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Amended Federal Tax Return

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Amended Federal Tax Return

Amended federal tax return 27. Amended federal tax return   Tax Benefits for Work-Related Education Table of Contents What's New Introduction Useful Items - You may want to see: Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. Amended federal tax return Transportation Expenses Travel Expenses No Double Benefit Allowed Reimbursements Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping What's New Standard mileage rate. Amended federal tax return  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013, through December 31, 2013, is 56½ cents per mile. Amended federal tax return For more information, see Transportation Expenses under What Expenses Can Be Deducted. Amended federal tax return Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Amended federal tax return To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040) if you are an employee, File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education . Amended federal tax return If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Amended federal tax return Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. Amended federal tax return See chapter 28. Amended federal tax return If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Amended federal tax return Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits (see chapter 35). Amended federal tax return You may qualify for these other benefits even if you do not meet the requirements listed earlier. Amended federal tax return Also, keep in mind that your work-related education expenses may qualify you to claim more than one tax benefit. Amended federal tax return Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Amended federal tax return When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that give you the lowest tax liability. Amended federal tax return Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 970 Tax Benefits for Education Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Schedule A (Form 1040) Itemized Deductions Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Amended federal tax return This is education that meets at least one of the following two tests. Amended federal tax return The education is required by your employer or the law to keep your present salary, status, or job. Amended federal tax return The required education must serve a bona fide business purpose of your employer. Amended federal tax return The education maintains or improves skills needed in your present work. Amended federal tax return However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Amended federal tax return You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Amended federal tax return Use Figure 27-A, later, as a quick check to see if your education qualifies. Amended federal tax return Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. Amended federal tax return This additional education is qualifying work-related education if all three of the following requirements are met. Amended federal tax return It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. Amended federal tax return When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. Amended federal tax return See Education To Maintain or Improve Skills , later. Amended federal tax return Example. Amended federal tax return You are a teacher who has satisfied the minimum requirements for teaching. Amended federal tax return Your employer requires you to take an additional college course each year to keep your teaching job. Amended federal tax return If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. Amended federal tax return Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. Amended federal tax return This could include refresher courses, courses on current developments, and academic or vocational courses. Amended federal tax return Example. Amended federal tax return You repair televisions, radios, and stereo systems for XYZ Store. Amended federal tax return To keep up with the latest changes, you take special courses in radio and stereo service. Amended federal tax return These courses maintain and improve skills required in your work. Amended federal tax return Maintaining skills vs. Amended federal tax return qualifying for new job. Amended federal tax return   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. Amended federal tax return Education during temporary absence. Amended federal tax return   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Amended federal tax return Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Amended federal tax return Example. Amended federal tax return You quit your biology research job to become a full-time biology graduate student for one year. Amended federal tax return If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. Amended federal tax return Education during indefinite absence. Amended federal tax return   If you stop work for more than a year, your absence from your job is considered indefinite. Amended federal tax return Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. Amended federal tax return Therefore, it is not qualifying work-related education. Amended federal tax return Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. Amended federal tax return The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Amended federal tax return Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. Amended federal tax return This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. Amended federal tax return You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Amended federal tax return Example 1. Amended federal tax return You are a full-time engineering student. Amended federal tax return Although you have not received your degree or certification, you work part-time as an engineer for a firm that will employ you as a full-time engineer after you finish college. Amended federal tax return Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. Amended federal tax return The education is not qualifying work-related education. Amended federal tax return Example 2. Amended federal tax return You are an accountant and you have met the minimum educational requirements of your employer. Amended federal tax return Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Amended federal tax return These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. Amended federal tax return Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Amended federal tax return The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Amended federal tax return If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Amended federal tax return The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. Amended federal tax return You generally will be considered a faculty member when one or more of the following occurs. Amended federal tax return You have tenure. Amended federal tax return Your years of service count toward obtaining tenure. Amended federal tax return You have a vote in faculty decisions. Amended federal tax return Your school makes contributions for you to a retirement plan other than social security or a similar program. Amended federal tax return Example 1. Amended federal tax return The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Amended federal tax return In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Amended federal tax return If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. Amended federal tax return However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Amended federal tax return Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. Amended federal tax return If you have all the required education except the fifth year, you have met the minimum educational requirements. Amended federal tax return The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. Amended federal tax return Figure 27-A Does Your Work-Related Education Qualify? Please click here for the text description of the image. Amended federal tax return Figure 27-A. Amended federal tax return Does Your Work-Related Education Qualify?" Example 2. Amended federal tax return Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Amended federal tax return The additional four education courses can be qualifying work-related education. Amended federal tax return Although you do not have all the required courses, you have already met the minimum educational requirements. Amended federal tax return Example 3. Amended federal tax return Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Amended federal tax return The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Amended federal tax return They are needed to meet the minimum educational requirements for employment as a teacher. Amended federal tax return Example 4. Amended federal tax return You have a