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1040ez Amended Return

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1040ez Amended Return

1040ez amended return 13. 1040ez amended return   Employment Taxes Table of Contents What's New for 2013 What's New for 2014 Reminders Important Dates for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Farm Employment Family Employees Crew Leaders Social Security and Medicare TaxesReligious exemption. 1040ez amended return Wage limit. 1040ez amended return Federal Income Tax WithholdingNew Form W-4 for 2014. 1040ez amended return Required Notice to Employees About Earned Income Credit (EIC) Reporting and Paying Social Security, Medicare, and Withheld Federal Income TaxesElectronic deposit requirement. 1040ez amended return Federal Unemployment (FUTA) TaxReporting and Paying FUTA Tax What's New for 2013 Social security and Medicare tax for 2013. 1040ez amended return  The employee tax rate for social security is 6. 1040ez amended return 2%. 1040ez amended return Previously, the employee tax rate for social security was 4. 1040ez amended return 2%. 1040ez amended return The employer tax rate for social security remains unchanged at 6. 1040ez amended return 2%. 1040ez amended return The social security wage base limit is $113,700. 1040ez amended return The Medicare tax rate is 1. 1040ez amended return 45% each for the employee and employer, unchanged from 2012. 1040ez amended return There is no wage base limit for Medicare tax. 1040ez amended return Additional Medicare Tax. 1040ez amended return  In addition to withholding Medicare tax at 1. 1040ez amended return 45%, you must withhold a 0. 1040ez amended return 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez amended return You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. 1040ez amended return Additional Medicare Tax is only imposed on the employee. 1040ez amended return There is no employer share of Additional Medicare Tax. 1040ez amended return All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. 1040ez amended return For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. 1040ez amended return For more information on Additional Medicare Tax, visit IRS. 1040ez amended return gov and enter “Additional Medicare Tax” in the search box. 1040ez amended return Leave-based donation programs to aid victims of Hurricane Sandy. 1040ez amended return  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. 1040ez amended return The donated leave will not be included in the income or wages of the employee. 1040ez amended return The employer may deduct the cash payments as business expenses or charitable contributions. 1040ez amended return For more information, see Notice 2012-69, 2012-51 I. 1040ez amended return R. 1040ez amended return B. 1040ez amended return 712, available at www. 1040ez amended return irs. 1040ez amended return gov/irb/2012-51_IRB/ar09. 1040ez amended return html. 1040ez amended return Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. 1040ez amended return  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. 1040ez amended return Previously, the credit was available for unemployed veterans who began work on or after November 22, 2011, and before January 1, 2013. 1040ez amended return Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. 1040ez amended return For more information, visit IRS. 1040ez amended return gov and enter “work opportunity credit” in the search box. 1040ez amended return What's New for 2014 Social security and Medicare tax for 2014. 1040ez amended return  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). 1040ez amended return The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). 1040ez amended return There is no limit on the amount of wages subject to Medicare tax. 1040ez amended return Reminders Additional employment tax information for farmers. 1040ez amended return  See Publication 51 (Circular A) for more detailed guidance on employment taxes. 1040ez amended return For the latest information about employment tax developments impacting farmers, go to www. 1040ez amended return irs. 1040ez amended return gov/pub51. 1040ez amended return Correcting a previously filed Form 943. 1040ez amended return  If you discover an error on a previously filed Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, make the correction using Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. 1040ez amended return Form 943-X is filed separately from Form 943. 1040ez amended return For more information on correcting Form 943, see the Instructions for Form 943-X. 1040ez amended return Federal tax deposits must be made by electronic funds transfer. 1040ez amended return  You must use electronic funds transfer to make all federal tax deposits. 1040ez amended return Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). 1040ez amended return If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 1040ez amended return Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 1040ez amended return EFTPS is a free service provided by the Department of Treasury. 1040ez amended return Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 1040ez amended return For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). 1040ez amended return To get more information about EFTPS or to enroll in EFTPS, visit www. 1040ez amended return eftps. 1040ez amended return gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez amended return Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. 1040ez amended return Important Dates for 2014 You should take the action indicated by the dates listed. 1040ez amended return See By February 15 and On February 16 for Form W-4, Employee's Withholding Allowance Certificate, information. 1040ez amended return Due dates for deposits of withheld federal income taxes, social security taxes, and Medicare taxes are not listed here. 1040ez amended return For these dates, see Publication 509, Tax Calendars (For use in 2014). 1040ez amended return Note. 1040ez amended return  If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. 