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Can A Full Time Student File Taxes

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Can A Full Time Student File Taxes

Can a full time student file taxes 2. Can a full time student file taxes   Employees' Pay Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tests for Deducting PayTest 1—Reasonableness Test 2—For Services Performed Kinds of PayAwards Bonuses Education Expenses Fringe Benefits Loans or Advances Property Reimbursements for Business Expenses Sick and Vacation Pay Introduction You can generally deduct the amount you pay your employees for the services they perform. Can a full time student file taxes The pay may be in cash, property, or services. Can a full time student file taxes It may include wages, salaries, bonuses, commissions, or other non-cash compensation such as vacation allowances and fringe benefits. Can a full time student file taxes For information about deducting employment taxes, see chapter 5. Can a full time student file taxes You can claim employment credits, such as the following, if you hire individuals who meet certain requirements. Can a full time student file taxes Empowerment zone employment credit (Form 8844). Can a full time student file taxes Indian employment credit (Form 8845). Can a full time student file taxes Work opportunity credit (Form 5884). Can a full time student file taxes Credit for employer differential wage payments (Form 8932). Can a full time student file taxes Reduce your deduction for employee wages by the amount of employment credits you claim. Can a full time student file taxes For more information about these credits, see the form on which the credit is claimed. Can a full time student file taxes Topics - This chapter discusses: Tests for deducting pay Kinds of pay 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 See chapter 12 for information about getting publications and forms. Can a full time student file taxes Tests for Deducting Pay To be deductible, your employees' pay must be an ordinary and necessary business expense and you must pay or incur it. Can a full time student file taxes These and other requirements that apply to all business expenses are explained in chapter 1. Can a full time student file taxes In addition, the pay must meet both of the following tests. Can a full time student file taxes Test 1. Can a full time student file taxes It must be reasonable. Can a full time student file taxes Test 2. Can a full time student file taxes It must be for services performed. Can a full time student file taxes The form or method of figuring the pay does not affect its deductibility. Can a full time student file taxes For example, bonuses and commissions based on sales or earnings, and paid under an agreement made before the services were performed, are both deductible. Can a full time student file taxes Test 1—Reasonableness You must be able to prove that the pay is reasonable. Can a full time student file taxes Whether the pay is reasonable depends on the circumstances that existed when you contracted for the services, not those that exist when reasonableness is questioned. Can a full time student file taxes If the pay is excessive, the excess pay is disallowed as a deduction. Can a full time student file taxes Factors to consider. Can a full time student file taxes   Determine the reasonableness of pay by the facts and circumstances. Can a full time student file taxes Generally, reasonable pay is the amount that a similar business would pay for the same or similar services. Can a full time student file taxes   To determine if pay is reasonable, also consider the following items and any other pertinent facts. Can a full time student file taxes The duties performed by the employee. Can a full time student file taxes The volume of business handled. Can a full time student file taxes The character and amount of responsibility. Can a full time student file taxes The complexities of your business. Can a full time student file taxes The amount of time required. Can a full time student file taxes The cost of living in the locality. Can a full time student file taxes The ability and achievements of the individual employee performing the service. Can a full time student file taxes The pay compared with the gross and net income of the business, as well as with distributions to shareholders if the business is a corporation. Can a full time student file taxes Your policy regarding pay for all your employees. Can a full time student file taxes The history of pay for each employee. Can a full time student file taxes Test 2—For Services Performed You must be able to prove the payment was made for services actually performed. Can a full time student file taxes Employee-shareholder salaries. Can a full time student file taxes   If a corporation pays an employee who is also a shareholder a salary that is unreasonably high considering the services actually performed, the excessive part of the salary may be treated as a constructive dividend to the employee-shareholder. Can a full time student file taxes The excessive part of the salary would not be allowed as a salary deduction by the corporation. Can a full time student file taxes For more information on corporate distributions to shareholders, see Publication 542, Corporations. Can a full time student file taxes Kinds of Pay Some of the ways you may provide pay to your employees in addition to regular wages or salaries are discussed next. Can a full time student file taxes For specialized and detailed information on employees' pay and the employment tax treatment of employees' pay, see Publications 15, 15-A, and 15-B. Can a full time student file taxes Awards You can generally deduct amounts you pay to your employees as awards, whether paid in cash or property. Can a full time student file taxes If you give property to an employee as an employee achievement award, your deduction may be limited. Can a full time student file taxes Achievement awards. Can a full time student file taxes   An achievement award is an item of tangible personal property that meets all the following requirements. Can a full time student file taxes It is given to an employee for length of service or safety achievement. Can a full time student file taxes It is awarded as part of a meaningful presentation. Can a full time student file taxes It is awarded under conditions and circumstances that do not create a significant likelihood of disguised pay. Can a full time student file taxes Length-of-service award. Can a full time student file taxes    An award will qualify as a length-of-service award only if either of the following applies. Can a full time student file taxes The employee receives the award after his or her first 5 years of employment. Can a full time student file taxes The employee did not receive another length-of-service award (other than one of very small value) during the same year or in any of the prior 4 years. Can a full time student file taxes Safety achievement award. Can a full time student file taxes    An award for safety achievement will qualify as an achievement award unless one of the following applies. Can a full time student file taxes It is given to a manager, administrator, clerical employee, or other professional employee. Can a full time student file taxes During the tax year, more than 10% of your employees, excluding those listed in (1), have already received a safety achievement award (other than one of very small value). Can a full time student file taxes Deduction limit. Can a full time student file taxes   Your deduction for the cost of employee achievement awards given to any one employee during the tax year is limited to the following. Can a full time student file taxes $400 for awards that are not qualified plan awards. Can a full time student file taxes $1,600 for all awards, whether or not qualified plan awards. Can a full time student file taxes   A qualified plan award is an achievement award given as part of an established written plan or program that does not favor highly compensated employees as to eligibility or benefits. Can a full time student file taxes   A highly compensated employee is an employee who meets either of the following tests. Can a full time student file taxes The employee was a 5% owner at any time during the year or the preceding year. Can a full time student file taxes The employee received more than $115,000 in pay for the preceding year. Can a full time student file taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees ranked by pay for the preceding year. Can a full time student file taxes   An award is not a qualified plan award if the average cost of all the employee achievement awards given during the tax year (that would be qualified plan awards except for this limit) is more than $400. Can a full time student file taxes To figure this average cost, ignore awards of nominal value. Can a full time student file taxes Deduct achievement awards as a nonwage business expense on your return or business schedule. Can a full time student file taxes You may not owe employment taxes on the value of some achievement awards you provide to an employee. Can a full time student file taxes See Publication 15-B. Can a full time student file taxes Bonuses You can generally deduct a bonus paid to an employee if you intended the bonus as additional pay for services, not as a gift, and the services were performed. Can a full time student file taxes However, the total bonuses, salaries, and other pay must be reasonable for the services performed. Can a full time student file taxes If the bonus is paid in property, see Property , later. Can a full time student file taxes Gifts of nominal value. Can a full time student file taxes    If, to promote employee goodwill, you distribute food or merchandise of nominal value to your employees at holidays, you can deduct the cost of these items as a nonwage business expense. Can a full time student file taxes Your deduction for de minimis gifts of food or drink are not subject to the 50% deduction limit that generally applies to meals. Can a full time student file taxes For more information on this deduction limit, see Meals and lodging , later. Can a full time student file taxes Education Expenses If you pay or reimburse education expenses for an employee, you can deduct the payments if they are part of a qualified educational assistance program. Can a full time student file taxes Deduct them on the “Employee benefit programs” or other appropriate line of your tax return. Can a full time student file taxes For information on educational assistance programs, see Educational Assistance in section 2 of Publication 15-B. Can a full time student file taxes Fringe Benefits A fringe benefit is a form of pay for the performance of services. Can a full time student file taxes You can generally deduct the cost of fringe benefits. Can a full time student file taxes You may be able to exclude all or part of the value of some fringe benefits from your employees' pay. Can a full time student file taxes You also may not owe employment taxes on the value of the fringe benefits. Can a full time student file taxes See Table 2-1, Special Rules for Various Types of Fringe Benefits, in Publication 15-B for details. Can a full time student file taxes Your deduction for the cost of fringe benefits for activities generally considered entertainment, amusement, or recreation, or for a facility used in connection with such an activity (for example, a company aircraft) for certain officers, directors, and more-than-10% shareholders is limited. Can a full time student file taxes Certain fringe benefits are discussed next. Can a full time student file taxes See Publication 15-B for more details on these and other fringe benefits. Can a full time student file taxes Meals and lodging. Can a full time student file taxes   You can usually deduct the cost of furnishing meals and lodging to your employees. Can a full time student file taxes Deduct the cost in whatever category the expense falls. Can a full time student file taxes For example, if you operate a restaurant, deduct the cost of the meals you furnish to employees as part of the cost of goods sold. Can a full time student file taxes If you operate a nursing home, motel, or rental property, deduct the cost of furnishing lodging to an employee as expenses for utilities, linen service, salaries, depreciation, etc. Can a full time student file taxes Deduction limit on meals. Can a full time student file taxes   You can generally deduct only 50% of the cost of furnishing meals to your employees. Can a full time student file taxes However, you can deduct the full cost of the following meals. Can a full time student file taxes Meals whose value you include in an employee's wages. Can a full time