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1040ez fillable form 37. 1040ez fillable form   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. 1040ez fillable form  The maximum adoption credit is $12,970 for 2013. 1040ez fillable form See Adoption Credit . 1040ez fillable form Plug-in electric vehicle credit. 1040ez fillable form  This credit has expired. 1040ez fillable form Credit for prior year minimum tax. 1040ez fillable form  The refundable portion of the credit for prior year minimum tax has expired. 1040ez fillable form Excess withholding of social security and railroad retirement tax. 1040ez fillable form  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. 1040ez fillable form 2% of wages up to $113,700. 1040ez fillable form If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. 1040ez fillable form See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . 1040ez fillable form Introduction This chapter discusses the following nonrefundable credits. 1040ez fillable form Adoption credit. 1040ez fillable form Alternative motor vehicle credit. 1040ez fillable form Alternative fuel vehicle refueling property credit. 1040ez fillable form Credit to holders of tax credit bonds. 1040ez fillable form Foreign tax credit. 1040ez fillable form Mortgage interest credit. 1040ez fillable form Nonrefundable credit for prior year minimum tax. 1040ez fillable form Plug-in electric drive motor vehicle credit. 1040ez fillable form Residential energy credits. 1040ez fillable form Retirement savings contributions credit. 1040ez fillable form This chapter also discusses the following refundable credits. 1040ez fillable form Credit for tax on undistributed capital gain. 1040ez fillable form Health coverage tax credit. 1040ez fillable form Credit for excess social security tax or railroad retirement tax withheld. 1040ez fillable form Several other credits are discussed in other chapters in this publication. 1040ez fillable form Child and dependent care credit (chapter 32). 1040ez fillable form Credit for the elderly or the disabled (chapter 33). 1040ez fillable form Child tax credit (chapter 34). 1040ez fillable form Education credits (chapter 35). 1040ez fillable form Earned income credit (chapter 36). 1040ez fillable form Nonrefundable credits. 1040ez fillable form   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. 1040ez fillable form These credits may reduce your tax to zero. 1040ez fillable form If these credits are more than your tax, the excess is not refunded to you. 1040ez fillable form Refundable credits. 1040ez fillable form   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. 1040ez fillable form These credits are added to the federal income tax withheld and any estimated tax payments you made. 1040ez fillable form If this total is more than your total tax, the excess will be refunded to you. 1040ez fillable form Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. 1040ez fillable form However, if the total of these credits is more than your tax, the excess is not refunded to you. 1040ez fillable form Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. 1040ez fillable form The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. 1040ez fillable form If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. 1040ez fillable form If your modified AGI is $234,580 or more, you cannot take the credit. 1040ez fillable form Qualified adoption expenses. 1040ez fillable form   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. 1040ez fillable form These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. 1040ez fillable form Nonqualified expenses. 1040ez fillable form   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. 1040ez fillable form Eligible child. 1040ez fillable form   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. 1040ez fillable form Child with special needs. 1040ez fillable form   An eligible child is a child with special needs if all three of the following apply. 1040ez fillable form The child was a citizen or resident of the United States (including U. 1040ez fillable form S. 1040ez fillable form possessions) at the time the adoption process began. 1040ez fillable form A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. 1040ez fillable form The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. 1040ez fillable form Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. 1040ez fillable form When to take the credit. 1040ez fillable form   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. 1040ez fillable form If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. 1040ez fillable form See the Instructions for Form 8839 for more specific information on when to take the credit. 1040ez fillable form Foreign child. 1040ez fillable form   If the child is not a U. 1040ez fillable form S. 1040ez fillable form citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. 1040ez fillable form You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. 1040ez fillable form How to take the credit. 1040ez fillable form   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. 1040ez fillable form Include the credit in your total for Form 1040, line 53. 1040ez fillable form Check box c and enter “8839” on the line next to that box. 1040ez fillable form More information. 1040ez fillable form   For more information, see the Instructions for Form 8839. 1040ez fillable form Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. 1040ez fillable form Amount of credit. 1040ez fillable form   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. 1040ez fillable form In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. 1040ez fillable form   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. 1040ez fillable form How to take the credit. 1040ez fillable form   To take the credit, you must complete Form 8910 and attach it to your Form 1040. 1040ez fillable form Include the credit in your total for Form 1040, line 53. 1040ez fillable form Check box c and enter “8910” on the line next to that box. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit, see the Instructions for Form 8910. 1040ez fillable form Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. 1040ez fillable form Qualified alternative fuel vehicle refueling property. 1040ez fillable form   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. 1040ez fillable form To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. 1040ez fillable form To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. 1040ez fillable form   The following are alternative fuels. 1040ez fillable form Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. 1040ez fillable form Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. 1040ez fillable form Electricity. 1040ez fillable form Amount of the credit. 1040ez fillable form   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. 1040ez fillable form For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. 1040ez fillable form How to take the credit. 1040ez fillable form   To take the credit, you must complete Form 8911 and attach it to your Form 1040. 1040ez fillable form Include the credit in your total for Form 1040, line 53. 1040ez fillable form Check box c and enter “8911” on the line next to that box. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit, see the Form 8911 instructions. 1040ez fillable form Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. 1040ez fillable form You may be able to take a credit if you are a holder of one of the following bonds. 1040ez fillable form Clean renewable energy bonds (issued before 2010). 1040ez fillable form New clean renewable energy bonds. 1040ez fillable form Qualified energy conservation bonds. 1040ez fillable form Qualified school construction bonds. 1040ez fillable form Qualified zone academy bonds. 1040ez fillable form Build America bonds. 1040ez fillable form In some instances, an issuer may elect to receive a credit for interest paid on the bond. 1040ez fillable form If the issuer makes this election, you cannot also claim a credit. 1040ez fillable form Interest income. 1040ez fillable form   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. 1040ez fillable form How to take the credit. 1040ez fillable form   Complete Form 8912 and attach it to your Form 1040. 1040ez fillable form Include the credit in your total for Form 1040, line 53. 1040ez fillable form Check box c and enter “8912” on the line next to that box. 1040ez fillable form More information. 1040ez fillable form   For more information, see the Instructions for Form 8912. 1040ez fillable form Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. 1040ez fillable form S. 1040ez fillable form possession as a credit against your U. 1040ez fillable form S. 1040ez fillable form income tax. 1040ez fillable form Or, you can deduct them as an itemized deduction (see chapter 22). 1040ez fillable form You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. 1040ez fillable form S. 1040ez fillable form tax under any of the following. 1040ez fillable form Foreign earned income exclusion. 1040ez fillable form Foreign housing exclusion. 1040ez fillable form Income from Puerto Rico exempt from U. 1040ez fillable form S. 1040ez fillable form tax. 1040ez fillable form Possession exclusion. 1040ez fillable form Limit on the credit. 1040ez fillable form   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. 1040ez fillable form S. 1040ez fillable form tax liability (Form 1040, line 44), multiplied by a fraction. 1040ez fillable form The numerator of the fraction is your taxable income from sources outside the United States. 1040ez fillable form The denominator is your total taxable income from U. 1040ez fillable form S. 1040ez fillable form and foreign sources. 1040ez fillable form See Publication 514 for more information. 1040ez fillable form How to take the credit. 1040ez fillable form   Complete Form 1116 and attach it to your Form 1040. 1040ez fillable form Enter the credit on Form 1040, line 47. 1040ez fillable form Exception. 1040ez fillable form   You do not have to complete Form 1116 to take the credit if all of the following apply. 1040ez fillable form All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). 1040ez fillable form If you had dividend income from shares of stock, you held those shares for at least 16 days. 1040ez fillable form You are not filing Form 4563 or excluding income from sources within Puerto Rico. 1040ez fillable form The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). 1040ez fillable form All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit and these requirements, see the Instructions for Form 1116. 1040ez fillable form Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. 1040ez fillable form If you qualify, you can take the credit each year for part of the home mortgage interest you pay. 1040ez fillable form Who qualifies. 1040ez fillable form   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. 1040ez fillable form Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. 1040ez fillable form Amount of credit. 1040ez fillable form   Figure your credit on Form 8396. 1040ez fillable form If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. 1040ez fillable form   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. 1040ez fillable form To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. 1040ez fillable form      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. 1040ez fillable form   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. 1040ez fillable form If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. 1040ez fillable form See Publication 530 for more information. 1040ez fillable form Carryforward. 1040ez fillable form   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. 1040ez fillable form If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. 1040ez fillable form   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). 