1040ez amended return A statewide legal holiday delays a filing or furnishing due date only if the IRS office where you are required to file a return or furnish a form is located in that state. 1040ez amended return For any due date, you will meet the “file” or “furnish” date requirement if the envelope containing the tax return or form is properly addressed, contains sufficient postage, and is postmarked by the U. 1040ez amended return S. 1040ez amended return Postal Service by the due date, or sent by an IRS-designated delivery service by the due date. 1040ez amended return See Private delivery services in Publication 51 (Circular A). 1040ez amended return Federal tax deposits can only be made by electronic funds transfer and are governed by legal holidays in the District of Columbia. 1040ez amended return Statewide holidays no longer apply. 1040ez amended return For a list of legal holidays that delay the due date of a federal tax deposit, see section 7 of Publication 51 (Circular A). 1040ez amended return Fiscal year taxpayers. 1040ez amended return  The due dates listed below apply whether you use a calendar or a fiscal year. 1040ez amended return By January 31. 1040ez amended return   File Form 943 with the IRS. 1040ez amended return If you deposited all Form 943 taxes when due, you have 10 additional days to file. 1040ez amended return Furnish each employee with a completed Form W-2, Wage and Tax Statement. 1040ez amended return Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). 1040ez amended return File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. 1040ez amended return If you deposited all the FUTA tax when due, you have 10 additional days to file. 1040ez amended return File Form 945, Annual Return of Withheld Federal Income Tax, with the IRS to report any nonpayroll income tax withheld during 2013. 1040ez amended return If you deposited all Form 945 taxes when due, you have 10 additional days to file. 1040ez amended return By February 15. 1040ez amended return  Ask for a new Form W-4 or Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, from each employee who claimed exemption from federal income tax withholding last year. 1040ez amended return On February 16. 1040ez amended return  Any Form W-4 claiming exemption from withholding for the previous year has now expired. 1040ez amended return Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. 1040ez amended return If the employee does not give you a new Form W-4, withhold taxes based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. 1040ez amended return If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. 1040ez amended return By February 28. 1040ez amended return   File paper Forms 1099 and 1096. 1040ez amended return File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. 1040ez amended return S. 1040ez amended return Information Returns, with the IRS. 1040ez amended return For electronically filed returns, see By March 31 below. 1040ez amended return File paper Forms W-2 and W-3. 1040ez amended return File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). 1040ez amended return For electronically filed returns, see By March 31 below. 1040ez amended return By March 31. 1040ez amended return   File electronic Forms W-2 and 1099. 1040ez amended return File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. 1040ez amended return For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. 1040ez amended return socialsecurity. 1040ez amended return gov/employer. 1040ez amended return For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. 1040ez amended return By April 30, July 31, October 31, and January 31. 1040ez amended return   Deposit FUTA taxes. 1040ez amended return Deposit FUTA tax due if it is more than $500. 1040ez amended return Before December 1. 1040ez amended return  Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year. 1040ez amended return Introduction You are generally required to withhold federal income tax from the wages of your employees. 1040ez amended return You may also be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). 1040ez amended return You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez amended return This chapter includes information about these taxes. 1040ez amended return You must also pay self-employment tax on your net earnings from farming. 1040ez amended return See chapter 12 for information on self-employment tax. 1040ez amended return Topics - This chapter discusses: Farm employment, Family employees, Crew leaders, Social security and Medicare taxes, Additional Medicare Tax withholding, Federal income tax withholding, Reporting and paying social security, Medicare, and withheld federal income taxes, and FUTA tax. 1040ez amended return Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 51 (Circular A), Agricultural Employer's Tax Guide 926 Household Employer's Tax Guide Form (and Instructions) W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification 940 Employer's Annual Federal Unemployment (FUTA) Tax Return 943 Employer's Annual Federal Tax Return for Agricultural Employees 943-X Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund See chapter 16 for information about getting publications and forms. 1040ez amended return Farm Employment In general, you are an employer of farmworkers if your employees do any of the following types of work. 1040ez amended return Raising or harvesting agricultural or horticultural products on a farm, including raising and feeding of livestock. 1040ez amended return Operating, managing, conserving, improving, or maintaining your farm and its tools and equipment. 1040ez amended return Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor). 1040ez amended return Handling, processing, or packaging any agricultural or horticultural commodity if you produced more than half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity). 1040ez amended return Work related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. 1040ez amended return For more information, see Publication 51 (Circular A). 1040ez amended return Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. 1040ez amended return This is so even when you give the employee freedom of action. 