bachelor's degree and you work as a temporary instructor at a university. Amended federal tax return At the same time, you take graduate courses toward an advanced degree. Amended federal tax return The rules of the university state that you can become a faculty member only if you get a graduate degree. Amended federal tax return Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Amended federal tax return You have not met the minimum educational requirements to qualify you as a faculty member. Amended federal tax return The graduate courses are not qualifying work-related education. Amended federal tax return Certification in a new state. Amended federal tax return   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. Amended federal tax return This is true even if you must get additional education to be certified in another state. Amended federal tax return Any additional education you need is qualifying work-related education. Amended federal tax return You have already met the minimum requirements for teaching. Amended federal tax return Teaching in another state is not a new trade or business. Amended federal tax return Example. Amended federal tax return You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Amended federal tax return You move to State B and are promptly hired as a teacher. Amended federal tax return You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Amended federal tax return These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. Amended federal tax return Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. Amended federal tax return This is true even if you do not plan to enter that trade or business. Amended federal tax return If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Amended federal tax return Example 1. Amended federal tax return You are an accountant. Amended federal tax return Your employer requires you to get a law degree at your own expense. Amended federal tax return You register at a law school for the regular curriculum that leads to a law degree. Amended federal tax return Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. Amended federal tax return Example 2. Amended federal tax return You are a general practitioner of medicine. Amended federal tax return You take a 2-week course to review developments in several specialized fields of medicine. Amended federal tax return The course does not qualify you for a new profession. Amended federal tax return It is qualifying work-related education because it maintains or improves skills required in your present profession. Amended federal tax return Example 3. Amended federal tax return While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Amended federal tax return The program will lead to qualifying you to practice psychoanalysis. Amended federal tax return The psychoanalytic training does not qualify you for a new profession. Amended federal tax return It is qualifying work-related education because it maintains or improves skills required in your present profession. Amended federal tax return Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. Amended federal tax return They are part of a program of study that can qualify you for a new profession. Amended federal tax return Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Amended federal tax return A change in duties in any of the following ways is not considered a change to a new business. Amended federal tax return Elementary school teacher to secondary school teacher. Amended federal tax return Teacher of one subject, such as biology, to teacher of another subject, such as art. Amended federal tax return Classroom teacher to guidance counselor. Amended federal tax return Classroom teacher to school administrator. Amended federal tax return What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education , you can generally deduct your education expenses as business expenses. Amended federal tax return If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Amended federal tax return You cannot deduct expenses related to tax-exempt and excluded income. Amended federal tax return Deductible expenses. Amended federal tax return   The following education expenses can be deducted. Amended federal tax return Tuition, books, supplies, lab fees, and similar items. Amended federal tax return Certain transportation and travel costs. Amended federal tax return Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Amended federal tax return Nondeductible expenses. Amended federal tax return   You cannot deduct personal or capital expenses. Amended federal tax return For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Amended federal tax return This amount is a personal expense. Amended federal tax return Unclaimed reimbursement. Amended federal tax return   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. Amended federal tax return Example. Amended federal tax return Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Amended federal tax return You do not file a voucher, and you do not get reimbursed. Amended federal tax return Because you did not file a voucher, you cannot deduct the expenses on your tax return. Amended federal tax return Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Amended federal tax return If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. Amended federal tax return Temporary basis. Amended federal tax return   You go to school on a temporary basis if either of the following situations applies to you. Amended federal tax return Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Amended federal tax return Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Amended federal tax return Your attendance is temporary up to the date you determine it will last more than 1 year. Amended federal tax return Note. Amended federal tax return If you are in either situation (1) or (2), your attendance is not temporary if facts and circumstances indicate otherwise. Amended federal tax return Attendance not on a temporary basis. Amended federal tax return   You do not go to school on a temporary basis if either of the following situations apply to you. Amended federal tax return Your attendance at school is realistically expected to last more than 1 year. Amended federal tax return It does not matter how long you actually attend. Amended federal tax return Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Amended federal tax return Your attendance is not temporary after the date you determine it will last more than 1 year. Amended federal tax return Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. Amended federal tax return This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Amended federal tax return Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Amended federal tax return Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Amended federal tax return Example 1. Amended federal tax return You regularly work in a nearby town, and go directly from work to home. Amended federal tax return You also attend school every work night for 3 months to take a course that improves your job skills. Amended federal tax return Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Amended federal tax return This is true regardless of the distance traveled. Amended federal tax return Example 2. Amended federal tax return Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Amended federal tax return You can deduct your transportation expenses from your regular work site to school and then home. Amended federal tax return Example 3. Amended federal tax return Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Amended federal tax return Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Amended federal tax return Example 4. Amended federal tax return Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Amended federal tax return Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Amended federal tax return If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Amended federal tax return If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. Amended federal tax return Using your car. Amended federal tax return   If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. Amended federal tax return The standard mileage rate for miles driven from January 1, 2013, through December 31, 2013 is 56½ cents per mile. Amended federal tax return Whichever method you use, you can also deduct parking fees and tolls. Amended federal tax return See chapter 26 for information on deducting your actual expenses of using a car. Amended federal tax return Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. Amended federal tax return Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Amended federal tax return For more information, see chapter 26. Amended federal tax return You cannot deduct expenses for personal activities, such as sightseeing, visiting, or entertaining. Amended federal tax return