1040ez fillable form How to take the credit. 1040ez fillable form    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. 1040ez fillable form Be sure to include any credit carryforward from 2010, 2011, and 2012. 1040ez fillable form   Include the credit in your total for Form 1040, line 53. 1040ez fillable form Check box c and enter “8396” on the line next to that box. 1040ez fillable form Reduced home mortgage interest deduction. 1040ez fillable form   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. 1040ez fillable form You must do this even if part of that amount is to be carried forward to 2014. 1040ez fillable form For more information about the home mortgage interest deduction, see chapter 23. 1040ez fillable form Recapture of federal mortgage subsidy. 1040ez fillable form   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. 1040ez fillable form The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. 1040ez fillable form See the Instructions for Form 8828 and chapter 15 for more information. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit, see the Form 8396 instructions. 1040ez fillable form Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. 1040ez fillable form If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. 1040ez fillable form This is called the alternative minimum tax. 1040ez fillable form The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. 1040ez fillable form If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. 1040ez fillable form You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. 1040ez fillable form How to take the credit. 1040ez fillable form    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. 1040ez fillable form Include the credit in your total for Form 1040, line 53, and check box b. 1040ez fillable form You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit, see the Instructions for Form 8801. 1040ez fillable form Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. 1040ez fillable form Qualified plug-in electric drive motor vehicle. 1040ez fillable form   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. 1040ez fillable form Qualified two- or three-wheeled plug-in electric vehicle. 1040ez fillable form   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. 1040ez fillable form 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. 1040ez fillable form Certification and other requirements. 1040ez fillable form   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. 1040ez fillable form However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. 1040ez fillable form   The following requirements must also be met to qualify for the credit. 1040ez fillable form You are the owner of the vehicle. 1040ez fillable form If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. 1040ez fillable form You placed the vehicle in service during 2013. 1040ez fillable form The vehicle is manufactured primarily for use on public streets, roads, and highways. 1040ez fillable form The original use of the vehicle began with you. 1040ez fillable form You acquired the vehicle for your use or to lease to others, and not for resale. 1040ez fillable form In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. 1040ez fillable form You use the vehicle primarily in the United States. 1040ez fillable form How to take the credit. 1040ez fillable form   To take the credit, you must complete Form 8936 and attach it to your Form 1040. 1040ez fillable form Include the credit in your total for Form 1040, line 53. 1040ez fillable form Check box c and enter “8936” on the line next to that box. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit, see the Form 8936 instructions. 1040ez fillable form Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. 1040ez fillable form Nonbusiness energy property credit. 1040ez fillable form Residential energy efficient property credit. 1040ez fillable form If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. 1040ez fillable form Nonbusiness energy property credit. 1040ez fillable form   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. 1040ez fillable form   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. 1040ez fillable form    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. 1040ez fillable form   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. 1040ez fillable form Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. 1040ez fillable form Exterior window (including skylights). 1040ez fillable form Exterior doors. 1040ez fillable form Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. 1040ez fillable form   Residential energy property is any of the following. 1040ez fillable form Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. 1040ez fillable form Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. 1040ez fillable form Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. 1040ez fillable form Residential energy efficient property credit. 1040ez fillable form   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. 1040ez fillable form The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. 1040ez fillable form Basis reduction. 1040ez fillable form   You must reduce the basis of your home by the amount of any credit allowed. 1040ez fillable form How to take the credit. 1040ez fillable form   Complete Form 5695 and attach it to your Form 1040. 1040ez fillable form Enter the credit on Form 1040, line 52. 1040ez fillable form More information. 1040ez fillable form   For more information on these credits, see the Form 5695 instructions. 1040ez fillable form Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. 1040ez fillable form However, you cannot take the credit if either of the following applies. 1040ez fillable form The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). 1040ez fillable form The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). 1040ez fillable form Student. 1040ez fillable form   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. 1040ez fillable form School. 1040ez fillable form   A school includes a technical, trade, or mechanical school. 1040ez fillable form It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. 1040ez fillable form How to take the credit. 1040ez fillable form   Figure the credit on Form 8880. 1040ez fillable form Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit, see the Form 8880 instructions. 1040ez fillable form Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. 1040ez fillable form If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. 1040ez fillable form Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. 1040ez fillable form If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. 1040ez fillable form The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. 1040ez fillable form How to take the credit. 1040ez fillable form   To take the credit, attach Copy B of Form 2439 to your Form 1040. 1040ez fillable form Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. 1040ez fillable form More information. 1040ez fillable form   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. 1040ez fillable form Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. 1040ez fillable form You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. 1040ez fillable form You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. 1040ez fillable form S. 1040ez fillable form Treasury–HCTC. 1040ez fillable form ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. 1040ez fillable form You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). 1040ez fillable form You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. 1040ez fillable form S. 1040ez fillable form military health system (TRICARE). 1040ez fillable form You were not imprisoned under federal, state, or local authority. 1040ez fillable form Your employer did not pay 50% or more of the cost of coverage. 1040ez fillable form You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. 1040ez fillable form But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. 1040ez fillable form If you meet all of these conditions, you may be able to take a credit of up to 72. 1040ez fillable form 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. 1040ez fillable form You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. 1040ez fillable form The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. 1040ez fillable form You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. 1040ez fillable form If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. 1040ez fillable form TAA recipient. 1040ez fillable form   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). 1040ez fillable form Example. 1040ez fillable form You received a trade adjustment allowance for January 2013. 1040ez fillable form You were an eligible TAA recipient on the first day of January and February. 1040ez fillable form Alternative TAA recipient. 1040ez fillable form   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. 1040ez fillable form Example. 1040ez fillable form You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. 1040ez fillable form The program was established by the Department of Labor. 1040ez fillable form You were an eligible alternative TAA recipient on the first day of October and November. 1040ez fillable form RTAA recipient. 1040ez fillable form   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. 1040ez fillable form PBGC pension recipient. 1040ez fillable form   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. 1040ez fillable form You were age 55 or older on the first day of the month. 1040ez fillable form You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). 1040ez fillable form If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. 1040ez fillable form How to take the credit. 1040ez fillable form   To take the credit, complete Form 8885 and attach it to your Form 1040. 1040ez fillable form Include your credit in the total for Form 1040, line 71, and check box c. 1040ez fillable form   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. 1040ez fillable form For details, see Publication 502 or Form 8885. 1040ez fillable form More information. 1040ez fillable form   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. 1040ez fillable form Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. 1040ez fillable form If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. 1040ez fillable form If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. 1040ez fillable form If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. 1040ez fillable form 2% rate. 1040ez fillable form You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. 1040ez fillable form For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. 1040ez fillable form 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. 1040ez fillable form 45%) or the Additional Medicare Tax rate (. 1040ez fillable form 9%). 1040ez fillable form The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. 1040ez fillable form Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. 1040ez fillable form 40 RRTA tier 2 $84,300 $3,709. 1040ez fillable form 20 All wages are subject to Medicare tax withholding. 1040ez fillable form   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. 1040ez fillable form Be sure to attach a copy of all of your W-2 forms. 1040ez fillable form Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. 1040ez fillable form Employer's error. 1040ez fillable form   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. 1040ez fillable form The employer should adjust the tax for you. 1040ez fillable form If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. 1040ez fillable form Joint return. 1040ez fillable form   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. 1040ez fillable form Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. 1040ez fillable form How to figure the credit if you did not work for a railroad. 