1040ez amended return What matters is that you have the right to control the details of how the services are performed. 1040ez amended return You are responsible for withholding and paying employment taxes for your employees. 1040ez amended return You are also required to file employment tax returns. 1040ez amended return These requirements do not apply to amounts that you pay to independent contractors. 1040ez amended return See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. 1040ez amended return If you employ a family of workers, each worker subject to your control (not just the head of the family) is an employee. 1040ez amended return Special rules apply to crew leaders. 1040ez amended return See Crew Leaders , later. 1040ez amended return Employer identification number (EIN). 1040ez amended return   If you have employees, you must have an EIN. 1040ez amended return If you do not have an EIN, you may apply for one online. 1040ez amended return Go to IRS. 1040ez amended return gov and click on the Apply for an EIN Online link under Tools. 1040ez amended return You may also apply for an EIN by calling 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). 1040ez amended return The hours of operation for both numbers are Monday–Friday form 7:00 a. 1040ez amended return m. 1040ez amended return –7:00 p. 1040ez amended return m. 1040ez amended return local time (Alaska and Hawaii follow Pacific time). 1040ez amended return You can also fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. 1040ez amended return Employee's social security number (SSN). 1040ez amended return   An employee who does not have an SSN should submit Form SS-5, Application for a Social Security Card, to the Social Security Administration (SSA). 1040ez amended return Form SS-5 is available from any SSA office or by calling 1-800-772-1213 (operates 24 hours per day). 1040ez amended return It is also available from the SSA's website at www. 1040ez amended return socialsecurity. 1040ez amended return gov. 1040ez amended return   The employee must furnish evidence of age, identity, and U. 1040ez amended return S. 1040ez amended return citizenship or lawful immigration status permitting employment with the Form SS-5. 1040ez amended return An employee who is age 18 or older must appear in person with this evidence at an SSA office. 1040ez amended return Form I-9. 1040ez amended return    You must verify that each new employee is legally eligible to work in the United States. 1040ez amended return This includes completing the Form I-9, Employment Eligibility Verification. 1040ez amended return Form I-9 is available from the U. 1040ez amended return S. 1040ez amended return Citizenship and Immigration Services (USCIS) offices or by calling the Bureau of Citizenship and Immigration Services Forms Request Line at 1-800-870-3676. 1040ez amended return Form I-9 is also available from the USCIS website at www. 1040ez amended return uscis. 1040ez amended return gov. 1040ez amended return You can also contact the USCIS at 1-800-375-5283 for more information. 1040ez amended return New hire reporting. 1040ez amended return   You are required to report any new employee to a designated state new hire registry. 1040ez amended return Many states accept a copy of Form W-4 with employer information added. 1040ez amended return Visit the Office of Child Support Enforcement website at www. 1040ez amended return acf. 1040ez amended return hhs. 1040ez amended return gov/programs/cse/newhire for more information. 1040ez amended return Family Employees Generally, the wages you pay to family members who are your employees are subject to employment taxes. 1040ez amended return However, certain exemptions may apply to wages paid to your child, spouse, or parent. 1040ez amended return Exemptions for your child. 1040ez amended return   Payments for the services of your child under age 18 who works for you in your trade or business (including a farm) are not subject to social security and Medicare taxes. 1040ez amended return However, see Nonexempt services of a child or spouse , later. 1040ez amended return Payments for the services of your child under age 21 employed by you in other than a trade or business, such as payments for household services in your home, are also not subject to social security or Medicare taxes. 1040ez amended return Payments for the services of your child under age 21 employed by you, whether or not in your trade or business, are not subject to FUTA tax. 1040ez amended return Although not subject to social security, Medicare, or FUTA tax, the child's wages still may be subject to federal income tax withholding. 1040ez amended return Exemptions for your spouse. 1040ez amended return   Payments for the services of your spouse who works for you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes, but not FUTA tax. 1040ez amended return   Payments for the services of your spouse employed by you in other than a trade or business, such as payments for household services in your home, are not subject to social security, Medicare, or FUTA taxes. 1040ez amended return Nonexempt services of a child or spouse. 1040ez amended return   Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for any of the following entities. 1040ez amended return A corporation, even if it is controlled by you. 1040ez amended return A partnership, even if you are a partner. 1040ez amended return This does not apply to wages paid to your child if each partner is a parent of the child. 1040ez amended return An estate or trust, even if it is the estate of a deceased parent. 1040ez amended return In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you. 1040ez amended return Exemptions for your parent. 1040ez amended return   Payments for the services of your parent employed by you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes. 1040ez amended return Social security and Medicare taxes do not apply to wages paid to your parent for services not in your trade or business, but they do apply to payments for household services in your home if both the following conditions are satisfied. 