Mainly personal travel. Amended federal tax return   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Amended federal tax return You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Amended federal tax return   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Amended federal tax return An important factor is the comparison of time spent on personal activities with time spent on educational activities. Amended federal tax return If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. Amended federal tax return Example 1. Amended federal tax return John works in Newark, New Jersey. Amended federal tax return He traveled to Chicago to take a deductible 1-week course at the request of his employer. Amended federal tax return His main reason for going to Chicago was to take the course. Amended federal tax return While there, he took a sight-seeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Amended federal tax return Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Amended federal tax return He cannot deduct his transportation expenses of going to Pleasantville. Amended federal tax return He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Amended federal tax return Example 2. Amended federal tax return Sue works in Boston. Amended federal tax return She went to a university in Michigan to take a course for work. Amended federal tax return The course is qualifying work-related education. Amended federal tax return She took one course, which is one-fourth of a full course load of study. Amended federal tax return She spent the rest of the time on personal activities. Amended federal tax return Her reasons for taking the course in Michigan were all personal. Amended federal tax return Sue's trip is mainly personal because three-fourths of her time is considered personal time. Amended federal tax return She cannot deduct the cost of her round-trip train ticket to Michigan. Amended federal tax return She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Amended federal tax return Example 3. Amended federal tax return Dave works in Nashville and recently traveled to California to take a 2-week seminar. Amended federal tax return The seminar is qualifying work-related education. Amended federal tax return While there, he spent an extra 8 weeks on personal activities. Amended federal tax return The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Amended federal tax return Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Amended federal tax return He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Amended federal tax return Cruises and conventions. Amended federal tax return   Certain cruises and conventions offer seminars or courses as part of their itinerary. Amended federal tax return Even if the seminars or courses are work-related, your deduction for travel may be limited. Amended federal tax return This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Amended federal tax return   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. Amended federal tax return 50% limit on meals. Amended federal tax return   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Amended federal tax return You cannot have been reimbursed for the meals. Amended federal tax return   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Amended federal tax return Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. Amended federal tax return Example. Amended federal tax return You are a French language teacher. Amended federal tax return While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Amended federal tax return You chose your itinerary and most of your activities to improve your French language skills. Amended federal tax return You cannot deduct your travel expenses as education expenses. Amended federal tax return This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. Amended federal tax return No Double Benefit Allowed You cannot do either of the following. Amended federal tax return Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, the tuition and fees deduction (see chapter 35). Amended federal tax return Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Amended federal tax return See Adjustments to Qualifying Work-Related Education Expenses , next. Amended federal tax return Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. Amended federal tax return You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Amended federal tax return For more information, see chapter 12 of Publication 970. Amended federal tax return Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see chapter 1 of Publication 970), The tax-free part of Pell grants (see chapter 1 of Publication 970), The tax-free part of employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received for education assistance. Amended federal tax return Amounts that do not reduce qualifying work-related education expenses. Amended federal tax return   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Amended federal tax return   Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. Amended federal tax return Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Amended federal tax return There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Amended federal tax return You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Amended federal tax return For information on how to treat reimbursements under both accountable and nonaccountable plans, see Reimbursements in chapter 26. Amended federal tax return Deducting Business Expenses Self-employed persons and employees report business expenses differently. Amended federal tax return The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Amended federal tax return Self-Employed Persons If you are self-employed, report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C, C-EZ, or F). Amended federal tax return If your educational expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. Amended federal tax return See the instructions for the form you file for information on how to complete it. Amended federal tax return Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. Amended federal tax return If either (1) or (2) applies, you can deduct the total qualifying cost. Amended federal tax return If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Amended federal tax return In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21. Amended federal tax return (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Amended federal tax return ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Amended federal tax return See chapter 28. Amended federal tax return Form 2106 or 2106-EZ. Amended federal tax return   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or Form 2106-EZ. Amended federal tax return Form not required. Amended federal tax return   Do not complete either Form 2106 or Form 2106-EZ if: If amounts included in box 1 of your Form W-2, are not considered reimbursements, and You are not claiming travel, transportation, meal, or entertainment expenses. Amended federal tax return   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21. Amended federal tax return (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Amended federal tax return ) Using Form 2106-EZ. Amended federal tax return   This form is shorter and easier to use than Form 2106. Amended federal tax return Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. Amended federal tax return   If you do not meet both of these requirements, use Form 2106. Amended federal tax return Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. Amended federal tax return Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24. Amended federal tax return You do not have to itemize your deductions on Schedule A (Form 1040), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Amended federal tax return You must complete Form 2106 or 2106-EZ to figure your deduction, even if you meet the requirements described earlier under Form not required . Amended federal tax return For more information on qualified performing artists, see chapter 6 of Publication 463. Amended federal tax return Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28. Amended federal tax return They are not subject to the 2%-of-adjusted-gross-income limit. Amended federal tax return To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Amended federal tax return For more information on impairment-related work expenses, see chapter 6 of Publication 463. Amended federal tax return Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Amended federal tax return Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Amended federal tax return For specific information about keeping records of business expenses, see Recordkeeping in chapter 26. Amended federal tax return Prev  Up  Next   Home   More Online Publications
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Self-Employed Individuals Tax Center