student file taxes Meals that qualify as a de minimis fringe benefit as discussed in section 2 of Publication 15-B. Can a full time student file taxes This generally includes meals you furnish to employees at your place of business if more than half of these employees are provided the meals for your convenience. Can a full time student file taxes Meals you furnish to your employees at the work site when you operate a restaurant or catering service. Can a full time student file taxes Meals you furnish to your employees as part of the expense of providing recreational or social activities, such as a company picnic. Can a full time student file taxes Meals you are required by federal law to furnish to crew members of certain commercial vessels (or would be required to furnish if the vessels were operated at sea). Can a full time student file taxes This does not include meals you furnish on vessels primarily providing luxury water transportation. Can a full time student file taxes Meals you furnish on an oil or gas platform or drilling rig located offshore or in Alaska. Can a full time student file taxes This includes meals you furnish at a support camp that is near and integral to an oil or gas drilling rig located in Alaska. Can a full time student file taxes Employee benefit programs. Can a full time student file taxes   Employee benefit programs include the following. Can a full time student file taxes Accident and health plans. Can a full time student file taxes Adoption assistance. Can a full time student file taxes Cafeteria plans. Can a full time student file taxes Dependent care assistance. Can a full time student file taxes Education assistance. Can a full time student file taxes Life insurance coverage. Can a full time student file taxes Welfare benefit funds. Can a full time student file taxes   You can generally deduct amounts you spend on employee benefit programs on the applicable line of your tax return. Can a full time student file taxes For example, if you provide dependent care by operating a dependent care facility for your employees, deduct your costs in whatever categories they fall (utilities, salaries, etc. Can a full time student file taxes ). Can a full time student file taxes Life insurance coverage. Can a full time student file taxes   You cannot deduct the cost of life insurance coverage for you, an employee, or any person with a financial interest in your business, if you are directly or indirectly the beneficiary of the policy. Can a full time student file taxes See Regulations section 1. Can a full time student file taxes 264-1 for more information. Can a full time student file taxes Welfare benefit funds. Can a full time student file taxes   A welfare benefit fund is a funded plan (or a funded arrangement having the effect of a plan) that provides welfare benefits to your employees, independent contractors, or their beneficiaries. Can a full time student file taxes Welfare benefits are any benefits other than deferred compensation or transfers of restricted property. Can a full time student file taxes   Your deduction for contributions to a welfare benefit fund is limited to the fund's qualified cost for the tax year. Can a full time student file taxes If your contributions to the fund are more than its qualified cost, carry the excess over to the next tax year. Can a full time student file taxes   Generally, the fund's “qualified cost” is the total of the following amounts, reduced by the after-tax income of the fund. Can a full time student file taxes The cost you would have been able to deduct using the cash method of accounting if you had paid for the benefits directly. Can a full time student file taxes The contributions added to a reserve account that are needed to fund claims incurred but not paid as of the end of the year. Can a full time student file taxes These claims can be for supplemental unemployment benefits, severance pay, or disability, medical, or life insurance benefits. Can a full time student file taxes   For more information, see sections 419(c) and 419A of the Internal Revenue Code and the related regulations. Can a full time student file taxes Loans or Advances You generally can deduct as wages an advance you make to an employee for services performed if you do not expect the employee to repay the advance. Can a full time student file taxes However, if the employee performs no services, treat the amount you advanced as a loan. Can a full time student file taxes If the employee does not repay the loan, treat it as income to the employee. Can a full time student file taxes Below-market interest rate loans. Can a full time student file taxes   On certain loans you make to an employee or shareholder, you are treated as having received interest income and as having paid compensation or dividends equal to that interest. Can a full time student file taxes See Below-Market Loans in chapter 4. Can a full time student file taxes Property If you transfer property (including your company's stock) to an employee as payment for services, you can generally deduct it as wages. Can a full time student file taxes The amount you can deduct is the property's fair market value on the date of the transfer less any amount the employee paid for the property. Can a full time student file taxes You can claim the deduction only for the tax year in which your employee includes the property's value in income. Can a full time student file taxes Your employee is deemed to have included the value in income if you report it on Form W-2, Wage and Tax Statement, in a timely manner. Can a full time student file taxes You treat the deductible amount as received in exchange for the property, and you must recognize any gain or loss realized on the transfer, unless it is the company's stock transferred as payment for services. Can a full time student file taxes Your gain or loss is the difference between the fair market value of the property and its adjusted basis on the date of transfer. Can a full time student file taxes These rules also apply to property transferred to an independent contractor for services, generally reported on Form 1099-MISC, Miscellaneous Income. Can a full time student file taxes Restricted property. Can a full time student file taxes   If the property you transfer for services is subject to restrictions that affect its value, you generally cannot deduct it and do not report gain or loss until it is substantially vested in the recipient. Can a full time student file taxes However, if the recipient pays for the property, you must report any gain at the time of the transfer up to the amount paid. Can a full time student file taxes    “Substantially vested” means the property is not subject to a substantial risk of forfeiture. Can a full time student file taxes This means that the recipient is not likely to have to give up his or her rights in the property in the future. Can a full time student file taxes Reimbursements for Business Expenses You can generally deduct the amount you pay or reimburse employees for business expenses incurred for your business. Can a full time student file taxes However, your deduction may be limited. Can a full time student file taxes If you make the payment under an accountable plan, deduct it in the category of the expense paid. Can a full time student file taxes For example, if you pay an employee for travel expenses incurred on your behalf, deduct this payment as a travel expense. Can a full time student file taxes If you make the payment under a nonaccountable plan, deduct it as wages and include it in the employee's Form W-2. Can a full time student file taxes See Reimbursement of Travel, Meals, and Entertainment in chapter 11 for more information about deducting reimbursements and an explanation of accountable and nonaccountable plans. Can a full time student file taxes Sick and Vacation Pay Sick pay. Can a full time student file taxes   You can deduct amounts you pay to your employees for sickness and injury, including lump-sum amounts, as wages. Can a full time student file taxes However, your deduction is limited to amounts not compensated by insurance or other means. Can a full time student file taxes Vacation pay. Can a full time student file taxes   Vacation pay is an employee benefit. Can a full time student file taxes It includes amounts paid for unused vacation leave. Can a full time student file taxes You can deduct vacation pay only in the tax year in which the employee actually receives it. Can a full time student file taxes This rule applies regardless of whether you use the cash or accrual method of accounting. Can a full time student file taxes Prev  Up  Next   Home   More Online Publications
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The Can A Full Time Student File Taxes

Can a full time student file taxes Publication 15-B - Main Content Table of Contents 1. Can a full time student file taxes Fringe Benefit OverviewAre Fringe Benefits Taxable? Cafeteria Plans Simple Cafeteria Plans 2. Can a full time student file taxes Fringe Benefit Exclusion RulesAccident and Health Benefits Achievement Awards Adoption Assistance Athletic Facilities De Minimis (Minimal) Benefits Dependent Care Assistance Educational Assistance Employee Discounts Employee Stock Options Employer-Provided Cell Phones Group-Term Life Insurance Coverage Health Savings Accounts Lodging on Your Business Premises Meals Moving Expense Reimbursements No-Additional-Cost Services Retirement Planning Services Transportation (Commuting) Benefits Tuition Reduction Working Condition Benefits 3. Can a full time student file taxes Fringe Benefit Valuation RulesGeneral Valuation Rule Cents-Per-Mile Rule Commuting Rule Lease Value Rule Unsafe Conditions Commuting Rule 4. Can a full time student file taxes Rules for Withholding, Depositing, and ReportingTransfer of property. Can a full time student file taxes Amount of deposit. Can a full time student file taxes Limitation. Can a full time student file taxes Conformity rules. Can a full time student file taxes Election not to withhold income tax. Can a full time student file taxes How To Get Tax Help 1. Can a full time student file taxes Fringe Benefit Overview A fringe benefit is a form of pay for the performance of services. Can a full time student file taxes For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. Can a full time student file taxes Performance of services. Can a full time student file taxes   A person who performs services for you does not have to be your employee. Can a full time student file taxes A person may perform services for you as an independent contractor, partner, or director. Can a full time student file taxes Also, for fringe benefit purposes, treat a person who agrees not to perform services (such as under a covenant not to compete) as performing services. Can a full time student file taxes Provider of benefit. Can a full time student file taxes   You are the provider of a fringe benefit if it is provided for services performed for you. Can a full time student file taxes You are considered the provider of a fringe benefit even if a third party, such as your client or customer, provides the benefit to your employee for services the employee performs for you. Can a full time student file taxes For example, if, in exchange for goods or services, your customer provides day care services as a fringe benefit to your employees for services they provide for you as their employer, then you are the provider of this fringe benefit even though the customer is actually providing the day care. Can a full time student file taxes Recipient of benefit. Can a full time student file taxes   The person who performs services for you is considered the recipient of a fringe benefit provided for those services. Can a full time student file taxes That person may be considered the recipient even if the benefit is provided to someone who did not perform services for you. Can a full time student file taxes For example, your employee may be the recipient of a fringe benefit you provide to a member of the employee's family. Can a full time student file taxes Are Fringe Benefits Taxable? Any fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. Can a full time student file taxes Section 2 discusses the exclusions that apply to certain fringe benefits. Can a full time student file taxes Any benefit not excluded under the rules discussed in section 2 is taxable. Can a full time student file taxes Including taxable benefits in pay. Can a full time student file taxes   You must include in a recipient's pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. Can a full time student file taxes Any amount the law excludes from pay. Can a full time student file taxes Any amount the recipient paid for the benefit. Can a full time student file taxes The rules used