1040ez amended return You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter. 1040ez amended return You are a widow or widower; or divorced and not remarried; or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. 1040ez amended return   Wages you pay to your parent are not subject to FUTA tax, regardless of the type of services provided. 1040ez amended return Qualified joint venture. 1040ez amended return   If spouses elect to be treated as a qualified joint venture instead of a partnership, either spouse may report and pay the employment taxes due on the wages paid to employees using the EIN of that spouse's sole proprietorship. 1040ez amended return For more information about qualified joint ventures, see chapter 12. 1040ez amended return Crew Leaders If farmworkers are provided by a crew leader, the crew leader may be the employer of the workers. 1040ez amended return Social security and Medicare taxes. 1040ez amended return   For social security and Medicare tax purposes, the crew leader is the employer of the workers if both of the following requirements are met. 1040ez amended return The crew leader pays (either on his or her own behalf or on behalf of the farmer) the workers for their farm labor. 1040ez amended return The crew leader has not entered into a written agreement with the farmer under which the crew leader is designated as an employee of the farmer. 1040ez amended return Federal income tax withholding. 1040ez amended return   If the crew leader is the employer for social security and Medicare tax purposes, the crew leader is the employer for federal income tax withholding purposes. 1040ez amended return Federal unemployment (FUTA) tax. 1040ez amended return   For FUTA tax purposes, the crew leader is the employer of the workers if, in addition to the earlier requirements, either of the following requirements are met. 1040ez amended return The crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act. 1040ez amended return Substantially all crew members operate or maintain mechanized equipment provided by the crew leader as part of the service to the farmer. 1040ez amended return   The farmer is the employer of workers furnished by a crew leader in all other situations. 1040ez amended return In addition, the farmer is the employer of workers furnished by a registered crew leader if the workers are the employees of the farmer under the common-law test. 1040ez amended return For example, some farmers employ individuals to recruit farmworkers exclusively for them. 1040ez amended return Although these individuals may be required to register under the Migrant and Seasonal Agricultural Worker Protection Act, the workers are employed directly by the farmer. 1040ez amended return The farmer is the employer in these cases. 1040ez amended return For information about common-law employees, see section 1 of Publication 15-A. 1040ez amended return For information about crew leaders, see the Department of Labor website at www. 1040ez amended return dol. 1040ez amended return gov/whd/regs/compliance/whdfs49. 1040ez amended return htm. 1040ez amended return Social Security and Medicare Taxes All cash wages you pay to an employee during the year for farmwork are subject to social security and Medicare taxes if you meet either of the following tests. 1040ez amended return You pay the employee $150 or more in cash wages (count all wages paid on a time, piecework, or other basis) during the year for farmwork (the $150 test). 1040ez amended return The $150 test applies separately to each farmworker that you employ. 1040ez amended return If you employ a family of workers, each member is treated separately. 1040ez amended return Do not count wages paid by other employers. 1040ez amended return You pay cash and noncash wages of $2,500 or more during the year to all your employees for farmwork (the $2,500 test). 1040ez amended return If the $2,500 test for the group is not met, the $150 test for an employee still applies. 1040ez amended return Exceptions. 1040ez amended return   Annual cash wages of less than $150 you pay to a seasonal farmworker are not subject to social security and Medicare taxes, even if you pay $2,500 or more to all your farmworkers. 1040ez amended return However, these wages count toward the $2,500 test for determining whether other farmworkers' wages are subject to social security and Medicare taxes. 1040ez amended return   A seasonal farmworker is a worker who: Works as a hand-harvest laborer, Is paid piece rates in an operation usually paid on this basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Worked in agriculture less than 13 weeks in the preceding calendar year. 1040ez amended return   See Family Employees , earlier, for certain exemptions from social security and Medicare taxes that apply to your child, spouse, and parent. 1040ez amended return Religious exemption. 1040ez amended return   An exemption from social security and Medicare taxes is available to members of a recognized religious group or division opposed to public insurance. 1040ez amended return This exemption is available only if both the employee and the employer are members of the group or division. 1040ez amended return   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 1040ez amended return Cash wages. 1040ez amended return   Only cash wages paid to farmworkers are subject to social security and Medicare taxes. 1040ez amended return Cash wages include checks, money orders, and any kind of money or cash. 1040ez amended return   Only cash wages subject to social security and Medicare taxes are credited to your employees for social security benefit purposes. 1040ez amended return Payments not subject to these taxes, such as commodity wages, do not contribute to your employees' social security coverage. 1040ez amended return For information about social security benefits, contact the SSA at 1-800-772-1213 or online at www. 1040ez amended return socialsecurity. 1040ez amended return gov. 1040ez amended return Noncash wages. 1040ez amended return    Noncash wages include food, lodging, clothing, transportation passes, and other goods and services. 1040ez amended return Noncash wages paid to farmworkers, including commodity wages, are not subject to social security and Medicare taxes. 