you received. Tax form for students Line 3. Tax form for students   The number you enter on line 3 is the appropriate number from Table 1 or 2 representing approximate life expectancies in months. Tax form for students If your annuity starting date is after 1997, use: Table 1 for an annuity without a survivor benefit, or Table 2 for an annuity with a survivor benefit. Tax form for students If your annuity starting date is before 1998, use Table 1. Tax form for students Line 6. Tax form for students   If you received contributions tax free before 2013, the amount previously recovered tax free that you must enter on line 6 is the total amount from line 10 of last year's worksheet. Tax form for students If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, this amount includes the tax-free part of the lump-sum payment you received. Tax form for students Example. Tax form for students Bill Smith retired from the Federal Government on March 31, 2013, under an annuity that will provide a survivor benefit for his wife, Kathy. Tax form for students His annuity starting date is April 1, 2013, the annuity is paid in arrears, and he received his first monthly annuity payment on May 1, 2013. Tax form for students He must use the Simplified Method to figure the tax-free part of his annuity benefits. Tax form for students Bill's monthly annuity benefit is $1,000. Tax form for students He had contributed $31,000 to his retirement plan and had received no distributions before his annuity starting date. Tax form for students At his annuity starting date, he was 65 and Kathy was 57. Tax form for students Bill's completed Worksheet A is shown later. Tax form for students To complete line 3, he used Table 2 at the bottom of the worksheet and found that 310 is the number in the second column opposite the age range that includes 122 (his and Kathy's combined ages). Tax form for students Bill keeps a copy of the completed worksheet for his records. Tax form for students It will help him (and Kathy, if she survives him) figure the taxable amount of the annuity in later years. Tax form for students Bill's tax-free monthly amount is $100. Tax form for students (See line 4 of the worksheet. Tax form for students ) If he lives to collect more than 310 monthly payments, he will generally have to include in his gross income the full amount of any annuity payments received after 310 payments have been made. Tax form for students If Bill does not live to collect 310 monthly payments and his wife begins to receive monthly payments, she also will exclude $100 from each monthly payment until 310 payments (Bill's and hers) have been collected. Tax form for students If she dies before 310 payments have been made, a miscellaneous itemized deduction (not subject to the 2%-of-adjusted- gross-income limit) will be allowed for the unrecovered cost on her final income tax return. Tax form for students General Rule If your annuity starting date is after November 18, 1996, you cannot use the General Rule to figure the tax-free part of your CSRS or FERS annuity. Tax form for students If your annuity starting date is after July 1, 1986, but before November 19, 1996, you could have chosen to use either the General Rule or the Simplified Method. Tax form for students If your annuity starting date is before July 2, 1986, you could have chosen to use the General Rule only if you could not use the Three-Year Rule. Tax form for students Under the General Rule, you figure the tax-free part of each full monthly payment by multiplying the initial gross monthly rate of your annuity by an exclusion percentage. Tax form for students Figuring this percentage is complex and requires the use of actuarial tables. Tax form for students For these tables and other information about using the General Rule, see Publication 939. Tax form for students Three-Year Rule If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the Three-Year Rule. Tax form for students Under this rule, you excluded all the annuity payments from income until you fully recovered your cost. Tax form for students After your cost was recovered, all payments became fully taxable. Tax form for students You cannot use another rule to again exclude amounts from income. Tax form for students The Three-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986. Tax form for students Worksheet A. Tax form for students Simplified Method for Bill Smith See the instructions in Part II of this publication under Simplified Method. Tax form for students 1. Tax form for students Enter the total pension or annuity payments received this year. Tax form for students Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Tax form for students $ 8,000 2. Tax form for students Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Tax form for students See Your cost in Part II, Rules for Retirees, earlier 2. Tax form for students 31,000 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Tax form for students Otherwise, go to line 3. Tax form for students   3. Tax form for students Enter the appropriate number from Table 1 below. Tax form for students But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Tax form for students 3. Tax form for students 310 4. Tax form for students Divide line 2 by the number on line 3 4. Tax form for students 100 5. Tax form for students Multiply line 4 by the number of months for which this year's payments were made. Tax form for students If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Tax form for students Otherwise, go to line 6 5. Tax form for students 800 6. Tax form for students Enter any amounts previously recovered tax free in years after 1986. Tax form for students This is the amount shown on line 10 of your worksheet for last year 6. Tax form for students 0 7. Tax form for students Subtract line 6 from line 2 7. Tax form for students 31,000 8. Tax form for students Enter the smaller of line 5 or line 7 8. Tax form for students 800 9. Tax form for students Taxable amount for year. Tax form for students Subtract line 8 from line 1. Tax form for students Enter the result, but not less than zero. Tax form for students Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Tax form for students If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Tax form for students If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Tax form for students If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Tax form for students $7,200 10. Tax form for students Was your annuity starting date before 1987?   Yes. Tax form for students Do not complete the rest of this worksheet. Tax form for students    No. Tax form for students Add lines 6 and 8. Tax form for students This is the amount you have recovered tax free through 2013. Tax form for students You will need this number if you need to fill out this worksheet next year 10. Tax form for students 800 11. Tax form for students Balance of cost to be recovered. Tax form for students Subtract line 10 from line 2. Tax form for students If zero, you will not have to complete this worksheet next year. Tax form for students The payments you receive next year will generally be fully taxable 11. Tax form for students $30,200 Table 1 for Line 3 Above    IF your age on your  annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Tax form for students Alternative Annuity Option If you are eligible, you may choose an alternative form of annuity. Tax form for students If you make this choice, you will receive a lump-sum payment equal to your contributions to the plan and a reduced monthly annuity. Tax form for students You are eligible to make this choice if you meet all of the following requirements. Tax form for students You are retiring, but not on disability. Tax form for students You have a life-threatening illness or other critical medical condition. Tax form for students You do not have a former spouse entitled to court ordered benefits based on your service. Tax form for students If you are not eligible or do not choose this alternative annuity, you can skip the following discussion and go to Federal Gift Tax , later. Tax form for students Lump-Sum Payment The lump-sum payment you receive under the alternative annuity