Who is Self-Employed?

Generally, you are self-employed if any of the following apply to you.

What are My Self-Employed Tax Obligations?

As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax).

Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040. But in some situations your loss is limited. See Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) for more information.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF).

How Do I Make My Quarterly Payments?

Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you. Form 1040-ES, Estimated Tax for Individuals (PDF), is used to figure these taxes. Form 1040-ES contains a worksheet that is similar to Form 1040. You will need your prior year’s annual tax return in order to fill out Form 1040-ES.

Use the worksheet found in Form 1040-ES, Estimated Tax for Individuals to find out if you are required to file quarterly estimated tax.

Form 1040-ES also contains blank vouchers you can use when you mail your estimated tax payments or you may make your payments using the Electronic Federal Tax Payment System (EFTPS). If this is your first year being self-employed, you will need to estimate the amount of income you expect to earn for the year. If you estimated your earnings too high, simply complete another Form 1040-ES worksheet to refigure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated taxes for the next quarter.

See the Estimated Taxes page for more information. The Self-Employment Tax page has more information on Social Security and Medicare taxes.

How Do I File My Annual Return?

To file your annual tax return, you will need to use Schedule C (PDF) or Schedule C-EZ (PDF) to report your income or loss from a business you operated or a profession you practiced as a sole proprietor. Schedule C Instructions (PDF) may be helpful in filling out this form.

Small businesses and statutory employees with expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C. To find out if you can use Schedule C-EZ, see the instructions in the Schedule C-EZ form.

In order to report your Social Security and Medicare taxes, you must file Schedule SE (Form 1040), Self-Employment Tax (PDF). Use the income or loss calculated on Schedule C or Schedule C-EZ to calculate the amount of Social Security and Medicare taxes you should have paid during the year. The Instructions (PDF) for Schedule SE may be helpful in filing out the form.

Business Structures

When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Visit the Business Structures page to learn more about each type of entity and what forms to file.

Home Office Deduction

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes.

Husband and Wife Business - What is a Qualified Joint Venture?

Husband and Wife Business
The employment tax requirements for family employees may vary from those that apply to other employees. On this page we point out some issues to consider when operating a husband and wife business.

Election for Husband and Wife Unincorporated Businesses
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 a husband and wife filing a joint return, can elect not to be treated as a partnership for Federal tax purposes.

Considering a Tax Professional

Tips for Choosing a Tax Return Preparer

Online Learning Tools

The Small Business Taxes: The Virtual Workshop is composed of nine interactive lessons designed to help new small business owners learn their tax rights and responsibilities. The IRS Video Portal contains video and audio presentations on topics of interest to small businesses, individuals and tax professionals.

