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Ez Form 2011

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Ez Form 2011

Ez form 2011 5. Ez form 2011   Personal Use of Dwelling Unit (Including Vacation Home) Table of Contents Dividing Expenses Dwelling Unit Used as a HomeMain home. Ez form 2011 Shared equity financing agreement. Ez form 2011 Donation of use of the property. Ez form 2011 Examples. Ez form 2011 Days used for repairs and maintenance. Ez form 2011 Days used as a main home before or after renting. Ez form 2011 Reporting Income and DeductionsNot used as a home. Ez form 2011 Used as a home but rented less than 15 days. Ez form 2011 Used as a home and rented 15 days or more. Ez form 2011 If you have any personal use of a dwelling unit (including a vacation home) that you rent, you must divide your expenses between rental use and personal use. Ez form 2011 In general, your rental expenses will be no more than your total expenses multiplied by a fraction; the denominator of which is the total number of days the dwelling unit is used and the numerator of which is the total number of days actually rented at a fair rental price. Ez form 2011 Only your rental expenses may deducted on Schedule E (Form 1040). Ez form 2011 Some of your personal expenses may be deductible if you itemize your deductions on Schedule A (Form 1040). Ez form 2011 You must also determine if the dwelling unit is considered a home. Ez form 2011 The amount of rental expenses that you can deduct may be limited if the dwelling unit is considered a home. Ez form 2011 Whether a dwelling unit is considered a home depends on how many days during the year are considered to be days of personal use. Ez form 2011 There is a special rule if you used the dwelling unit as a home and you rented it for less than 15 days during the year. Ez form 2011 Dwelling unit. Ez form 2011   A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. Ez form 2011 It also includes all structures or other property belonging to the dwelling unit. Ez form 2011 A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities. Ez form 2011   A dwelling unit does not include property (or part of the property) used solely as a hotel, motel, inn, or similar establishment. Ez form 2011 Property is used solely as a hotel, motel, inn, or similar establishment if it is regularly available for occupancy by paying customers and is not used by an owner as a home during the year. Ez form 2011 Example. Ez form 2011 You rent a room in your home that is always available for short-term occupancy by paying customers. Ez form 2011 You do not use the room yourself and you allow only paying customers to use the room. Ez form 2011 This room is used solely as a hotel, motel, inn, or similar establishment and is not a dwelling unit. Ez form 2011 Dividing Expenses If you use a dwelling unit for both rental and personal purposes, divide your expenses between the rental use and the personal use based on the number of days used for each purpose. Ez form 2011 When dividing your expenses, follow these rules. Ez form 2011 Any day that the unit is rented at a fair rental price is a day of rental use even if you used the unit for personal purposes that day. Ez form 2011 (This rule does not apply when determining whether you used the unit as a home. Ez form 2011 ) Any day that the unit is available for rent but not actually rented is not a day of rental use. Ez form 2011 Fair rental price. Ez form 2011   A fair rental price for your property generally is the amount of rent that a person who is not related to you would be willing to pay. Ez form 2011 The rent you charge is not a fair rental price if it is substantially less than the rents charged for other properties that are similar to your property in your area. Ez form 2011   Ask yourself the following questions when comparing another property with yours. Ez form 2011 Is it used for the same purpose? Is it approximately the same size? Is it in approximately the same condition? Does it have similar furnishings? Is it in a similar location? If any of the answers are no, the properties probably are not similar. Ez form 2011 Example. Ez form 2011 Your beach cottage was available for rent from June 1 through August 31 (92 days). Ez form 2011 Except for the first week in August (7 days), when you were unable to find a renter, you rented the cottage at a fair rental price during that time. Ez form 2011 The person who rented the cottage for July allowed you to use it over the weekend (2 days) without any reduction in or refund of rent. Ez form 2011 Your family also used the cottage during the last 2 weeks of May (14 days). Ez form 2011 The cottage was not used at all before May 17 or after August 31. Ez form 2011 You figure the part of the cottage expenses to treat as rental expenses as follows. Ez form 2011 The cottage was used for rental a total of 85 days (92 − 7). Ez form 2011 The days it was available for rent but not rented (7 days) are not days of rental use. Ez form 2011 The July weekend (2 days) you used it is rental use because you received a fair rental price for the weekend. Ez form 2011 You used the cottage for personal purposes for 14 days (the last 2 weeks in May). Ez form 2011 The total use of the cottage was 99 days (14 days personal use + 85 days rental use). Ez form 2011 Your rental expenses are 85/99 (86%) of the cottage expenses. Ez form 2011 Note. Ez form 2011 When determining whether you used the cottage as a home, the July weekend (2 days) you used it is considered personal use even though you received a fair rental price for the weekend. Ez form 2011 Therefore, you had 16 days of personal use and 83 days of rental use for this purpose. Ez form 2011 Because you used the cottage for personal purposes more than 14 days and more than 10% of the days of rental use (8 days), you used it as a home. Ez form 2011 If you have a net loss, you may not be able to deduct all of the rental expenses. Ez form 2011 See Dwelling Unit Used as a Home, next. Ez form 2011 Dwelling Unit Used as a Home If you use a dwelling unit for both rental and personal purposes, the tax treatment of the rental expenses you figured earlier under Dividing Expenses and rental income depends on whether you are considered to be using the dwelling unit as a home. Ez form 2011 You use a dwelling unit as a home during the tax year if you use it for personal purposes more than the greater of: 14 days, or 10% of the total days it is rented to others at a fair rental price. Ez form 2011 See What is a day of personal use , later. Ez form 2011 If a dwelling unit is used for personal purposes on a day it is rented at a fair rental price (discussed earlier), do not count that day as a day of rental use in applying (2) above. Ez form 2011 Instead, count it as a day of personal use in applying both (1) and (2) above. Ez form 2011 What is a day of personal use?   A day of personal use of a dwelling unit is any day that the unit is used by any of the following persons. Ez form 2011 You or any other person who owns an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement (defined later). Ez form 2011 However, see Days used as a main home before or after renting , later. Ez form 2011 A member of your family or a member of the family of any other person who owns an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Ez form 2011 Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc. Ez form 2011 ), and lineal descendants (children, grandchildren, etc. Ez form 2011 ). Ez form 2011 Anyone under an arrangement that lets you use some other dwelling unit. Ez form 2011 Anyone at less than a fair rental price. Ez form 2011 Main home. Ez form 2011   If the other person or member of the family in (1) or (2) above has more than one home, his or her main home is ordinarily the one he or she lived in most of the time. Ez form 2011 Shared equity financing agreement. Ez form 2011   This is an agreement under which two or more persons acquire undivided interests for more than 50 years in an entire dwelling unit, including the land, and one or more of the co-owners is entitled to occupy the unit as his or her main home upon payment of rent to the other co-owner or owners. Ez form 2011 Donation of use of the property. Ez form 2011   You use a dwelling unit for personal purposes if: You donate the use of the unit to a charitable organization, The organization sells the use of the unit at a fund-raising event, and The “purchaser” uses the unit. Ez form 2011 Examples. Ez form 2011   The following examples show how to determine if you have days of personal use. Ez form 2011 Example 1. Ez form 2011 You and your neighbor are co-owners of a condominium at the beach. Ez form 2011 Last year, you rented the unit to vacationers whenever possible. Ez form 2011 The unit was not used as a main home by anyone. Ez form 2011 Your neighbor used the unit for 2 weeks last year; you did not use it at all. Ez form 2011 Because your neighbor has an interest in the unit, both of you are considered to have used the unit for personal purposes during those 2 weeks. Ez form 2011 Example 2. Ez form 2011 You and your neighbors are co-owners of a house under a shared equity financing agreement. Ez form 2011 Your neighbors live in the house and pay you a fair rental price. Ez form 2011 Even though your neighbors have an interest in the house, the days your neighbors live there are not counted as days of personal use by you. Ez form 2011 This is because your neighbors rent the house as their main home under a shared equity financing agreement. Ez form 2011 Example 3. Ez form 2011 You own a rental property that you rent to your son. Ez form 2011 Your son does not own any interest in this property. Ez form 2011 He uses it as his main home and pays you a fair rental price. Ez form 2011 Your son's use of the property is not personal use by you because your son is using it as his main home, he owns no interest in the property, and he is paying you a fair rental price. Ez form 2011 Example 4. Ez form 2011 You rent your beach house to Rosa. Ez form 2011 Rosa rents her cabin in the mountains to you. Ez form 2011 You each pay a fair rental price. Ez form 2011 You are using your beach house for personal purposes on the days that Rosa uses it because your house is used by Rosa under an arrangement that allows you to use her cabin. Ez form 2011 Example 5. Ez form 2011 You rent an apartment to your mother at less than a fair rental price. Ez form 2011 You are using the apartment for personal purposes on the days that your mother rents it because you rent it for less than a fair rental price. Ez form 2011 Days used for repairs and maintenance. Ez form 2011   Any day that you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. Ez form 2011 Do not count such a day as a day of personal use even if family members use the property for recreational purposes on the same day. Ez form 2011 Example. Ez form 2011 Corey owns a cabin in the mountains that he rents for most of the year. Ez form 2011 He spends a week at the cabin with family members. Ez form 2011 Corey works on maintenance of the cabin 3 or 4 hours each day during the week and