option generally has a tax-free part and a taxable part. Tax form for students The tax-free part represents part of your cost. Tax form for students The taxable part represents part of the earnings on your annuity contract. Tax form for students Your lump-sum credit (discussed later) may include a deemed deposit or redeposit that is treated as being included in your lump-sum payment even though you do not actually receive such amounts. Tax form for students Deemed deposits and redeposits, which are described later under Lump-sum credit , are taxable to you in the year of retirement. Tax form for students Your taxable amount may therefore be more than the lump-sum payment you receive. Tax form for students You must include the taxable part of the lump-sum payment in your income for the year you receive the payment unless you roll it over into another qualified plan or an IRA. Tax form for students If you do not have OPM transfer the taxable amount to an IRA or other plan in a direct rollover, tax will be withheld at a 20% rate. Tax form for students See Rollover Rules , later, for information on how to make a rollover. Tax form for students OPM can make a direct rollover only up to the amount of the lump-sum payment. Tax form for students Therefore, to defer tax on the full taxable amount if it is more than the payment, you must add funds from another source. Tax form for students The taxable part of the lump-sum payment does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Tax form for students It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55, even if you reach age 55 in the year you receive the lump-sum payment. Tax form for students For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Tax form for students Worksheet B. Tax form for students   Use Worksheet B. Tax form for students Lump-Sum Payment (near the end of this publication), to figure the taxable part of your lump-sum payment. Tax form for students Be sure to keep the completed worksheet for your records. Tax form for students   To complete the worksheet, you will need to know the amount of your lump-sum credit and the present value of your annuity contract. Tax form for students Lump-sum credit. Tax form for students   Generally, this is the same amount as the lump-sum payment you receive (the total of your contributions to the retirement system). Tax form for students However, for purposes of the alternative annuity option, your lump-sum credit also may include deemed deposits and redeposits that OPM advanced to your retirement account so that you are given credit for the service they represent. Tax form for students Deemed deposits (including interest) are for federal employment during which no retirement contributions were taken out of your pay. Tax form for students Deemed redeposits (including interest) are for any refunds of retirement contributions that you received and did not repay. Tax form for students You are treated as if you had received a lump-sum payment equal to the amount of your lump-sum credit and then had made a repayment to OPM of the advanced amounts. Tax form for students Present value of your annuity contract. Tax form for students   The present value of your annuity contract is figured using actuarial tables provided by the IRS. Tax form for students If you are receiving a lump-sum payment under the Alternative Annuity Option, you can write to the address below to find out the present value of your annuity contract. Tax form for students Internal Revenue Service Attn: Actuarial Group 2 TE/GE SE:T:EP:RA:T:A2 NCA-629 1111 Constitution Ave. Tax form for students , NW Washington, DC 20224-0002 Example. Tax form for students David Brown retired from the federal government in 2013, one month after his 55th birthday. Tax form for students He had contributed $31,000 to his retirement plan and chose to receive a lump-sum payment of that amount under the alternative annuity option. Tax form for students The present value of his annuity contract was $155,000. Tax form for students The tax-free part and the taxable part of the lump-sum payment are figured using Worksheet B, as shown below. Tax form for students The taxable part ($24,800) is also his net cost in the plan, which is used to figure the taxable part of his reduced annuity payments. Tax form for students See Reduced Annuity , later. Tax form for students Worksheet B. Tax form for students Lump-Sum Payment for David Brown See the instructions in Part II of this publication under Alternative Annuity Option . Tax form for students  1. Tax form for students Enter your lump-sum credit (your cost in the plan at the annuity starting date) 1. Tax form for students $ 31,000 2. Tax form for students Enter the present value of your annuity contract 2. Tax form for students 155,000 3. Tax form for students Divide line 1 by line 2 3. Tax form for students . Tax form for students 20 4. Tax form for students Tax-free amount. Tax form for students Multiply line 1 by line 3. Tax form for students (Caution: Do not include this amount on line 6 of Worksheet A in this publication. Tax form for students ) 4. Tax form for students $6,200 5. Tax form for students Taxable amount (net cost in the plan). Tax form for students Subtract line 4 from line 1. Tax form for students Include this amount in the total on Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Tax form for students Also, enter this amount on line 2 of Worksheet A in this publication. Tax form for students 5. Tax form for students $24,800   Lump-sum payment in installments. Tax form for students   If you choose the alternative annuity option, you usually will receive the lump-sum payment in two equal installments. Tax form for students You will receive the first installment after you make the choice upon retirement. Tax form for students The second installment will be paid to you, with interest, in the next calendar year. Tax form for students (Exceptions to the installment rule are provided for cases of critical medical need. Tax form for students )   Even though the lump-sum payment is made in installments, the overall tax treatment (explained at the beginning of this discussion) is the same as if the whole payment were paid at once. Tax form for students If the payment has a tax-free part, you must treat the taxable part as received first. Tax form for students How to report. Tax form for students   Add any actual or deemed payment of your lump-sum credit (defined earlier) to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a. Tax form for students Add the taxable part to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b, unless you roll over the taxable part to your traditional IRA or a qualified retirement plan. Tax form for students    If you receive the lump-sum payment in two installments, include any interest paid with the second installment on line 8a of either Form 1040 or Form 1040A, or on line 9a of Form 1040NR. Tax form for students Reduced Annuity If you have chosen to receive a lump-sum payment under the alternative annuity option, you also will receive reduced monthly annuity payments. Tax form for students These annuity payments each will have a tax-free and a taxable part. Tax form for students To figure the tax-free part of each annuity payment, you must use the Simplified Method (Worksheet A). Tax form for students For instructions on how to complete the worksheet, see Worksheet A under Simplified Method, earlier. Tax form for students To complete Worksheet A, line 2, you must reduce your cost in the plan by the tax-free part of the lump-sum payment you received. Tax form for students Enter as your net cost on line 2 the amount from Worksheet B, line 5. Tax form for students Do not include the tax-free part of the lump-sum payment with other amounts recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Tax form for students Example. Tax form for students The facts are the same as in the example for David Brown in the preceding discussion. Tax form for students In addition, David received 10 annuity payments in 2013 of $1,200 each. Tax form for students Using Worksheet A, he figures the taxable part of his annuity payments. Tax form for students He completes