to determine the value of a fringe benefit are discussed in section 3. Can a full time student file taxes   If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. Can a full time student file taxes However, you can use special rules to withhold, deposit, and report the employment taxes. Can a full time student file taxes These rules are discussed in section 4. Can a full time student file taxes   If the recipient of a taxable fringe benefit is not your employee, the benefit is not subject to employment taxes. Can a full time student file taxes However, you may have to report the benefit on one of the following information returns. Can a full time student file taxes If the recipient receives the benefit as: Use: An independent contractor Form 1099-MISC, Miscellaneous Income A partner Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Can a full time student file taxes For more information, see the instructions for the forms listed above. Can a full time student file taxes Cafeteria Plans A cafeteria plan, including a flexible spending arrangement, is a written plan that allows your employees to choose between receiving cash or taxable benefits instead of certain qualified benefits for which the law provides an exclusion from wages. Can a full time student file taxes If an employee chooses to receive a qualified benefit under the plan, the fact that the employee could have received cash or a taxable benefit instead will not make the qualified benefit taxable. Can a full time student file taxes Generally, a cafeteria plan does not include any plan that offers a benefit that defers pay. Can a full time student file taxes However, a cafeteria plan can include a qualified 401(k) plan as a benefit. Can a full time student file taxes Also, certain life insurance plans maintained by educational institutions can be offered as a benefit even though they defer pay. Can a full time student file taxes Qualified benefits. Can a full time student file taxes   A cafeteria plan can include the following benefits discussed in section 2. Can a full time student file taxes Accident and health benefits (but not Archer medical savings accounts (Archer MSAs) or long-term care insurance). Can a full time student file taxes Adoption assistance. Can a full time student file taxes Dependent care assistance. Can a full time student file taxes Group-term life insurance coverage (including costs that cannot be excluded from wages). Can a full time student file taxes Health savings accounts (HSAs). Can a full time student file taxes Distributions from an HSA may be used to pay eligible long-term care insurance premiums or qualified long-term care services. Can a full time student file taxes Benefits not allowed. Can a full time student file taxes   A cafeteria plan cannot include the following benefits discussed in section 2. Can a full time student file taxes Archer MSAs. Can a full time student file taxes See Accident and Health Benefits in section 2. Can a full time student file taxes Athletic facilities. Can a full time student file taxes De minimis (minimal) benefits. Can a full time student file taxes Educational assistance. Can a full time student file taxes Employee discounts. Can a full time student file taxes Employer-provided cell phones. Can a full time student file taxes Lodging on your business premises. Can a full time student file taxes Meals. Can a full time student file taxes Moving expense reimbursements. Can a full time student file taxes No-additional-cost services. Can a full time student file taxes Transportation (commuting) benefits. Can a full time student file taxes Tuition reduction. Can a full time student file taxes Working condition benefits. Can a full time student file taxes It also cannot include scholarships or fellowships (discussed in Publication 970, Tax Benefits for Education). Can a full time student file taxes $2,500 limit on a health flexible spending arrangement (FSA). Can a full time student file taxes   For plan years beginning after December 31, 2012, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,500. Can a full time student file taxes For plan years beginning after December 31, 2013, the limit is unchanged at $2,500. Can a full time student file taxes   A cafeteria plan offering a health FSA must be amended to specify the $2,500 limit (or any lower limit set by the employer). Can a full time student file taxes While cafeteria plans generally must be amended on a prospective basis, an amendment that is adopted on or before December 31, 2014, may be made effective retroactively, provided that in operation the cafeteria plan meets the limit for plan years beginning after December 31, 2012. Can a full time student file taxes A cafeteria plan that does not limit health FSA contributions to the dollar limit is not a cafeteria plan and all benefits offered under the plan are includible in the employee's gross income. Can a full time student file taxes   For more information, see Notice 2012-40, 2012-26 I. Can a full time student file taxes R. Can a full time student file taxes B. Can a full time student file taxes 1046, available at www. Can a full time student file taxes irs. Can a full time student file taxes gov/irb/2012-26_IRB/ar09. Can a full time student file taxes html. Can a full time student file taxes Employee. Can a full time student file taxes   For these plans, treat the following individuals as employees. Can a full time student file taxes A current common-law employee. Can a full time student file taxes See section 2 in Publication 15 (Circular E) for more information. Can a full time student file taxes A full-time life insurance agent who is a current statutory employee. Can a full time student file taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Can a full time student file taxes Exception for S corporation shareholders. Can a full time student file taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Can a full time student file taxes A 2% shareholder for this purpose is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Can a full time student file taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Can a full time student file taxes Plans that favor highly compensated employees. Can a full time student file taxes   If your plan favors highly compensated employees as to eligibility to participate, contributions, or benefits, you must include in their wages the value of taxable benefits they could have selected. Can a full time student file taxes A plan you maintain under a collective bargaining agreement does not favor highly compensated employees. Can a full time student file taxes   A highly compensated employee for this purpose is any of the following employees. Can a full time student file taxes An officer. Can a full time student file taxes A shareholder who owns more than 5% of the voting power or value of all classes of the employer's stock. Can a full time student file taxes An employee who is highly compensated based on the facts and circumstances. Can a full time student file taxes A spouse or dependent of a person described in (1), (2), or (3). Can a full time student file taxes Plans that favor key employees. Can a full time student file taxes   If your plan favors key employees, you must include in their wages the value of taxable benefits they could have selected. Can a full time student file taxes A plan favors key employees if more than 25% of the total of the nontaxable benefits you provide for all employees under the plan go to key employees. Can a full time student file taxes However, a plan you maintain under a collective bargaining agreement does not favor key employees. Can a full time student file taxes   A key employee during 2014 is generally an employee who is either of the following. Can a full time student file taxes An officer having annual pay of more than $170,000. Can a full time student file taxes An employee who for 2014 is either of the following. Can a full time student file taxes A 5% owner of your business. Can a full time student file taxes A 1% owner of your business whose annual pay was more than $150,000. Can a full time student file taxes Simple Cafeteria Plans Eligible employers meeting contribution requirements and eligibility and participation requirements can establish a simple cafeteria plan. Can a full time student file taxes Simple cafeteria plans are treated as meeting the nondiscrimination requirements of a cafeteria plan and certain benefits under a cafeteria plan. Can a full time student file taxes Eligible employer. Can a full time student file taxes   You are an eligible employer if you employ an average of 100 or fewer employees during either of the 2 preceding years. Can a full time student file taxes If your business was not in existence throughout the preceding year, you are eligible if you reasonably expect to employ an average of 100 or fewer employees in the current year. Can a full time student file taxes If you establish a simple cafeteria plan in a year that you employ an average of 100 or fewer employees, you are considered an eligible employer for any subsequent year as long as you do not employ an average of 200 or more employees in a subsequent year. Can a full time student file taxes Eligibility and participation requirements. Can a full time student file taxes   These requirements are met if all employees who had at least 1,000 hours of service for the preceding plan year are eligible to participate and each employee eligible to participate in the plan may elect any benefit available under the plan. Can a full time student file taxes You may elect to exclude from the plan employees who: Are under age 21 before the close of the plan year, Have less than 1 year of service with you as of any day during the plan year, Are covered under a collective bargaining agreement, or Are nonresident aliens working outside the United States whose income did not come from a U. Can a full time student file taxes S. Can a full time student file taxes source. Can a full time student file taxes Contribution requirements. Can a full time student file taxes   You must make a contribution to provide qualified benefits on behalf of each qualified employee in an amount equal to: A uniform percentage (not less than 2%) of the employee’s compensation for the plan year, or An amount which is at least 6% of the employee’s compensation for the plan year or twice the amount of the salary reduction contributions of each qualified employee, whichever is less. Can a full time student file taxes If the contribution requirements are met using option (2), the rate of contribution to any salary reduction contribution of a highly compensated or key employee can not be greater than the rate of contribution to any other employee. Can a full time student file taxes More information. Can a full time student file taxes   For more information about cafeteria plans, see section 125 of the Internal Revenue Code and its regulations. Can a full time student file taxes 2. Can a full time student file taxes Fringe Benefit Exclusion Rules This section discusses the exclusion rules that apply to fringe benefits. Can a full time student file taxes These rules exclude all or part of the value of certain benefits from the recipient's pay. Can a full time student file taxes The excluded benefits are not subject to federal income tax withholding. Can a full time student file taxes Also, in most cases, they are not subject to social security, Medicare, or federal unemployment (FUTA) tax and are not reported on Form W-2. Can a full time student file taxes This section discusses the exclusion rules for the following fringe benefits. Can a full time student file taxes Accident and health benefits. Can a full time student file taxes Achievement awards. Can a full time student file taxes Adoption assistance. Can a full time student file taxes Athletic facilities. Can a full time student file taxes De minimis (minimal) benefits. Can a full time student file taxes Dependent care assistance. Can a full time student file taxes Educational assistance. Can a full time student file taxes Employee discounts. Can a full time student file taxes Employee stock options. Can a full time student file taxes Employer-provided cell phones. Can a full time student file taxes Group-term life insurance coverage. Can a full time student file taxes Health savings accounts (HSAs). Can a full time student file taxes Lodging on your business premises. Can a full time student file taxes Meals. Can a full time student file taxes Moving expense reimbursements. Can a full time student file taxes No-additional-cost services. Can a full time student file taxes Retirement planning services. Can a full time student file taxes Transportation (commuting) benefits. Can a full time student file taxes Tuition reduction. Can a full