1040ez fillable form   If you did not work for a railroad during 2013, figure the credit as follows: 1. 1040ez fillable form Add all social security tax withheld (but not more than $7,049. 1040ez fillable form 40 for each employer). 1040ez fillable form Enter the total here   2. 1040ez fillable form Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. 1040ez fillable form Add lines 1 and 2. 1040ez fillable form If $7,049. 1040ez fillable form 40 or less, stop here. 1040ez fillable form You cannot take  the credit   4. 1040ez fillable form Social security tax limit 7,049. 1040ez fillable form 40 5. 1040ez fillable form Credit. 1040ez fillable form Subtract line 4 from line 3. 1040ez fillable form Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. 1040ez fillable form You are married and file a joint return with your spouse who had no gross income in 2013. 1040ez fillable form During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. 1040ez fillable form Social security tax of $3,720 was withheld. 1040ez fillable form You also worked for another employer in 2013 and earned $55,000 in wages. 1040ez fillable form $3,410 of social security tax was withheld from these wages. 1040ez fillable form Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. 1040ez fillable form 60 for the excess social security tax withheld. 1040ez fillable form 1. 1040ez fillable form Add all social security tax withheld (but not more than $7,049. 1040ez fillable form 40 for each employer). 1040ez fillable form Enter the total here $7,130. 1040ez fillable form 00 2. 1040ez fillable form Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. 1040ez fillable form Add lines 1 and 2. 1040ez fillable form If $7,049. 1040ez fillable form 40 or less, stop here. 1040ez fillable form You cannot take the credit 7,130. 1040ez fillable form 00 4. 1040ez fillable form Social security tax limit 7,049. 1040ez fillable form 40 5. 1040ez fillable form Credit. 1040ez fillable form Subtract line 4 from line 3. 1040ez fillable form Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. 1040ez fillable form 60 How to figure the credit if you worked for a railroad. 1040ez fillable form   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. 1040ez fillable form Add all social security and tier 1 RRTA tax withheld at the 6. 1040ez fillable form 2% rate (but not more than $7,049. 1040ez fillable form 40 for each employer). 1040ez fillable form Enter the total here   2. 1040ez fillable form Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. 1040ez fillable form Add lines 1 and 2. 1040ez fillable form If $7,049. 1040ez fillable form 40 or less, stop here. 1040ez fillable form You cannot take  the credit   4. 1040ez fillable form Social security and tier 1 RRTA  tax limit 7,049. 1040ez fillable form 40 5. 1040ez fillable form Credit. 1040ez fillable form Subtract line 4 from line 3. 1040ez fillable form Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. 1040ez fillable form   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. 1040ez fillable form More information. 1040ez fillable form   For more information on the credit, see Publication 505. 1040ez fillable form Prev  Up  Next   Home   More Online Publications
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The 1040ez Fillable Form

1040ez fillable form Publication 15 - Main Content Table of Contents 1. 1040ez fillable form Employer Identification Number (EIN) 2. 1040ez fillable form Who Are Employees?Relief provisions. 1040ez fillable form Business Owned and Operated by Spouses 3. 1040ez fillable form Family Employees 4. 1040ez fillable form Employee's Social Security Number (SSN)Registering for SSNVS. 1040ez fillable form 5. 1040ez fillable form Wages and Other CompensationAccountable plan. 1040ez fillable form Nonaccountable plan. 1040ez fillable form Per diem or other fixed allowance. 1040ez fillable form 50% test. 1040ez fillable form Health Savings Accounts and medical savings accounts. 1040ez fillable form Nontaxable fringe benefits. 1040ez fillable form When fringe benefits are treated as paid. 1040ez fillable form Valuation of fringe benefits. 1040ez fillable form Withholding on fringe benefits. 1040ez fillable form Depositing taxes on fringe benefits. 1040ez fillable form 6. 1040ez fillable form TipsOrdering rule. 1040ez fillable form 7. 1040ez fillable form Supplemental Wages 8. 1040ez fillable form Payroll Period 9. 1040ez fillable form Withholding From Employees' WagesIncome Tax Withholding Social Security and Medicare Taxes Part-Time Workers 10. 1040ez fillable form Required Notice to Employees About the Earned Income Credit (EIC) 11. 1040ez fillable form Depositing TaxesWhen To Deposit How To Deposit Deposit Penalties 12. 1040ez fillable form Filing Form 941 or Form 944 13. 1040ez fillable form Reporting Adjustments to Form 941 or Form 944Current Period Adjustments Prior Period Adjustments Wage Repayments 14. 1040ez fillable form Federal Unemployment (FUTA) TaxSuccessor employer. 1040ez fillable form Household employees. 1040ez fillable form When to deposit. 1040ez fillable form Household employees. 1040ez fillable form Electronic filing by reporting agents. 1040ez fillable form 16. 1040ez fillable form How To Use the Income Tax Withholding TablesWage Bracket Method Percentage Method Alternative Methods of Income Tax Withholding How To Get Tax Help 1. 1040ez fillable form Employer Identification Number (EIN) If you are required to report employment taxes or give tax statements to employees or annuitants, you need an EIN. 1040ez fillable form The EIN is a nine-digit number the IRS issues. 1040ez fillable form The digits are arranged as follows: 00-0000000. 1040ez fillable form It is used to identify the tax accounts of employers and certain others who have no employees. 1040ez fillable form Use your EIN on all of the items you send to the IRS and SSA. 1040ez fillable form For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN. 1040ez fillable form If you do not have an EIN, you may apply for one online. 1040ez fillable form Go to the IRS. 1040ez fillable form gov and click on the Apply for an EIN Online link under Tools. 1040ez fillable form You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. 1040ez fillable form Do not use an SSN in place of an EIN. 1040ez fillable form You should have only one EIN. 1040ez fillable form If you have more than one and are not sure which one to use, call 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 fillable form Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. 1040ez fillable form The IRS will tell you which number to use. 1040ez fillable form If you took over another employer's business (see Successor employer in section 9), do not use that employer's EIN. 1040ez fillable form If you have applied for an EIN but do not have your EIN by the time a return is due, file a paper return and write “Applied For” and the date you applied for it in the space shown for the number. 1040ez fillable form 2. 1040ez fillable form Who Are Employees? Generally, employees are defined either under common law or under statutes for certain situations. 1040ez fillable form See Publication 15-A for details on statutory employees and nonemployees. 1040ez fillable form Employee status under common law. 1040ez fillable form   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 fillable form This is so even when you give the employee freedom of action. 1040ez fillable form What matters is that you have the right to control the details of how the services are performed. 1040ez fillable form See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. 1040ez fillable form   Generally, people in business for themselves are not employees. 1040ez fillable form For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. 1040ez fillable form However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. 1040ez fillable form   If an employer-employee relationship exists, it does not matter what it is called. 1040ez fillable form The employee may be called an agent or independent contractor. 1040ez fillable form It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. 1040ez fillable form Statutory employees. 1040ez fillable form   If someone who works for you is not an employee under the common law rules discussed earlier, do not withhold federal income tax from his or her pay, unless backup withholding applies. 1040ez fillable form Although the following persons may not be common law employees, they are considered employees by statute for social security, Medicare, and FUTA tax purposes under certain conditions. 1040ez fillable form An agent (or commission) driver who delivers food, beverages (other than milk), laundry, or dry cleaning for someone else. 1040ez fillable form A full-time life insurance salesperson who sells primarily for one company. 1040ez fillable form A homeworker who works by guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. 1040ez fillable form A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. 1040ez fillable form The orders must be for merchandise for resale or supplies for use in the customer's business. 1040ez fillable form The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. 1040ez fillable form    Statutory nonemployees. 1040ez fillable form   Direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. 1040ez fillable form They are generally treated as self-employed for all federal tax purposes, including income and employment taxes. 1040ez fillable form H-2A agricultural workers. 1040ez fillable form   On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. 1040ez fillable form Treating employees as nonemployees. 1040ez fillable form   You will generally be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold these taxes because you treated an employee as a nonemployee. 1040ez fillable form You may be able to calculate your liability using special section 3509 rates for the employee share of social security and Medicare taxes and the federal income tax withholding. 1040ez fillable form The applicable rates depend on whether you filed required Forms 1099. 1040ez fillable form You cannot recover the employee share of social security, or Medicare tax, or income tax withholding from the employee if the tax is paid under section 3509. 1040ez fillable form You are liable for the income tax withholding regardless of whether the employee paid income tax on the wages. 1040ez fillable form You continue to owe the full employer share of social security and Medicare taxes. 1040ez fillable form The employee remains liable for the employee share of social security and Medicare taxes. 1040ez fillable form See Internal Revenue Code section 3509 for details. 1040ez fillable form Also see the Instructions for Form 941-X. 1040ez fillable form   Section 3509 rates are not available if you intentionally disregard the requirement to withhold taxes from the employee or if you withheld income taxes but not social security or Medicare taxes. 1040ez fillable form Section 3509 is not available for reclassifying statutory employees. 1040ez fillable form See Statutory employees , earlier in this section. 1040ez fillable form   If the employer issued required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. 1040ez fillable form 2% plus 20% of the employee rate (see the Instructions for Form 941-X). 1040ez fillable form For Medicare taxes; employer rate of 1. 1040ez fillable form 45% plus 20% of the employee rate of 1. 1040ez fillable form 45%, for a total rate of 1. 1040ez fillable form 74% of wages. 1040ez fillable form For Additional Medicare Tax; 0. 1040ez fillable form 18% (20% of the employee rate of 0. 1040ez fillable form 9%) of wages subject to Additional Medicare Tax. 1040ez fillable form For income tax withholding, the rate is 1. 1040ez fillable form 5% of wages. 1040ez fillable form   If the employer did not issue required information returns, the section 3509 rates are: For social security taxes; employer rate of 6. 