Page Last Reviewed or Updated: 04-Mar-2014

The Amended Federal Tax Return

Amended federal tax return 3. Amended federal tax return   Credit for Withholding and Estimated Tax for 2013 Table of Contents Introduction Topics - This chapter discusses: WithholdingForm W-2 Form W-2G The 1099 Series Form Not Correct Form Received After Filing Separate Returns Fiscal Years (FY) Estimated TaxSeparate Returns Divorced Taxpayers Excess Social Security or Railroad Retirement Tax WithholdingJoint returns. Amended federal tax return Worksheet for Nonrailroad Employees Worksheets for Railroad Employees Introduction When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Amended federal tax return Also take credit for the estimated tax you paid for 2013. Amended federal tax return These credits are subtracted from your total tax. Amended federal tax return Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Amended federal tax return If the total of your withholding and your estimated tax payments for any payment period is less than the amount you needed to pay by the due date for that period, you may be charged a penalty, even if the total of these credits is more than your tax for the year. Amended federal tax return Topics - This chapter discusses: How to take credit for withholding, How to take credit for estimated taxes you paid, and How to take credit for excess social security, Medicare, or railroad retirement tax withholding. Amended federal tax return Withholding If you had income tax withheld during 2013, you generally should be sent a statement by January 31, 2014, showing your income and the tax withheld. Amended federal tax return Depending on the source of your income, you will receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Amended federal tax return Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Amended federal tax return You should receive a separate Form W-2 from each employer you worked for. Amended federal tax return If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Amended federal tax return However, your employer must provide or send it to you by January 31, 2014. Amended federal tax return If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Amended federal tax return If you have not received your Form W-2 by January 31, contact your employer or payer to request a copy. Amended federal tax return If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Amended federal tax return The phone number for the IRS is listed in chapter 5. Amended federal tax return You will be asked for the following information. Amended federal tax return Your name, address, city and state, zip code, and social security number. Amended federal tax return Your employer's name, address, city, state, zip code, and the employer's identification number (if known). Amended federal tax return An estimate of the wages you earned, the federal income tax withheld, and the period you worked for that employer. Amended federal tax return The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible. Amended federal tax return Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Amended federal tax return Total the federal income tax withheld (shown in box 2 of all Forms W-2 received) and enter that amount on the appropriate line of your tax return. Amended federal tax return In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Amended federal tax return Your sick pay may be combined with other wages in one Form W-2 or you may receive a separate Form W-2 for sick pay. Amended federal tax return If you file a paper tax return, attach Copy B of Form W-2 to your return. Amended federal tax return Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Amended federal tax return If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Amended federal tax return Report the amounts you won on line 21 of Form 1040. Amended federal tax return Take credit for the tax withheld on line 62 of Form 1040. Amended federal tax return If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Amended federal tax return Gambling losses can be deducted on Schedule A (Form 1040) as a miscellaneous itemized deduction. Amended federal tax return However, you cannot deduct more than the gambling winnings you report on Form 1040. Amended federal tax return File Form W-2G with your income tax return only if it shows any federal income tax withheld in box 2. Amended federal tax return The 1099 Series Most forms in the 1099 series are not filed with your return. Amended federal tax return In general, these forms should be furnished to you by January 31, 2014. Amended federal tax return Unless instructed to file any of these forms with your return, keep them for your records. Amended federal tax return There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-C, Cancellation of Debt; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third-Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received From Cooperatives; Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530); Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Amended federal tax return ; Form SSA-1099, Social Security Benefit Statement; and Form RRB-1099, Payments by the Railroad Retirement Board. Amended federal tax return If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Amended federal tax return See the instructions to these forms for details. Amended federal tax return Reporting your withholding. Amended federal tax return   Report on your tax return all federal income tax withholding shown on your Form 1099, Form SSA-1099, and/or Form RRB-1099. Amended federal tax return Include the amount withheld in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Amended federal tax return Form 1099-R. Amended federal tax return   Attach Form 1099-R to your paper return if federal income tax withholding is shown in box 4. Amended federal tax