spends the rest of the time fishing, hiking, and relaxing. Ez form 2011 Corey's family members, however, work substantially full time on the cabin each day during the week. Ez form 2011 The main purpose of being at the cabin that week is to do maintenance work. Ez form 2011 Therefore, the use of the cabin during the week by Corey and his family will not be considered personal use by Corey. Ez form 2011 Days used as a main home before or after renting. Ez form 2011   For purposes of determining whether a dwelling unit was used as a home, you may not have to count days you used the property as your main home before or after renting it or offering it for rent as days of personal use. Ez form 2011 Do not count them as days of personal use if: You rented or tried to rent the property for 12 or more consecutive months. Ez form 2011 You rented or tried to rent the property for a period of less than 12 consecutive months and the period ended because you sold or exchanged the property. Ez form 2011 However, this special rule does not apply when dividing expenses between rental and personal use. Ez form 2011 See Property Changed to Rental Use in chapter 4. Ez form 2011 Example 1. Ez form 2011 On February 29, 2012, you moved out of the house you had lived in for 6 years because you accepted a job in another town. Ez form 2011 You rented your house at a fair rental price from March 15, 2012, to May 14, 2013 (14 months). Ez form 2011 On June 1, 2013, you moved back into your old house. Ez form 2011 The days you used the house as your main home from January 1 to February 29, 2012, and from June 1 to December 31, 2013, are not counted as days of personal use. Ez form 2011 Therefore, you would use the rules in chapter 1 when figuring your rental income and expenses. Ez form 2011 Example 2. Ez form 2011 On January 31, you moved out of the condominium where you had lived for 3 years. Ez form 2011 You offered it for rent at a fair rental price beginning on February 1. Ez form 2011 You were unable to rent it until April. Ez form 2011 On September 15, you sold the condominium. Ez form 2011 The days you used the condominium as your main home from January 1 to January 31 are not counted as days of personal use when determining whether you used it as a home. Ez form 2011 Examples. Ez form 2011   The following examples show how to determine whether you used your rental property as a home. Ez form 2011 Example 1. Ez form 2011 You converted the basement of your home into an apartment with a bedroom, a bathroom, and a small kitchen. Ez form 2011 You rented the basement apartment at a fair rental price to college students during the regular school year. Ez form 2011 You rented to them on a 9-month lease (273 days). Ez form 2011 You figured 10% of the total days rented to others at a fair rental price is 27 days. Ez form 2011 During June (30 days), your brothers stayed with you and lived in the basement apartment rent free. Ez form 2011 Your basement apartment was used as a home because you used it for personal purposes for 30 days. Ez form 2011 Rent-free use by your brothers is considered personal use. Ez form 2011 Your personal use (30 days) is more than the greater of 14 days or 10% of the total days it was rented (27 days). Ez form 2011 Example 2. Ez form 2011 You rented the guest bedroom in your home at a fair rental price during the local college's homecoming, commencement, and football weekends (a total of 27 days). Ez form 2011 Your sister-in-law stayed in the room, rent free, for the last 3 weeks (21 days) in July. Ez form 2011 You figured 10% of the total days rented to others at a fair rental price is 3 days. Ez form 2011 The room was used as a home because you used it for personal purposes for 21 days. Ez form 2011 That is more than the greater of 14 days or 10% of the 27 days it was rented (3 days). Ez form 2011 Example 3. Ez form 2011 You own a condominium apartment in a resort area. Ez form 2011 You rented it at a fair rental price for a total of 170 days during the year. Ez form 2011 For 12 of these days, the tenant was not able to use the apartment and allowed you to use it even though you did not refund any of the rent. Ez form 2011 Your family actually used the apartment for 10 of those days. Ez form 2011 Therefore, the apartment is treated as having been rented for 160 (170 – 10) days. Ez form 2011 You figured 10% of the total days rented to others at a fair rental price is 16 days. Ez form 2011 Your family also used the apartment for 7 other days during the year. Ez form 2011 You used the apartment as a home because you used it for personal purposes for 17 days. Ez form 2011 That is more than the greater of 14 days or 10% of the 160 days it was rented (16 days). Ez form 2011 Minimal rental use. Ez form 2011   If you use the dwelling unit as a home and you rent it less than 15 days during the year, that period is not treated as rental activity. Ez form 2011 See Used as a home but rented less than 15 days, later, for more information. Ez form 2011 Limit on deductions. Ez form 2011   Renting a dwelling unit that is considered a home is not a passive activity. Ez form 2011 Instead, if your rental expenses are more than your rental income, some or all of the excess expenses cannot be used to offset income from other sources. Ez form 2011 The excess expenses that cannot be used to offset income from other sources are carried forward to the next year and treated as rental expenses for the same property. Ez form 2011 Any expenses carried forward to the next year will be subject to any limits that apply for that year. Ez form 2011 This limitation will apply to expenses carried forward to another year even if you do not use the property as your home for that subsequent year. Ez form 2011   To figure your deductible rental expenses for this year and any carryover to next year, use Worksheet 5–1. Ez form 2011 Reporting Income and Deductions Property not used for personal purposes. Ez form 2011   If you do not use a dwelling unit for personal purposes, see chapter 3 for how to report your rental income and expenses. Ez form 2011 Property used for personal purposes. Ez form 2011   If you do use a dwelling unit for personal purposes, then how you report your rental income and expenses depends on whether you used the dwelling unit as a home. Ez form 2011 Not used as a home. Ez form 2011   If you use a dwelling unit for personal purposes, but not as a home, report all the rental income in your income. Ez form 2011 Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . Ez form 2011 The expenses for personal use are not deductible as rental expenses. Ez form 2011   Your deductible rental expenses can be more than your gross rental income; however, see Limits on Rental Losses in chapter 3. Ez form 2011 Used as a home but rented less than 15 days. Ez form 2011   If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental and it should not be reported on Schedule E (Form 1040). Ez form 2011 You are not required to report the rental income and rental expenses from this activity. Ez form 2011 The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). Ez form 2011 See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses. Ez form 2011 Used as a home and rented 15 days or more. Ez form 2011   If you use a dwelling unit as a home and rent it 15 days or more during the year, include all your rental income in your income. Ez form 2011 Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . Ez form 2011 The expenses for personal use are not deductible as rental expenses. Ez form 2011   If you had a net profit from renting the dwelling unit for the year (that is, if your rental income is more than the total of your rental expenses, including depreciation), deduct all of your rental expenses. Ez form 2011 You do not need to use Worksheet 5-1. Ez form 2011   However, if you had a net loss from renting the dwelling unit for the year, your deduction for certain rental expenses is limited. Ez form 2011 To figure your deductible rental expenses and any carryover to next year, use Worksheet 5–1. Ez form 2011 Worksheet 5-1. Ez form 2011 Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Use this worksheet only if you answer “yes” to all of the following questions. Ez form 2011 Did you use the dwelling unit as a home this year? (See Dwelling Unit Used as a Home . Ez form 2011 ) Did you rent the dwelling unit at a fair rental price 15 days or more this year? Is the total of your rental expenses and depreciation more than your rental income? PART I. Ez form 2011 Rental Use Percentage A. Ez form 2011 Total days available for rent at fair rental price A. Ez form 2011       B. Ez form 2011 Total days available for rent (line A) but not rented B. Ez form 2011       C. Ez form 2011 Total days of rental use. Ez form 2011 Subtract line B from line A C. Ez form 2011       D. Ez form 2011 Total days of personal use (including days rented at less than fair rental price) D. Ez form 2011       E. Ez form 2011 Total days of rental and personal use. Ez form 2011 Add lines C and D E. Ez form 2011       F. Ez form 2011 Percentage of expenses allowed for rental. Ez form 2011 Divide line C by line E     F. Ez form 2011 . Ez form 2011 PART II. Ez form 2011 Allowable Rental Expenses 1. Ez form 2011 Enter rents received 1. Ez form 2011   2a. Ez form 2011 Enter the rental portion of deductible home mortgage interest and qualified mortgage insurance premiums (see instructions) 2a. Ez form 2011       b. Ez form 2011 Enter the rental portion of real estate taxes b. Ez form 2011       c. Ez form 2011 Enter the rental portion of deductible casualty and theft losses (see instructions) c. Ez form 2011       d. Ez form 2011 Enter direct rental expenses (see instructions) d. Ez form 2011       e. Ez form 2011 Fully deductible rental expenses. Ez form 2011 Add lines 2a–2d. Ez form 2011 Enter here and  on the appropriate lines on Schedule E (see instructions) 2e. Ez form 2011   3. Ez form 2011 Subtract line 2e from line 1. Ez form 2011 If zero or less, enter -0- 3. Ez form 2011   4a. Ez form 2011 Enter the rental portion of expenses directly related to operating or maintaining  the dwelling unit (such as repairs, insurance, and utilities) 4a. Ez form 2011       b. Ez form 2011 Enter the rental portion of excess mortgage interest and qualified mortgage insurance premiums (see instructions) b. Ez form 2011       c. Ez form 2011 Carryover of operating expenses from 2012 worksheet c. Ez form 2011       d. Ez form 2011 Add lines 4a–4c d. Ez form 2011       e. Ez form 2011 Allowable expenses. Ez form 2011 Enter the smaller of line 3 or line 4d (see instructions) 4e. Ez form 2011   5. Ez form 2011 Subtract line 4e from line 3. Ez form 2011 If zero or less, enter -0- 5. Ez form 2011   6a. Ez form 2011 Enter the rental portion of excess casualty and theft losses (see instructions) 6a. Ez form 2011       b. Ez form 2011 Enter the rental portion of depreciation of the dwelling unit b. Ez form 2011       c. Ez form 2011 Carryover of excess casualty losses and depreciation from 2012 worksheet c. Ez form 2011       d. Ez form 2011 Add lines 6a–6c d. Ez form 2011       e. Ez form 2011 