1040ez fillable form 2% plus 40% of the employee rate (see the Instructions for Form 941-X). 1040ez fillable form For Medicare taxes; employer rate of 1. 1040ez fillable form 45% plus 40% of the employee rate of 1. 1040ez fillable form 45%, for a total rate of 2. 1040ez fillable form 03% of wages. 1040ez fillable form For Additional Medicare Tax; 0. 1040ez fillable form 36% (40% of the employee rate of 0. 1040ez fillable form 9%) of wages subject to Additional Medicare Tax. 1040ez fillable form For income tax withholding, the rate is 3. 1040ez fillable form 0% of wages. 1040ez fillable form Relief provisions. 1040ez fillable form   If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. 1040ez fillable form To get this relief, you must file all required federal tax returns, including information returns, on a basis consistent with your treatment of the worker. 1040ez fillable form You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. 1040ez fillable form See Publication 1976, Do You Qualify for Relief Under Section 530. 1040ez fillable form IRS help. 1040ez fillable form   If you want the IRS to determine whether a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. 1040ez fillable form Voluntary Classification Settlement Program (VCSP). 1040ez fillable form   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. 1040ez fillable form To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). 1040ez fillable form For more information visit IRS. 1040ez fillable form gov and enter “VCSP” in the search box. 1040ez fillable form Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. 1040ez fillable form See Publication 541, Partnerships, for more details. 1040ez fillable form The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. 1040ez fillable form Exception—Qualified joint venture. 1040ez fillable form   For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a “qualified joint venture,” whose only members are spouses filing a joint income tax return, can elect not to be treated as a partnership for federal tax purposes. 1040ez fillable form A qualified joint venture conducts a trade or business where: The only members of the joint venture are spouses who file a joint income tax return, Both spouses materially participate (see Material participation in the Instructions for Schedule C (Form 1040), line G) in the trade or business (mere joint ownership of property is not enough), Both spouses elect to not be treated as a partnership, and The business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or limited liability company (LLC). 1040ez fillable form   To make the election, all items of income, gain, loss, deduction, and credit must be divided between the spouses, in accordance with each spouse's interest in the venture, and reported on separate Schedules C or F as sole proprietors. 1040ez fillable form Each spouse must also file a separate Schedule SE to pay self-employment taxes, as applicable. 1040ez fillable form   Spouses using the qualified joint venture rules are treated as sole proprietors for federal tax purposes and generally do not need an EIN. 1040ez fillable form If employment taxes are owed by the qualified joint venture, either spouse may report and pay the employment taxes due on the wages paid to the employees using the EIN of that spouse's sole proprietorship. 1040ez fillable form Generally, filing as a qualified joint venture will not increase the spouses' total tax owed on the joint income tax return. 1040ez fillable form However, it gives each spouse credit for social security earnings on which retirement benefits are based and for Medicare coverage without filing a partnership return. 1040ez fillable form    Note. 1040ez fillable form If your spouse is your employee, not your partner, see One spouse employed by another in section 3. 1040ez fillable form   For more information on qualified joint ventures, visit IRS. 1040ez fillable form gov and enter “qualified joint venture” in the search box. 1040ez fillable form Exception—Community income. 1040ez fillable form   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. 1040ez fillable form S. 1040ez fillable form possession, you can treat the business either as a sole proprietorship (of the spouse who carried on the business) or a partnership. 1040ez fillable form You may still make an election to be taxed as a qualified joint venture instead of a partnership. 1040ez fillable form See Exception—Qualified joint venture , earlier. 1040ez fillable form 3. 1040ez fillable form Family Employees Child employed by parents. 1040ez fillable form   Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. 1040ez fillable form If these payments are for work other than in a trade or business, such as domestic work in the parent's private home, they are not subject to social security and Medicare taxes until the child reaches age 21. 1040ez fillable form However, see Covered services of a child or spouse , later in this section. 1040ez fillable form Payments for the services of a child under age 21 who works for his or her parent, whether or not in a trade or business, are not subject to FUTA tax. 1040ez fillable form Payments for the services of a child of any age who works for his or her parent are generally subject to income tax withholding unless the payments are for domestic work in the parent's home, or unless the payments are for work other than in a trade or business and are less than $50 in the quarter or the child is not regularly employed to do such work. 1040ez fillable form One spouse employed by another. 1040ez fillable form   The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax. 1040ez fillable form However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes. 1040ez fillable form Covered services of a child or spouse. 1040ez fillable form   The wages for the services of a child or spouse are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for: A corporation, even if it is controlled by the child's parent or the individual's spouse; A partnership, even if the child's parent is a partner, unless each partner is a parent of the child; A partnership, even if the individual's spouse is a partner; or An estate, even if it is the estate of a deceased parent. 1040ez fillable form Parent employed by son or daughter. 1040ez fillable form   When the employer is a son or daughter employing his or her parent the following rules apply. 1040ez fillable form Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes. 1040ez fillable form Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes. 1040ez fillable form    Social security and Medicare taxes do apply to payments made to a parent for domestic services if all of the following apply: The parent is employed by his or her son or daughter; The son or daughter (the employer) has a child or stepchild living in the home; The son or daughter (the employer) is a widow or widower, divorced, or living with a spouse who, because of a mental or physical condition, cannot care for the child or stepchild for at least 4 continuous weeks in a calendar quarter; and The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition. 1040ez fillable form   Payments made to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided. 1040ez fillable form 4. 1040ez fillable form Employee's Social Security Number (SSN) You are required to get each employee's name and SSN and to enter them on Form W-2. 1040ez fillable form This requirement also applies to resident and nonresident alien employees. 1040ez fillable form You should ask your employee to show you his or her social security card. 1040ez fillable form The employee may show the card if it is available. 1040ez fillable form Do not accept a social security card that says “Not valid for employment. 1040ez fillable form ” A social security number issued with this legend does not permit employment. 1040ez fillable form You may, but are not required to, photocopy the social security card if the employee provides it. 1040ez fillable form If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause. 1040ez fillable form See Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. 1040ez fillable form Applying for a social security card. 1040ez fillable form   Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation. 1040ez fillable form You can get Form SS-5 at SSA offices, by calling 1-800-772-1213, or from the SSA website at www. 1040ez fillable form socialsecurity. 1040ez fillable form gov/online/ss-5. 1040ez fillable form html. 1040ez fillable form The employee must complete and sign Form SS-5; it cannot be filed by the employer. 1040ez fillable form You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. 1040ez fillable form Applying for a social security number. 1040ez fillable form   If you file Form W-2 on paper and your employee applied for an SSN but does not have one when you must file Form W-2, enter “Applied For” on the form. 1040ez fillable form If you are filing electronically, enter all zeros (000-00-000) in the social security number field. 1040ez fillable form When the employee receives the SSN, file Copy A of Form W-2c, Corrected Wage and Tax Statement, with the SSA to show the employee's SSN. 1040ez fillable form Furnish copies B, C, and 2 of Form W-2c to the employee. 1040ez fillable form Up to 25 Forms W-2c for each Form W-3c, Transmittal of Corrected Wage and Tax Statements, may now be filed per session over the Internet, with no limit on the number of sessions. 1040ez fillable form For more information, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. 1040ez fillable form socialsecurity. 1040ez fillable form gov/employer. 1040ez fillable form Advise your employee to correct the SSN on his or her original Form W-2. 1040ez fillable form Correctly record the employee's name and SSN. 1040ez fillable form   Record the name and number of each employee as they are shown on the employee's social security card. 1040ez fillable form If the employee's name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. 1040ez fillable form Continue to report the employee's wages under the old name until the employee shows you an updated social security card with the new name. 1040ez fillable form If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported for the most recently filed Form W-2. 1040ez fillable form It is not necessary to correct other years if the previous name and number were used for years before the most recent Form W-2. 1040ez fillable form IRS individual taxpayer identification numbers (ITINs) for aliens. 1040ez fillable form   Do not accept an ITIN in place of an SSN for employee identification or for work. 1040ez fillable form An ITIN is only available to resident and nonresident aliens who are not eligible for U. 1040ez fillable form S. 1040ez fillable form employment and need identification for other tax purposes. 1040ez fillable form You can identify an ITIN because it is a nine-digit number, beginning with the number “9” with either a “7” or “8” as the fourth digit and is formatted like an SSN (for example, 9NN-7N-NNNN). 1040ez fillable form    An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. 1040ez fillable form If the individual is currently eligible to work in the United States, instruct the individual to apply for an SSN and follow the instructions under Applying for a social security number, earlier. 1040ez fillable form Do not use an ITIN in place of an SSN on Form W-2. 1040ez fillable form Verification of social security numbers. 1040ez fillable form   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. 1040ez fillable form Visit www. 1040ez fillable form socialsecurity. 1040ez fillable form gov/employer/ssnv. 1040ez fillable form htm for more information. 1040ez fillable form Registering for SSNVS. 1040ez fillable form   You must register online and receive authorization from your employer to use SSNVS. 