time student file taxes Working condition benefits. Can a full time student file taxes See Table 2-1, later, for an overview of the employment tax treatment of these benefits. Can a full time student file taxes Table 2-1. Can a full time student file taxes Special Rules for Various Types of Fringe Benefits (For more information, see the full discussion in this section. Can a full time student file taxes ) Treatment Under Employment Taxes Type of Fringe Benefit Income Tax Withholding Social Security and Medicare (including Additional Medicare Tax when wages are paid in excess of $200,000) Federal Unemployment (FUTA) Accident and health benefits Exempt1,2, except for long-term care benefits provided through a flexible spending or similar arrangement. Can a full time student file taxes Exempt, except for certain payments to S corporation employees who are 2% shareholders. Can a full time student file taxes Exempt Achievement awards Exempt1 up to $1,600 for qualified plan awards ($400 for nonqualified awards). Can a full time student file taxes Adoption assistance Exempt1,3 Taxable Taxable Athletic facilities Exempt if substantially all use during the calendar year is by employees, their spouses, and their dependent children and the facility is operated by the employer on premises owned or leased by the employer. Can a full time student file taxes De minimis (minimal) benefits Exempt Exempt Exempt Dependent care assistance Exempt3 up to certain limits, $5,000 ($2,500 for married employee filing separate return). Can a full time student file taxes Educational assistance Exempt up to $5,250 of benefits each year. Can a full time student file taxes (See Educational Assistance , later in this section. Can a full time student file taxes ) Employee discounts Exempt3 up to certain limits. Can a full time student file taxes (See Employee Discounts , later in this section. Can a full time student file taxes ) Employee stock options See Employee Stock Options , later in this section. Can a full time student file taxes Employer-provided cell phones Exempt if provided primarily for noncompensatory business purposes. Can a full time student file taxes Group-term life insurance coverage Exempt Exempt1,4, 7 up to cost of $50,000 of coverage. Can a full time student file taxes (Special rules apply to former employees. Can a full time student file taxes ) Exempt Health savings accounts (HSAs) Exempt for qualified individuals up to the HSA contribution limits. Can a full time student file taxes (See Health Savings Accounts , later in this section. Can a full time student file taxes ) Lodging on your business premises Exempt1 if furnished for your convenience as a condition of employment. Can a full time student file taxes Meals Exempt if furnished on your business premises for your convenience. Can a full time student file taxes Exempt if de minimis. Can a full time student file taxes Moving expense reimbursements Exempt1 if expenses would be deductible if the employee had paid them. Can a full time student file taxes No-additional-cost services Exempt3 Exempt3 Exempt3 Retirement planning services Exempt5 Exempt5 Exempt5 Transportation (commuting) benefits Exempt1 up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($130), qualified parking ($250), or qualified bicycle commuting reimbursement6 ($20). Can a full time student file taxes (See Transportation (Commuting) Benefits , later in this section. Can a full time student file taxes ) Exempt if de minimis. Can a full time student file taxes Tuition reduction Exempt3 if for undergraduate education (or graduate education if the employee performs teaching or research activities). Can a full time student file taxes Working condition benefits Exempt Exempt Exempt 1 Exemption does not apply to S corporation employees who are 2% shareholders. Can a full time student file taxes 2 Exemption does not apply to certain highly compensated employees under a self-insured plan that favors those employees. Can a full time student file taxes 3 Exemption does not apply to certain highly compensated employees under a program that favors those employees. Can a full time student file taxes 4 Exemption does not apply to certain key employees under a plan that favors those employees. Can a full time student file taxes 5 Exemption does not apply to services for tax preparation, accounting, legal, or brokerage services. Can a full time student file taxes 6 If the employee receives a qualified bicycle commuting reimbursement in a qualified bicycle commuting month, the employee cannot receive commuter highway vehicle, transit pass, or qualified parking benefits in that same month. Can a full time student file taxes 7 You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Can a full time student file taxes Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Can a full time student file taxes Also, show it in box 12 with code “C. Can a full time student file taxes ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Can a full time student file taxes Accident and Health Benefits This exclusion applies to contributions you make to an accident or health plan for an employee, including the following. Can a full time student file taxes Contributions to the cost of accident or health insurance including qualified long-term care insurance. Can a full time student file taxes Contributions to a separate trust or fund that directly or through insurance provides accident or health benefits. Can a full time student file taxes Contributions to Archer MSAs or health savings accounts (discussed in Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans). Can a full time student file taxes This exclusion also applies to payments you directly or indirectly make to an employee under an accident or health plan for employees that are either of the following. Can a full time student file taxes Payments or reimbursements of medical expenses. Can a full time student file taxes Payments for specific injuries or illnesses (such as the loss of the use of an arm or leg). Can a full time student file taxes The payments must be figured without regard to any period of absence from work. Can a full time student file taxes Accident or health plan. Can a full time student file taxes   This is an arrangement that provides benefits for your employees, their spouses, their dependents, and their children (under age 27) in the event of personal injury or sickness. Can a full time student file taxes The plan may be insured or noninsured and does not need to be in writing. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat the following individuals as employees. Can a full time student file taxes A current common-law employee. Can a full time student file taxes A full-time life insurance agent who is a current statutory employee. Can a full time student file taxes A retired employee. Can a full time student file taxes A former employee you maintain coverage for based on the employment relationship. Can a full time student file taxes A widow or widower of an individual who died while an employee. Can a full time student file taxes A widow or widower of a retired employee. Can a full time student file taxes For the exclusion of contributions to an accident or health plan, a leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Can a full time student file taxes Special rule for certain government plans. Can a full time student file taxes   For certain government accident and health plans, payments to a deceased plan participant's beneficiary may qualify for the exclusion from gross income if the other requirements for exclusion are met. Can a full time student file taxes See section 105(j) for details. Can a full time student file taxes Exception for S corporation shareholders. Can a full time student file taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Can a full time student file taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Can a full time student file taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Can a full time student file taxes Exclusion from wages. Can a full time student file taxes   You can generally exclude the value of accident or health benefits you provide to an employee from the employee's wages. Can a full time student file taxes Exception for certain long-term care benefits. Can a full time student file taxes   You cannot exclude contributions to the cost of long-term care insurance from an employee's wages subject to federal income tax withholding if the coverage is provided through a flexible spending or similar arrangement. Can a full time student file taxes This is a benefit program that reimburses specified expenses up to a maximum amount that is reasonably available to the employee and is less than five times the total cost of the insurance. Can a full time student file taxes However, you can exclude these contributions from the employee's wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Can a full time student file taxes S corporation shareholders. Can a full time student file taxes   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the value of accident or health benefits you provide to the employee in the employee's wages subject to federal income tax withholding. Can a full time student file taxes However, you can exclude the value of these benefits (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Can a full time student file taxes Exception for highly compensated employees. Can a full time student file taxes   If your plan is a self-insured medical reimbursement plan that favors highly compensated employees, you must include all or part of the amounts you pay to these employees in their wages subject to federal income tax withholding. Can a full time student file taxes However, you can exclude these amounts (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Can a full time student file taxes   A self-insured plan is a plan that reimburses your employees for medical expenses not covered by an accident or health insurance policy. Can a full time student file taxes   A highly compensated employee for this exception is any of the following individuals. Can a full time student file taxes One of the five highest paid officers. Can a full time student file taxes An employee who owns (directly or indirectly) more than 10% in value of the employer's stock. Can a full time student file taxes An employee who is among the highest paid 25% of all employees (other than those who can be excluded from the plan). Can a full time student file taxes   For more information on this exception, see section 105(h) of the Internal Revenue Code and its regulations. Can a full time student file taxes COBRA premiums. Can a full time student file taxes   The exclusion for accident and health benefits applies to amounts you pay to maintain medical coverage for a current or former employee under the Combined Omnibus Budget Reconciliation Act of 1986 (COBRA). Can a full time student file taxes The exclusion applies regardless of the length of employment, whether you directly pay the premiums or reimburse the former employee for premiums paid, and whether the employee's separation is permanent or temporary. Can a full time student file taxes Achievement Awards This exclusion applies to the value of any tangible personal property you give to an employee as an award for either length of service or safety achievement. Can a full time student file taxes The exclusion does not apply to awards of cash, cash equivalents, gift certificates, or other intangible property such as vacations, meals, lodging, tickets to theater or sporting events, stocks, bonds, and other securities. Can a full time student file taxes The award must meet the requirements for employee achievement awards discussed in chapter 2 of Publication 535, Business Expenses. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat the following individuals as employees. Can a full time student file taxes A current employee. Can a full time student file taxes A former common-law employee you maintain coverage for in consideration of or based on an agreement relating to prior service as an employee. Can a full time student file taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Can a full time student file taxes Exception for S corporation shareholders. Can a full time student file taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Can a full time student file taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Can a full time student file taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Can a full time student file taxes Exclusion from wages. Can a full time student file taxes   You can generally exclude the value of achievement awards you give to an employee from the employee's wages if their cost is not more than the amount you can deduct as a business expense for the year. Can a full time student file taxes The excludable annual amount is $1,600 ($400 for awards that are not “qualified plan awards”). Can a full time student file taxes See chapter 2 of Publication 535 for more information about the limit on deductions for employee achievement awards. Can a full time student file taxes    To determine for 2014 whether an achievement award is a “qualified plan award” under the deduction rules described in Publication 535, treat any employee who received more than $115,000 in pay for 2013 as a highly compensated employee. Can a full time student file taxes   If the cost of awards given to an employee is more than your allowable deduction, include in the employee's wages the larger of the following amounts. Can a full time student file taxes The part of the cost that is more than your allowable deduction (up to the value of the awards). Can a full time student file taxes The amount by which the value of the awards exceeds your allowable deduction. Can a full time student file taxes Exclude the remaining value of the awards from the employee's wages. Can a full time student file taxes Adoption Assistance An adoption assistance program is a separate written plan of an employer that meets all of the following requirements. Can a full time student file taxes It benefits employees who qualify under rules set up by you, which do not favor highly compensated employees or their dependents. Can a full time student file taxes To determine whether your plan meets this test, do not consider employees excluded from your plan who are covered by a collective bargaining agreement, if there is evidence that adoption assistance was a subject of good-faith bargaining. Can a full time student file taxes It does not pay more than 5% of its payments during the year for shareholders or owners (or their spouses or dependents). Can a full time student file taxes A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Can a full time student file taxes You give reasonable notice of the plan to eligible employees. Can a full time student file taxes Employees provide reasonable substantiation that payments or reimbursements are for qualifying expenses. Can a full time student file taxes For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Can a full time student file taxes The employee was a 5% owner at any time during the year or the preceding year. Can a full time student file taxes The employee received more than $115,000 in pay for the preceding year. Can a full time student file taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Can a full time student file taxes You must exclude all payments or reimbursements you make under an adoption assistance program for an employee's qualified adoption expenses from the employee's wages subject to federal income tax withholding. Can a full time student file taxes However, you cannot exclude these payments from wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Can a full time student file taxes For more information, see the Instructions for Form 8839, Qualified Adoption Expenses. Can a full time student file taxes You must report all qualifying adoption expenses you paid or reimbursed under your adoption assistance program for each employee for the year in box 12 of the employee's Form W-2. Can a full time student file taxes Use code “T” to identify this amount. Can a full time student file taxes Exception for S corporation shareholders. Can a full time student file taxes   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Can a full time student file taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Can a full time student file taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, including using the benefit as a reduction in distributions to the 2% shareholder. Can a full time student file taxes Athletic Facilities You can exclude the value of an employee's use of an on-premises gym or other athletic facility you operate from an employee's wages if substantially all use of the facility during the calendar year is by your employees, their spouses, and their dependent children. Can a full time student file taxes For this purpose, an employee's dependent child is a child or stepchild who is the employee's dependent or who, if both parents are deceased, has not attained the age of 25. Can a full time student file taxes On-premises facility. Can a full time student file taxes   The athletic facility must be located on premises you own or lease. Can a full time student file taxes It does not have to be located on your business premises. Can a full time student file taxes However, the exclusion does not apply to an athletic facility for residential use, such as athletic facilities that are part of a resort. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat the following individuals as employees. Can a full time student file taxes A current employee. Can a full time student file taxes A former employee who retired or left on disability. Can a full time student file taxes A widow or widower of an individual who died while an employee. Can a full time student file taxes A widow or widower of a former employee who retired or left on disability. Can a full time student file taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Can a full time student file taxes A partner who performs services for a partnership. Can a full time student file taxes De Minimis (Minimal) Benefits You can exclude the value of a de minimis benefit you provide to an employee from the employee's wages. Can a full time student file taxes A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable. Can a full time student file taxes Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare. Can a full time student file taxes Examples of de minimis benefits include the following. Can a full time student file taxes Personal use of an employer-provided cell phone provided primarily for noncompensatory business purposes. Can a full time student file taxes See Employer-Provided Cell Phones , later in this section, for details. Can a full time student file taxes Occasional personal use of a company copying machine if you sufficiently control its use so that at least 85% of its use is for business purposes. Can a full time student file taxes Holiday gifts, other than cash, with a low fair market value. Can a full time student file taxes Group-term life insurance payable on the death of an employee's spouse or dependent if the face amount is not more than $2,000. Can a full time student file taxes Meals. Can a full time student file taxes See Meals , later in this section, for details. Can a full time student file taxes Occasional parties or picnics for employees and their guests. Can a full time student file taxes Occasional tickets for theater or sporting events. Can a full time student file taxes Transportation fare. Can a full time student file taxes See Transportation (Commuting) Benefits , later in this section, for details. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat any recipient of a de minimis benefit as an employee. Can a full time student file taxes Dependent Care Assistance This exclusion applies to household and dependent care services you directly or indirectly pay for or provide to an employee under a dependent care assistance program that covers only your employees. Can a full time student file taxes The services must be for a qualifying person's care and must be provided to allow the employee to work. Can a full time student file taxes These requirements are basically the same as the tests the employee would have to meet to claim the dependent care credit if the employee paid for the services. Can a full time student file taxes For more information, see Qualifying Person Test and Work-Related Expense Test in Publication 503, Child and Dependent Care Expenses. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat the following individuals as employees. Can a full time student file taxes A current employee. Can a full time student file taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Can a full time student file taxes Yourself (if you are a sole proprietor). Can a full time student file taxes A partner who performs services for a partnership. Can a full time student file taxes Exclusion from wages. Can a full time student file taxes   You can exclude the value of benefits you provide to an employee under a dependent care assistance program from the employee's wages if you reasonably believe that the employee can exclude the benefits from gross income. Can a full time student file taxes   An employee can generally exclude from gross income up to $5,000 of benefits received under a dependent care assistance program each year. Can a full time student file taxes This limit is reduced to $2,500 for married employees filing separate returns. Can a full time student file taxes   However, the exclusion cannot be more than the smaller of the earned income of either the employee or employee's spouse. Can a full time student file taxes Special rules apply to determine the earned income of a spouse who is either a student or not able to care for himself or herself. Can a full time student file taxes For more information on the earned income limit, see Publication 503. Can a full time student file taxes Exception for highly compensated employees. Can a full time student file taxes   You cannot exclude dependent care assistance from the wages of a highly compensated employee unless the benefits provided under the program do not favor highly compensated employees and the program meets the requirements described in section 129(d) of the Internal Revenue Code. Can a full time student file taxes   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Can a full time student file taxes The employee was a 5% owner at any time during the year or the preceding year. Can a full time student file taxes The employee received more than $115,000 in pay for the preceding year. Can a full time student file taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Can a full time student file taxes Form W-2. Can a full time student file taxes   Report the value of all dependent care assistance you provide to an employee under a dependent care assistance program in box 10 of the employee's Form W-2. Can a full time student file taxes Include any amounts you cannot exclude from the employee's wages in boxes 1, 3, and 5. Can a full time student file taxes Report both the nontaxable portion of assistance (up to $5,000) and any assistance above the amount that is non-taxable to the employee. Can a full time student file taxes Example. Can a full time student file taxes   Company A provides a dependent care assistance flexible spending arrangement to its employees through a cafeteria plan. Can a full time student file taxes In addition, it provides occasional on-site dependent care to its employees at no cost. Can a full time student file taxes Emily, an employee of company A, had $4,500 deducted from her pay for the dependent care flexible spending arrangement. Can a full time student file taxes In addition, Emily used the on-site dependent care several times. Can a full time student file taxes The fair market value of the on-site care was $700. Can a full time student file taxes Emily's Form W-2 should report $5,200 of dependent care assistance in box 10 ($4,500 flexible spending arrangement plus $700 on-site dependent care). Can a full time student file taxes Boxes 1, 3, and 5 should include $200 (the amount in excess of the nontaxable assistance), and applicable taxes should be withheld on that amount. Can a full time student file taxes Educational Assistance This exclusion applies to educational assistance you provide to employees under an educational assistance program. Can a full time student file taxes The exclusion also applies to graduate level courses. Can a full time student file taxes Educational assistance means amounts you pay or incur for your employees' education expenses. Can a full time student file taxes These expenses generally include the cost of books, equipment, fees, supplies, and tuition. Can a full time student file taxes However, these expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education: Has a reasonable relationship to your business, or Is required as part of a degree program. Can a full time student file taxes Education expenses do not include the cost of tools or supplies (other than textbooks) your employee is allowed to keep at the end of the course. Can a full time student file taxes Nor do they include the cost of lodging, meals, or transportation. Can a full time student file taxes Educational assistance program. Can a full time student file taxes   An educational assistance program is a separate written plan that provides educational assistance only to your employees. Can a full time student