Allowable excess casualty and theft losses and depreciation. Ez form 2011 Enter the smaller of  line 5 or line 6d (see instructions) 6e. Ez form 2011   PART III. Ez form 2011 Carryover of Unallowed Expenses to Next Year 7a. Ez form 2011 Operating expenses to be carried over to next year. Ez form 2011 Subtract line 4e from line 4d 7a. Ez form 2011   b. Ez form 2011 Excess casualty and theft losses and depreciation to be carried over to next year. Ez form 2011  Subtract line 6e from line 6d b. Ez form 2011   Worksheet 5-1 Instructions. Ez form 2011 Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Caution. Ez form 2011 Use the percentage determined in Part I, line F, to figure the rental portions to enter on lines 2a–2c, 4a–4b, and 6a–6b of  Part II. Ez form 2011 Line 2a. Ez form 2011 Figure the mortgage interest on the dwelling unit that you could deduct on Schedule A as if you had not rented the unit. Ez form 2011 Do not include interest on a loan that did not benefit the dwelling unit. Ez form 2011 For example, do not include interest on a home equity loan used to pay off credit cards or other personal loans, buy a car, or pay college tuition. Ez form 2011 Include interest on a loan used to buy, build, or improve the dwelling unit, or to refinance such a loan. Ez form 2011 Include the rental portion of this interest in the total you enter on line 2a of the worksheet. Ez form 2011   Figure the qualified mortgage insurance premiums on the dwelling unit that you could deduct on line 13 of Schedule A as if you had not rented the unit. Ez form 2011 See the Schedule A instructions. Ez form 2011 However, figure your adjusted gross income (Form 1040, line 38) without your rental income and expenses from the dwelling unit. Ez form 2011 See Line 4b to deduct the part of the qualified mortgage insurance premiums not allowed because of the adjusted gross income limit. Ez form 2011 Include the rental portion of the amount from Schedule A, line 13, in the total you enter on line 2a of the worksheet. Ez form 2011   Note. Ez form 2011 Do not file this Schedule A or use it to figure the amount to deduct on line 13 of that schedule. Ez form 2011 Instead, figure the personal portion on a separate Schedule A. Ez form 2011 If you have deducted mortgage interest or qualified mortgage insurance premiums on the dwelling unit on other forms, such as Schedule C or F, remember to reduce your Schedule A deduction by that amount. Ez form 2011           Line 2c. Ez form 2011 Figure the casualty and theft losses related to the dwelling unit that you could deduct on Schedule A as if you had not rented the dwelling unit. Ez form 2011 To do this, complete Section A of Form 4684, Casualties and Thefts, treating the losses as personal losses. Ez form 2011 If any of the loss is due to a federally declared disaster, see the Instructions for Form 4684. Ez form 2011 On Form 4684, line 17, enter 10% of your adjusted gross income figured without your rental income and expenses from the dwelling unit. Ez form 2011 Enter the rental portion of the result from Form 4684, line 18, on line 2c of this worksheet. Ez form 2011   Note. Ez form 2011 Do not file this Form 4684 or use it to figure your personal losses on Schedule A. Ez form 2011 Instead, figure the personal portion on a separate Form 4684. Ez form 2011           Line 2d. Ez form 2011 Enter the total of your rental expenses that are directly related only to the rental activity. Ez form 2011 These include interest on loans used for rental activities other than to buy, build, or improve the dwelling unit. Ez form 2011 Also include rental agency fees, advertising, office supplies, and depreciation on office equipment used in your rental activity. Ez form 2011           Line 2e. Ez form 2011 You can deduct the amounts on lines 2a, 2b, 2c, and 2d as rental expenses on Schedule E even if your rental expenses are more than your rental income. Ez form 2011 Enter the amounts on lines 2a, 2b, 2c, and 2d on the appropriate lines of Schedule E. Ez form 2011           Line 4b. Ez form 2011 On line 2a, you entered the rental portion of the mortgage interest or qualified mortgage insurance premiums you could deduct on Schedule A if you had not rented the dwelling unit. Ez form 2011 If you had additional mortgage interest and qualified mortgage insurance premiums that would not be deductible on Schedule A because of limits imposed on them, enter on line 4b of this worksheet the rental portion of those excess amounts. Ez form 2011 Do not include interest on a loan that did not benefit the dwelling unit  (as explained in the line 2a instructions). Ez form 2011           Line 4e. Ez form 2011 You can deduct the amounts on lines 4a, 4b, and 4c as rental expenses on Schedule E only to the extent they are not more than the amount on line 4e. Ez form 2011 *           Line 6a. Ez form 2011 To find the rental portion of excess casualty and theft losses, use the Form 4684 you prepared for line 2c of this worksheet. Ez form 2011   A. Ez form 2011 Enter the amount from Form 4684, line 10       B. Ez form 2011 Enter the rental portion of line A       C. Ez form 2011 Enter the amount from line 2c of this worksheet       D. Ez form 2011 Subtract line C from line B. Ez form 2011 Enter the result here and on line 6a of this worksheet               Line 6e. Ez form 2011 You can deduct the amounts on lines 6a, 6b, and 6c as rental expenses on Schedule E only to the extent they are not more than the amount on line 6e. Ez form 2011 * *Allocating the limited deduction. Ez form 2011 If you cannot deduct all of the amount on line 4d or 6d this year, you can allocate the allowable deduction in any way you wish among the expenses included on line 4d or 6d. Ez form 2011 Enter the amount you allocate to each expense on the appropriate line of Schedule E, Part I. Ez form 2011 Prev  Up  Next   Home   More Online Publications
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Staying Healthy as a Senior

Your mental and physical health is important in this stage of life. Staying healthy means eating nutritious foods, exercising, and getting regular medical check-ups. Prevention and early detection are the best defense against illness and disease.


The Ez Form 2011

Ez form 2011 Publication 80 - Main Content Table of Contents Introduction 1. Ez form 2011 Employer Identification Number (EIN) 2. Ez form 2011 Who Are Employees?Tests. Ez form 2011 Business Owned and Operated by Spouses Farm Crew Leaders 3. Ez form 2011 Employee's Social Security Number (SSN)Registering for SSNVS. Ez form 2011 4. Ez form 2011 Wages and Other CompensationFringe Benefits 5. Ez form 2011 TipsOrdering rule. Ez form 2011 6. Ez form 2011 Social Security and Medicare Taxes for FarmworkersThe $150 Test or the $2,500 Test 7. Ez form 2011 How To Figure Social Security and Medicare TaxesHousehold and agricultural employers. Ez form 2011 8. Ez form 2011 Depositing TaxesPayment with Return When To Deposit How To Deposit Deposit Penalties 9. Ez form 2011 Employer's ReturnsReporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Prior Period Adjustments 10. Ez form 2011 Wage and Tax StatementsWaiver. Ez form 2011 11. Ez form 2011 Federal Unemployment (FUTA) Tax—U. Ez form 2011 S. Ez form 2011 Virgin Islands Employers Only How To Get Tax Help Introduction This publication is for employers whose principal place of business is in the U. Ez form 2011 S. Ez form 2011 Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, or who have employees who are subject to income tax withholding for any of these jurisdictions. Ez form 2011 Employers and employees in these areas are generally subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Ez form 2011 See section 6 and section 7 for more information. Ez form 2011 This publication summarizes employer responsibilities to collect, pay, and report these taxes. Ez form 2011 Whenever the term “United States” is used in this publication, it includes U. Ez form 2011 S. Ez form 2011 Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Ez form 2011 This publication also provides employers in the U. Ez form 2011 S. Ez form 2011 Virgin Islands with a summary of their responsibilities in connection with the tax under the Federal Unemployment Tax Act, known as FUTA tax. Ez form 2011 See section 11 for more information. Ez form 2011 Except as shown in the table in section 12, social security, Medicare, and FUTA taxes apply to every employer who pays taxable wages to employees or who has employees who report tips. Ez form 2011 This publication does not include information relating to the self-employment tax (for social security and Medicare of self-employed persons). Ez form 2011 See Publication 570, Tax Guide for Individuals With Income From U. Ez form 2011 S. Ez form 2011 Possessions, if you need this information. Ez form 2011 This publication also does not include information relating to income tax withholding. Ez form 2011 In U. Ez form 2011 S. Ez form 2011 Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, contact your local tax department for information about income tax withholding. Ez form 2011 See Publication 15 (Circular E), for information on U. Ez form 2011 S. Ez form 2011 federal income tax withholding. Ez form 2011 Comments and suggestions. Ez form 2011   We welcome your comments about this publication and your suggestions for future editions. Ez form 2011   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Ez form 2011 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Ez form 2011 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Ez form 2011    You can also send us comments from www. Ez form 2011 irs. Ez form 2011 gov/formspubs. Ez form 2011 Click on More Information and then click on Comment on Tax Forms and Publications. Ez form 2011   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Ez form 2011 1. Ez form 2011 Employer Identification Number (EIN) An employer identification number (EIN) is a nine-digit number that the IRS issues. Ez form 2011 Its format is 00-0000000. Ez form 2011 It is used to identify the tax accounts of employers and certain other organizations and entities that have no employees. Ez form 2011 Use your EIN on all of the items that you send to the IRS and SSA for your business. Ez form 2011 If you do not have an EIN, you may apply for one online. Ez form 2011 Go to IRS. Ez form 2011 gov and click on the Apply for an EIN Online link under Tools. Ez form 2011 You may also apply for an EIN by calling 1-800-829-4933, (U. Ez form 2011 S. Ez form 2011 Virgin Islands only) or 267-941-1099 (toll call), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Ez form 2011 Do not use a social security number (SSN) in place of an EIN. Ez form 2011 If you do not have an EIN by the time a return is due, file a paper return and enter “Applied For” and the date that you applied for it in the space shown for the number. Ez form 2011 If you took over another employer's business, do not use that employer's EIN. Ez form 2011 You should have only one EIN. Ez form 2011 If you have more than one, write to the IRS office where you file your returns using the “without a payment” address in