return Do not attach any other Form 1099. Amended federal tax return Form Not Correct If you receive a form with incorrect information, you should ask the payer for a corrected form. Amended federal tax return Call the telephone number or write to the address given for the payer on the form. Amended federal tax return The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Amended federal tax return A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Amended federal tax return In certain situations, you will receive two forms in place of the original incorrect form. Amended federal tax return This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Amended federal tax return One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Amended federal tax return This form will have an “X” in the “CORRECTED” box at the top of the form. Amended federal tax return The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Amended federal tax return Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Amended federal tax return S. Amended federal tax return Individual Income Tax Return. Amended federal tax return Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Amended federal tax return Do not include any amount withheld from your spouse's income. Amended federal tax return However, different rules may apply if you live in a community property state. Amended federal tax return Community property states. Amended federal tax return   The following are community property states. Amended federal tax return Arizona. Amended federal tax return California. Amended federal tax return Idaho. Amended federal tax return Louisiana. Amended federal tax return Nevada. Amended federal tax return New Mexico. Amended federal tax return Texas. Amended federal tax return Washington. Amended federal tax return Wisconsin. Amended federal tax return Generally, if you live in a community property state and file a separate return, you and your spouse each must report half of all community income in addition to your own separate income. Amended federal tax return If you are required to report half of all community income, you are entitled to take credit for half of all taxes withheld on the community income. Amended federal tax return If you were divorced during the year, each of you generally must report half the community income and can take credit for half the withholding on that community income for the period before the divorce. Amended federal tax return   For more information on these rules, and some exceptions, see Publication 555, Community Property. Amended federal tax return Fiscal Years (FY) If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules, described below, to determine your credit for federal income tax withholding. Amended federal tax return Fiscal year withholding. Amended federal tax return    You can claim credit on your tax return only for the tax withheld during the calendar year (CY) ending within your fiscal year. Amended federal tax return You cannot claim credit for any of the tax withheld during the calendar year beginning in your fiscal year. Amended federal tax return You will be able to claim credit for that withholding on your return for your next fiscal year. Amended federal tax return   The Form W-2 or 1099 you receive for the calendar year that ends during your fiscal year will show the tax withheld and the income you received during that calendar year. Amended federal tax return   Although you take credit for all the withheld tax shown on the form, report only the part of the income shown on the form that you received during your fiscal year. Amended federal tax return Add to that the income you received during the rest of your fiscal year. Amended federal tax return Example. Amended federal tax return Miles Hanson files his return for a fiscal year ending June 30, 2013. Amended federal tax return In January 2013, he received a Form W-2 that showed that his wages for 2012 were $31,200 and that his income tax withheld was $3,380. Amended federal tax return His records show that he had received $15,000 of the wages by June 30, 2012, and $16,200 from July 1 through December 31, 2012. Amended federal tax return See Table 3-1 . Amended federal tax return On his return for the fiscal year ending June 30, 2013, Miles will report the $16,200 he was paid in July through December of 2012, plus the $18,850 he was paid during the rest of the fiscal year, January 1, 2013, through June 30, 2013. Amended federal tax return However, he takes credit for all $3,380 that was withheld during 2012. Amended federal tax return On his return for the fiscal year ending June 30, 2012, he reported the $15,000 he was paid in January through June 2012, but took no credit for the tax withheld during that time. Amended federal tax return On his return for the fiscal year ending June 30, 2014, he will take the credit for any tax withheld during 2013 but not for any tax withheld during 2014. Amended federal tax return Table 3-1. Amended federal tax return Example for Fiscal Year Ending June 30, 2013—Miles Hanson Date Form W-2 Miles' records Tax return for FY ending 6/30/20121 Tax return for FY ending 6/30/2013 Wages With- holding Wages With- holding Wages With- holding Wages With- holding CY 20122 $31,200 $3,380             1/1/2012 –  6/30/2012     $15,000 $1,600 $15,000       7/1/2012 –  12/31/2012     $16,200 $1,780     $16,200 $3,380 CY 2013 $37,700 $4,316 3             1/1/2013 –  6/30/2013     $18,850 $2,158     $18,850   7/1/2013 –  12/31/2013     $18,850 4 $2,158         1Miles' tax return for FY ending 6/30/2012 also included his wages for 7/1–12/31/2011 and the withholding shown on his 2011 Form W-2. Amended federal tax return  2Calendar year (January 1 – December 31). Amended federal tax return   3Withholding shown on 2013 Form W-2 ($4,316) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which