1040ez fillable form To register, visit SSA's website at www. 1040ez fillable form ssa. 1040ez fillable form gov/employer and click on the Business Services Online link. 1040ez fillable form Follow the registration instructions to obtain a user identification (ID) and password. 1040ez fillable form You will need to provide the following information about yourself and your company. 1040ez fillable form Name. 1040ez fillable form SSN. 1040ez fillable form Date of birth. 1040ez fillable form Type of employer. 1040ez fillable form EIN. 1040ez fillable form Company name, address, and telephone number. 1040ez fillable form Email address. 1040ez fillable form   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. 1040ez fillable form You must enter the activation code online to use SSNVS. 1040ez fillable form 5. 1040ez fillable form Wages and Other Compensation Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. 1040ez fillable form The pay may be in cash or in other forms. 1040ez fillable form It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. 1040ez fillable form It does not matter how you measure or make the payments. 1040ez fillable form Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and FUTA taxes and income tax withholding. 1040ez fillable form Also, compensation paid to a former employee for services performed while still employed is wages subject to employment taxes. 1040ez fillable form More information. 1040ez fillable form   See section 6 for a discussion of tips and section 7 for a discussion of supplemental wages. 1040ez fillable form Also, see section 15 for exceptions to the general rules for wages. 1040ez fillable form Publication 15-A provides additional information on wages, including nonqualified deferred compensation, and other compensation. 1040ez fillable form Publication 15-B provides information on other forms of compensation, including: Accident and health benefits, Achievement awards, Adoption assistance, Athletic facilities, De minimis (minimal) benefits, Dependent care assistance, Educational assistance, Employee discounts, Employee stock options, Employer-provided cell phones, Group-term life insurance coverage, Health Savings Accounts, Lodging on your business premises, Meals, Moving expense reimbursements, No-additional-cost services, Retirement planning services, Transportation (commuting) benefits, Tuition reduction, and Working condition benefits. 1040ez fillable form Employee business expense reimbursements. 1040ez fillable form   A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees' business expenses. 1040ez fillable form How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. 1040ez fillable form If a single payment includes both wages and an expense reimbursement, you must specify the amount of the reimbursement. 1040ez fillable form   These rules apply to all ordinary and necessary employee business expenses that would otherwise qualify for a deduction by the employee. 1040ez fillable form Accountable plan. 1040ez fillable form   To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules. 1040ez fillable form They must have paid or incurred deductible expenses while performing services as your employees. 1040ez fillable form The reimbursement or advance must be paid for the expense and must not be an amount that would have otherwise been paid by the employee. 1040ez fillable form They must substantiate these expenses to you within a reasonable period of time. 1040ez fillable form They must return any amounts in excess of substantiated expenses within a reasonable period of time. 1040ez fillable form   Amounts paid under an accountable plan are not wages and are not subject to income, social security, Medicare, and FUTA taxes. 1040ez fillable form   If the expenses covered by this arrangement are not substantiated (or amounts in excess of substantiated expenses are not returned within a reasonable period of time), the amount paid under the arrangement in excess of the substantiated expenses is treated as paid under a nonaccountable plan. 1040ez fillable form This amount is subject to income, social security, Medicare, and FUTA taxes for the first payroll period following the end of the reasonable period of time. 1040ez fillable form   A reasonable period of time depends on the facts and circumstances. 1040ez fillable form Generally, it is considered reasonable if your employees receive their advance within 30 days of the time they incur the expenses, adequately account for the expenses within 60 days after the expenses were paid or incurred, and return any amounts in excess of expenses within 120 days after the expenses were paid or incurred. 1040ez fillable form Also, it is considered reasonable if you give your employees a periodic statement (at least quarterly) that asks them to either return or adequately account for outstanding amounts and they do so within 120 days. 1040ez fillable form Nonaccountable plan. 1040ez fillable form   Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes. 1040ez fillable form Your payments are treated as paid under a nonaccountable plan if: Your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, You advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount he or she does not use for business expenses, You advance or pay an amount to your employee regardless of whether you reasonably expect the employee to have business expenses related to your business, or You pay an amount as a reimbursement you would have otherwise paid as wages. 1040ez fillable form   See section 7 for more information on supplemental wages. 1040ez fillable form Per diem or other fixed allowance. 1040ez fillable form   You may reimburse your employees by travel days, miles, or some other fixed allowance under the applicable revenue procedure. 1040ez fillable form In these cases, your employee is considered to have accounted to you if your reimbursement does not exceed rates established by the Federal Government. 1040ez fillable form The 2013 standard mileage rate for auto expenses was 56. 1040ez fillable form 5 cents per mile. 1040ez fillable form The rate for 2014 is 56 cents per mile. 1040ez fillable form   The government per diem rates for meals and lodging in the continental United States are listed in Publication 1542, Per Diem Rates. 1040ez fillable form Other than the amount of these expenses, your employees' business expenses must be substantiated (for example, the business purpose of the travel or the number of business miles driven). 1040ez fillable form   If the per diem or allowance paid exceeds the amounts substantiated, you must report the excess amount as wages. 1040ez fillable form This excess amount is subject to income tax withholding and payment of social security, Medicare, and FUTA taxes. 1040ez fillable form Show the amount equal to the substantiated amount (for example, the nontaxable portion) in box 12 of Form W-2 using code “L. 1040ez fillable form ” Wages not paid in money. 1040ez fillable form   If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them “in kind. 1040ez fillable form ” Payments in kind may be in the form of goods, lodging, food, clothing, or services. 1040ez fillable form Generally, the fair market value of such payments at the time they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes. 1040ez fillable form   However, noncash payments for household work, agricultural labor, and service not in the employer's trade or business are exempt from social security, Medicare, and FUTA taxes. 1040ez fillable form Withhold income tax on these payments only if you and the employee agree to do so. 1040ez fillable form Nonetheless, noncash payments for agricultural labor, such as commodity wages, are treated as cash payments subject to employment taxes if the substance of the transaction is a cash payment. 1040ez fillable form Moving expenses. 1040ez fillable form   Reimbursed and employer-paid qualified moving expenses (those that would otherwise be deductible by the employee) paid under an accountable plan are not includible in an employee's income unless you have knowledge the employee deducted the expenses in a prior year. 1040ez fillable form Reimbursed and employer-paid nonqualified moving expenses are includible in income and are subject to employment taxes and income tax withholding. 1040ez fillable form For more information on moving expenses, see Publication 521, Moving Expenses. 1040ez fillable form Meals and lodging. 1040ez fillable form   The value of meals is not taxable income and is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the meals are furnished for the employer's convenience and on the employer's premises. 1040ez fillable form The value of lodging is not subject to income tax withholding and social security, Medicare, and FUTA taxes if the lodging is furnished for the employer's convenience, on the employer's premises, and as a condition of employment. 1040ez fillable form    “For the convenience of the employer” means you have a substantial business reason for providing the meals and lodging other than to provide additional compensation to the employee. 1040ez fillable form For example, meals you provide at the place of work so that an employee is available for emergencies during his or her lunch period are generally considered to be for your convenience. 1040ez fillable form   However, whether meals or lodging are provided for the convenience of the employer depends on all of the facts and circumstances. 1040ez fillable form A written statement that the meals or lodging are for your convenience is not sufficient. 1040ez fillable form 50% test. 1040ez fillable form   If over 50% of the employees who are provided meals on an employer's business premises receive these meals for the convenience of the employer, all meals provided on the premises are treated as furnished for the convenience of the employer. 1040ez fillable form If this 50% test is met, the value of the meals is excludable from income for all employees and is not subject to federal income tax withholding or employment taxes. 1040ez fillable form For more information, see Publication 15-B. 1040ez fillable form Health insurance plans. 1040ez fillable form   If you pay the cost of an accident or health insurance plan for your employees, including an employee's spouse and dependents, your payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding. 1040ez fillable form Generally, this exclusion also applies to qualified long-term care insurance contracts. 1040ez fillable form However, for income tax withholding, the value of health insurance benefits must be included in the wages of S corporation employees who own more than 2% of the S corporation (2% shareholders). 1040ez fillable form For social security, Medicare, and FUTA taxes, the health insurance benefits are excluded from the wages only for employees and their dependents or for a class or classes of employees and their dependents. 1040ez fillable form See Announcement 92-16 for more information. 1040ez fillable form You can find Announcement 92-16 on page 53 of Internal Revenue Bulletin 1992-5. 1040ez fillable form Health Savings Accounts and medical savings accounts. 1040ez fillable form   Your contributions to an employee's Health Savings Account (HSA) or Archer medical savings account (MSA) are not subject to social security, Medicare, or FUTA taxes, or federal income tax withholding if it is reasonable to believe at the time of payment of the contributions they will be excludable from the income of the employee. 1040ez fillable form To the extent it is not reasonable to believe they will be excludable, your contributions are subject to these taxes. 1040ez fillable form Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding. 1040ez fillable form However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan are not wages and are not subject to employment taxes or withholding. 