the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943. Ez form 2011 Or call the IRS Business & Specialty Tax Line at 1-800-829-4933 (U. Ez form 2011 S. Ez form 2011 Virgin Islands only) or 267-941-1000 (toll call). Ez form 2011 Persons who are deaf, hard of hearing, or have a speech disability (TDD/TTY users) in the U. Ez form 2011 S. Ez form 2011 Virgin Islands may call 1-800-829-4059. Ez form 2011 The IRS will tell you which EIN to use. Ez form 2011 For more information, see Publication 1635, Employer Identification Number: Understanding Your EIN, or Publication 583, Starting a Business and Keeping Records. Ez form 2011 2. Ez form 2011 Who Are Employees? Generally, employees are defined either under common law or under special statutes for certain situations. Ez form 2011 See Publication 15-A, Employer's Supplemental Tax Guide, for details on statutory employees and nonemployees. Ez form 2011 Employee status under common law. Ez form 2011   Generally, a worker who performs services for you is your employee if you can control what will be done and how it will be done. Ez form 2011 This is so even when you give the employee freedom of action. Ez form 2011 What matters is that you have the right to control the details of how the services are performed. Ez form 2011 See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Ez form 2011    Generally, people in business for themselves are not employees. Ez form 2011 For example, doctors, lawyers, veterinarians, and others in an independent trade in which they offer their services to the public are usually not employees. Ez form 2011 However, if the business is incorporated, corporate officers who work in the business are employees of the corporation. Ez form 2011   If an employer-employee relationship exists, it does not matter what it is called. Ez form 2011 The employee may be called an agent or independent contractor. Ez form 2011 It also does not matter how payments are measured or paid, what they are called, or if the employee works full or part time. Ez form 2011 Statutory employees. Ez form 2011   There are also some special definitions of employees for social security, Medicare, and FUTA taxes. Ez form 2011   While the following persons may not be common law employees, they are considered employees for social security and Medicare purposes if the conditions under Tests , discussed later, are met. Ez form 2011 a. Ez form 2011   An agent (or commission) driver who delivers food or beverages (other than milk) or picks up and delivers laundry or dry cleaning for someone else. Ez form 2011 b. Ez form 2011   A full-time life insurance salesperson who sells primarily for one company. Ez form 2011 c. Ez form 2011   A homeworker who works by the guidelines of the person for whom the work is done, with materials furnished by and returned to that person or to someone that person designates. Ez form 2011 d. Ez form 2011   A traveling or city salesperson (other than an agent-driver or commission-driver) who works full time (except for sideline sales activities) for one firm or person getting orders from customers. Ez form 2011 The orders must be for merchandise for resale or supplies for use in the customer's business. Ez form 2011 The customers must be retailers, wholesalers, contractors, or operators of hotels, restaurants, or other businesses dealing with food or lodging. Ez form 2011 Tests. Ez form 2011   Withhold social security and Medicare taxes from statutory employees' wages if all three of the following tests apply. Ez form 2011 The service contract states or implies that almost all of the services are to be performed personally by them. Ez form 2011 They have little or no investment in the equipment and property used to perform the services (other than an investment in transportation facilities). Ez form 2011 The services are performed on a continuing basis for the same payer. Ez form 2011 Persons in a or d, earlier, are also employees for FUTA tax purposes if tests 1 through 3 are met (U. Ez form 2011 S. Ez form 2011 Virgin Islands only). Ez form 2011   Publication 15-A gives examples of the employer-employee relationship. Ez form 2011 Statutory nonemployees. Ez form 2011   Certain direct sellers, qualified real estate agents, and certain companion sitters are, by law, considered nonemployees. Ez form 2011 They are generally treated as self-employed for employment tax purposes. Ez form 2011 See Publication 15-A for details. Ez form 2011 H-2A agricultural workers. Ez form 2011   On Form W-2, do not check box 13 (Statutory employee) as H-2A workers are not statutory employees. Ez form 2011 Treating employees as nonemployees. Ez form 2011   If you incorrectly treated an employee as a nonemployee and did not withhold social security and Medicare taxes, you will be liable for the taxes. Ez form 2011 See Treating employees as nonemployees in section 2 of Publication 15 (Circular E), for details on Internal Revenue Code section 3509, which may apply. Ez form 2011 IRS help. Ez form 2011   If you want the IRS to determine if a worker is an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Ez form 2011 Voluntary Classification Settlement Program (VCSP). Ez form 2011   Employers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to voluntarily reclassify their workers as employees for future tax periods may be eligible to participate in the VCSP if certain requirements are met. Ez form 2011 To apply, use Form 8952, Application for Voluntary Classification Settlement Program (VCSP). Ez form 2011 For more information, visit IRS. Ez form 2011 gov and enter “VCSP” in the search box. Ez form 2011 Business Owned and Operated by Spouses If you and your spouse jointly own and operate a business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Ez form 2011 See Publication 541, Partnerships, for more details. Ez form 2011 The partnership is considered the employer of any employees, and is liable for any employment taxes due on wages paid to its employees. Ez form 2011 Exception—Qualified Joint Venture. Ez form 2011   If you and your spouse materially participate as the only members of a jointly owned and operated business, and you file a joint Form 1040, U. Ez form 2011 S. Ez form 2011 Individual Income Tax Return, or joint Form 1040-SS, U. Ez form 2011 S. Ez form 2011 Self-Employment Tax Return—U. Ez form 2011 S. Ez form 2011 Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or Puerto Rico, you can make a joint election to be taxed as a qualified joint venture instead of a partnership. Ez form 2011 See the Instructions for Schedule C (Form 1040) or the Instructions for Form 1040-SS. Ez form 2011 Spouses electing qualified joint venture status are treated as sole proprietors for federal tax purposes. Ez form 2011 Either of the sole proprietor spouses may report and pay the employment taxes due on wages paid to the employees, using the EIN of that spouse’s sole proprietorship. Ez form 2011 For more information on qualified joint ventures, visit IRS. Ez form 2011 gov and enter “qualified joint venture” in the search box. Ez form 2011 Farm Crew Leaders You are an employer of farmworkers if you are a crew leader. Ez form 2011 A crew leader is a person who furnishes and pays (either on his or her own behalf or on behalf of the farm operator) workers to do farmwork for the farm operator. Ez form 2011 If there is no written agreement between you and the farm operator stating that you are his or her employee, and if you pay the workers (either for yourself or for the farm operator), then you are a crew leader. Ez form 2011 3. Ez form 2011 Employee's Social Security Number (SSN) An employee's social security number (SSN) consists of nine digits separated as follows: 000-00-0000. Ez form 2011 You must get each employee's name and SSN and enter them on Form W-2AS, W-2CM, W-2GU, or W-2VI. Ez form 2011 If you do not report the employee's correct name and SSN, you may owe a penalty unless you have reasonable cause. Ez form 2011 See Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs, for information on the requirement to solicit the employee's SSN. Ez form 2011 Employee's social security card. Ez form 2011   You should ask the employee to show you his or her social security card. Ez form 2011 The employee may show the card if it is available. Ez form 2011 Do not accept a social security card that says “Not valid for employment. Ez form 2011 ” A social security number issued with this legend does not permit employment. Ez form 2011 You may, but you are not required to, photocopy the social security card if the employee provides it. Ez form 2011 If an employee does not have a social security card or needs a new one, the employee should apply for one on Form SS-5 and submit the necessary documentation. Ez form 2011 The employee must complete and sign Form SS-5; it cannot be filed by the employer. Ez form 2011 You may be asked to supply a letter to accompany Form SS-5 if the employee has exceeded his or her yearly or lifetime limit for the number of replacement cards allowed. Ez form 2011 If your employee has applied for an SSN but has not received the card before you must file your Form W-2 reports, and you are filing your reports on paper, enter “Applied For” in box d. Ez form 2011 Enter all zeroes in the SSN field if filing electronically. Ez form 2011 When the employee receives the SSN, file Copy A of Form W-2c with SSA to show the employee's SSN. Ez form 2011 Correctly record the employee's name and SSN. Ez form 2011   Record the name and number of each employee as they appear on his or her social security card. Ez form 2011 If the name is not correct as shown on the card (for example, because of marriage or divorce), the employee should request a corrected card from the SSA. Ez form 2011 Continue to use the old name until the employee shows you the replacement social security card with the corrected name. Ez form 2011   If the SSA issues the employee a replacement card after a name change, or a new card with a different social security number after a change in alien work status, file a Form W-2c to correct the name/SSN reported on the most recently filed Form W-2AS, W-2CM, W-2GU, or W-2VI. Ez form 2011 It is not necessary to correct other years if the previous name and SSN were used for years before the most recent Form W-2. Ez form 2011 Where to get and file social security number application forms. Ez form 2011    U. Ez form 2011 S. Ez form 2011 Virgin Islands—U. Ez form 2011 S. Ez form 2011 Social Security Administration, 8000 Nisky Center, First Floor, Suite 2, St. Ez form 2011 Thomas, VI 00802. Ez form 2011  Guam—U. Ez form 2011 S. Ez form 2011 Social Security Administration, 655 Harmon Loop Road, Suite 300, Dededo, GU 96929. Ez form 2011  American Samoa—U. Ez form 2011 S. Ez form 2011 Social Security Administration, Pago Plaza, Suite 117, Pago Pago, AS 96799. Ez form 2011  Commonwealth of the Northern Mariana Islands—U. Ez form 2011 S. Ez form 2011 Social Security Administration, MH Building, Suite 201, Saipan, MP 96950. Ez form 2011 Verification of social security numbers. Ez form 2011   Employers and authorized reporting agents can use the Social Security Number Verification