1040ez amended return However, they are subject to these taxes if the substance of the transaction is a cash payment. 1040ez amended return For information on lodging provided as a condition of employment, see Publication 15-B. 1040ez amended return   Report the value of noncash wages in box 1 of Form W-2 together with cash wages. 1040ez amended return Do not show noncash wages in box 3 or in box 5, (unless the substance of the transaction is a cash payment). 1040ez amended return Tax rates and social security wage limit. 1040ez amended return   For 2013, the employer and the employee will pay the following taxes. 1040ez amended return The employer and employee each pay 6. 1040ez amended return 2% of cash wages for social security tax (old-age, survivors, and disability insurance). 1040ez amended return The employer and employee each pay 1. 1040ez amended return 45% of cash wages for Medicare tax (hospital insurance). 1040ez amended return The employee pays 0. 1040ez amended return 9% of cash wages in excess of $200,000 for Additional Medicare Tax. 1040ez amended return Wage limit. 1040ez amended return   The limit on wages subject to the social security tax for 2013 is $113,700. 1040ez amended return There is no limit on wages subject to the Medicare tax. 1040ez amended return All covered wages are subject to the Medicare tax. 1040ez amended return Additionally, all wages in excess of $200,000 are subject to Additional Medicare Tax withholding. 1040ez amended return Paying employee's share. 1040ez amended return   If you would rather pay the employee's share of social security and Medicare taxes without deducting it from his or her wages, you may do so. 1040ez amended return It is additional income to the employee. 1040ez amended return You must include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages (boxes 3 and 5 on Form W-2) or as wages for federal unemployment (FUTA) tax purposes. 1040ez amended return Example. 1040ez amended return Jane operates a small family fruit farm. 1040ez amended return She employs day laborers in the picking season to enable her to timely get her crop to market. 1040ez amended return She does not deduct the employees' share of social security and Medicare taxes from their pay; instead, she pays it on their behalf. 1040ez amended return When her accountant, Susan, prepares the employees' Forms W-2, she adds each employee's share of social security and Medicare taxes paid by Jane to the employee's wage income (box 1 of Form W-2), but does not include it in box 3 (social security wages) or box 5 (Medicare wages and tips). 1040ez amended return For 2013, Jane paid Mary $1,000 during the year. 1040ez amended return Susan enters $1,076. 1040ez amended return 50 in box 1 of Mary's Form W-2 ($1,000 wages plus $76. 1040ez amended return 50 social security and Medicare taxes paid for Mary). 1040ez amended return She enters $1,000 in boxes 3 and 5 of Mary's Form W-2. 1040ez amended return Additional Medicare Tax. 1040ez amended return   In addition to withholding Medicare tax at 1. 1040ez amended return 45%, you must withhold a 0. 1040ez amended return 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez amended return You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. 1040ez amended return Additional Medicare Tax is only imposed on the employee. 1040ez amended return There is no employer share of Additional Medicare Tax. 1040ez amended return All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. 1040ez amended return   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). 1040ez amended return For more information on Additional Medicare Tax, visit IRS. 1040ez amended return gov and enter “Additional Medicare Tax” in the search box. 1040ez amended return Federal Income Tax Withholding If the cash wages you pay to farmworkers are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. 1040ez amended return Although noncash wages are subject to federal income tax, withhold income tax only if you and the employee agree to do so. 1040ez amended return The amount to withhold is figured on gross wages without taking out social security and Medicare taxes, union dues, insurance, etc. 1040ez amended return Form W-4. 1040ez amended return   Generally, the amount of federal income tax you withhold is based on the employee's marital status and withholding allowances claimed on the employee's Form W-4. 1040ez amended return In general, an employee can claim withholding allowances on Form W-4 equal to the number of exemptions the employee will be entitled to claim on his or her tax return. 1040ez amended return An employee may also be able to claim a special withholding allowance and allowances for estimated deductions and credits. 1040ez amended return   Do not withhold federal income tax from the wages of an employee who, by filing Form W-4, certifies that he or she had no federal income tax liability last year and anticipates no liability for the current year. 1040ez amended return   You should give each new employee a Form W-4 as soon as you hire the employee. 1040ez amended return For Spanish-speaking employees, you may use Formulario W-4(SP) which is the Spanish translation of Form W-4. 1040ez amended return Have the employee complete and return the form to you before the first payday. 1040ez amended return If the employee does not return the completed form, you must withhold federal income tax as if the employee is single and claims no withholding allowances. 1040ez amended return New Form W-4 for 2014. 1040ez amended return   You should make the 2014 Form W-4 available to your employees and encourage them to check their income tax withholding for 2014. 1040ez amended return Those employees who owed a large amount of tax or received a large refund for 2013 may want to submit a new Form W-4. 1040ez amended return You cannot accept substitute Forms W-4 developed by employees. 1040ez amended return How to figure withholding. 1040ez amended return   You can use one of several methods to determine the amount to withhold. 