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2011 Income Tax

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2011 Income Tax

2011 income tax Index A Adoption Child tax credit, Adopted child. 2011 income tax (see also Child tax credit) Afghanistan, Afghanistan area. 2011 income tax Aliens, Alien Status Amount of exclusion, Amount of Exclusion Arabian peninsula, Arabian peninsula. 2011 income tax Assistance (see Tax help) C Child tax credit, Child Tax Credit Limits Modified adjusted gross income, Modified AGI. 2011 income tax Qualifying child, Qualifying Child Child, qualifying, Qualifying child. 2011 income tax Claims for tax forgiveness, Claims for Tax Forgiveness Codes, W-2, Form W-2 Codes Combat zone Election to include pay for earned income credit, Nontaxable combat pay election. 2011 income tax Exclusion, Combat Zone Exclusion Extension of deadlines, Service That Qualifies for an Extension of Deadline Related forgiveness, Combat Zone Related Forgiveness Community property, Community Property, Residents of community property states. 2011 income tax Contingency operation, Service That Qualifies for an Extension of Deadline Credits Child tax, Child Tax Credit Earned income, Earned Income Credit Excess social security tax withheld, Credit for Excess Social Security Tax Withheld First-time homebuyer, First-Time Homebuyer Credit D Decedents, Forgiveness of Decedent's Tax Liability Deductions, itemized, Itemized Deductions Domicile, Domicile. 2011 income tax Dual-status aliens, Dual-Status Aliens E Earned income credit, Earned Income Credit Social security card, Social security number. 2011 income tax Social security number, Social security number. 2011 income tax Educational expenses, Educational Expenses Employee business expenses, Employee Business Expenses Excess social security tax withholding credit, Credit for Excess Social Security Tax Withheld Excess withholding credit How to take, How to take the credit. 2011 income tax Expenses Employee business, Employee Business Expenses Moving, Moving Expenses Extension of deadlines, Extension of Deadlines Extension of time to file, Extensions F Family, Adopted child. 2011 income tax (see also Child tax credit) Filing returns, Filing Returns First-time homebuyer credit, First-Time Homebuyer Credit Foreclosures Mortgage settlement payouts, Foreclosures Foreign income, Foreign Source Income Foreign moves, Foreign Moves Forms 1040, Foreign Moves, Itemized Deductions, Where To File 1040A, Where To File 1040EZ, Where To File 1040NR, Nonresident Aliens 2106, Employee Business Expenses, Reimbursement. 2011 income tax 2106-EZ, Employee Business Expenses 2848, Signing Returns, Spouse overseas. 2011 income tax 3903, Moving Expenses 4868, Extensions W-2, Form W-2 Codes, Form W-2. 2011 income tax , Nontaxable combat pay election. 2011 income tax Foster care Child tax credit, Qualifying Child Free tax services, Free help with your tax return. 2011 income tax G Gross income, Gross Income H Help (see Tax help) Home Away from, Away from home. 2011 income tax Definition of, Away from home. 2011 income tax Sale of, Sale of Home Homebuyer credit, First-Time Homebuyer Credit Hospitalization, Hospitalized While Serving in a Combat Zone, Hospitalized After Leaving a Combat Zone, Qualified hospitalization. 2011 income tax I Income Foreign source, Foreign Source Income Gross, Gross Income Individual retirement arrangements, Individual Retirement Arrangements Installment agreement Payment deferment, Request for deferment. 2011 income tax Interest rate (maximum), Maximum Rate of Interest Iraq, Arabian peninsula. 2011 income tax Itemized deductions, Itemized Deductions J Joint returns, Joint returns. 2011 income tax , Joint returns. 2011 income tax , Joint returns. 2011 income tax K Kosovo, The Kosovo area. 2011 income tax M Military action related forgiveness, Terrorist or Military Action Related Forgiveness Military Spouses Residency Relief Act Domicile, Military Spouses Residency Relief Act (MSRRA) Miscellaneous itemized deductions, Employee Business Expenses Missing status, Missing status. 2011 income tax , Spouse in missing status. 2011 income tax , Missing status. 2011 income tax Modified adjusted gross income (MAGI) Child tax credit limits, Modified AGI. 2011 income tax Moving expenses, Moving Expenses N Nonresident aliens, Nonresident Aliens P Permanent change of station, Permanent change of station. 2011 income tax Personal representative, Forgiveness of Decedent's Tax Liability Power of attorney, Signing Returns Professional dues, Professional Dues Publications (see Tax help) Q Qualifying child, Qualifying child. 2011 income tax R Reimbursements Employee business expenses, Reimbursement. 2011 income tax Moving and storage, Services or reimbursements provided by the government. 2011 income tax Uniforms, Uniforms Reservists, Armed Forces reservists. 2011 income tax Travel, Armed Forces Reservists Uniforms, Uniforms Resident aliens, Resident Aliens Returns Filing, Filing Returns Signing, Signing Returns S Sale of home, Sale of Home Same-sex marriage, Same-Sex Marriage SCRA violation payouts, Foreclosures Separate returns, Separate returns. 2011 income tax Servicemembers Civil Relief Act, Maximum Rate of Interest Serving in a combat zone, Serving in a Combat Zone Social security numbers (SSNs) Earned income credit, Residency test. 2011 income tax Spouse Deadline extension, Spouses. 2011 income tax Died, Spouse died during the year. 2011 income tax Incapacitated, Spouse incapacitated. 2011 income tax Missing, Spouse in missing status. 2011 income tax Nonresident alien, Treating nonresident alien spouse as resident alien. 2011 income tax Overseas, Spouse overseas. 2011 income tax State bonus payments, State bonus payments. 2011 income tax T Tax forgiven, Combat Zone Related Forgiveness Tax help, How To Get Tax Help Temporary work location, Temporary work location. 2011 income tax Terrorist related forgiveness, Terrorist or Military Action Related Forgiveness Transportation, Armed Forces reservists. 2011 income tax Transportation expenses, Transportation Expenses Travel expenses, Travel Expenses TTY/TDD information, How To Get Tax Help U Uniforms, Uniforms W When to file, When To File Where to file, Where To File Y Yugoslavia, The Kosovo area. 2011 income tax Prev  Up     Home   More Online Publications
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Wills

