Publication 721 - Tax Guide To U.s. Civil Service Retirement Benefits - 2011 Page 4
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31for an annuity, you or your beneficiary will receive a distri-
Form 1040-ES contains a worksheet that you can use to
bution of your contributions to the retirement plan plus any
help you figure your estimated tax payments. For more
interest payable. Tax will be withheld at a 20% rate on the
information, see chapter 2 in Publication 505.
interest distributed. However, tax will not be withheld if you
have OPM transfer (roll over) the interest directly to your
Filing Requirements
traditional IRA or other qualified plan. If you have OPM
transfer (roll over) the interest directly to a Roth IRA, the
If your gross income, including the taxable part of your
entire amount will be taxed in the current year. However,
annuity, is less than a certain amount, you generally do not
for any rollover in 2010, there are special rules. See
Spe-
have to file a federal income tax return for that year. The
cial rules for 2010 rollovers from qualified retirement plans
gross income filing requirements for the tax year are in the
to Roth IRAs
in Part II. Because no income tax will be
instructions to Form 1040, 1040A, or 1040EZ.
withheld at the time of the transfer, you may want to
Children. If you are the surviving spouse of a federal
increase your withholding or pay estimated taxes. See
employee or retiree and your monthly annuity check in-
Rollover Rules
in Part II. If you receive only your contribu-
cludes a survivor annuity for one or more children, each
tions, no tax will be withheld.
child’s annuity counts as his or her own income (not yours)
for federal income tax purposes.
Withholding from Thrift Savings Plan payments. Gen-
If your child can be claimed as a dependent, treat the
erally, a distribution that you receive from the TSP is
taxable part of his or her annuity as unearned income
subject to federal income tax withholding. The amount
when applying the filing requirements for dependents.
withheld is:
•
Form CSF 1099R. Form CSF 1099R will be mailed to
20% if the distribution is an eligible rollover distribu-
you by January 31 after the end of each tax year. It will
tion, or
show the total amount of the annuity you received in the
•
10% if it is a nonperiodic distribution other than an
past year. It also should show, separately, the survivor
eligible rollover distribution, or
annuity for a child or children. Only the part that is each
•
individual’s survivor annuity should be shown on that indi-
An amount determined as if you were married with
vidual’s Form 1040 or 1040A.
three withholding allowances, unless you submit a
If your Form CSF 1099R does not show separately the
withholding certificate (Form W-4P), if it is a periodic
amount paid to you for a child or children, attach a state-
distribution.
ment to your return, along with a copy of Form CSF 1099R,
explaining why the amount shown on the tax return differs
However, you usually can choose not to have tax withheld
from the amount shown on Form CSF 1099R.
from TSP payments other than eligible rollover distribu-
You also can view and download your Form CSF
tions. By January 31 after the end of the year in which you
1099R by visiting the OPM website at
receive a distribution, the TSP will issue Form 1099-R
To log in you will
showing the total distributions you received in the prior
need your retirement CSF claim number and personal
year and the amount of tax withheld.
identification number.
For a detailed discussion of withholding on distributions
from the TSP, see Important Tax Information About Pay-
You may request a Summary of Payments, show-
ments From Your TSP Account, available from your
ing the amounts paid to you for your child(ren),
agency personnel office or from the TSP.
from OPM by calling OPM’s Retirement Informa-
tion Office at 1-888-767-6738 (customers within the local
The above document is also available in the
Washington, D.C. calling area must call 202-606-0500).
“Forms & Publications” section of the TSP web-
You will need your CSF claim number and your social
site at
security number when you call.
Estimated tax. Generally, you must make estimated tax
Taxable part of annuity. To find the taxable part of a
payments for 2012 if you expect to owe at least $1,000 in
retiree’s annuity when applying the filing requirements, see
tax for 2012 (after subtracting your withholding and credits)
the discussion in Part II,
Rules for
Retirees, or Part III,
and you expect your withholding and your credits to be less
Rules for Disability Retirement and Credit for the Elderly or
than the smaller of:
the
Disabled, whichever applies. To find the taxable part of
•
90% of the tax to be shown on your income tax
each survivor annuity when applying the filing require-
return for 2012, or
ments, see the discussion in Part IV,
Rules for Survivors of
•
Federal
Employees, or Part V,
Rules for Survivors of Fed-
100% of the tax shown on your 2011 income tax
eral
Retirees, whichever applies.
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 2012 will
Part II
be married filing separately)). The return must cover
all 12 months.
Rules for Retirees
You do not have to pay estimated tax for 2012 if you
were a U.S. citizen or resident alien for all of 2011 and you
This part of the publication is for retirees who retired on
had no tax liability for the full 12-month 2011 tax year.
nondisability retirement.
Page 4
Publication 721 (2011)
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