1040ez fillable form For more information, see the Instructions for Form 8889, Health Savings Accounts (HSAs). 1040ez fillable form Medical care reimbursements. 1040ez fillable form   Generally, medical care reimbursements paid for an employee under an employer's self-insured medical reimbursement plan are not wages and are not subject to social security, Medicare, and FUTA taxes, or income tax withholding. 1040ez fillable form See Publication 15-B for an exception for highly compensated employees. 1040ez fillable form Differential wage payments. 1040ez fillable form   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represent all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer. 1040ez fillable form   Differential wage payments are wages for income tax withholding, but are not subject to social security, Medicare, or FUTA taxes. 1040ez fillable form Employers should report differential wage payments in box 1 of Form W-2. 1040ez fillable form For more information about the tax treatment of differential wage payments, visit IRS. 1040ez fillable form gov and enter “employees in a combat zone” in the search box. 1040ez fillable form Fringe benefits. 1040ez fillable form   You generally must include fringe benefits in an employee's gross income (but see Nontaxable fringe benefits next). 1040ez fillable form The benefits are subject to income tax withholding and employment taxes. 1040ez fillable form Fringe benefits include cars you provide, flights on aircraft you provide, free or discounted commercial flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. 1040ez fillable form In general, the amount you must include is the amount by which the fair market value of the benefits is more than the sum of what the employee paid for it plus any amount the law excludes. 1040ez fillable form There are other special rules you and your employees may use to value certain fringe benefits. 1040ez fillable form See Publication 15-B for more information. 1040ez fillable form Nontaxable fringe benefits. 1040ez fillable form   Some fringe benefits are not taxable (or are minimally taxable) if certain conditions are met. 1040ez fillable form See Publication 15-B for details. 1040ez fillable form The following are some examples of nontaxable fringe benefits. 1040ez fillable form Services provided to your employees at no additional cost to you. 1040ez fillable form Qualified employee discounts. 1040ez fillable form Working condition fringes that are property or services the employee could deduct as a business expense if he or she had paid for it. 1040ez fillable form Examples include a company car for business use and subscriptions to business magazines. 1040ez fillable form Certain minimal value fringes (including an occasional cab ride when an employee must work overtime and meals you provide at eating places you run for your employees if the meals are not furnished at below cost). 1040ez fillable form Qualified transportation fringes subject to specified conditions and dollar limitations (including transportation in a commuter highway vehicle, any transit pass, and qualified parking). 1040ez fillable form Qualified moving expense reimbursement. 1040ez fillable form See Moving expenses , earlier in this section, for details. 1040ez fillable form The use of on-premises athletic facilities, if substantially all of the use is by employees, their spouses, and their dependent children. 1040ez fillable form Qualified tuition reduction an educational organization provides to its employees for education. 1040ez fillable form For more information, see Publication 970, Tax Benefits for Education. 1040ez fillable form Employer-provided cell phones provided primarily for a noncompensatory business reason. 1040ez fillable form   However, do not exclude the following fringe benefits from the income of highly compensated employees unless the benefit is available to other employees on a nondiscriminatory basis. 1040ez fillable form No-additional-cost services. 1040ez fillable form Qualified employee discounts. 1040ez fillable form Meals provided at an employer operated eating facility. 1040ez fillable form Reduced tuition for education. 1040ez fillable form  For more information, including the definition of a highly compensated employee, see Publication 15-B. 1040ez fillable form When fringe benefits are treated as paid. 1040ez fillable form   You may choose to treat certain noncash fringe benefits as paid by the pay period, by the quarter, or on any other basis you choose as long as you treat the benefits as paid at least once a year. 1040ez fillable form You do not have to make a formal choice of payment dates or notify the IRS of the dates you choose. 1040ez fillable form You do not have to make this choice for all employees. 1040ez fillable form You may change methods as often as you like, as long as you treat all benefits provided in a calendar year as paid by December 31 of the calendar year. 1040ez fillable form See Publication 15-B for more information, including a discussion of the special accounting rule for fringe benefits provided during November and December. 1040ez fillable form Valuation of fringe benefits. 1040ez fillable form   Generally, you must determine the value of fringe benefits no later than January 31 of the next year. 1040ez fillable form Before January 31, you may reasonably estimate the value of the fringe benefits for purposes of withholding and depositing on time. 1040ez fillable form Withholding on fringe benefits. 1040ez fillable form   You may add the value of fringe benefits to regular wages for a payroll period and figure withholding taxes on the total, or you may withhold federal income tax on the value of the fringe benefits at the optional flat 25% supplemental wage rate. 1040ez fillable form However, see Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages during the calendar year in section 7. 1040ez fillable form   You may choose not to withhold income tax on the value of an employee's personal use of a vehicle you provide. 1040ez fillable form You must, however, withhold social security and Medicare taxes on the use of the vehicle. 1040ez fillable form See Publication 15-B for more information on this election. 1040ez fillable form Depositing taxes on fringe benefits. 1040ez fillable form   Once you choose when fringe benefits are paid, you must deposit taxes in the same deposit period you treat the fringe benefits as paid. 1040ez fillable form To avoid a penalty, deposit the taxes following the general deposit rules for that deposit period. 1040ez fillable form   If you determine by January 31 you overestimated the value of a fringe benefit at the time you withheld and deposited for it, you may claim a refund for the overpayment or have it applied to your next employment tax return. 1040ez fillable form See Valuation of fringe benefits , earlier. 1040ez fillable form If you underestimated the value and deposited too little, you may be subject to a failure-to-deposit penalty. 1040ez fillable form See section 11 for information on deposit penalties. 1040ez fillable form   If you deposited the required amount of taxes but withheld a lesser amount from the employee, you can recover from the employee the social security, Medicare, or income taxes you deposited on his or her behalf, and included in the employee's Form W-2. 1040ez fillable form However, you must recover the income taxes before April 1 of the following year. 1040ez fillable form Sick pay. 1040ez fillable form   In general, sick pay is any amount you pay under a plan to an employee who is unable to work because of sickness or injury. 1040ez fillable form These amounts are sometimes paid by a third party, such as an insurance company or an employees' trust. 1040ez fillable form In either case, these payments are subject to social security, Medicare, and FUTA taxes. 1040ez fillable form Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. 1040ez fillable form The payments are always subject to federal income tax. 1040ez fillable form See Publication 15-A for more information. 1040ez fillable form 6. 1040ez fillable form Tips Tips your employee receives from customers are generally subject to withholding. 1040ez fillable form Your employee must report cash tips to you by the 10th of the month after the month the tips are received. 1040ez fillable form The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. 1040ez fillable form Both directly and indirectly tipped employees must report tips to you. 1040ez fillable form No report is required for months when tips are less than $20. 1040ez fillable form Your employee reports the tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. 1040ez fillable form The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period the report covers, and The total of tips received during the month or period. 1040ez fillable form Both Forms 4070 and 4070-A, Employee's Daily Record of Tips, are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer. 1040ez fillable form You are permitted to establish a system for electronic tip reporting by employees. 1040ez fillable form See Regulations section 31. 1040ez fillable form 6053-1(d). 1040ez fillable form Collecting taxes on tips. 1040ez fillable form   You must collect income tax, employee social security tax, and employee Medicare tax on the employee's tips. 1040ez fillable form The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. 1040ez fillable form If an employee reports to you in writing $20 or more of tips in a month, the tips are also subject to FUTA tax. 1040ez fillable form   You can collect these taxes from the employee's wages or from other funds he or she makes available. 1040ez fillable form See Tips treated as supplemental wages in section 7 for more information. 1040ez fillable form Stop collecting the employee social security tax when his or her wages and tips for tax year 2014 reach $117,000; collect the income and employee Medicare taxes for the whole year on all wages and tips. 1040ez fillable form You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the limit. 1040ez fillable form You are responsible for the employer Medicare tax for the whole year on all wages and tips. 1040ez fillable form File Form 941 or Form 944 to report withholding and employment taxes on tips. 1040ez fillable form Ordering rule. 1040ez fillable form   If, by the 10th of the month after the month for which you received an employee's report on tips, you do not have enough employee funds available to deduct the employee tax, you no longer have to collect it. 1040ez fillable form If there are not enough funds available, withhold taxes in the following order. 1040ez fillable form Withhold on regular wages and other compensation. 1040ez fillable form Withhold social security and Medicare taxes on tips. 1040ez fillable form Withhold income tax on tips. 1040ez fillable form Reporting tips. 1040ez fillable form   Report tips and any collected and uncollected social security and Medicare taxes on Form W-2 and on Form 941, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). 1040ez fillable form Report an adjustment on Form 941, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. 1040ez fillable form Enter the amount of uncollected social security tax and Medicare tax on Form W-2, box 12, with codes “A” and “B. 1040ez fillable form ” Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. 1040ez fillable form See section 13 and the General Instructions for Forms W-2 and W-3. 1040ez fillable form   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. 1040ez fillable form See Revenue Ruling 2012-18, 2012-26 I. 1040ez fillable form R. 1040ez fillable form B. 1040ez fillable form 1032, available at www. 1040ez fillable form irs. 1040ez fillable form gov/irb/2012-26_IRB/ar07. 1040ez fillable form html. 1040ez fillable form Allocated tips. 1040ez fillable form   If you operate a large food or beverage establishment, you must report allocated tips under certain circumstances. 