line 2 by reducing his $31,000 cost by the $6,200 tax-free part of his lump-sum payment. Tax form for students His entry on line 2 is his $24,800 net cost in the plan (the amount from Worksheet B, line 5). Tax form for students He does not include the tax-free part of his lump-sum payment on Worksheet A, line 6. Tax form for students David's filled-in Worksheet A is shown on the next page. Tax form for students Worksheet A. Tax form for students Simplified Method for David Brown See the instructions in Part II of this publication under Simplified Method . Tax form for students 1. Tax form for students Enter the total pension or annuity payments received this year. Tax form for students Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Tax form for students $ 12,000 2. Tax form for students Enter your cost in the plan at the annuity starting date, plus any death benefit exclusion*. Tax form for students See Your cost in Part II, Rules for Retirees, earlier 2. Tax form for students 24,800 Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Tax form for students Otherwise, go to line 3. Tax form for students   3. Tax form for students Enter the appropriate number from Table 1 below. Tax form for students But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Tax form for students 3. Tax form for students 360 4. Tax form for students Divide line 2 by the number on line 3 4. Tax form for students 68. Tax form for students 89 5. Tax form for students Multiply line 4 by the number of months for which this year's payments were made. Tax form for students If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Tax form for students Otherwise, go to line 6 5. Tax form for students 688. Tax form for students 90 6. Tax form for students Enter any amounts previously recovered tax free in years after 1986. Tax form for students This is the amount shown on line 10 of your worksheet for last year 6. Tax form for students 0 7. Tax form for students Subtract line 6 from line 2 7. Tax form for students 24,800 8. Tax form for students Enter the smaller of line 5 or line 7 8. Tax form for students 688. Tax form for students 90 9. Tax form for students Taxable amount for year. Tax form for students Subtract line 8 from line 1. Tax form for students Enter the result, but not less than zero. Tax form for students Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Tax form for students If you are a nonresident alien, also enter this amount on line 1 of Worksheet C. Tax form for students If your Form CSA 1099R or Form CSF 1099R shows a larger amount, use the amount figured on this line instead. Tax form for students If you are a retired public safety officer, see Distributions Used To Pay Insurance Premiums for Public Safety Officers in Part II before entering an amount on your tax return or Worksheet C, line 1 9. Tax form for students $11,311. Tax form for students 10 10. Tax form for students Was your annuity starting date before 1987?   Yes. Tax form for students Do not complete the rest of this worksheet. Tax form for students    No. Tax form for students Add lines 6 and 8. Tax form for students This is the amount you have recovered tax free through 2013. Tax form for students You will need this number if you need to fill out this worksheet next year 10. Tax form for students 688. Tax form for students 90 11. Tax form for students Balance of cost to be recovered. Tax form for students Subtract line 10 from line 2. Tax form for students If zero, you will not have to complete this worksheet next year. Tax form for students The payments you receive next year will generally be fully taxable 11. Tax form for students $24,111. Tax form for students 10 Table 1 for Line 3 Above    IF your age on your annuity starting date was   AND your annuity starting date was—     before November 19, 1996,  THEN enter on line 3 after November 18, 1996,  THEN enter on line 3   55 or under 300 360   56–60 260 310   61–65 240 260   66–70 170 210   71 or over 120 160  Table 2 for Line 3 Above    IF the annuitants' combined ages on your annuity starting date were   THEN enter on line 3         110 or under   410         111–120   360         121–130   310         131–140   260         141 or over   210       * A death benefit exclusion of up to $5,000 applied to certain benefits received by survivors of employees who died before August 21, 1996. Tax form for students Reemployment after choosing the alternative annuity option. Tax form for students If you chose this option when you retired and then you were reemployed by the Federal Government before retiring again, your Form CSA 1099R may show only the amount of your contributions to your retirement plan during your reemployment. Tax form for students If the amount on the form does not include all your contributions, disregard it and use your total contributions to figure the taxable part of your annuity payments. Tax form for students Annuity starting date before November 19, 1996. Tax form for students   If your annuity starting date is before November 19, 1996, and you chose the alternative annuity option, the taxable and tax-free parts of your lump-sum payment and your annuity payments are figured using different rules. Tax form for students Under those rules, you do not reduce your cost in the plan (Worksheet A, line 2) by the tax-free part of the lump-sum payment. Tax form for students However, you must include that tax-free amount with other amounts previously recovered tax free (Worksheet A, line 6) when limiting your total exclusion to your total cost. Tax form for students Federal Gift Tax If, through the exercise or nonexercise of an election or option, you provide an annuity for your beneficiary at or after your death, you have made a gift. Tax form for students The gift may be taxable for gift tax purposes. Tax form for students The value of the gift is equal to the value of the annuity. Tax form for students Joint and survivor annuity. Tax form for students   If the gift is an interest in a joint and survivor annuity where only you and your spouse can receive payments before the death of the last spouse to die, the gift generally will qualify for the unlimited marital deduction. Tax form for students This will eliminate any gift tax liability with regard to that gift. Tax form for students   If you provide survivor annuity benefits for someone other than your current spouse, such as your former spouse, the unlimited marital deduction will not apply. Tax form for students This may result in a taxable gift. Tax form for students More information. Tax form for students   For information about the gift tax, see Publication 950, Introduction to Estate and Gift Taxes, and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and its instructions. Tax form for students Retirement During the Past Year If you have recently retired, the following discussions covering annual leave, voluntary contributions, and community property may apply to you. Tax form for students Annual leave. Tax form for students   A payment for accrued annual leave received on retirement is a salary payment. Tax form for students It is taxable as wages in the tax year you receive it. Tax form for students Voluntary contributions. Tax form for students   Voluntary contributions to the retirement fund are those made in addition to the regular contributions that were deducted from your salary. Tax form for students They also include the regular contributions withheld from your salary after you have the years of service necessary for the maximum annuity allowed by law. Tax form for students Voluntary contributions are not the same as employee contributions to the Thrift Savings Plan. Tax form for students See Thrift Savings Plan , later. Tax form for students Additional annuity benefit. Tax form for students   If you choose to receive an additional annuity benefit from your voluntary contributions, it is treated separately from the annuity benefit that comes from the regular contributions deducted from your salary. Tax form for students This separate treatment applies for figuring the amounts to be excluded from, and included in, gross income. Tax form for students It does not matter that you