Publication 721 - Tax Guide To U.s. Civil Service Retirement Benefits - 2002 Page 4
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28For a detailed discussion of withholding on distributions
You may request a Summary of Payments, show-
from the TSP, see Important Tax Information About Pay-
ing the amounts paid to you for your child(ren),
ments From Your TSP Account, available from your
from OPM by calling OPM’s Retirement Informa-
agency personnel office or from the TSP.
tion Office at 1 –888 –767 –6738 (customers within the
local Washington, D.C. calling area must call
The above document is also available on the
202 –606 –0500). You will need your CSF claim number
Internet at Select “Forms & Publi-
and your social security number when you call.
cations,” then select “Other Documents.”
Taxable part of annuity. To find the taxable part of
Estimated tax. Generally, you should make estimated tax
each annuity, see the discussion in Part IV, Rules for
payments for 2003 if you expect to owe at least $1,000 in
Survivors of Federal Employees, or Part V, Rules for Survi-
tax (after subtracting your withholding and credits) and you
vors of Federal Retirees, whichever applies.
expect your withholding and your credits to be less than
the smaller of:
Part II
1) 90% of the tax to be shown on your income tax
return for 2003, or
Rules for Retirees
2) The tax shown on your 2002 income tax return
(110% of that amount if the adjusted gross income
This part of the publication is for retirees who retired on
shown on the return was more than $150,000
nondisability retirement. If you retired on disability, see
($75,000 if your filing status for 2003 will be married
Part III, Rules for Disability Retirement and Credit for the
filing separately)). The return must cover all 12
Elderly or the Disabled, later.
months.
Annuity statement. The statement you received from
You do not have to pay estimated tax for 2003 if you
OPM when your CSRS or FERS annuity was approved
were a U.S. citizen or resident for all of 2002 and you had
shows the commencing date (the annuity starting date),
no tax liability for the full 12-month 2002 tax year.
the gross monthly rate of your annuity benefit, and your
Form 1040 – ES contains a worksheet that you can use
total contributions to the retirement plan (your cost). You
to see if you should make estimated tax payments. For
will use this information to figure the tax-free recovery of
more information, see chapter 2 in Publication 505.
your cost.
Annuity starting date. If you retire from federal gov-
Filing Requirements
ernment service on a regular annuity, your annuity starting
date is the commencing date on your annuity statement
If your gross income, including the taxable part of your
from OPM. If something delays payment of your annuity,
annuity, is less than a certain amount, you generally do not
such as a late application for retirement, it does not affect
have to file a federal income tax return. The gross income
the date your annuity begins to accrue or your annuity
filing requirements are in the instructions to the Form 1040,
starting date.
1040A, or 1040EZ, that you get each year. You should
check these requirements closely because they change
Gross monthly rate. This is the amount you were to
get after any adjustment for electing a survivor’s annuity or
occasionally.
for electing the lump-sum payment under the alternative
Children. If you are the surviving spouse of a federal
annuity option (if either applied) but before any deduction
employee or retiree and your monthly annuity check in-
for income tax withholding, insurance premiums, etc.
cludes a survivor annuity for one or more children, each
child’s annuity counts as his or her own income (not yours)
Your cost. Your monthly annuity payment contains an
for federal income tax purposes.
amount on which you have previously paid income tax.
This amount represents part of your contributions to the
If your child can be claimed as a dependent, treat his or
her annuity as unearned income to apply the filing require-
retirement plan. Even though you did not receive the
money that was contributed to the plan, it was included in
ments.
your gross income for federal income tax purposes in the
Form CSF 1099R. By January 31 after the end of each
years it was taken out of your pay.
tax year, you should receive Form CSF 1099R, which will
The cost of your annuity is the total of your contributions
show the total amount of the annuity you received in the
to the retirement plan, as shown on your annuity statement
past year. It also should show, separately, the survivor
from OPM. If you elected the alternative annuity option, it
annuity for a child or children. Only the part that is each
includes any deemed deposits and any deemed redepos-
individual’s survivor annuity should be shown on that
its that were added to your lump-sum credit. (See
individual’s Form 1040 or 1040A.
Lump-sum credit under Alternative Annuity Option, later.)
If your Form CSF 1099R does not show separately the
amount paid to you for a child or children, attach a state-
ment 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.
Page 4
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