1040ez amended return The methods are described in Publication 51 (Circular A), which contains tables showing the correct amount of federal income tax you should withhold. 1040ez amended return Publication 51 (Circular A) also contains additional information about federal income tax withholding. 1040ez amended return Nonemployee compensation. 1040ez amended return   Generally, you do not have to withhold federal income tax on payments for services to individuals who are not your employees. 1040ez amended return However, you may be required to report these payments on Form 1099-MISC, Miscellaneous Income, and to withhold under the backup withholding rules. 1040ez amended return For more information, see the Instructions for Form 1099-MISC. 1040ez amended return Required Notice to Employees About Earned Income Credit (EIC) You must provide notification about EIC to each employee who worked for you at any time during the year and from whom you did not withhold any federal income tax. 1040ez amended return However, you do not have to notify employees who claim exemption from federal income tax withholding on Form W-4. 1040ez amended return You meet the notification requirement by giving each employee any of the following. 1040ez amended return Form W-2, which contains EIC notification on the back of Copy B. 1040ez amended return A substitute Form W-2 with the exact EIC wording shown on the back of copy B of Form W-2. 1040ez amended return Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). 1040ez amended return Your own written statement with the exact wording of Notice 797. 1040ez amended return For more information, see Publication 51 (Circular A). 1040ez amended return Reporting and Paying Social Security, Medicare, and Withheld Federal Income Taxes You must withhold federal income, social security, and Medicare taxes required to be withheld from the salaries and wages of your employees. 1040ez amended return You are liable for the payment of these taxes to the federal government whether or not you collect them from your employees. 1040ez amended return If, for example, you withhold less than the correct tax from an employee's wages, you are still liable for the full amount. 1040ez amended return You must also pay the employer's share of social security and Medicare taxes. 1040ez amended return There is no employer share of Additional Medicare Tax. 1040ez amended return Form 943. 1040ez amended return   Report withheld federal income tax, social security tax, and Medicare tax on Form 943. 1040ez amended return Your 2013 Form 943 is due by January 31, 2014 (or February 10, 2014, if you made deposits on time in full payment of the taxes due for the year). 1040ez amended return Deposits. 1040ez amended return   Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld during the year. 1040ez amended return However, you may make payments with Form 943 instead of depositing them if you accumulate less than a $2,500 tax liability (“Total taxes after adjustments” line on Form 943) during the year and you pay in full with a timely filed return. 1040ez amended return   For more information on deposit rules, see Publication 51 (Circular A). 1040ez amended return Electronic deposit requirement. 1040ez amended return   You must use electronic funds transfer to make all federal tax deposits. 1040ez amended return Generally, electronic funds transfers are made using EFTPS. 1040ez amended return If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 1040ez amended return Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 1040ez amended return EFTPS is a free service provided by the Department of Treasury. 1040ez amended return Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 1040ez amended return   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). 1040ez amended return To get more information about EFTPS or to enroll in EFTPS, visit www. 1040ez amended return eftps. 1040ez amended return gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez amended return Additional information about EFTPS is also available in Publication 966. 1040ez amended return Form W-2. 1040ez amended return   By January 31, you must furnish each employee a Form W-2 showing total wages for the previous year and total federal income tax, social security tax, and Medicare tax withheld. 1040ez amended return However, if an employee stops working for you and requests the form earlier, you must give it to the employee within 30 days of the later of the following dates. 1040ez amended return The date the employee requests the form. 1040ez amended return The date you make your final payment of wages to the employee. 1040ez amended return Compensation paid to H-2A visa holders. 1040ez amended return   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2. 1040ez amended return Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax (line 6) on Form 943, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. 1040ez amended return   An employer is not required to withhold federal income tax from compensation it pays to an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. 1040ez amended return In this case, the worker must give the employer a completed Form W-4. 1040ez amended return Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. 1040ez amended return   These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. 1040ez amended return For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. 1040ez amended return Trust fund recovery penalty. 1040ez amended return   If you are responsible for withholding, accounting for, depositing, or paying federal withholding taxes and willfully fail to do so, you can be held liable for a penalty equal to the withheld tax not paid. 1040ez amended return A responsible person can be an officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. 1040ez amended return A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. 1040ez amended return   Willfully means voluntarily, consciously, and intentionally. 1040ez amended return Paying other expenses of the business instead of the taxes due is acting willfully. 1040ez amended return Consequences of treating an employee as an independent contractor. 