1040ez fillable form However, do not withhold income, social security, or Medicare taxes on allocated tips. 1040ez fillable form   A large food or beverage establishment is one that provides food or beverages for consumption on the premises, where tipping is customary, and where there were normally more than 10 employees on a typical business day during the preceding year. 1040ez fillable form   The tips may be allocated by one of three methods—hours worked, gross receipts, or good faith agreement. 1040ez fillable form For information about these allocation methods, including the requirement to file Forms 8027 electronically if 250 or more forms are filed, see the Instructions for Form 8027. 1040ez fillable form For information on filing Form 8027 electronically with the IRS, see Publication 1239. 1040ez fillable form Tip Rate Determination and Education Program. 1040ez fillable form   Employers may participate in the Tip Rate Determination and Education Program. 1040ez fillable form The program primarily consists of two voluntary agreements developed to improve tip income reporting by helping taxpayers to understand and meet their tip reporting responsibilities. 1040ez fillable form The two agreements are the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). 1040ez fillable form A tip agreement, the Gaming Industry Tip Compliance Agreement (GITCA), is available for the gaming (casino) industry. 1040ez fillable form To get more information about TRDA and TRAC agreements, see Publication 3144, Tips on Tips. 1040ez fillable form Additionally, visit IRS. 1040ez fillable form gov and enter “MSU tips” in the search box to get more information about GITCA, TRDA, or TRAC agreements. 1040ez fillable form 7. 1040ez fillable form Supplemental Wages Supplemental wages are wage payments to an employee that are not regular wages. 1040ez fillable form They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. 1040ez fillable form Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. 1040ez fillable form How you withhold on supplemental wages depends on whether the supplemental payment is identified as a separate payment from regular wages. 1040ez fillable form See Regulations section 31. 1040ez fillable form 3402(g)-1 for additional guidance for wages paid after January 1, 2007. 1040ez fillable form Also see Revenue Ruling 2008-29, 2008-24 I. 1040ez fillable form R. 1040ez fillable form B. 1040ez fillable form 1149, available at www. 1040ez fillable form irs. 1040ez fillable form gov/irb/2008-24_IRB/ar08. 1040ez fillable form html. 1040ez fillable form Withholding on supplemental wages when an employee receives more than $1 million of supplemental wages from you during the calendar year. 1040ez fillable form   Special rules apply to the extent supplemental wages paid to any one employee during the calendar year exceed $1 million. 1040ez fillable form If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39. 1040ez fillable form 6% (or the highest rate of income tax for the year). 1040ez fillable form Withhold using the 39. 1040ez fillable form 6% rate without regard to the employee's Form W-4. 1040ez fillable form In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control. 1040ez fillable form For more information, see Treasury Decision 9276, 2006-37 I. 1040ez fillable form R. 1040ez fillable form B. 1040ez fillable form 423, available at www. 1040ez fillable form irs. 1040ez fillable form gov/irb/2006-37_IRB/ar09. 1040ez fillable form html. 1040ez fillable form Withholding on supplemental wage payments to an employee who does not receive $1 million of supplemental wages during the calendar year. 1040ez fillable form   If the supplemental wages paid to the employee during the calendar year are less than or equal to $1 million, the following rules apply in determining the amount of income tax to be withheld. 1040ez fillable form Supplemental wages combined with regular wages. 1040ez fillable form   If you pay supplemental wages with regular wages but do not specify the amount of each, withhold federal income tax as if the total were a single payment for a regular payroll period. 1040ez fillable form Supplemental wages identified separately from regular wages. 1040ez fillable form   If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. 1040ez fillable form If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods for the supplemental wages. 1040ez fillable form Withhold a flat 25% (no other percentage allowed). 1040ez fillable form If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. 1040ez fillable form If there are no concurrently paid regular wages, add the supplemental wages to alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. 1040ez fillable form Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. 1040ez fillable form Subtract the tax withheld from the regular wages. 1040ez fillable form Withhold the remaining tax from the supplemental wages. 1040ez fillable form If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. 1040ez fillable form If you did not withhold income tax from the employee's regular wages in the current or immediately preceding calendar year, use method 1-b. 1040ez fillable form This would occur, for example, when the value of the employee's withholding allowances claimed on Form W-4 is more than the wages. 1040ez fillable form Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. 1040ez fillable form Example 1. 1040ez fillable form You pay John Peters a base salary on the 1st of each month. 1040ez fillable form He is single and claims one withholding allowance. 1040ez fillable form In January he is paid $1,000. 1040ez fillable form Using the wage bracket tables, you withhold $50 from this amount. 1040ez fillable form In February, he receives salary of $1,000 plus a commission of $2,000, which you combine with regular wages and do not separately identify. 1040ez fillable form You figure the withholding based on the total of $3,000. 1040ez fillable form The correct withholding from the tables is $338. 1040ez fillable form Example 2. 1040ez fillable form You pay Sharon Warren a base salary on the 1st of each month. 1040ez fillable form She is single and claims one allowance. 1040ez fillable form Her May 1 pay is $2,000. 1040ez fillable form Using the wage bracket tables, you withhold $188. 1040ez fillable form On May 14 she receives a bonus of $1,000. 1040ez fillable form Electing to use supplemental wage withholding method 1-b, you: Add the bonus amount to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 = $3,000). 1040ez fillable form Determine the amount of withholding on the combined $3,000 amount to be $338 using the wage bracket tables. 1040ez fillable form Subtract the amount withheld from wages on the most recent base salary pay date (May 1) from the combined withholding amount ($338 – $188 = $150). 1040ez fillable form Withhold $150 from the bonus payment. 1040ez fillable form Example 3. 1040ez fillable form The facts are the same as in Example 2, except you elect to use the flat rate method of withholding on the bonus. 1040ez fillable form You withhold 25% of $1,000, or $250, from Sharon's bonus payment. 1040ez fillable form Example 4. 1040ez fillable form The facts are the same as in Example 2, except you elect to pay Sharon a second bonus of $2,000 on May 28. 1040ez fillable form Using supplemental wage withholding method 1-b, you: Add the first and second bonus amounts to the amount of wages from the most recent base salary pay date (May 1) ($2,000 + $1,000 + $2,000 = $5,000). 1040ez fillable form Determine the amount of withholding on the combined $5,000 amount to be $781 using the wage bracket tables. 1040ez fillable form Subtract the amounts withheld from wages on the most recent base salary pay date (May 1) and the amounts withheld from the first bonus payment from the combined withholding amount ($781 – $188 – $150 = $443). 1040ez fillable form Withhold $443 from the second bonus payment. 1040ez fillable form Tips treated as supplemental wages. 1040ez fillable form   Withhold income tax on tips from wages earned by the employee or from other funds the employee makes available. 1040ez fillable form If an employee receives regular wages and reports tips, figure income tax withholding as if the tips were supplemental wages. 1040ez fillable form If you have not withheld income tax from the regular wages, add the tips to the regular wages. 1040ez fillable form Then withhold income tax on the total. 1040ez fillable form If you withheld income tax from the regular wages, you can withhold on the tips by method 1-a or 1-b discussed earlier in this section under Supplemental wages identified separately from regular wages. 1040ez fillable form Vacation pay. 1040ez fillable form   Vacation pay is subject to withholding as if it were a regular wage payment. 1040ez fillable form When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. 1040ez fillable form If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it. 1040ez fillable form 8. 1040ez fillable form Payroll Period Your payroll period is a period of service for which you usually pay wages. 1040ez fillable form When you have a regular payroll period, withhold income tax for that time period even if your employee does not work the full period. 1040ez fillable form No regular payroll period. 1040ez fillable form   When you do not have a regular payroll period, withhold the tax as if you paid wages for a daily or miscellaneous payroll period. 1040ez fillable form Figure the number of days (including Sundays and holidays) in the period covered by the wage payment. 1040ez fillable form If the wages are unrelated to a specific length of time (for example, commissions paid on completion of a sale), count back the number of days from the payment period to the latest of: The last wage payment made during the same calendar year, The date employment began, if during the same calendar year, or January 1 of the same year. 1040ez fillable form Employee paid for period less than 1 week. 1040ez fillable form   When you pay an employee for a period of less than one week, and the employee signs a statement under penalties of perjury indicating he or she is not working for any other employer during the same week for wages subject to withholding, figure withholding based on a weekly payroll period. 1040ez fillable form If the employee later begins to work for another employer for wages subject to withholding, the employee must notify you within 10 days. 1040ez fillable form You then figure withholding based on the daily or miscellaneous period. 1040ez fillable form 9. 1040ez fillable form Withholding From Employees' Wages Income Tax Withholding Using Form W-4 to figure withholding. 1040ez fillable form   To know how much federal income tax to withhold from employees' wages, you should have a Form W-4 on file for each employee. 1040ez fillable form Encourage your employees to file an updated Form W-4 for 2014, especially if they owed taxes or received a large refund when filing their 2013 tax return. 1040ez fillable form Advise your employees to use the IRS Withholding Calculator on the IRS website at www. 1040ez fillable form irs. 1040ez fillable form gov/individuals for help in determining how many withholding allowances to claim on their Forms W-4. 1040ez fillable form   Ask all new employees to give you a signed Form W-4 when they start work. 1040ez fillable form Make the form effective with the first wage payment. 1040ez fillable form If a new employee does not give you a completed Form W-4, withhold income tax as if he or she is single, with no withholding allowances. 1040ez fillable form Form in Spanish. 1040ez fillable form   You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, to your Spanish-speaking employees. 1040ez fillable form For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). 