file taxes The program qualifies only if all of the following tests are met. Can a full time student file taxes The program benefits employees who qualify under rules set up by you that do not favor highly compensated employees. Can a full time student file taxes To determine whether your program meets this test, do not consider employees excluded from your program who are covered by a collective bargaining agreement if there is evidence that educational assistance was a subject of good-faith bargaining. Can a full time student file taxes The program does not provide more than 5% of its benefits during the year for shareholders or owners. Can a full time student file taxes A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Can a full time student file taxes The program does not allow employees to choose to receive cash or other benefits that must be included in gross income instead of educational assistance. Can a full time student file taxes You give reasonable notice of the program to eligible employees. Can a full time student file taxes Your program can cover former employees if their employment is the reason for the coverage. Can a full time student file taxes   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Can a full time student file taxes The employee was a 5% owner at any time during the year or the preceding year. Can a full time student file taxes The employee received more than $115,000 in pay for the preceding year. Can a full time student file taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat the following individuals as employees. Can a full time student file taxes A current employee. Can a full time student file taxes A former employee who retired, left on disability, or was laid off. Can a full time student file taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Can a full time student file taxes Yourself (if you are a sole proprietor). Can a full time student file taxes A partner who performs services for a partnership. Can a full time student file taxes Exclusion from wages. Can a full time student file taxes   You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year. Can a full time student file taxes Assistance over $5,250. Can a full time student file taxes   If you do not have an educational assistance plan, or you provide an employee with assistance exceeding $5,250, you must include the value of these benefits as wages, unless the benefits are working condition benefits. Can a full time student file taxes Working condition benefits may be excluded from wages. Can a full time student file taxes Property or a service provided is a working condition benefit to the extent that if the employee paid for it, the amount paid would have been deductible as a business or depreciation expense. Can a full time student file taxes See Working Condition Benefits , later, in this section. Can a full time student file taxes Employee Discounts This exclusion applies to a price reduction you give an employee on property or services you offer to customers in the ordinary course of the line of business in which the employee performs substantial services. Can a full time student file taxes However, it does not apply to discounts on real property or discounts on personal property of a kind commonly held for investment (such as stocks or bonds). Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat the following individuals as employees. Can a full time student file taxes A current employee. Can a full time student file taxes A former employee who retired or left on disability. Can a full time student file taxes A widow or widower of an individual who died while an employee. Can a full time student file taxes A widow or widower of an employee who retired or left on disability. Can a full time student file taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Can a full time student file taxes A partner who performs services for a partnership. Can a full time student file taxes Exclusion from wages. Can a full time student file taxes   You can generally exclude the value of an employee discount you provide an employee from the employee's wages, up to the following limits. Can a full time student file taxes For a discount on services, 20% of the price you charge nonemployee customers for the service. Can a full time student file taxes For a discount on merchandise or other property, your gross profit percentage times the price you charge nonemployee customers for the property. Can a full time student file taxes   Determine your gross profit percentage in the line of business based on all property you offer to customers (including employee customers) and your experience during the tax year immediately before the tax year in which the discount is available. Can a full time student file taxes To figure your gross profit percentage, subtract the total cost of the property from the total sales price of the property and divide the result by the total sales price of the property. Can a full time student file taxes Exception for highly compensated employees. Can a full time student file taxes   You cannot exclude from the wages of a highly compensated employee any part of the value of a discount that is not available on the same terms to one of the following groups. Can a full time student file taxes All of your employees. Can a full time student file taxes A group of employees defined under a reasonable classification you set up that does not favor highly compensated employees. Can a full time student file taxes   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Can a full time student file taxes The employee was a 5% owner at any time during the year or the preceding year. Can a full time student file taxes The employee received more than $115,000 in pay for the preceding year. Can a full time student file taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Can a full time student file taxes Employee Stock Options There are three kinds of stock options—incentive stock options, employee stock purchase plan options, and nonstatutory (nonqualified) stock options. Can a full time student file taxes Wages for social security, Medicare, and federal unemployment (FUTA) taxes do not include remuneration resulting from the exercise, after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or from any disposition of stock acquired by exercising such an option. Can a full time student file taxes The IRS will not apply these taxes to an exercise before October 23, 2004, of an incentive stock option or an employee stock purchase plan option or to a disposition of stock acquired by such exercise. Can a full time student file taxes Additionally, federal income tax withholding is not required on the income resulting from a disqualifying disposition of stock acquired by the exercise after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or on income equal to the discount portion of stock acquired by the exercise, after October 22, 2004, of an employee stock purchase plan option resulting from any disposition of the stock. Can a full time student file taxes The IRS will not apply federal income tax withholding upon the disposition of stock acquired by the exercise, before October 23, 2004, of an incentive stock option or an employee stock purchase plan option. Can a full time student file taxes However, the employer must report as income in box 1 of Form W-2, (a) the discount portion of stock acquired by the exercise of an employee stock purchase plan option upon disposition of the stock, and (b) the spread (between the exercise price and the fair market value of the stock at the time of exercise) upon a disqualifying disposition of stock acquired by the exercise of an incentive stock option or an employee stock purchase plan option. Can a full time student file taxes An employer must report the excess of the fair market value of stock received upon exercise of a nonstatutory stock option over the amount paid for the stock option on Form W-2 in boxes 1, 3 (up to the social security wage base), 5, and in box 12 using the code “V. Can a full time student file taxes ” See Regulations section 1. Can a full time student file taxes 83-7. Can a full time student file taxes An employee who transfers his or her interest in nonstatutory stock options to the employee's former spouse incident to a divorce is not required to include an amount in gross income upon the transfer. Can a full time student file taxes The former spouse, rather than the employee, is required to include an amount in gross income when the former spouse exercises the stock options. Can a full time student file taxes See Revenue Ruling 2002-22 and Revenue Ruling 2004-60 for details. Can a full time student file taxes You can find Revenue Ruling 2002-22 on page 849 of Internal Revenue Bulletin 2002-19 at www. Can a full time student file taxes irs. Can a full time student file taxes gov/pub/irs-irbs/irb02-19. Can a full time student file taxes pdf. Can a full time student file taxes See Revenue Ruling 2004-60, 2004-24 I. Can a full time student file taxes R. Can a full time student file taxes B. Can a full time student file taxes 1051, available at www. Can a full time student file taxes irs. Can a full time student file taxes gov/irb/2004-24_IRB/ar13. Can a full time student file taxes html. Can a full time student file taxes For more information about employee stock options, see sections 421, 422, and 423 of the Internal Revenue Code and their related regulations. Can a full time student file taxes Employer-Provided Cell Phones The value of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a working condition fringe benefit. Can a full time student file taxes Personal use of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a de minimis fringe benefit. Can a full time student file taxes For the rules relating to these types of benefits, see De Minimis (Minimal) Benefits , earlier in this section, and Working Condition Benefits , later in this section. Can a full time student file taxes Noncompensatory business purposes. Can a full time student file taxes   You provide a cell phone primarily for noncompensatory business purposes if there are substantial business reasons for providing the cell phone. Can a full time student file taxes Examples of substantial business reasons include the employer's: Need to contact the employee at all times for work-related emergencies, Requirement that the employee be available to speak with clients at times when the employee is away from the office, and Need to speak with clients located in other time zones at times outside the employee's normal workday. Can a full time student file taxes Cell phones provided to promote goodwill, boost morale, or attract prospective employees. Can a full time student file taxes   You cannot exclude from an employee's wages the value of a cell phone provided to promote goodwill of an employee, to attract a prospective employee, or as a means of providing additional compensation to an employee. Can a full time student file taxes Additional information. Can a full time student file taxes   For additional information on the tax treatment of employer-provided cell phones, see Notice 2011-72, 2011-38 I. Can a full time student file taxes R. Can a full time student file taxes B. Can a full time student file taxes 407, available at  www. Can a full time student file taxes irs. Can a full time student file taxes gov/irb/2011-38_IRB/ar07. Can a full time student file taxes html. Can a full time student file taxes Group-Term Life Insurance Coverage This exclusion applies to life insurance coverage that meets all the following conditions. Can a full time student file taxes It provides a general death benefit that is not included in income. Can a full time student file taxes You provide it to a group of employees. Can a full time student file taxes See The 10-employee rule , later. Can a full time student file taxes It provides an amount of insurance to each employee based on a formula that prevents individual selection. Can a full time student file taxes This formula must use factors such as the employee's age, years of service, pay, or position. Can a full time student file taxes You provide it under a policy you directly or indirectly carry. Can a full time student file taxes Even if you do not pay any of the policy's cost, you are considered to carry it if you arrange for payment of its cost by your employees and charge at least one employee less than, and at least one other employee more than, the cost of his or her insurance. Can a full time student file taxes Determine the cost of the insurance, for this purpose, as explained under Coverage over the limit , later. Can a full time student file taxes Group-term life insurance does not include the following insurance. Can a full time student file taxes Insurance that does not provide general death benefits, such as travel insurance or a policy providing only accidental death benefits. Can a full time student file taxes Life insurance on the life of your employee's spouse or dependent. Can a full time student file taxes However, you may be able to exclude the cost of this insurance from the employee's wages as a de minimis benefit. Can a full time student file taxes See De Minimis (Minimal) Benefits , earlier in this section. Can a full time student file taxes Insurance provided under a policy that provides a permanent benefit (an economic value that extends beyond 1 policy year, such as paid-up or cash surrender value), unless certain requirements are met. Can a full time student file taxes See Regulations section 1. Can a full time student file taxes 79-1 for details. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat the following individuals as employees. Can a full time student file taxes A current common-law employee. Can a full time student file taxes A full-time life insurance agent who is a current statutory employee. Can a full time student file taxes An individual who was formerly your employee under (1) or (2). Can a full time student file taxes A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction and control. Can a full time student file taxes Exception for S corporation shareholders. Can a full time student file taxes   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Can a full time student file taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Can a full time student file taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Can a full time student file taxes The 10-employee rule. Can a full time student file taxes   Generally, life insurance is not group-term life insurance unless you provide it to at least 10 full-time employees at some time during the year. Can a full time student file taxes   For this rule, count employees who choose not to receive the insurance unless, to receive it, they must contribute to the cost of benefits other than the group-term life insurance. Can a full time student file taxes For example, count an employee who could receive insurance by paying part of the cost, even if that employee chooses not to receive it. Can a full time student file taxes However, do not count an employee who must pay part or all of the cost of permanent benefits to get insurance, unless that employee chooses to receive it. Can a full time student file taxes A permanent benefit is an economic value extending beyond one policy year (for example, a paid-up or cash-surrender value) that is provided under a life insurance policy. Can a full time student file taxes Exceptions. Can a full time student file taxes   Even if you do not meet the 10-employee rule, two exceptions allow you to treat insurance as group-term life insurance. Can a full time student file taxes   Under the first exception, you do not have to meet the 10-employee rule if all the following conditions are met. Can a full time student file taxes If evidence that the employee is insurable is required, it is limited to a medical questionnaire (completed by the employee) that does not require a physical. Can a full time student file taxes You provide the insurance to all your full-time employees or, if the insurer requires the evidence mentioned in (1), to all full-time employees who provide evidence the insurer accepts. Can a full time student file taxes You figure the coverage based on either a uniform percentage of pay or the insurer's coverage brackets that meet certain requirements. Can a full time student file taxes See Regulations section 1. Can a full time student file taxes 79-1 for details. Can a full time student file taxes   Under the second exception, you do not have to meet the 10-employee rule if all the following conditions are met. Can a full time student file taxes You provide the insurance under a common plan covering your employees and the employees of at least one other employer who is not related to you. Can a full time student file taxes The insurance is restricted to, but mandatory for, all your employees who belong to, or are represented by, an organization (such as a union) that carries on substantial activities besides obtaining insurance. Can a full time student file taxes Evidence of whether an employee is insurable does not affect an employee's eligibility for insurance or the amount of insurance that employee gets. Can a full time student file taxes   To apply either exception, do not consider employees who were denied insurance for any of the following reasons. Can a full time student file taxes They were 65 or older. Can a full time student file taxes They customarily work 20 hours or less a week or 5 months or less in a calendar year. Can a full time student file taxes They have not been employed for the waiting period given in the policy. Can a full time student file taxes This waiting period cannot be more than 6 months. Can a full time student file taxes Exclusion from wages. Can a full time student file taxes   You can generally exclude the cost of up to $50,000 of group-term life insurance from the wages of an insured employee. Can a full time student file taxes You can exclude the same amount from the employee's wages when figuring social security and Medicare taxes. Can a full time student file taxes In addition, you do not have to withhold federal income tax or pay FUTA tax on any group-term life insurance you provide to an employee. Can a full time student file taxes Coverage over the limit. Can a full time student file taxes   You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Can a full time student file taxes Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Can a full time student file taxes Also, show it in box 12 with code “C. Can a full time student file taxes ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Can a full time student file taxes   Figure the monthly cost of the insurance to include in the employee's wages by multiplying the number of thousands of dollars of all insurance coverage over $50,000 (figured to the nearest $100) by the cost shown in Table 2-2. Can a full time student file taxes For all coverage provided within the calendar year, use the employee's age on the last day of the employee's tax year. Can a full time student file taxes You must prorate the cost from the table if less than a full month of coverage is involved. Can a full time student file taxes Table 2-2. Can a full time student file taxes Cost Per $1,000 of Protection For 1 Month Age Cost Under 25 $ . Can a full time student file taxes 05 25 through 29 . Can a full time student file taxes 06 30 through 34 . Can a full time student file taxes 08 35 through 39 . Can a full time student file taxes 09 40 through 44 . Can a full time student file taxes 10 45 through 49 . Can a full time student file taxes 15 50 through 54 . Can a full time student file taxes 23 55 through 59 . Can a full time student file taxes 43 60 through 64 . Can a full time student file taxes 66 65 through 69 1. Can a full time student file taxes 27 70 and older 2. Can a full time student file taxes 06 You figure the total cost to include in the employee's wages by multiplying the monthly cost by the number of full months' coverage at that cost. Can a full time student file taxes Example. Can a full time student file taxes Tom's employer provides him with group-term life insurance coverage of $200,000. Can a full time student file taxes Tom is 45 years old, is not a key employee, and pays $100 per year toward the cost of the insurance. Can a full time student file taxes Tom's employer must include $170 in his wages. Can a full time student file taxes The $200,000 of insurance coverage is reduced by $50,000. Can a full time student file taxes The yearly cost of $150,000 of coverage is $270 ($. Can a full time student file taxes 15 x 150 x 12), and is reduced by the $100 Tom pays for the insurance. Can a full time student file taxes The employer includes $170 in boxes 1, 3, and 5 of Tom's Form W-2. Can a full time student file taxes The employer also enters $170 in box 12 with code “C. Can a full time student file taxes ” Coverage for dependents. Can a full time student file taxes   Group-term life insurance coverage paid by the employer for the spouse or dependents of an employee may be excludable from income as a de minimis fringe benefit if the face amount is not more than $2,000. Can a full time student file taxes If the face amount is greater than $2,000, the entire cost of the dependent coverage must be included in income unless the amount over $2,000 is purchased with employee contributions on an after-tax basis. Can a full time student file taxes The cost of the insurance is determined by using Table 2-2. Can a full time student file taxes Former employees. Can a full time student file taxes   When group-term life insurance over $50,000 is provided to an employee (including retirees) after his or her termination, the employee share of social security and Medicare taxes on that period of coverage is paid by the former employee with his or her tax return and is not collected by the employer. Can a full time student file taxes You are not required to collect those taxes. Can a full time student file taxes Use the table above to determine the amount of social security and Medicare taxes owed by the former employee for coverage provided after separation from service. Can a full time student file taxes Report those uncollected amounts separately in box 12 of Form W-2 using codes “M” and “N. Can a full time student file taxes ” See the General Instructions for Forms W-2 and W-3 and the Instructions for Form 941. Can a full time student file taxes Exception for key employees. Can a full time student file taxes   Generally, if your group-term life insurance plan favors key employees as to participation or benefits, you must include the entire cost of the insurance in your key employees' wages. Can a full time student file taxes This exception generally does not apply to church plans. Can a full time student file taxes When figuring social security and Medicare taxes, you must also include the entire cost in the employees' wages. Can a full time student file taxes Include the cost in boxes 1, 3, and 5 of Form W-2. Can a full time student file taxes However, you do not have to withhold federal income tax or pay FUTA tax on the cost of any group-term life insurance you provide to an employee. Can a full time student file taxes   For this purpose, the cost of the insurance is the greater of the following amounts. Can a full time student file taxes The premiums you pay for the employee's insurance. Can a full time student file taxes See Regulations section 1. Can a full time student file taxes 79-4T(Q&A 6) for more information. Can a full time student file taxes The cost you figure using Table 2-2. Can a full time student file taxes   For this exclusion, a key employee during 2014 is an employee or former employee who is one of the following individuals. Can a full time student file taxes See section 416(i) of the Internal Revenue Code for more information. Can a full time student file taxes An officer having annual pay of more than $170,000. Can a full time student file taxes An individual who for 2014 was either of the following. Can a full time student file taxes A 5% owner of your business. Can a full time student file taxes A 1% owner of your business whose annual pay was more than $150,000. Can a full time student file taxes   A former employee who was a key employee upon retirement or separation from service is also a key employee. Can a full time student file taxes   Your plan does not favor key employees as to participation if at least one of the following is true. Can a full time student file taxes It benefits at least 70% of your employees. Can a full time student file taxes At least 85% of the participating employees are not key employees. Can a full time student file taxes It benefits employees who qualify under a set of rules you set up that do not favor key employees. Can a full time student file taxes   Your plan meets this participation test if it is part of a cafeteria plan (discussed in section 1) and it meets the participation test for those plans. Can a full time student file taxes   When applying this test, do not consider employees who: Have not completed 3 years of service, Are part-time or seasonal, Are nonresident aliens who receive no U. Can a full time student file taxes S. Can a full time student file taxes source earned income from you, or Are not included in the plan but are in a unit of employees covered by a collective bargaining agreement, if the benefits provided under the plan were the subject of good-faith bargaining between you and employee representatives. Can a full time student