calendar year 2013 ends. Amended federal tax return   4Wages for 7/1–12/31/2013 ($18,850) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which the wages were received. Amended federal tax return Backup withholding. Amended federal tax return   If income tax has been withheld under the backup withholding rule, take credit for it on your tax return for the fiscal year in which you received the income. Amended federal tax return Example. Amended federal tax return Emily Smith's records show that she received income in November 2013 and February 2014 from which there was backup withholding ($100 and $50, respectively). Amended federal tax return Emily takes credit for the entire $150 of backup withholding on her tax return for the fiscal year ending September 30, 2014. Amended federal tax return Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Amended federal tax return Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Amended federal tax return You must use Form 1040 or Form 1040A if you paid estimated tax. Amended federal tax return You cannot file Form 1040EZ. Amended federal tax return If you were a beneficiary of an estate or trust, you should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Amended federal tax return , from the fiduciary. Amended federal tax return If you have estimated taxes credited to you from the estate or trust (from Schedule K-1 (Form 1041)), you must report the estimated taxes on Schedule E (Form 1040). Amended federal tax return On the dotted line next to the entry space for line 37 of Schedule E (Form 1040), enter “ES payment claimed” and the amount. Amended federal tax return However, do not include this amount in the total on line 37. Amended federal tax return Instead, enter the amount on Form 1040, line 63. Amended federal tax return This estimated tax payment for 2013 is treated as being made by you on January 15, 2014. Amended federal tax return Name changed. Amended federal tax return   If you changed your name, and you made estimated tax payments using your former name, attach a statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and The social security number under which you made the payments. Amended federal tax return  The statement should cover payments you made jointly with your spouse as well as any you made separately. Amended federal tax return   Be sure to report the change to your local Social Security Administration office before filing your 2014 tax return. Amended federal tax return This prevents delays in processing your return and issuing refunds. Amended federal tax return It also safeguards your future social security benefits. Amended federal tax return For more information, call the Social Security Administration at 1-800-772-1213. Amended federal tax return Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Amended federal tax return If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Amended federal tax return One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Amended federal tax return If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Amended federal tax return Example. Amended federal tax return James and Evelyn Brown made joint estimated tax payments for 2013 totaling $3,000. Amended federal tax return They file separate 2013 Forms 1040. Amended federal tax return James' tax is $4,000 and Evelyn's is $1,000. Amended federal tax return If they do not agree on how to divide the $3,000, they must divide it proportionately between their returns. Amended federal tax return Because James' tax ($4,000) is 80% of the total tax ($5,000), his share of the estimated tax is $2,400 (80% of $3,000). Amended federal tax return The balance, $600 (20% of $3,000), is Evelyn's share. Amended federal tax return Divorced Taxpayers If you made joint estimated tax payments for 2013 and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Amended federal tax return If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Amended federal tax return See Example earlier under Separate Returns. Amended federal tax return If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided at the top of page 1 of Form 1040 or Form 1040A. Amended federal tax return If you divorced and remarried in 2013, enter your present spouse's SSN in that space. Amended federal tax return Enter your former spouse's SSN, followed by “DIV,” under Payments to the left of Form 1040, line 63, or in the blank space to the left of Form 1040A, line 37. Amended federal tax return Excess Social Security or Railroad Retirement Tax Withholding Most employers must withhold social security tax from your wages. Amended federal tax return In some cases, however, the federal government and state and local governments do not have to withhold social security tax from their employees' wages. Amended federal tax return If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Amended federal tax return Two or more employers. Amended federal tax return   If you worked for two or more employers in 2013, too much social security tax or tier 1 RRTA tax may have been withheld from your pay. Amended federal tax return You may be able to claim the excess as a credit against your income tax when you file your return. Amended federal tax return Table 3-2 shows the maximum amount that should have been withheld for any of these taxes for 2013. Amended federal tax return Figure the excess withholding on the appropriate worksheet. Amended federal tax return    Table 3-2. Amended federal tax return Maximum Social Security and RRTA Withholding for 2013 Type of tax Maximum wages subject to tax Tax rate Maximum tax to be withheld Social security $113,700 6. Amended federal tax return 2% $7,049. Amended federal tax return 40 Tier 1 RRTA $113,700 6. Amended federal tax return 2% $7,049. Amended federal tax return 40 Tier 2 RRTA $84,300 4. Amended