1040ez amended return   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. 1040ez amended return See Publication 15-A for more information. 1040ez amended return Federal Unemployment (FUTA) Tax You must pay FUTA tax if you meet either of the following tests. 1040ez amended return You paid cash wages of $20,000 or more to farmworkers in any calendar quarter during the current or preceding calendar year. 1040ez amended return You employed 10 or more farmworkers for some part of at least 1 day during any 20 or more different calendar weeks during the current or preceding calendar year. 1040ez amended return These rules do not apply to exempt services of your spouse, your parents, or your children under age 21. 1040ez amended return See Family Employees , earlier. 1040ez amended return Alien farmworkers. 1040ez amended return   Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as “H-2A visa workers”) are exempt from FUTA tax. 1040ez amended return However, include your employment of these workers and the wages you paid them to determine whether you meet either of the above tests. 1040ez amended return Commodity wages. 1040ez amended return   Payments in kind for farm labor are not cash wages. 1040ez amended return Do not count them to figure whether you are subject to FUTA tax or to figure how much tax you owe. 1040ez amended return Tax rate and credit. 1040ez amended return   The gross FUTA tax rate is 6. 1040ez amended return 0% of the first $7,000 cash wages you pay to each employee during the year. 1040ez amended return However, you are given a credit of up to 5. 1040ez amended return 4% of the first $7,000 cash wages you pay to each employee for the state unemployment tax you pay. 1040ez amended return If your state tax rate (experience rate) is less than 5. 1040ez amended return 4%, you may still be allowed the full 5. 1040ez amended return 4% credit. 1040ez amended return   If you do not pay the state tax, you cannot take the credit. 1040ez amended return If you are exempt from state unemployment tax for any reason, the full 6. 1040ez amended return 0% rate applies. 1040ez amended return See the Instructions for Form 940 for additional information. 1040ez amended return More information. 1040ez amended return   For more information on FUTA tax, see Publication 51 (Circular A). 1040ez amended return Reporting and Paying FUTA Tax The FUTA tax is imposed on you as the employer. 1040ez amended return It must not be collected or deducted from the wages of your employees. 1040ez amended return Form 940. 1040ez amended return   Report FUTA tax on Form 940. 1040ez amended return The 2013 Form 940 is due January 31, 2014 (or February 10, 2014, if you timely deposited the full amount of your 2013 FUTA tax). 1040ez amended return Deposits. 1040ez amended return   If at the end of any calendar quarter you owe, but have not yet deposited, more than $500 in FUTA tax for the year, you must make a deposit by the end of the following month. 1040ez amended return If the undeposited tax is $500 or less at the end of a quarter, you do not have to deposit it. 1040ez amended return You can add it to the tax for the next quarter. 1040ez amended return If the total undeposited tax is more than $500 at the end of the next quarter, a deposit will be required. 1040ez amended return If the total undeposited tax at the end of the 4th quarter is $500 or less, you can either make a deposit or pay it with your return by the January 31, 2014, due date. 1040ez amended return Electronic deposit requirement. 1040ez amended return   You must use electronic funds transfer to make all federal tax deposits. 1040ez amended return Generally, electronic funds transfers are made using EFTPS. 1040ez amended return If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 1040ez amended return Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 1040ez amended return EFTPS is a free service provided by the Department of Treasury. 1040ez amended return Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 1040ez amended return   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). 1040ez amended return To get more information about EFTPS or to enroll in EFTPS, visit www. 1040ez amended return eftps. 1040ez amended return gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez amended return Additional information about EFTPS is also available in Publication 966. 1040ez amended return Prev  Up  Next   Home   More Online Publications
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The 1040ez Amended Return

1040ez amended return Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. 1040ez amended return Proc. 1040ez amended return 2012-23 Table of Contents SECTION 1. 1040ez amended return PURPOSE SECTION 2. 1040ez amended return BACKGROUND SECTION 3. 1040ez amended return SCOPE SECTION 4. 1040ez amended return APPLICATION. 1040ez amended return 01 Limitations on Depreciation Deductions for Certain Automobiles. 1040ez amended return . 1040ez amended return 02 Inclusions in Income of Lessees of Passenger Automobiles. 1040ez amended return SECTION 5. 1040ez amended return EFFECTIVE DATE SECTION 6. 1040ez amended return DRAFTING INFORMATION SECTION 1. 1040ez amended return PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. 1040ez amended return The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. 1040ez amended return SECTION 2. 1040ez amended return BACKGROUND . 1040ez amended return 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. 1040ez amended return For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. 1040ez amended return The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. 1040ez amended return This change reflects the higher rate of price inflation for trucks and vans since 1988. 1040ez amended return . 1040ez amended return 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. 1040ez amended return L. 1040ez amended return No. 1040ez amended return 111-312, 124 Stat. 1040ez amended return 3296 (Dec. 1040ez amended return 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. 1040ez amended return Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. 1040ez amended return . 