1040ez fillable form The rules discussed in this section that apply to Form W-4 also apply to Formulario W-4(SP). 1040ez fillable form Electronic system to receive Form W-4. 1040ez fillable form   You may establish a system to electronically receive Forms W-4 from your employees. 1040ez fillable form See Regulations section 31. 1040ez fillable form 3402(f)(5)-1(c) for more information. 1040ez fillable form Effective date of Form W-4. 1040ez fillable form   A Form W-4 remains in effect until the employee gives you a new one. 1040ez fillable form When you receive a new Form W-4 from an employee, do not adjust withholding for pay periods before the effective date of the new form. 1040ez fillable form If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4. 1040ez fillable form For exceptions, see Exemption from federal income tax withholding , IRS review of requested Forms W-4 , and Invalid Forms W-4 , later in this section. 1040ez fillable form A Form W-4 that makes a change for the next calendar year will not take effect in the current calendar year. 1040ez fillable form Successor employer. 1040ez fillable form   If you are a successor employer (see Successor employer , later in this section), secure new Forms W-4 from the transferred employees unless the “Alternative Procedure” in section 5 of Revenue Procedure 2004-53 applies. 1040ez fillable form See Revenue Procedure 2004-53, 2004-34 I. 1040ez fillable form R. 1040ez fillable form B. 1040ez fillable form 320, available at www. 1040ez fillable form irs. 1040ez fillable form gov/irb/2004-34_IRB/ar13. 1040ez fillable form html. 1040ez fillable form Completing Form W-4. 1040ez fillable form   The amount of any federal income tax withholding must be based on marital status and withholding allowances. 1040ez fillable form Your employees may not base their withholding amounts on a fixed dollar amount or percentage. 1040ez fillable form However, an employee may specify a dollar amount to be withheld in addition to the amount of withholding based on filing status and withholding allowances claimed on Form W-4. 1040ez fillable form Employees may claim fewer withholding allowances than they are entitled to claim. 1040ez fillable form They may wish to claim fewer allowances to ensure they have enough withholding or to offset the tax on other sources of taxable income not subject to withholding. 1040ez fillable form See Publication 505, Tax Withholding and Estimated Tax, for more information about completing Form W-4. 1040ez fillable form Along with Form W-4, you may wish to order Publication 505 for use by your employees. 1040ez fillable form Do not accept any withholding or estimated tax payments from your employees in addition to withholding based on their Form W-4. 1040ez fillable form If they require additional withholding, they should submit a new Form W-4 and, if necessary, pay estimated tax by filing Form 1040-ES, Estimated Tax for Individuals, or by using the Electronic Federal Tax Payment System (EFTPS) to make estimated tax payments. 1040ez fillable form Exemption from federal income tax withholding. 1040ez fillable form   Generally, an employee may claim exemption from federal income tax withholding because he or she had no income tax liability last year and expects none this year. 1040ez fillable form See the Form W-4 instructions for more information. 1040ez fillable form However, the wages are still subject to social security and Medicare taxes. 1040ez fillable form See also Invalid Forms W-4 , later in this section. 1040ez fillable form   A Form W-4 claiming exemption from withholding is effective when it is filed with the employer and only for that calendar year. 1040ez fillable form To continue to be exempt from withholding in the next calendar year, an employee must give you a new Form W-4 by February 15. 1040ez fillable form If the employee does not give you a new Form W-4 by February 15, begin withholding based on the last Form W-4 for the employee that did not claim an exemption from withholding or, if one was not filed, then withhold tax as if he or she is single with zero withholding allowances. 1040ez fillable form If the employee provides a new Form W-4 claiming exemption from withholding on February 16 or later, you may apply it to future wages but do not refund any taxes already withheld. 1040ez fillable form Withholding income taxes on the wages of nonresident alien employees. 1040ez fillable form   In general, you must withhold federal income taxes on the wages of nonresident alien employees. 1040ez fillable form However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. 1040ez fillable form Also see section 3 of Publication 51 (Circular A), Agricultural Employer's Tax Guide, for guidance on H-2A visa workers. 1040ez fillable form Withholding adjustment for nonresident alien employees. 1040ez fillable form   For 2014, apply the procedure discussed next to figure the amount of income tax to withhold from the wages of nonresident alien employees performing services within the United States. 1040ez fillable form Nonresident alien students from India and business apprentices from India are not subject to this procedure. 1040ez fillable form Instructions. 1040ez fillable form   To figure how much income tax to withhold from the wages paid to a nonresident alien employee performing services in the United States, use the following steps. 1040ez fillable form Step 1. 1040ez fillable form   Add to the wages paid to the nonresident alien employee for the payroll period the amount shown in the chart below for the applicable payroll period. 1040ez fillable form    Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only   Payroll Period Add Additional     Weekly $ 43. 1040ez fillable form 30     Biweekly 86. 1040ez fillable form 50     Semimonthly 93. 1040ez fillable form 80     Monthly 187. 1040ez fillable form 50     Quarterly 562. 1040ez fillable form 50     Semiannually 1,125. 1040ez fillable form 00     Annually 2,250. 1040ez fillable form 00     Daily or Miscellaneous (each day of the payroll period) 8. 1040ez fillable form 70   Step 2. 1040ez fillable form   Use the amount figured in Step 1 and the number of withholding allowances claimed (generally limited to one allowance) to figure income tax withholding. 1040ez fillable form Determine the value of withholding allowances by multiplying the number of withholding allowances claimed by the appropriate amount from Table 5. 1040ez fillable form Percentage Method—2014 Amount for One Withholding Allowance shown on page 41. 1040ez fillable form If you are using the Percentage Method Tables for Income Tax Withholding, provided on pages 43–44, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure the income tax withholding. 1040ez fillable form If you are using the Wage Bracket Method for Income Tax Withholding, provided on pages 45–64, use the amount figured in Step 1 and the number of withholding allowances to figure income tax withholding. 1040ez fillable form The amounts from the chart above are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. 1040ez fillable form The amounts from the chart should not be included in any box on the employee's Form W-2 and do not increase the income tax liability of the employee. 1040ez fillable form Also, the amounts from the chart do not increase the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. 1040ez fillable form This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. 1040ez fillable form Example. 1040ez fillable form An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. 1040ez fillable form The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on Form W-4, line 6 (see Nonresident alien employee's Form W-4 , later in this section). 1040ez fillable form The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $86. 1040ez fillable form 50 from the chart under Step 1 ($586. 1040ez fillable form 50 total). 1040ez fillable form The employer then applies the applicable tables to determine the income tax withholding for nonresident aliens (see Step 2 ). 1040ez fillable form Reminder: If you use the Percentage Method Tables for Income Tax Withholding, reduce the amount figured in Step 1 by the value of withholding allowances and use that reduced amount to figure income tax withholding. 1040ez fillable form The $86. 1040ez fillable form 50 added to wages for calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. 1040ez fillable form Also, the $86. 1040ez fillable form 50 added to wages does not affect the social security tax or Medicare tax liability of the employer or the employee, or the FUTA tax liability of the employer. 1040ez fillable form Supplemental wage payment. 1040ez fillable form   This procedure for determining the amount of income tax withholding does not apply to a supplemental wage payment (see section 7) if the 39. 1040ez fillable form 6% mandatory flat rate withholding applies or if the 25% optional flat rate withholding is being used to calculate income tax withholding on the supplemental wage payment. 1040ez fillable form Nonresident alien employee's Form W-4. 1040ez fillable form   When completing Forms W-4, nonresident aliens are required to: Not claim exemption from income tax withholding, Request withholding as if they are single, regardless of their actual marital status, Claim only one allowance (if the nonresident alien is a resident of Canada, Mexico, or South Korea, or a student or business apprentice from India, he or she may claim more than one allowance), and Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4. 1040ez fillable form   If you maintain an electronic Form W-4 system, you should provide a field for nonresident aliens to enter nonresident alien status in lieu of writing “Nonresident Alien” or “NRA” above the dotted line on line 6. 1040ez fillable form A nonresident alien employee may request additional withholding at his or her option for other purposes, although such additions should not be necessary for withholding to cover federal income tax liability related to employment. 1040ez fillable form Form 8233. 1040ez fillable form   If a nonresident alien employee claims a tax treaty exemption from withholding, the employee must submit Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with respect to the income exempt under the treaty, instead of Form W-4. 1040ez fillable form See Publication 515 for details. 1040ez fillable form IRS review of requested Forms W-4. 1040ez fillable form   When requested by the IRS, you must make original Forms W-4 available for inspection by an IRS employee. 1040ez fillable form You may also be directed to send certain Forms W-4 to the IRS. 1040ez fillable form You may receive a notice from the IRS requiring you to submit a copy of Form W-4 for one or more of your named employees. 1040ez fillable form Send the requested copy or copies of Form W-4 to the IRS at the address provided and in the manner directed by the notice. 1040ez fillable form The IRS may also require you to submit copies of Form W-4 to the IRS as directed by Treasury Decision 9337, 2007-35 I. 1040ez fillable form R. 1040ez fillable form B. 1040ez fillable form 455, which is available at www. 1040ez fillable form irs. 1040ez fillable form gov/irb/2007-35_IRB/ar10. 1040ez fillable form html. 1040ez fillable form When we refer to Form W-4, the same rules apply to Formulario W-4(SP), its Spanish translation. 1040ez fillable form After submitting a copy of a requested Form W-4 to the IRS, continue to withhold federal income tax based on that Form W-4 if it is valid (see Invalid Forms W-4 , later in this section). 1040ez fillable form However, if the IRS later notifies you in writing the employee is not entitled to claim exemption from withholding or a claimed number of withholding allowances, withhold federal income tax based on the effective date, marital status, and maximum number of withholding allowances specified in the IRS notice (commonly referred to as a "lock-in letter