It's unfortunate how many people believe that estate planning is only for wealthy people. People at all economic levels benefit from an estate plan. Upon death, an estate plan legally protects and distributes property based on your wishes and the needs of your family and/or survivors with as little tax as possible.

A will is the most practical first step in estate planning; it makes clear how you want your property to be distributed after you die.

Writing a will can be as simple as typing out how you want your assets to be transferred to loved ones or charitable organizations after your death. If you don't have a will when you die, your estate will be handled in probate, and your property could be distributed differently than what you would like.

It may help to get legal advice when writing a will, particularly when it comes to understanding all the rules of the estate disposition process in your state. Some states, for instance, have community-property laws that entitle your surviving spouse to keep half of your wealth after you die no matter what percentage you leave him or her. Fees for the execution of a will vary according to its complexity.

Rules To Remember When Writing A Will

  • In most states, you must be 18 years of age or older.
  • A will must be written in sound judgment and mental capacity to be valid.
  • The document must clearly state that it is your will.
  • An executor of your will, who ensures your estate is distributed according to your wishes, must be named.
  • It is not necessary to notarize or record your will but these can safeguard against any claims that your will is invalid. To be valid, you must sign a will in the presence of at least two witnesses.

Choose an Executor

An executor is the person who is responsible for settling the estate after death. Duties of an executor include:

  • Taking inventory of property and belongings
  • Appraising and distributing assets
  • Paying taxes
  • Settling debts owed by the deceased

Most important, the executor is legally obligated to act in the interests of the deceased, following the wishes provided by the will. Here again, it could be helpful to consult an attorney to help with the probate process or offer legal guidance. Any person over the age of 18, who hasn't been convicted of a felony, can be named executor of a will. Some people choose a lawyer, accountant or financial consultant based on their experience. Others choose a spouse, adult child, relative or friend. Since the role of executor can be demanding, it's often a good idea to ask the person being named in a will if he or she is willing to serve.

If you've been named executor in someone's will but are not able or do not want to serve, you need to file a declination, which is a legal document that declines your designation as an executor. The contingent executor named in the will then assumes responsibility. If no contingent executor is named, the court will appoint one.

Review Your Estate Plan

Once you've completed a will, it's a good idea to review it from time to time, and consider changes if:

  • The value of your assets change
  • You marry, divorce or remarry
  • You have a child
  • You move to a different state
  • The executor of your will dies or becomes incapacitated or your relationship changes
  • One of your heirs dies
  • The laws affecting your estate change

Write a Social Media Will

Social media is a part of daily life, so what happens to the online content that you created once you die? If you are active online you should consider creating a statement of how you would like your online identity to be handled, like a social media will. You should appoint someone you trust as an online executor. This person will be responsible for the closure of your email addresses, social media profiles, and blogs after you are deceased. Take these steps to help you write a social media will (download a social media will template in Excel format):

  • Review the privacy policies and the terms and conditions of each website where you have a presence.
  • State how you would like your profiles to be handled. You may want to completely cancel your profile or keep it up for friends and family to visit. Some sites allow users to create a memorial profile where other users can still see your profile but can’t post anything new.
  • Give the social media executor a document that lists all the websites where you have a profile, along with your usernames and passwords.
  • Stipulate in your will that the online executor should have a copy of your death certificate. The online executor may need this as proof in order for websites to take any actions on your behalf.
  • Check to see if the social media platforms have account management features to let you proactively manage what happens to your accounts after you die. For example, Google's Inactive Account Manager allows you to manage how you want your online content to be saved or deleted. This feature also lets you give permission for your family or close friends to access the content you saved on Google websites after you die.

The 2011 Income Tax

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