receive only one monthly check covering both benefits. Tax form for students Each year you will receive a Form CSA 1099R that will show how much of your total annuity received in the past year was from each type of benefit. Tax form for students   Figure the taxable and tax-free parts of your additional monthly benefits from voluntary contributions using the rules that apply to regular CSRS and FERS annuities, as explained earlier. Tax form for students Refund of voluntary contributions. Tax form for students   If you choose to receive a refund of your voluntary contributions plus accrued interest, the interest is taxable to you in the tax year it is distributed unless you roll it over to a traditional IRA or another qualified retirement plan. Tax form for students If you do not have OPM transfer the interest to a traditional IRA or other qualified retirement plan in a direct rollover, tax will be withheld at a 20% rate. Tax form for students See Rollover Rules , later. Tax form for students The interest does not qualify as a lump-sum distribution eligible for capital gain treatment or the 10-year tax option. Tax form for students It also may be subject to an additional 10% tax on early distributions if you separate from service before the calendar year in which you reach age 55. Tax form for students For more information, see Lump-Sum Distributions and Tax on Early Distributions in Publication 575. Tax form for students Community property laws. Tax form for students   State community property laws apply to your annuity. Tax form for students These laws will affect your income tax only if you file a return separately from your spouse. Tax form for students   Generally, the determination of whether your annuity is separate income (taxable to you) or community income (taxable to both you and your spouse) is based on your marital status and domicile when you were working. Tax form for students Regardless of whether you are now living in a community property state or a noncommunity property state, your current annuity may be community income if it is based on services you performed while married and domiciled in a community property state. Tax form for students   At any time, you have only one domicile even though you may have more than one home. Tax form for students Your domicile is your fixed and permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Tax form for students The question of your domicile is mainly a matter of your intentions as indicated by your actions. Tax form for students   If your annuity is a mixture of community income and separate income, you must divide it between the two kinds of income. Tax form for students The division is based on your periods of service and domicile in community and noncommunity property states while you were married. Tax form for students   For more information, see Publication 555, Community Property. Tax form for students Reemployment After Retirement If you retired from federal service and are later rehired by the Federal Government as an employee, you can continue to receive your annuity during reemployment. Tax form for students The employing agency usually will pay you the difference between your salary for your period of reemployment and your annuity. Tax form for students This amount is taxable as wages. Tax form for students Your annuity will continue to be taxed just as it was before. Tax form for students If you are still recovering your cost, you continue to do so. Tax form for students If you have recovered your cost, the annuity you receive while you are reemployed generally is fully taxable. Tax form for students Nonresident Aliens The following special rules apply to nonresident alien federal employees performing services outside the United States and to nonresident alien retirees and beneficiaries. Tax form for students A nonresident alien is an individual who is not a citizen or a resident alien of the United States. Tax form for students Special rule for figuring your total contributions. Tax form for students   Your contributions to the retirement plan (your cost) also include the government's contributions to the plan to a certain extent. Tax form for students You include government contributions that would not have been taxable to you at the time they were contributed if they had been paid directly to you. Tax form for students For example, government contributions would not have been taxable to you if, at the time made, your services were performed outside the United States. Tax form for students Thus, your cost is increased by these government contributions and the benefits that you, or your beneficiary, must include in income are reduced. Tax form for students   This method of figuring your total contributions does not apply to any contributions the government made on your behalf after you became a citizen or a resident alien of the United States. Tax form for students Limit on taxable amount. Tax form for students   There is a limit on the taxable amount of payments received from the CSRS, the FERS, or the TSP by a nonresident alien retiree or nonresident alien beneficiary. Tax form for students Figure this limited taxable amount by multiplying the otherwise taxable amount by a fraction. Tax form for students The numerator of the fraction is the retiree's total U. Tax form for students S. Tax form for students Government basic pay, other than tax-exempt pay for services performed outside the United States. Tax form for students The denominator is the retiree's total U. Tax form for students S. Tax form for students Government basic pay for all services. Tax form for students    Basic pay includes regular pay plus any standby differential. Tax form for students It does not include bonuses, overtime pay, certain retroactive pay, uniform or other allowances, or lump-sum leave payments. Tax form for students   To figure the limited taxable amount of your CSRS or FERS annuity or your TSP distributions, use Worksheet C. Tax form for students (For an annuity, first complete Worksheet A in this publication. Tax form for students ) Worksheet C. Tax form for students Limited Taxable Amount for Nonresident Alien 1. Tax form for students Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Tax form for students   2. Tax form for students Enter the total U. Tax form for students S. Tax form for students Government basic pay other than tax-exempt pay for services performed outside the United States 2. Tax form for students   3. Tax form for students Enter the total U. Tax form for students S. Tax form for students Government basic pay for all services 3. Tax form for students   4. Tax form for students Divide line 2 by line 3 4. Tax form for students   5. Tax form for students Limited taxable amount. Tax form for students Multiply line 1 by line 4. Tax form for students Enter this amount on Form 1040NR, line 17b 5. Tax form for students   Example 1. Tax form for students You are a nonresident alien who performed all services for the U. Tax form for students S. Tax form for students Government abroad as a nonresident alien. Tax form for students You retired and began to receive a monthly annuity of $200. Tax form for students Your total basic pay for all services for the U. Tax form for students S. Tax form for students Government was $100,000. Tax form for students All of your basic pay was tax exempt because it was not U. Tax form for students S. Tax form for students source income. Tax form for students The taxable amount of your annuity using Worksheet A in this publication is $720. Tax form for students You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Tax form for students Worksheet C. Tax form for students Limited Taxable Amount for Nonresident Alien — Example 1 1. Tax form for students Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Tax form for students $ 720 2. Tax form for students Enter the total U. Tax form for students S. Tax form for students Government basic pay other than tax-exempt pay for services performed outside the United States 2. Tax form for students 0 3. Tax form for students Enter the total U. Tax form for students S. Tax form for students Government basic pay for all services 3. Tax