Service (SSNVS) to instantly verify up to 10 names and SSNs (per screen) at a time, or submit an electronic file of up to 250,000 names and SSNs and usually receive the results the next business day. Ez form 2011 Visit www. Ez form 2011 socialsecurity. Ez form 2011 gov/employer/ssnv. Ez form 2011 htm for more information. Ez form 2011 Registering for SSNVS. Ez form 2011   You must register online and receive authorization from your employer to use SSNVS. Ez form 2011 To register, visit SSA's website at www. Ez form 2011 ssa. Ez form 2011 gov/employer and click on the Business Services Online link. Ez form 2011 Follow the registration instructions to obtain a user identification (ID) and password. Ez form 2011 You will need to provide the following information about yourself and your company. Ez form 2011 Name. Ez form 2011 SSN. Ez form 2011 Date of birth. Ez form 2011 Type of employer. Ez form 2011 EIN. Ez form 2011 Company name, address, and telephone number. Ez form 2011 Email address. Ez form 2011   When you have completed the online registration process, SSA will mail a one-time activation code to your employer. Ez form 2011 You must enter the activation code online to use SSNVS. Ez form 2011 4. Ez form 2011 Wages and Other Compensation Generally, all wages are subject to social security and Medicare tax (and FUTA tax for U. Ez form 2011 S. Ez form 2011 Virgin Islands employers). Ez form 2011 However, wages subject to social security tax and FUTA tax are limited by a wage base amount that you pay to each employee for the year. Ez form 2011 The wage base for social security tax is $117,000 for 2014. Ez form 2011 After you pay $117,000 to an employee in 2014, including tips, do not withhold social security tax on any amount that you later pay to the employee for the year. Ez form 2011 The wage base for FUTA tax is $7,000 for 2014. Ez form 2011 All wages are subject to Medicare tax. Ez form 2011 The wages may be in cash or in other forms, such as an automobile for personal use. Ez form 2011 Wages include salaries, vacation allowances, bonuses, commissions, and fringe benefits. Ez form 2011 It does not matter how payments are measured or paid. Ez form 2011 See the table in section 12 for exceptions to social security, Medicare, and FUTA taxes on wages. Ez form 2011 See section 5 and section 6 for a discussion of how the rules apply to tips and farmworkers. Ez form 2011 Social security and Medicare taxes apply to most payments of sick pay, including payments by third parties such as insurance companies. Ez form 2011 Special rules apply to the reporting of third-party sick pay. Ez form 2011 For details, see Publication 15-A. Ez form 2011 Determine the value of noncash pay (such as goods, lodging, and meals) by its fair market value. Ez form 2011 However, see Fringe Benefits , later in this section. Ez form 2011 Except for farmworkers and household employees, this kind of pay may be subject to social security, Medicare, and FUTA taxes. Ez form 2011 Back pay, including retroactive wage increases (but not amounts paid as liquidated damages), is taxed as ordinary wages in the year paid. Ez form 2011 For information on reporting back pay to the Social Security Administration, see Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration. Ez form 2011 Travel and business expenses. Ez form 2011   Payments to your employee for travel and other necessary expenses of your business generally are included in taxable wages if (a) your employee is not required to or does not substantiate timely those expenses to you with receipts or other documentation, or (b) you advance an amount to your employee for business expenses and your employee is not required to or does not return timely any amount that he or she does not substantiate. Ez form 2011 Sick pay. Ez form 2011   In general, sick pay is any amount that you pay, under a plan that you take part in, to an employee because of sickness or injury. Ez form 2011 These amounts are sometimes paid by a third party, such as an insurance company. Ez form 2011 In either case, these payments are subject to social security and Medicare taxes (and FUTA tax for U. Ez form 2011 S. Ez form 2011 Virgin Islands employers). Ez form 2011 Sick pay becomes exempt from these taxes after the end of 6 calendar months after the calendar month the employee last worked for the employer. Ez form 2011 Publication 15-A explains the employment tax rules that apply to sick pay, disability benefits, and similar payments to employees. Ez form 2011 Fringe Benefits Generally, fringe benefits are includible in the gross income of an employee and are subject to employment taxes. Ez form 2011 Examples of fringe benefits include the use of an automobile, aircraft flights that you provide, free or discounted commercial airline flights, vacations, discounts on property or services, memberships in country clubs or other social clubs, and tickets to entertainment or sporting events. Ez form 2011 In general, the amount included in the employee's income is the excess of the fair market value of the benefit over the sum of any amount paid for it by the employee and any amount excluded by law. Ez form 2011 For more information, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Ez form 2011 When fringe benefits are treated as paid. Ez form 2011   You can choose to treat certain noncash fringe benefits (including personal use of an automobile provided by you) as paid by the pay period, quarter, or on any other basis that you choose, but they must be treated as paid at least annually. Ez form 2011 You do not have to make a formal choice of payment dates or notify the IRS. Ez form 2011 You do not have to use the same basis for all employees. Ez form 2011 You may change methods as often as you like, as long as all benefits provided in a calendar year are treated as paid no later than December 31 of the calendar year. Ez form 2011 However, see Special accounting rule for fringe benefits provided during November and December , later in this section. Ez form 2011   You can treat the value of a single taxable noncash fringe benefit as paid on one or more dates in the same calendar year, even if the employee gets the entire benefit at one time. Ez form 2011 However, once you elect the payment dates, you must report the taxes on your return in the same tax period in which you treated them as paid. Ez form 2011 This election does not apply to a fringe benefit where real property or investment personal property is transferred. Ez form 2011 Withholding social security and Medicare taxes on fringe benefits. Ez form 2011   You add the value of fringe benefits to regular wages for a payroll period and figure social security and Medicare taxes on the total. Ez form 2011   If you withhold less than the required amount of social security and Medicare taxes from the employee in a calendar year but report and pay the proper amount, you may recover the taxes from the employee. Ez form 2011 Depositing taxes on fringe benefits. Ez form 2011   Once you choose payment dates for taxable noncash fringe benefits, you must deposit taxes in the same deposit period that you treat the fringe benefits as paid. Ez form 2011 You may make a reasonable estimate of the value of the fringe benefits. Ez form 2011 In general, the value of taxable noncash fringe benefits provided in a calendar year must be determined by January 31 of the following year. Ez form 2011   You may claim a refund of overpayments or elect to have any overpayment applied to the next employment tax return. Ez form 2011 If deposits are underpaid, see Deposit Penalties in section 8. Ez form 2011 Valuation of vehicles provided to employees. Ez form 2011    If you provide a vehicle to your employees, you may either determine the actual value of the benefit for the entire calendar year, taking into account the business use of the vehicle, or consider the entire use for the calendar year as personal and include 100% of the value of the vehicle in the employee's income. Ez form 2011 For reporting information to employees, see the box 14 instructions in the General Instructions for Forms W-2 and W-3. Ez form 2011 Special accounting rule for fringe benefits provided during November and December. Ez form 2011   You may choose to treat the value of taxable noncash fringe benefits provided during November and December as paid in the next year. Ez form 2011 However, this applies only to those benefits that you actually provided during November and December, not to those you merely treated as paid during those months. Ez form 2011   If you use this rule, you must notify each affected employee between the time of the employee's last paycheck of the calendar year and at or near the time that you give the employee Form W-2AS, W-2CM, W-2GU, or W-2VI. Ez form 2011 If you use the special accounting rule, your employee must also use it for the same period that you use it. Ez form 2011 You cannot use this rule for a fringe benefit of real property or tangible or intangible real property of a kind normally held for investment that is transferred to your employee. Ez form 2011 5. Ez form 2011 Tips Tips that your employee receives from customers are generally subject to social security and Medicare withholding. Ez form 2011 Your employee must report cash tips to you by the 10th of the month after the month that the tips are received. Ez form 2011 The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Ez form 2011 Both directly and indirectly tipped employees must report tips to you. Ez form 2011 The report should not include tips that the employee paid out to other employees. Ez form 2011 No report is required for months when tips are less than $20. Ez form 2011 Your employees report tips on Form 4070, Employee's Report of Tips to Employer, or on a similar statement. Ez form 2011 They may also use Form 4070A, Employee's Daily Record of Tips, to keep a record of their tips. Ez form 2011 Both forms are included in Publication 1244, Employee's Daily Record of Tips and Report to Employer, available at IRS. Ez form 2011 gov. Ez form 2011 The statement must be signed by the employee and must include: The employee's name, address, and SSN, Your name and address, The month or period that the report covers, and The total tips received during the month or period. Ez form 2011 You are permitted to establish a system for electronic tip reporting by employees. Ez form 2011 See Regulations section 31. Ez form 2011 6053-1(d). Ez form 2011 Collecting taxes on tips. Ez form 2011   You must collect the employee social security and Medicare taxes on the employee's tips. Ez form 2011 You can also collect these taxes from the employee's wages or from other funds that he or she makes available. Ez form 2011 Stop collecting the employee social security tax when his or her total wages and tips for 2014 reach $117,000. Ez form 2011 Collect the employee Medicare tax for the whole year on all wages and tips. Ez form 2011   You are responsible for the employer social security tax on wages and tips until the wages (including tips) reach the wage base limit. Ez form 2011 You are responsible for the employer Medicare tax for