1040ez amended return 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). 1040ez amended return Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. 1040ez amended return Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). 1040ez amended return Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. 1040ez amended return This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. 1040ez amended return . 1040ez amended return 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. 1040ez amended return The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. 1040ez amended return Under § 1. 1040ez amended return 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. 1040ez amended return One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. 1040ez amended return Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. 1040ez amended return SECTION 3. 1040ez amended return SCOPE . 1040ez amended return 01 The limitations on depreciation deductions in section 4. 1040ez amended return 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. 1040ez amended return . 1040ez amended return 02 The tables in section 4. 1040ez amended return 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. 1040ez amended return Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. 1040ez amended return See Rev. 1040ez amended return Proc. 1040ez amended return 2007-30, 2007-1 C. 1040ez amended return B. 1040ez amended return 1104, for passenger automobiles first leased during calendar year 2007; Rev. 1040ez amended return Proc. 1040ez amended return 2008-22, 2008-1 C. 1040ez amended return B. 1040ez amended return 658, for passenger automobiles first leased during calendar year 2008; Rev. 1040ez amended return Proc. 1040ez amended return 2009-24, 2009-17 I. 1040ez amended return R. 1040ez amended return B. 1040ez amended return 885, for passenger automobiles first leased during calendar year 2009; Rev. 1040ez amended return Proc. 1040ez amended return 2010-18, 2010-9 I. 1040ez amended return R. 1040ez amended return B. 1040ez amended return 427, as amplified and modified by section 4. 1040ez amended return 03 of Rev. 1040ez amended return Proc. 1040ez amended return 2011-21, 2011-12 I. 1040ez amended return R. 1040ez amended return B. 1040ez amended return 560, for passenger automobiles first leased during calendar year 2010; and Rev. 1040ez amended return Proc. 1040ez amended return 2011-21, for passenger automobiles first leased during calendar year 2011. 1040ez amended return SECTION 4. 1040ez amended return APPLICATION . 1040ez amended return 01 Limitations on Depreciation Deductions for Certain Automobiles. 1040ez amended return (1) Amount of the inflation adjustment. 1040ez amended return (a) Passenger automobiles (other than trucks or vans). 1040ez amended return Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. 1040ez amended return Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. 1040ez amended return The new car component of the CPI was 115. 1040ez amended return 2 for October 1987 and 143. 1040ez amended return 419 for October 2011. 1040ez amended return The October 2011 index exceeded the October 1987 index by 28. 1040ez amended return 219. 1040ez amended return Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. 1040ez amended return 5 percent (28. 1040ez amended return 219/115. 1040ez amended return 2 x 100%). 1040ez amended return The dollar limitations in § 280F(a) are multiplied by a factor of 0. 1040ez amended return 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. 1040ez amended return This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. 1040ez amended return (b) Trucks and vans. 1040ez amended return To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. 1040ez amended return The new truck component of the CPI was 112. 1040ez amended return 4 for October 1987 and 146. 1040ez amended return 607 for October 2011. 1040ez amended return The October 2011 index exceeded the October 1987 index by 34. 1040ez amended return 207. 1040ez amended return Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. 1040ez amended return 43 percent (34. 1040ez amended return 207/112. 1040ez amended return 4 x 100%). 1040ez amended return The dollar limitations in § 280F(a) are multiplied by a factor of 0. 1040ez amended return 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. 1040ez amended return This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. 1040ez amended return (2) Amount of the limitation. 1040ez amended return Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. 1040ez amended return Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. 1040ez amended return Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. 1040ez amended return REV. 1040ez amended return PROC. 1040ez amended return 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. 1040ez amended return PROC. 1040ez amended return 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. 1040ez amended return PROC. 1040ez amended return 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. 1040ez amended return PROC. 1040ez amended return 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . 1040ez amended return 02 Inclusions in Income of Lessees of Passenger Automobiles. 1040ez amended return A taxpayer must follow the procedures in § 1. 1040ez amended return 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. 1040ez amended return In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. 1040ez amended return REV. 1040ez amended return PROC. 1040ez amended return 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. 1040ez amended return PROC. 1040ez amended return 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. 1040ez amended return EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. 1040ez amended return SECTION 6. 1040ez amended return DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. 1040ez amended return Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). 1040ez amended return For further information regarding this revenue procedure, contact Mr. 1040ez amended return Harvey at (202) 622-4930 (not a toll-free call). 1040ez amended return Prev  Up  Next   Home   More Internal Revenue Bulletins