form for students 100,000 4. Tax form for students Divide line 2 by line 3 4. Tax form for students 0 5. Tax form for students Limited taxable amount. Tax form for students Multiply line 1 by line 4. Tax form for students Enter this amount on Form 1040NR, line 17b 5. Tax form for students 0 Example 2. Tax form for students You are a nonresident alien who performed services for the U. Tax form for students S. Tax form for students Government as a nonresident alien both within the United States and abroad. Tax form for students You retired and began to receive a monthly annuity of $240. Tax form for students Your total basic pay for your services for the U. Tax form for students S. Tax form for students Government was $120,000; $40,000 was for work done in the United States and $80,000 was for your work done in a foreign country. Tax form for students The part of your total basic pay for your work done in a foreign country was tax exempt because it was not U. Tax form for students S. Tax form for students source income. Tax form for students The taxable amount of your annuity figured using Worksheet A in this publication is $1,980. Tax form for students You are a nonresident alien, so you figure the limited taxable amount of your annuity using Worksheet C as follows. Tax form for students Worksheet C. Tax form for students Limited Taxable Amount for Nonresident Alien — Example 2 1. Tax form for students Enter the otherwise taxable amount of the CSRS or FERS annuity (from line 9 of Worksheet A or from Forms CSA 1099R or CSF 1099R) or TSP distributions (from Form 1099R) 1. Tax form for students $ 1,980 2. Tax form for students Enter the total U. Tax form for students S. Tax form for students Government basic pay other than tax-exempt pay for services performed outside the United States 2. Tax form for students 40,000 3. Tax form for students Enter the total U. Tax form for students S. Tax form for students Government basic pay for all services 3. Tax form for students 120,000 4. Tax form for students Divide line 2 by line 3 4. Tax form for students . Tax form for students 333 5. Tax form for students Limited taxable amount. Tax form for students Multiply line 1 by line 4. Tax form for students Enter this amount on Form 1040NR, line 17b 5. Tax form for students 659 Thrift Savings Plan Generally, all of the money in your TSP account is taxed as ordinary income when you receive it. Tax form for students (However, see Roth TSP balance and Uniformed services TSP accounts, next. Tax form for students ) This is because neither the contributions to your traditional TSP balance nor its earnings have been included previously in your taxable income. Tax form for students The way that you withdraw your account balance determines when you must pay the tax. Tax form for students Roth TSP balance. Tax form for students   The TSP also offers a Roth TSP option, which allows you to make after-tax contributions into your TSP account. Tax form for students This means Roth TSP contributions are included in your income. Tax form for students The contribution limits are the same as the traditional TSP. Tax form for students You can elect to have part or all of your TSP contributions designated as a Roth TSP. Tax form for students Agency contributions will be part of your traditional TSP balance. Tax form for students Also, you cannot roll over any portion of your traditional TSP into your Roth TSP. Tax form for students   Qualified distributions from your Roth TSP are not included in income. Tax form for students This applies to both your cost in the account and income earned on that account. Tax form for students A qualified distribution is generally a distribution that is: Made after a 5-tax-year period of participation, and Made on or after the date you reach age 59½, made to a beneficiary or your estate on or after your death, or attributable to your being disabled. Tax form for students   For more information, go to the TSP website, www. Tax form for students tsp. Tax form for students gov, or the TSP Service Office. Tax form for students See Publication 575, Pension and Annuity Income, for more information about designated Roth accounts. Tax form for students Uniformed services TSP accounts. Tax form for students   If you have a uniformed services TSP account that includes contributions from combat zone pay, the distributions attributable to those contributions are tax exempt. Tax form for students However, any earnings on those contributions to a traditional TSP balance are subject to tax when they are distributed. Tax form for students See Roth TSP balance discussed previously to get more information about Roth contributions. Tax form for students The statement you receive from the TSP will separately state the total amount of your distribution and the amount of your taxable distribution for the year. Tax form for students You can get more information from the TSP website, www. Tax form for students tsp. Tax form for students gov, or the TSP Service Office. Tax form for students Direct rollover by the TSP. Tax form for students   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a traditional IRA or other qualified retirement plan, the tax on that part is deferred until you receive payments from the traditional IRA or other plan. Tax form for students However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Tax form for students Also, see Rollover Rules , later. Tax form for students Direct rollover by the TSP to a Roth IRA. Tax form for students   If you ask the TSP to transfer any part of the money in your account, from traditional contributions and its earnings, to a Roth IRA, the amount transferred will be taxed in the current year. Tax form for students However, see the following Note for a discussion on direct rollovers by the TSP of Roth contributions and its earnings. Tax form for students Also, see Rollovers to Roth IRAs for more information, later. Tax form for students Note. Tax form for students A direct rollover of your Roth contributions and its earnings (if certain conditions are met, see Roth TSP balance , earlier) in your TSP account to a Roth 401(k), Roth 403(b), Roth 457(b), or Roth IRA are not subject to tax when they are transferred or when you receive payments from those accounts at a later date. Tax form for students This is because you already paid tax on those contributions. Tax form for students You cannot rollover Roth contributions and its earnings in your TSP account to a traditional IRA. Tax form for students TSP annuity. Tax form for students   If you ask the TSP to buy an annuity with the money in your account, from traditional contributions and its earnings, the annuity payments are taxed when you receive them. Tax form for students The payments are not subject to the additional 10% tax on early distributions, even if you are under age 55 when they begin. Tax form for students However, there is no tax on the annuity payments if the annuity is purchased using the money in your account from Roth contributions and its earnings if certain conditions are met. Tax form for students See Roth TSP balance , earlier. Tax form for students This is because you already paid tax on those contributions. Tax form for students Cash withdrawals. Tax form for students   If you withdraw any of the money in your TSP account, from traditional contributions and its earnings, it is generally taxed as ordinary income when you receive it unless you roll it over into a traditional IRA or other qualified plan. Tax form for students (See Rollover Rules , later. Tax form for students ) If you receive your entire TSP account balance in a single tax year, you may be able to use the 10-year tax option to figure your tax. Tax form for students See Lump-Sum Distributions in Publication 575 for details. Tax form for students However, there is no tax if you withdraw money in your TSP account from Roth contributions and its earnings if certain conditions are met. Tax form for students See Roth TSP balance , earlier. Tax form for students    To qualify for the 10-year tax option, the plan participant must have been born before January 2, 1936. Tax form for students   If you receive a single payment