file taxes   Your plan does not favor key employees as to benefits if all benefits available to participating key employees are also available to all other participating employees. Can a full time student file taxes Your plan does not favor key employees just because the amount of insurance you provide to your employees is uniformly related to their pay. Can a full time student file taxes S corporation shareholders. Can a full time student file taxes   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the cost of all group-term life insurance coverage you provide the 2% shareholder in his or her wages. Can a full time student file taxes When figuring social security and Medicare taxes, you must also include the cost of this coverage in the 2% shareholder's wages. Can a full time student file taxes Include the cost in boxes 1, 3, and 5 of Form W-2. Can a full time student file taxes However, you do not have to withhold federal income tax or pay federal unemployment tax on the cost of any group-term life insurance coverage you provide to the 2% shareholder. Can a full time student file taxes Health Savings Accounts A Health Savings Account (HSA) is an account owned by a qualified individual who is generally your employee or former employee. Can a full time student file taxes Any contributions that you make to an HSA become the employee's property and cannot be withdrawn by you. Can a full time student file taxes Contributions to the account are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent. Can a full time student file taxes The medical expenses must not be reimbursable by insurance or other sources and their payment from HSA funds (distribution) will not give rise to a medical expense deduction on the individual's federal income tax return. Can a full time student file taxes For more information about HSAs, visit the Department of Treasury's website at www. Can a full time student file taxes treasury. Can a full time student file taxes gov and enter “HSA” in the search box. Can a full time student file taxes Eligibility. Can a full time student file taxes   A qualified individual must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance except for permitted insurance listed under section 223(c)(3) or insurance for accidents, disability, dental care, vision care, or long-term care. Can a full time student file taxes For calendar year 2014, a qualifying HDHP must have a deductible of at least $1,250 for self-only coverage or $2,500 for family coverage and must limit annual out-of-pocket expenses of the beneficiary to $6,350 for self-only coverage and $12,700 for family coverage. Can a full time student file taxes   There are no income limits that restrict an individual's eligibility to contribute to an HSA nor is there a requirement that the account owner have earned income to make a contribution. Can a full time student file taxes Exceptions. Can a full time student file taxes   An individual is not a qualified individual if he or she can be claimed as a dependent on another person's tax return. Can a full time student file taxes Also, an employee's participation in a health flexible spending arrangement (FSA) or health reimbursement arrangement (HRA) generally disqualifies the individual (and employer) from making contributions to his or her HSA. Can a full time student file taxes However, an individual may qualify to participate in an HSA if he or she is participating in only a limited-purpose FSA or HRA or a post-deductible FSA. Can a full time student file taxes For more information, see Other employee health plans in Publication 969. Can a full time student file taxes Employer contributions. Can a full time student file taxes   Up to specified dollar limits, cash contributions to the HSA of a qualified individual (determined monthly) are exempt from federal income tax withholding, social security tax, Medicare tax, and FUTA tax. Can a full time student file taxes For 2014, you can contribute up to $3,300 for self-only coverage or $6,550 for family coverage to a qualified individual's HSA. Can a full time student file taxes   The contribution amounts listed above are increased by $1,000 for a qualified individual who is age 55 or older at any time during the year. Can a full time student file taxes For two qualified individuals who are married to each other and who each are age 55 or older at any time during the year, each spouse's contribution limit is increased by $1,000 provided each spouse has a separate HSA. Can a full time student file taxes No contributions can be made to an individual's HSA after he or she becomes enrolled in Medicare Part A or Part B. Can a full time student file taxes Nondiscrimination rules. Can a full time student file taxes    Your contribution amount to an employee's HSA must be comparable for all employees who have comparable coverage during the same period. Can a full time student file taxes Otherwise, there will be an excise tax equal to 35% of the amount you contributed to all employees' HSAs. Can a full time student file taxes   For guidance on employer comparable contributions to HSAs under section 4980G in instances where an employee has not established an HSA by December 31 and in instances where an employer accelerates contributions for the calendar year for employees who have incurred qualified medical expenses, see Regulations section 54. Can a full time student file taxes 4980G-4. Can a full time student file taxes Exception. Can a full time student file taxes   The Tax Relief and Health Care Act of 2006 allows employers to make larger HSA contributions for a nonhighly compensated employee than for a highly compensated employee. Can a full time student file taxes A highly compensated employee for 2014 is an employee who meets either of the following tests. Can a full time student file taxes The employee was a 5% owner at any time during the year or the preceding year. Can a full time student file taxes The employee received more than $115,000 in pay for the preceding year. Can a full time student file taxes You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Can a full time student file taxes Partnerships and S corporations. Can a full time student file taxes   Partners and 2% shareholders of an S corporation are not eligible for salary reduction (pre-tax) contributions to an HSA. Can a full time student file taxes Employer contributions to the HSA of a bona fide partner or 2% shareholder are treated as distributions or guaranteed payments as determined by the facts and circumstances. Can a full time student file taxes Cafeteria plans. Can a full time student file taxes   You may contribute to an employee's HSA using a cafeteria plan and your contributions are not subject to the statutory comparability rules. Can a full time student file taxes However, cafeteria plan nondiscrimination rules still apply. Can a full time student file taxes For example, contributions under a cafeteria plan to employee HSAs cannot be greater for higher-paid employees than they are for lower-paid employees. Can a full time student file taxes Contributions that favor lower-paid employees are not prohibited. Can a full time student file taxes Reporting requirements. Can a full time student file taxes   You must report your contributions to an employee's HSA in box 12 of Form W-2 using code “W. Can a full time student file taxes ” The trustee or custodian of the HSA, generally a bank or insurance company, reports distributions from the HSA using Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Can a full time student file taxes Lodging on Your Business Premises You can exclude the value of lodging you furnish to an employee from the employee's wages if it meets the following tests. Can a full time student file taxes It is furnished on your business premises. Can a full time student file taxes It is furnished for your convenience. Can a full time student file taxes The employee must accept it as a condition of employment. Can a full time student file taxes Different tests may apply to lodging furnished by educational institutions. Can a full time student file taxes See section 119(d) of the Internal Revenue Code for details. Can a full time student file taxes The exclusion does not apply if you allow your employee to choose to receive additional pay instead of lodging. Can a full time student file taxes On your business premises. Can a full time student file taxes   For this exclusion, your business premises is generally your employee's place of work. Can a full time student file taxes For special rules that apply to lodging furnished in a camp located in a foreign country, see section 119(c) of the Internal Revenue Code and its regulations. Can a full time student file taxes For your convenience. Can a full time student file taxes   Whether or not you furnish lodging for your convenience as an employer depends on all the facts and circumstances. Can a full time student file taxes You furnish the lodging to your employee for your convenience if you do this for a substantial business reason other than to provide the employee with additional pay. Can a full time student file taxes This is true even if a law or an employment contract provides that the lodging is furnished as pay. Can a full time student file taxes However, a written statement that the lodging is furnished for your convenience is not sufficient. Can a full time student file taxes Condition of employment. Can a full time student file taxes   Lodging meets this test if you require your employees to accept the lodging because they need to live on your business premises to be able to properly perform their duties. Can a full time student file taxes Examples include employees who must be available at all times and employees who could not perform their required duties without being furnished the lodging. Can a full time student file taxes   It does not matter whether you must furnish the lodging as pay under the terms of an employment contract or a law fixing the terms of employment. Can a full time student file taxes Example. Can a full time student file taxes A hospital gives Joan, an employee of the hospital, the choice of living at the hospital free of charge or living elsewhere and receiving a cash allowance in addition to her regular salary. Can a full time student file taxes If Joan chooses to live at the hospital, the hospital cannot exclude the value of the lodging from her wages because she is not required to live at the hospital to properly perform the duties of her employment. Can a full time student file taxes S corporation shareholders. Can a full time student file taxes   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Can a full time student file taxes A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Can a full time student file taxes Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Can a full time student file taxes Meals This section discusses the exclusion rules that apply to de minimis meals and meals on your business premises. Can a full time student file taxes De Minimis Meals You can exclude any occasional meal or meal money you provide to an employee if it has so little value (taking into account how frequently you provide meals to your employees) that accounting for it would be unreasonable or administratively impracticable. Can a full time student file taxes The exclusion applies, for example, to the following items. Can a full time student file taxes Coffee, doughnuts, or soft drinks. Can a full time student file taxes Occasional meals or meal money provided to enable an employee to work overtime. Can a full time student file taxes However, the exclusion does not apply to meal money figured on the basis of hours worked. Can a full time student file taxes Occasional parties or picnics for employees and their guests. Can a full time student file taxes This exclusion also applies to meals you provide at an employer-operated eating facility for employees if the annual revenue from the facility equals or exceeds the direct costs of the facility. Can a full time student file taxes For this purpose, your revenue from providing a meal is considered equal to the facility's direct operating costs to provide that meal if its value can be excluded from an employee's wages as explained under Meals on Your Business Premises , later. Can a full time student file taxes If food or beverages you furnish to employees qualify as a de minimis benefit, you can deduct their full cost. Can a full time student file taxes The 50% limit on deductions for the cost of meals does not apply. Can a full time student file taxes The deduction limit on meals is discussed in chapter 2 of Publication 535. Can a full time student file taxes Employee. Can a full time student file taxes   For this exclusion, treat any recipient of a de minimis meal as