the whole year on all wages and tips. Ez form 2011 File Form 941-SS (or Form 944) to report withholding and employer taxes on tips. Ez form 2011 The withholding rules for withholding an employee's share of Medicare tax on tips also apply to withholding the Additional Medicare Tax once wages and tips exceed $200,000 in the calendar year. Ez form 2011 Ordering rule. Ez form 2011   If, by the 10th of the month after the month you received an employee's report on tips, you do not have enough employee funds available to deduct the employee social security and Medicare tax on tips, you no longer have to collect it and are not liable for it. Ez form 2011 Reporting tips. Ez form 2011   Report tips and any collected and uncollected social security in boxes 1, 5, 7, and 12 on Forms W-2AS, W-2CM, W-2GU, or W-2VI and on Form 941-SS, lines 5b, 5c, and 5d (Form 944, lines 4b, 4c, and 4d). Ez form 2011 Do not include any uncollected Additional Medicare Tax in box 12 of Form W-2. Ez form 2011 Report an adjustment on Form 941-SS, line 9 (Form 944, line 6), for the uncollected social security and Medicare taxes. Ez form 2011 The table in section 12 shows how tips are treated for FUTA tax purposes. Ez form 2011   Revenue Ruling 2012-18 provides guidance for employers regarding social security and Medicare taxes imposed on tips, including information on the reporting of the employer share of social security and Medicare taxes under section 3121(q), the difference between tips and service charges, and the section 45B credit. Ez form 2011 See Revenue Ruling 2012-18, 2012-26 I. Ez form 2011 R. Ez form 2011 B. Ez form 2011 1032, available at www. Ez form 2011 irs. Ez form 2011 gov/irb/2012-26_IRB/ar07. Ez form 2011 html. Ez form 2011 6. Ez form 2011 Social Security and Medicare Taxes for Farmworkers The tests described below apply only to services that are defined as agricultural labor (farmwork). Ez form 2011 In general, you are an employer of farmworkers if your employees: Raise or harvest agricultural or horticultural products on your farm (including the raising and feeding of livestock); Work in connection with the operation, management, conservation, improvement, or maintenance of your farm and its tools and equipment; Provide services relating to salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor); Handle, process, or package any agricultural or horticultural commodity if you produced over half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity); or Do work for you related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Ez form 2011 For this purpose, the term “farm” includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, as well as plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards. Ez form 2011 Farmwork does not include reselling activities that do not involve any substantial activity of raising agricultural or horticultural commodities, such as a retail store or a greenhouse used primarily for display or storage. Ez form 2011 A “share farmer” working for you is not your employee. Ez form 2011 However, the share farmer may be subject to self-employment tax. Ez form 2011 In general, share farming is an arrangement in which certain commodity products are shared between the farmer and the owner (or tenant) of the land. Ez form 2011 For details, see Regulations section 31. Ez form 2011 3121(b)(16)-1. Ez form 2011 The $150 Test or the $2,500 Test All cash wages that you pay to any employee for farmwork are subject to social security and Medicare taxes if either of the following two tests is met. Ez form 2011 You pay cash wages to the employee of $150 or more in a year (count all cash wages paid on a time, piecework, or other basis) for farmwork. Ez form 2011 The $150 test applies separately to each farmworker that you employ. Ez form 2011 If you employ a family of workers, each member is treated separately. Ez form 2011 Do not count wages paid by other employers. Ez form 2011 The total that you pay for farmwork (cash and noncash) to all of your employees is $2,500 or more during the year. Ez form 2011 Exceptions. Ez form 2011   The $150 and $2,500 tests do not apply to wages that you pay to a farmworker who receives less than $150 in annual cash wages and the wages are not subject to social security and Medicare taxes even if you pay $2,500 or more in that year to all of your farmworkers if the farmworker: Is employed in agriculture as a hand-harvest laborer, Is paid piece rates in an operation that is usually paid on a piece-rate basis in the region of employment, Commutes daily from his or her home to the farm, and Had been employed in agriculture less than 13 weeks in the preceding calendar year. Ez form 2011   Amounts that you pay to these seasonal farmworkers, however, count toward the $2,500-or-more test to determine whether wages that you pay to other farmworkers are subject to social security and Medicare taxes. Ez form 2011 7. Ez form 2011 How To Figure Social Security and Medicare Taxes The tax rate for social security is 6. Ez form 2011 2% (amount withheld) each for the employer and employee (12. Ez form 2011 4% total). Ez form 2011 The social security wage base limit is $117,000. Ez form 2011 The tax rate for Medicare is 1. Ez form 2011 45% (amount withheld) each for the employee and employer (2. Ez form 2011 9% total). Ez form 2011 There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. Ez form 2011 Multiply each wage payment by these percentages to figure the tax to withhold from employees. Ez form 2011 Employers report both the employee and employer shares on Forms 941-SS, 944, or Form 943 (farm employment). Ez form 2011 See section 5 for information on tips. Ez form 2011 Additional Medicare Tax withholding. Ez form 2011   In addition to withholding Medicare tax at 1. Ez form 2011 45%, you must withhold a 0. Ez form 2011 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Ez form 2011 You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Ez form 2011 Additional Medicare Tax is only imposed on the employee. Ez form 2011 There is no employer share of Additional Medicare Tax. Ez form 2011 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Ez form 2011   For more information on what wages are subject to Medicare tax, see the chart Special Rules for Various Types of Employment and Payments in section 12. Ez form 2011 For more information on Additional Medicare Tax, visit IRS. Ez form 2011 gov and enter “Additional Medicare Tax” in the search box. Ez form 2011 Deducting the tax. Ez form 2011   Deduct the employee tax from each wage payment. Ez form 2011 If you are not sure that the wages that you pay to a farmworker during the year will be taxable, you may either deduct the tax when you make the payments or wait until the $2,500 test or the $150 test explained in section 6 has been met. Ez form 2011 Employee's portion of taxes paid by employer. Ez form 2011   If you pay your employee's social security and Medicare taxes without deducting them from the employee's pay, you must include the amount of the payments in the employee's wages for social security and Medicare taxes. Ez form 2011 This increase in the employee's wage payment for your payment of the employee's social security and Medicare taxes is also subject to employee social security and Medicare taxes. Ez form 2011 This again increases the amount of the additional taxes that you must pay. Ez form 2011 Household and agricultural employers. Ez form 2011   This discussion does not apply to household and agricultural employers. Ez form 2011 If you pay a household or agricultural employee's social security and Medicare taxes, these payments must be included in the employee's wages. Ez form 2011 However, this wage increase due to the tax payments is not subject to social security or Medicare taxes as discussed in this section. Ez form 2011 See Publication 15-A for details. Ez form 2011 Sick pay payments. Ez form 2011   Social security and Medicare taxes apply to most payments of sick pay, including payments made by third parties such as insurance companies. Ez form 2011 For details on third-party payers of sick pay, see Publication 15-A. Ez form 2011 8. Ez form 2011 Depositing Taxes You must deposit social security and Medicare taxes if your tax liability (Form 941-SS, line 10; Form 944, line 7; or Form 943, line 11) is $2,500 or more for the tax return period. Ez form 2011 You must make the deposit by electronic funds transfer. Ez form 2011 For more information about electronic funds transfers, see How To Deposit , later in this section. Ez form 2011 Payment with Return $2,500 rule. Ez form 2011   Instead of making deposits during the current quarter, you can pay your total Form 941-SS tax liability when you timely file Form 941-SS if: Your total Form 941-SS tax liability for either the current quarter or the preceding quarter is less than $2,500 and You do not incur a $100,000 next-day deposit obligation during the current quarter. Ez form 2011   If you are not sure your total liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure to deposit penalties. Ez form 2011 Employers who have been notified to file Form 944 can pay their tax liability due for the fourth quarter with Form 944, if their fourth quarter tax liability is less than $2,500. Ez form 2011 Employers must have deposited any tax liability due for the first, second, and third quarters, according to the deposit rules, in order to avoid failure-to-deposit penalties for deposits due during those quarters. Ez form 2011 Only monthly schedule depositors are allowed to make an Accuracy of Deposits Rule payment with the return. Ez form 2011 Semiweekly schedule depositors must timely deposit the amount. Ez form 2011 See Accuracy of Deposits Rule and How To Deposit, later in this section. Ez form 2011 When To Deposit Under the rules discussed below, the only difference between farm and nonfarm workers' employment tax deposit rules is the lookback period. Ez form 2011 Therefore, farm and nonfarm workers are discussed together except where noted. Ez form 2011 Depending on your total taxes reported during a lookback period (discussed later), you are either a monthly schedule depositor or a semiweekly schedule depositor. Ez form 2011 The terms “monthly schedule depositor” and “semiweekly schedule depositor” do not refer to how often you pay your employees or how often you are required to make deposits. Ez form 2011 The terms identify which set of rules that you must follow when a tax liability arises (for example, when you have a payday). Ez form 2011 You will need to determine your deposit schedule for a calendar year based on the total employment taxes reported on Forms 941-SS, line 10; Form 944, line 7; or Form 943, line 9, for your lookback period (defined below). Ez form 2011 If you filed both Forms 941-SS and 941 during the lookback period, combine the tax liabilities for these returns for purposes of determining your deposit schedule. Ez form 2011 Determine your deposit schedule for Form 943 separately from Forms 941-SS and 941. Ez form 2011 Lookback period for employers of nonfarm workers. Ez form 2011   The lookback period for Form 941-SS (or Form 941) consists