or you choose to receive your account balance in monthly payments over a period of less than 10 years, the TSP generally must withhold 20% for federal income tax. Tax form for students If you choose to receive your account balance in monthly payments over a period of 10 or more years or a period based on your life expectancy, the payments are subject to withholding as if you are married with three withholding allowances, unless you submit a withholding certificate. Tax form for students See also Withholding from Thrift Savings Plan payments earlier under Tax Withholding and Estimated Tax in Part I. Tax form for students However, there is no withholding requirement for amounts withdrawn from your TSP account that is from Roth contributions and its earnings, if certain conditions are met. Tax form for students See Roth TSP balance , earlier, for a discussion of those conditions. Tax form for students Tax on early distributions. Tax form for students   Any money paid to you from your TSP account before you reach age 59½ may be subject to an additional 10% tax on early distributions. Tax form for students However, this additional tax does not apply in certain situations, including any of the following. Tax form for students You receive the distribution and separate from government service during or after the calendar year in which you reach age 55. Tax form for students You choose to receive your account balance in monthly payments based on your life expectancy. Tax form for students You are totally and permanently disabled. Tax form for students You receive amounts from your Roth contributions since that represents a return of your cost (after-tax money). Tax form for students The earnings may be subject to the 10% tax depending on whether you met certain conditions. Tax form for students See Roth TSP balance , earlier. Tax form for students   For more information, see Tax on Early Distributions in Publication 575. Tax form for students Outstanding loan. Tax form for students   If the TSP declares a distribution from your account because money you borrowed has not been repaid when you separate from government service, your account is reduced and the amount of the distribution (your unpaid loan balance and any unpaid interest), from traditional contributions and its earnings, is taxed in the year declared. Tax form for students The distribution also may be subject to the additional 10% tax on early distributions. Tax form for students However, the tax will be deferred if you make a rollover contribution to a traditional IRA or other qualified plan equal to the declared distribution amount. Tax form for students See Rollover Rules , later. Tax form for students   If you withdraw any money from your TSP account in that same year, the TSP must withhold income tax of 20% of the total of the declared distribution and the amount withdrawn. Tax form for students However, no withholding is required for portions of the distribution that is from Roth contributions and its earnings, if certain conditions are met. Tax form for students See Roth TSP balance , earlier. Tax form for students More information. Tax form for students   For more information about the TSP, see Summary of the Thrift Savings Plan, distributed to all federal employees. Tax form for students Also, see Important Tax Information About Payments From Your TSP Account and Special Tax Withholding Rules for Thrift Savings Plan Payments to Nonresident Aliens, which are available from your agency personnel office or from the TSP by calling 1-TSP-YOU-FIRST (1-877-968-3778) and for participants who are deaf, hard of hearing, or have a speech disability, call 1-TSP-THRIFT5 (1-877-847-4385). Tax form for students    The above documents are also available on the TSP website at www. Tax form for students tsp. Tax form for students gov. Tax form for students Select “Forms & Publications. Tax form for students ” Rollover Rules Generally, a rollover is a tax-free withdrawal of cash or other assets from one qualified retirement plan or traditional IRA and its reinvestment in another qualified retirement plan or traditional IRA. Tax form for students You do not include the amount rolled over in your income, and you cannot take a deduction for it. Tax form for students The amount rolled over is taxed later as the new program pays that amount to you. Tax form for students If you roll over amounts into a traditional IRA, later distributions of these amounts from the traditional IRA do not qualify for the capital gain or the 10-year tax option. Tax form for students However, capital gain treatment or the 10-year tax option will be restored if the traditional IRA contains only amounts rolled over from a qualified plan and these amounts are rolled over from the traditional IRA into a qualified retirement plan. Tax form for students To qualify for the capital gain treatment or 10-year tax option, the plan participant must have been born before January 2, 1936. Tax form for students You can also roll over a distribution from a qualified retirement plan into a Roth IRA. Tax form for students Although the transfer of a distribution into a Roth IRA is considered a rollover for Roth IRA purposes, it is not a tax-free transfer unless you are rolling over amounts from Roth contributions and its earnings. Tax form for students See Rollovers to Roth IRAs , later, for more information. Tax form for students Qualified retirement plan. Tax form for students   For this purpose, a qualified retirement plan generally is: A qualified employee plan, A qualified employee annuity, A tax-sheltered annuity plan (403(b) plan), or An eligible state or local government section 457 deferred compensation plan. Tax form for students The CSRS, FERS, and TSP are considered qualified retirement plans. Tax form for students Distributions eligible for rollover treatment. Tax form for students   If you receive a refund of your CSRS or FERS contributions when you leave government service, you can roll over any interest you receive on the contributions. Tax form for students You cannot roll over any part of your CSRS or FERS annuity payments. Tax form for students   You can roll over a distribution of any part of your TSP account balance except: A distribution of your account balance that you choose to receive in monthly payments over: Your life expectancy, The joint life expectancies of you and your beneficiary, or A period of 10 years or more, A required minimum distribution generally beginning at age 70½, A declared distribution because of an unrepaid loan, if you have not separated from government service (see Outstanding loan under Thrift Savings Plan, earlier), or A hardship distribution. Tax form for students   In addition, a distribution to your beneficiary generally is not treated as an eligible rollover distribution. Tax form for students However, see Qualified domestic relations order (QDRO) and Rollovers by surviving spouse , and Rollovers by nonspouse beneficiary , later. Tax form for students Direct rollover option. Tax form for students   You can choose to have the OPM or TSP transfer any part of an eligible rollover distribution directly to another qualified retirement plan that accepts rollover distributions or to a traditional IRA or Roth IRA. Tax form for students   There is an automatic rollover requirement for mandatory distributions. Tax form for students A mandatory distribution is a distribution made without your consent and before you reach age 62 or normal retirement age, whichever is later. Tax form for students The automatic rollover requirement applies if the distribution is more than $1,000 and is an eligible rollover distribution. Tax form for students You can choose to have the distribution paid directly to you or rolled over directly to your traditional or Roth IRA or another qualified retirement plan. Tax form for students If you do not make this choice, OPM will automatically roll over the distribution into an IRA of a designated trustee or issuer. Tax form for students No tax withheld. Tax form for students   If you choose the direct rollover option or have an automatic rollover, no tax will be withheld from any part of the distribution that is