federal tax return 4% $3,709. Amended federal tax return 20 Joint returns. Amended federal tax return   If you are filing a joint return, you and your spouse must figure any excess social security or tier 1 RRTA separately. Amended federal tax return Note. Amended federal tax return All wages are subject to Medicare tax withholding. Amended federal tax return Employer's error. Amended federal tax return   If you had only one employer and he or she withheld too much social security, Medicare, or tier 1 RRTA tax, ask the employer to refund the excess amount to you. Amended federal tax return If the employer refuses to refund the overcollection, ask for a statement indicating the amount of the overcollection to support your claim. Amended federal tax return File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Amended federal tax return Worksheet for Nonrailroad Employees If you did not work for a railroad during 2013, figure the excess social security withholding on Worksheet 3-1. Amended federal tax return Note. Amended federal tax return If you worked for both a railroad employer and a nonrailroad employer, use Worksheet 3-2, to figure excess social security and tier 1 RRTA tax. Amended federal tax return Where to claim credit for excess social security withholding. Amended federal tax return   If you file Form 1040, enter the excess on line 69. Amended federal tax return   If you file Form 1040A, include the excess in the total on line 41. Amended federal tax return Write “Excess SST” and show the amount of the credit in the space to the left of the line. Amended federal tax return   You cannot claim excess social security tax withholding on Form 1040EZ. Amended federal tax return Worksheets for Railroad Employees If you worked for a railroad during 2013, figure your excess withholding on Worksheet 3-2 and 3-3, as appropriate. Amended federal tax return Where to claim credit for excess tier 1 RRTA withholding. Amended federal tax return   If you file Form 1040, enter the excess on line 69. Amended federal tax return   If you file Form 1040A, include the excess in the total on line 41. Amended federal tax return Write “Excess SST” and show the amount of the credit in the space to the left of the line. Amended federal tax return   You cannot claim excess tier 1 RRTA withholding on Form 1040EZ. Amended federal tax return How to claim refund of excess tier 2 RRTA. Amended federal tax return   To claim a refund of tier 2 tax, use Form 843. Amended federal tax return Be sure to attach a copy of all of your Forms W-2. Amended federal tax return   See Worksheet 3-3 and the Instructions for Form 843, for more details. Amended federal tax return Worksheet 3-1. Amended federal tax return Excess Social Security—Nonrailroad Employees 1. Amended federal tax return Add all social security tax withheld (but not more than  $7,049. Amended federal tax return 40 for each employer). Amended federal tax return This tax should be shown  in box 4 of your Forms W-2. Amended federal tax return Enter the total here 1. Amended federal tax return   2. Amended federal tax return Enter any uncollected social security tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Amended federal tax return   3. Amended federal tax return Add lines 1 and 2. Amended federal tax return If $7,049. Amended federal tax return 40 or less, stop here. Amended federal tax return You cannot claim the credit 3. Amended federal tax return   4. Amended federal tax return Social security limit 4. Amended federal tax return $7,049. Amended federal tax return 40 5. Amended federal tax return Excess. Amended federal tax return Subtract line 4 from line 3 5. Amended federal tax return   Worksheet 3-2. Amended federal tax return Excess Social Security and Tier 1 RRTA—Railroad Employees 1. Amended federal tax return Add all social security and tier 1 RRTA tax withheld (but not more than $7,049. Amended federal tax return 40 for each employer). Amended federal tax return Social security tax should be shown in box 4 and tier 1 RRTA should be shown  in box 14 of your Forms W-2. Amended federal tax return Enter the total here 1. Amended federal tax return   2. Amended federal tax return Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Amended federal tax return   3. Amended federal tax return Add lines 1 and 2. Amended federal tax return If $7,049. Amended federal tax return 40 or less, stop here. Amended federal tax return You cannot claim the credit 3. Amended federal tax return   4. Amended federal tax return Social security and tier 1 RRTA tax limit 4. Amended federal tax return $7,049. Amended federal tax return 40 5. Amended federal tax return Excess. Amended federal tax return Subtract line 4 from line 3 5. Amended federal tax return   Worksheet 3-3. Amended federal tax return Excess Tier 2 RRTA—Railroad Employees 1. Amended federal tax return Add all tier 2 RRTA tax withheld (but not more than $3,709. Amended federal tax return 20 for each employer). Amended federal tax return Box 14 of your Forms W-2 should show tier 2 RRTA tax. Amended federal tax return Enter the total here 1. Amended federal tax return   2. Amended federal tax return Enter any uncollected tier 2 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Amended federal tax return   3. Amended federal tax return Add lines 1 and 2. Amended federal tax return If $3,709. Amended federal tax return 20 or less, stop here. Amended federal tax return You cannot claim the credit. Amended federal tax return 3. Amended federal tax return   4. Amended federal tax return Tier 2 RRTA tax limit 4. Amended federal tax return $3,709. Amended federal tax return 20 5. Amended federal tax return Excess. Amended federal tax return Subtract line 4 from line 3. Amended federal tax return 5. Amended federal tax return   Prev  Up  Next   Home   More Online Publications