of four quarters beginning July 1 of the second preceding year and ending June 30 of the prior year. Ez form 2011 These four quarters are your lookback period even if you did not report any taxes for any of the quarters. Ez form 2011 For 2014, the lookback period is July 1, 2012, through June 30, 2013. Ez form 2011    Table 1. Ez form 2011 Lookback Period for Calendar Year 2014 Lookback Period July 1, 2012 Oct. Ez form 2011 1, 2012 Jan. Ez form 2011 1, 2013 Apr. Ez form 2011 1, 2013 through through through through Sep. Ez form 2011 30, 2012 Dec. Ez form 2011 31, 2012 Mar. Ez form 2011 31, 2013 June 30, 2013    The lookback period for Form 944 is the second calendar year preceding the current calendar year. Ez form 2011 For example, the lookback period for calendar year 2014 is calendar year 2012. Ez form 2011 In addition, for employers who filed Form 944 for 2012 or for 2013 and will file Form 941-SS (or Form 941) for 2014, the lookback period for 2014 is the second calendar year preceding the current calendar year, that is, 2012. Ez form 2011 Lookback period for employers of farmworkers. Ez form 2011   The lookback period for Form 943 is the second calendar year preceding the current calendar year. Ez form 2011 The lookback period for calendar year 2014 is calendar year 2012. Ez form 2011 Adjustments to lookback period taxes. Ez form 2011   To determine your taxes for the lookback period, use only the tax that you reported on the original returns (Forms 941-SS, 943, or 944). Ez form 2011 Do not include any adjustments shown on Form 941-X, 943-X, or 944-X. Ez form 2011 Example. Ez form 2011   An employer originally reported total taxes of $45,000 for the lookback period. Ez form 2011 The employer discovered during January 2014 that the tax reported during the lookback period was understated by $10,000 and corrected this error by filing Form 941-X. Ez form 2011 The employer is a monthly schedule depositor for 2014 because the lookback period tax liabilities are based on the amounts originally reported, and they were $50,000 or less. Ez form 2011 Deposit Period The term “deposit period” refers to the period during which tax liabilities are accumulated for each required deposit due date. Ez form 2011 For monthly schedule depositors, the deposit period is a calendar month. Ez form 2011 The deposit periods for semiweekly schedule depositors are Wednesday through Friday and Saturday through Tuesday. Ez form 2011 Monthly Deposit Schedule If your total tax reported for the lookback period is $50,000 or less, you are a monthly schedule depositor for the current year. Ez form 2011 You must deposit taxes on wage payments made during a calendar month by the 15th day of the following month. Ez form 2011 New employers. Ez form 2011   Your tax liability for any quarter in the lookback period before the date you started or acquired your business is considered to be zero. Ez form 2011 Therefore, you are a monthly schedule depositor for the first calendar year of your business (but see the $100,000 Next-Day Deposit Rule , later in this section). Ez form 2011 Semiweekly Deposit Schedule If your total tax reported for the lookback period is more than $50,000, you are a semiweekly schedule depositor for the current year. Ez form 2011 If you are a semiweekly schedule depositor, you must deposit on Wednesday and/or Friday, depending on what day of the week that you make wage payments, as follows. Ez form 2011 Deposit taxes on wage payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Ez form 2011 Deposit taxes on wage payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Ez form 2011 Semiweekly depositors are generally not required to deposit twice a week if their payments were in the same semiweekly period unless the $100,000 Next-Day Deposit Rule , discussed later in this section, applies. Ez form 2011 For example, if you made a payment on both Wednesday and Friday and incurred taxes of $10,000 for each pay date, deposit the $20,000 on the following Wednesday. Ez form 2011 If you made no additional payments on Saturday through Tuesday, no deposit is due on Friday. Ez form 2011 Semiweekly deposit period spanning two quarters. Ez form 2011   If you have more than one pay date during a semiweekly period and the pay dates fall in different calendar quarters, you will need to make separate deposits for the separate liabilities. Ez form 2011 Example. Ez form 2011   If you have a pay date on Monday, March 31, 2014 (first quarter), and another pay date on Tuesday, April 1, 2014 (second quarter), two separate deposits will be required even though the pay dates fall within the same semiweekly period. Ez form 2011 Both deposits will be due on Friday, April 4, 2014 (3 business days from the end of the semiweekly deposit period). Ez form 2011 Examples of Monthly and Semiweekly Schedules Employers of nonfarm workers. Ez form 2011   Rose Co. Ez form 2011 reported Form 941-SS taxes as follows: 2013 Lookback Period 3rd Quarter 2011 $12,000 4th Quarter 2011 12,000 1st Quarter 2012 12,000 2nd Quarter 2012 12,000   $48,000 2014 Lookback Period 3rd Quarter 2012 $12,000 4th Quarter 2012 12,000 1st Quarter 2013 12,000 2nd Quarter 2013 15,000   $51,000 Rose Co. Ez form 2011 is a monthly schedule depositor for 2013 because its taxes for the four quarters in its lookback period ($48,000 for the 3rd quarter of 2011 through the 2nd quarter of 2012) were not more than $50,000. Ez form 2011 However, for 2014, Rose Co. Ez form 2011 is a semiweekly schedule depositor because the total taxes for the four quarters in its lookback period ($51,000 for the 3rd quarter of 2012 through the 2nd quarter of 2013) exceeded $50,000. Ez form 2011 Employers of farmworkers. Ez form 2011   Red Co. Ez form 2011 reported taxes on its 2012 Form 943, line 9, of $48,000. Ez form 2011 On its 2013 Form 943, line 11, it reported taxes of $60,000. Ez form 2011   Red Co. Ez form 2011 is a monthly schedule depositor for 2014 because its taxes for its lookback period ($48,000 for calendar year 2012) were not more than $50,000. Ez form 2011 However, for 2015, Red Co. Ez form 2011 is a semiweekly schedule depositor because the total taxes for its lookback period ($60,000 for calendar year 2013) exceeded $50,000. Ez form 2011 New agricultural employers. Ez form 2011   New agricultural employers filing Form 943 are monthly schedule depositors for the first and second calendar years of their business because their taxes for the lookback period (2 years) are considered to be zero. Ez form 2011 However, see the $100,000 Next-Day Deposit Rule , later in this section. Ez form 2011 Deposits on Business Days Only If a deposit due date falls on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Ez form 2011 A business day is any day other than a Saturday, Sunday, or legal holiday. Ez form 2011 For example, if a deposit is required to be made on Friday, but Friday is a legal holiday, the deposit is considered timely if it is made by the following Monday (if Monday is a business day). Ez form 2011 Semiweekly schedule depositors have at least 3 business days to make a deposit. Ez form 2011 If any of the 3 weekdays after the end of a semiweekly period is a legal holiday, you will have an additional day for each day that is a legal holiday to make the required deposit. Ez form 2011 For example, if a semiweekly schedule depositor accumulated taxes for payments made on Friday and the following Monday is a legal holiday, the deposit normally due on Wednesday may be made on Thursday (this allows 3 business days to make the deposit). Ez form 2011 Legal holiday. Ez form 2011   The term “legal holiday” means any legal holiday in the District of Columbia. Ez form 2011 Legal holidays for 2014 are listed below. Ez form 2011 January 1—New Year's Day January 20—Birthday of Martin Luther King, Jr. Ez form 2011 February 17—Washington's Birthday April 16—District of Columbia Emancipation Day May 26—Memorial Day July 4—Independence Day September 1—Labor Day October 13—Columbus Day November 11—Veterans Day November 27—Thanksgiving Day December 25—Christmas Day Application of Monthly and Semiweekly Schedules The following examples illustrate the procedure for determining the deposit date under the two different deposit schedules. Ez form 2011 Monthly schedule example. Ez form 2011   Spruce Co. Ez form 2011 is a monthly schedule depositor with seasonal employees. Ez form 2011 It paid wages each Friday during August but did not pay any wages during September. Ez form 2011 Under the monthly deposit schedule, Spruce Co. Ez form 2011 must deposit the combined tax liabilities for the four August paydays by September 15. Ez form 2011 Spruce Co. Ez form 2011 does not have a deposit requirement for September (due by October 15) because no wages were paid and, therefore, it did not have a tax liability for September. Ez form 2011 Semiweekly schedule example. Ez form 2011   Green, Inc. Ez form 2011 is a semiweekly schedule depositor and pays wages once each month on the last Friday of the month. Ez form 2011 Although Green, Inc. Ez form 2011 , has a semiweekly deposit schedule, it will deposit just once a month because it pays wages only once a month. Ez form 2011 The deposit, however, will be made under the semiweekly deposit schedule as follows: Green, Inc. Ez form 2011 ’s tax liability for the April 25, 2014 (Friday), payday must be deposited by April 30, 2014 (Wednesday). Ez form 2011 Under the semiweekly deposit schedule, liabilities for wages paid on Wednesday through Friday must be deposited by the following Wednesday. Ez form 2011 $100,000 Next-Day Deposit Rule If you accumulate taxes of $100,000 or more on any day during a deposit period, you must deposit by the close of the next business day, whether you are a monthly or a semiweekly schedule depositor. Ez form 2011 For purposes of the $100,000 rule, do not continue accumulating taxes after the end of a deposit period. Ez form 2011 For example, if a semiweekly schedule depositor has accumulated taxes of $95,000 on Tuesday and $10,000 on Wednesday, the $100,000 next-day deposit rule does not apply because the $10,000 is accumulated in the next deposit period. Ez form 2011 Thus, $95,000 must be deposited by Friday and $10,000 must be deposited by the following Wednesday. Ez form 2011 However, once you accumulate at least $100,000 in a deposit period, stop accumulating at the end of that day and begin to accumulate anew on the next day. Ez form 2011 For example, Fir Co. Ez form 2011 is a semiweekly schedule depositor. Ez form 2011 On Monday, Fir Co. Ez form 2011 accumulates taxes of $110,000 and must deposit on Tuesday, the next business day. Ez form 2011 On Tuesday, Fir Co. Ez form 2011 accumulates additional taxes of $30,000. Ez form 2011 Because the $30,000 is not added to the previous $110,000 and is less than $100,000, Fir Co. Ez form 2011 does not have to deposit the $30,000 until Friday (following the semiweekly deposit schedule). Ez form 2011 If you are a monthly schedule depositor and you accumulate a $100,000 tax liability on any day during a month, you become a semiweekly schedule depositor on the next day and remain so for the remainder of