directly paid to the trustee of the other plan. Tax form for students However, if the rollover is to a Roth IRA, you may want to choose to have tax withheld since any amount rolled over is generally included in income. Tax form for students Any part of the eligible rollover distribution paid to you is subject to withholding at a 20% rate. Tax form for students Direct roll over amounts from Roth contributions and its earnings do not have tax withheld because you already paid tax on those amounts. Tax form for students Payment to you option. Tax form for students   If an eligible rollover distribution is paid to you, the OPM or TSP must withhold 20% for income tax even if you plan to roll over the distribution to another qualified retirement plan, traditional or Roth IRA. Tax form for students However, the full amount is treated as distributed to you even though you actually receive only 80%. Tax form for students You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA. Tax form for students Rollovers to Roth IRAs are generally included in income. Tax form for students Eligible rollover distributions that are from Roth contributions do not have tax withheld because you already paid tax on those amounts. Tax form for students If you leave government service before the calendar year in which you reach age 55 and are under age 59½ when a distribution is paid to you, you may have to pay an additional 10% tax on any part, including any tax withheld, that you do not roll over. Tax form for students However, distributions from Roth contributions will not be subject to the 10% additional tax because it is a return of your cost (after-tax money). Tax form for students Earnings from those contributions may be subject to the 10% additional tax if certain conditions are not met. Tax form for students See Roth TSP balance , earlier. Tax form for students Also, see Tax on Early Distributions in Publication 575. Tax form for students Exception to withholding. Tax form for students   Withholding from an eligible rollover distribution paid to you is not required if the distributions for your tax year total less than $200. Tax form for students Partial rollovers. Tax form for students   A lump-sum distribution may qualify for capital gain treatment or the 10-year tax option if the plan participant was born before January 2, 1936. Tax form for students See Lump-Sum Distributions in Publication 575. Tax form for students However, if you roll over any part of the distribution, the part you keep does not qualify for this special tax treatment. Tax form for students Rolling over more than amount received. Tax form for students   If you want to roll over more of an eligible rollover distribution than the amount you received after income tax was withheld, you will have to add funds from some other source (such as your savings or borrowed amounts). Tax form for students Example. Tax form for students You left government service at age 53. Tax form for students On February 1, 2013, you receive an eligible rollover distribution of $10,000 from you
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The Tax Form For Students

Tax form for students Publication 570 - Introductory Material Table of Contents Future developments. Tax form for students What's New Reminders IntroductionOrdering forms and publications. Tax form for students Tax questions. Tax form for students Useful Items - You may want to see: Future developments. Tax form for students For information about any additional changes to the 2013 tax law affecting Pub. Tax form for students 570, please go to www. Tax form for students irs. Tax form for students gov/pub570. Tax form for students What's New Maximum income subject to social security tax. Tax form for students . Tax form for students  For 2013, the maximum amount of self-employment income subject to social security is $113,700. Tax form for students Optional methods to figure net earnings. Tax form for students . Tax form for students  For 2013, the maximum income for using the optional methods is $4,640. Tax form for students Additional Medicare Tax. Tax form for students  Beginning in 2013, you may be required to pay Additional Medicare Tax. Tax form for students Also, you may need to report Additional Medicare Tax withheld by your employer. Tax form for students For more information, see Additional Medicare Tax under Special Rules for Completing Your U. Tax form for students S. Tax form for students Tax Return in chapter 4. Tax form for students Net Investment Income Tax. Tax form for students  Beginning in 2013, the Net Investment Income Tax (NIIT) imposes a 3. Tax form for students 8% tax on the lesser of an individual's net investment income or the excess of the individual's modified adjusted gross income over a specified threshold amount. Tax form for students Bona fide residents of Puerto Rico and American Samoa who have a federal income tax return filing obligation may be liable for the NIIT if the taxpayer's modified adjusted gross income from non-territory sources exceeds a specified threshold amount. Tax form for students Also, bona fide residents must take into account any additional tax liability associated with the NIIT when calculating their estimated tax payments. Tax form for students The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Tax form for students For more information, see Net Investment Income Tax under Bona Fide Resident of American Samoa and Bona Fide Resident of Puerto Rico in chapter 3. Tax form for students Reminders Individual taxpayer identification numbers (ITINs) for aliens. Tax form for students  If you are a nonresident or resident alien and you do not have and are not eligible to get a social security number (SSN), you must apply for an ITIN. Tax form for students For details on how to do so, see Form W-7, Application for IRS Individual Taxpayer Identification Number, and its instructions. Tax form for students Allow 6 weeks for the IRS to notify you of your ITIN (8-10 weeks if submitted during peak processing periods (January 15 through April 30) or if you are filing from overseas). Tax form for students If you already have an ITIN, enter it wherever your SSN is requested on your tax return. Tax form for students Effective January 1, 2013, the IRS implemented new procedures that affect the Individual Taxpayer Identification Number (ITIN) application process. Tax form for students The documentation requirements for individuals seeking an ITIN, have been superseded by these changes. Tax form for students Authorized representatives are required to complete forensic training and submit the certificate of completion to the IRS no later than January 31, 2014. Tax form for students Taxpayers and their representatives should review these program changes, which are further explained in the Frequently Asked Questions at www. Tax form for students irs. Tax form for students gov/Individuals/Individual-Taxpayer-Identification-Number-(ITIN), before requesting an ITIN. Tax form for students An ITIN is for tax use only. Tax form for students It does not entitle you to social security benefits or change your employment or immigration status under U. Tax form for students S. Tax form for students law. Tax form for students Electronic filing. Tax form for students . Tax form for students  You can e-file Form 1040-SS. Tax form for students For general information about  electronic filing, visit www. Tax form for students irs. Tax form for students gov/efile. Tax form for students Earned income credit (EIC). Tax form for students  Generally, if you are a bona fide resident of a U. Tax form for students S. Tax form for students possession, you cannot claim the EIC on your U. Tax form for students S. Tax form for students tax return. Tax form for students However, certain U. Tax form for students S. Tax form for students possessions may allow bona fide residents to claim the EIC on their possession tax return. Tax form for students To claim the EIC on your U. Tax form for students S. Tax form for students tax return, your home (and your spouse's if filing a joint return) must have been in the United States for more than half the year. Tax form for students If you have a child, the child must have lived with you in the United States for more than half the year. Tax form for students For this purpose, the United States includes only the 50 states and the District of Columbia. Tax form for students Special rules apply to military personnel stationed outside the United States. Tax form for students For more information on this credit, see Publication 596, Earned Income Credit. Tax form for students Form 8938, Statement of Specified Foreign Financial Assets. Tax form for students  If you have specified foreign financial assets in foreign jurisdictions valued above certain threshold dollar amounts, you may have to file Form 8938, Statement of Specified Foreign Financial Assets, when you file your U. Tax form for students S. Tax form for students income tax return with the IRS. Tax form for students If you are required to file Form 8938, you do not have to report certain specified foreign financial assets on Form 8938. Tax form for students See Bona fide resident of a U. Tax form for students S. Tax form for students possession, in the Instructions for Form 8938 for more details. Tax form for students For additional details, go to the page for the Foreign Account Tax Compliance Act (FATCA) at www. Tax form for students irs. Tax form for students gov/businesses/corporations/article/0,,id=236667,00. Tax form for students html. Tax form for students If you do not have to file a federal income tax return with the United States, you are not required to file a Form 8938 with the IRS. Tax form for students Change of address. Tax form for students  If you change your mailing address, use Form 8822, Change of Address, to notify the Internal Revenue Service and U. Tax form for students S. Tax form for students possession tax administration, if appropriate. Tax form for students Mail Form 8822 to the Internal Revenue Service Center or U. Tax form for students S. Tax form for students possession tax administration for your old address (addresses for the Service Centers are on the back of the form). Tax form for students If you change your address before filing your tax return, write the new address in the appropriate boxes of your tax return when you file. Tax form for students Photographs of missing children. Tax form for students  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Tax form for students Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax form for students You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Tax form for students Introduction This publication discusses how to treat income received from the following U. Tax form for students S. Tax form for students possessions on your tax return(s). Tax form for students American Samoa. Tax form for students The Commonwealth of Puerto Rico (Puerto Rico). Tax form for students The Commonwealth of the Northern Mariana Islands (CNMI). Tax form for students Guam. Tax form for students The U. Tax form for students S. Tax form for students Virgin Islands (USVI). Tax form for students Unless stated otherwise, when the term “possession” is used in this publication, it includes the Commonwealths of Puerto Rico and the Northern Mariana Islands. Tax form for students Chapter 1 discusses the requirements for being considered a bona fide resident of the listed possessions. Tax form for students Chapter 2 gives the rules for determining if your income is from sources within, or effectively connected with a trade or business in, those possessions. Tax form for students Next, chapter 3 looks at the rules for filing tax returns when you receive income from any of these possessions. Tax form for students You may have to file a U. Tax form for students S. Tax form for students tax return only, a possession tax return only, or both returns. Tax form for students This generally depends on whether you are a bona fide resident of the possession. Tax form for students In some cases, you may have to file a U. Tax form for students S. Tax form for students return, but will be able to exclude income earned in a possession from U. Tax form for students S. Tax form for students tax. Tax form for students You can find illustrated examples of some of the additional forms required in chapter 5. Tax form for students If you are not a bona fide resident of one of the possessions listed earlier, or are otherwise required to file a U. Tax form for students S. Tax form for students income tax return, the information in chapter 4 will tell you how to file your U. Tax form for students S. Tax form for students tax return. Tax form for students This information also applies if you have income from U. Tax form for students S. Tax form for students insular areas other than the five possessions listed earlier because that income will not qualify for any of the exclusions or other benefits discussed in chapter 3. Tax form for students These other U. Tax form for students S. Tax form for students insular areas include: Baker Island, Howland Island, Jarvis Island, Johnston Island, Kingman Reef, Midway Islands, Palmyra Atoll, and Wake Island. Tax form for students If you need information on U. Tax form for students S. Tax form for students taxation, write to: Internal Revenue Service Philadelphia, PA 19255-0725 If you need additional information on your tax obligations in a U. Tax form for students S. Tax form for students possession, write to the tax department of that possession. Tax form for students Their addresses are provided in chapter 3 under the individual headings for each possession. Tax form for students Comments and suggestions. Tax form for students   We welcome your comments about this publication and your suggestions for future editions. Tax form for students   You can send us comments from www. Tax form for students irs. Tax form for students gov/formspubs/. Tax form for students Click on “More Information”and then on “Comment on Tax Forms and Publications. Tax form for students ” Or you can write to us at the following address: Internal Revenue Service Tax Forms and Publications SE:W:CAR:MP:TFP 1111 Constitution Ave. Tax form for students NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax form for students Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax form for students   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Tax form for students Ordering forms and publications. Tax form for students   Visit www. Tax form for students irs. Tax form for students gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Tax form for students Internal Revenue Service 1201 N. Tax form for students Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Tax form for students   If you have a tax question, check the information available on IRS. Tax form for students gov or call 1-800-829-1040. Tax form for students We cannot answer tax questions sent to either of the above addresses. Tax form for students You can get the necessary possession tax forms at the tax office for the appropriate possession. Tax form for students The office addresses are given in chapter 3. Tax form for students Useful Items - You may want to see: Publication 54 Tax Guide for U. Tax form for students S. Tax form for students Citizens and Resident Aliens Abroad 514 Foreign Tax Credit for Individuals 519 U. Tax form for students S. Tax form for students Tax Guide for Aliens Form (and Instructions) 1040-PR Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico) 1040-SS U. Tax form for students S. Tax form for students Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) 1116 Foreign Tax Credit 4563 Exclusion of Income for Bona Fide Residents of American Samoa 4868 Application for Automatic Extension of Time To File U. Tax form for students S. Tax form for students Individual Income Tax Return 5074 Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) 8689 Allocation of Individual Income Tax to the U. Tax form for students S. Tax form for students Virgin Islands 8898 Statement for Individuals Who Begin or End Bona Fide Residence In a U. Tax form for students S. Tax form for students Possession 8959 Additional Medicare Tax 8960 Net Investment Income Tax—Individuals, Estates, and Trusts Prev  Up  Next   Home   More Online Publications