the calendar year and for the following calendar year. Ez form 2011 Example. Ez form 2011   Elm, Inc. Ez form 2011 started its business on May 1, 2014. Ez form 2011 On May 8, it paid wages for the first time and accumulated a tax liability of $40,000. Ez form 2011 On Friday, May 9, Elm, Inc. Ez form 2011 paid wages and accumulated a liability of $60,000, making its accumulated Form 941-SS tax liability total $100,000. Ez form 2011 Elm, Inc. Ez form 2011 must deposit $100,000 by Monday, May 12, the next business day. Ez form 2011 Because this was the first year of its business, the tax liability for its lookback period is considered to be zero, and it would be a monthly schedule depositor based on the lookback rules. Ez form 2011 However, because Elm, Inc. Ez form 2011 accumulated $100,000 on May 9, it became a semiweekly schedule depositor on May 10. Ez form 2011 It will be a semiweekly schedule depositor for the remainder of 2014 and for 2015. Ez form 2011 Accuracy of Deposits Rule You are required to deposit 100% of your tax liability on or before the deposit due date. Ez form 2011 However, penalties will not be applied for depositing less than 100% if both of the following conditions are met. Ez form 2011 Any deposit shortfall does not exceed the greater of $100 or 2% of the amount of taxes otherwise required to be deposited, and The deposit shortfall is paid or deposited by the shortfall makeup date as described below. Ez form 2011 Makeup date for deposit shortfall: Monthly schedule depositor. Ez form 2011 Deposit or pay the shortfall by the due date of your Form 941-SS, 944, or 943 for the period in which the shortfall occurred. Ez form 2011 You may pay the shortfall with your return even if the amount is $2,500 or more. Ez form 2011 Semiweekly schedule depositor. Ez form 2011 Deposit by the earlier of: The first Wednesday or Friday (whichever comes first) that comes on or after the 15th of the month following the month in which the shortfall occurred, or The return due date for the period in which the shortfall occurred. Ez form 2011 For example, if a semiweekly schedule depositor filing Form 941-SS has a deposit shortfall during July 2014, the shortfall makeup date is August 15, 2014 (Friday). Ez form 2011 However, if the shortfall occurred on the required April 2 (Wednesday), deposit date for a March 28 (Friday) pay date, the return due date for the March 28 pay date (April 30) would come before the May 16 (Friday) shortfall makeup date. Ez form 2011 In this case, the shortfall must be deposited by April 30, 2014. Ez form 2011 Employers of Both Farm and Nonfarm Workers If you employ both farm and nonfarm workers, you must treat employment taxes for the farmworkers (Form 943 taxes) separately from employment taxes for the nonfarm workers (Form 941-SS or 944 taxes). Ez form 2011 Form 943 taxes and Form 941-SS (or Form 944) taxes are not combined for purposes of applying any of the deposit rules. Ez form 2011 If a deposit is due, deposit the Form 941-SS (or Form 944) taxes and Form 943 taxes separately, as discussed next. Ez form 2011 How To Deposit You must deposit employment taxes by electronic funds transfer. Ez form 2011 See Payment with Return , earlier in this section, for exceptions explaining when taxes may be paid with the tax return instead of being deposited. Ez form 2011 Electronic deposit requirement. Ez form 2011   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Ez form 2011 Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Ez form 2011 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Ez form 2011   EFTPS is a free service provided by the Department of the Treasury. Ez form 2011 To get more information or to enroll in EFTPS, call 1-800-555-4477 (U. Ez form 2011 S. Ez form 2011 Virgin Islands only) or 303-967-5916 (toll call). Ez form 2011 You can also visit the EFTPS website at www. Ez form 2011 eftps. Ez form 2011 gov. Ez form 2011 Additional information about EFTPS is also available in Publication 966. Ez form 2011 When you receive your EIN. Ez form 2011   If you are a new employer that indicated a federal tax obligation when requesting an EIN, you will be pre-enrolled in EFTPS. Ez form 2011 You will receive information about Express Enrollment in your Employer Identification Number (EIN) Package and an additional mailing containing your EFTPS personal identification number (PIN) and instructions for activating your PIN. Ez form 2011 Follow the steps in your “How to Activate Your Enrollment” brochure to activate your enrollment and begin making your payroll tax deposits. Ez form 2011 If you outsource any of your payroll and related tax duties to a third party payer, such as a payroll service provider or reporting agent, be sure to tell them about your EFTPS enrollment. Ez form 2011 Deposit record. Ez form 2011   For your records, an Electronic Funds Transfer (EFT) Trace Number will be provided with each successful payment. Ez form 2011 The number can be used as a receipt or to trace the payment. Ez form 2011 Depositing on time. Ez form 2011   For deposits made by EFTPS to be on time, you must initiate the deposit by 8 p. Ez form 2011 m. Ez form 2011 Eastern time the day before the date the deposit is due. Ez form 2011 If you use a third party to make deposits on your behalf, they may have different cutoff times. Ez form 2011 Same-day payment option. Ez form 2011   If you fail to initiate a deposit transaction on EFTPS by 8 p. Ez form 2011 m. Ez form 2011 Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Application (FTA). Ez form 2011 To use the same-day payment method, you will need to make arrangements with your financial institution ahead of time. Ez form 2011 Please check with your financial institution regarding availability, deadlines, and costs. Ez form 2011 Your financial institution may charge you a fee for payments made this way. Ez form 2011 To learn more about the information you will need to provide your financial institution to make a same-day wire payment, please visit www. Ez form 2011 eftps. Ez form 2011 gov to download the Same-Day Payment Worksheet. Ez form 2011 How to claim credit for overpayments. Ez form 2011   If you deposited more than the right amount of taxes for a tax period, you can choose on Form 941-SS, 941, 944, or 943 for that tax period to have the overpayment refunded or applied as a credit to your next return. Ez form 2011 Do not ask EFTPS to request a refund from the IRS for you. Ez form 2011 Deposit Penalties Penalties may apply if you do not make required deposits on time or if you make deposits of less than the required amount. Ez form 2011 The penalties do not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to willful neglect. Ez form 2011 The IRS may also waive penalties if you inadvertently fail to deposit in the first quarter that a deposit is due, or the first quarter during which your frequency of deposits changed, if you timely filed your employment tax return. Ez form 2011 For amounts not properly or timely deposited, the penalty rates are as follows. Ez form 2011 2% - Deposits made 1 to 5 days late. Ez form 2011 5% - Deposits made 6 to 15 days late. Ez form 2011 10% - Deposits made 16 or more days late. Ez form 2011 Also applies to amounts paid within 10 days of the date of the first notice that the IRS sent asking for the tax due. Ez form 2011 10% - Amounts (that should have been deposited) paid directly to the IRS or paid with your tax return (but see Payment with Return , earlier in this section, for exceptions). Ez form 2011 15% - Amounts still unpaid more than 10 days after the date of the first notice that the IRS sent asking for the tax due or the day on which you received notice and demand for immediate payment, whichever is earlier. Ez form 2011 Late deposit penalty amounts are determined using calendar days, starting from the due date of the liability. Ez form 2011 Special rule for former Form 944 filers. Ez form 2011    If you filed Form 944 for the prior year and must file Forms 941-SS for the current year because your employment tax liability for the prior year exceeded the Form 944 eligibility requirement ($1,000 or less), the failure-to-deposit penalty will not apply to a late deposit of employment taxes for the first month of the current year if the taxes are deposited in full by March 15 of the current year. Ez form 2011 Order in which deposits are applied. Ez form 2011   Deposits generally are applied to the most recent tax liability within the return period (quarter or year). Ez form 2011 However, if you receive a failure-to-deposit penalty notice, you may designate how your payment is to be applied in order to minimize the amount of the penalty, if you do so within 90 days of the date of the notice. Ez form 2011 Follow the instructions on the penalty notice that you received. Ez form 2011 For more information on designating deposits, see Revenue Procedure 2001-58. Ez form 2011 You can find Revenue Procedure 2001-58 on page 579 of Internal Revenue Bulletin 2001-50 at www. Ez form 2011 irs. Ez form 2011 gov/pub/irs-irbs/irb01-50. Ez form 2011 pdf. Ez form 2011 Example. Ez form 2011 Cedar, Inc. Ez form 2011 is required to make a deposit of $1,000 on July 15 and $1,500 on August 15. Ez form 2011 It does not make the deposit on July 15. Ez form 2011 On August 15, Cedar, Inc. Ez form 2011 deposits $2,000. Ez form 2011 Under the deposits rule, which applies deposits to the most recent tax liability, $1,500 of the deposit is applied to the August 15 deposit and the remaining $500 is applied to the July deposit. Ez form 2011 Accordingly, $500 of the July 15 liability remains undeposited. Ez form 2011 The penalty on this underdeposit will apply as explained earlier. Ez form 2011 Trust fund recovery penalty. Ez form 2011   If federal income, social security, or Medicare taxes that must be withheld are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. Ez form 2011 The penalty is the full amount of the unpaid trust fund tax. Ez form 2011 This penalty may apply to you if these unpaid taxes cannot be immediately collected from the employer or business. Ez form 2011   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. Ez form 2011   A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, an accountant, a volunteer director/trustee, or an employee of a sole proprietorship, or any other person or entity that is responsible for collecting, accounting for, and paying over trust fund taxes. Ez form 2011 A responsible person also may include one who signs checks for the business or otherwise has authority to cause the spending of business funds. Ez form 2011    Willfully means voluntarily, consciously, and intentionally. Ez form 2011 A responsible person acts willfully if the person knows the required actions of collecting, accounting for or paying over trust fund taxes are not taking place, or recklessly disregards obvious and known risks to the government's right to receive trust fund taxes. Ez form 2011 “Averaged” failure-to-deposit penalty. Ez form 2011   The IRS may assess an “averaged” failure-to-deposit (FTD) penalty of 2% to 10% if you are a monthly schedule depositor and did not properly complete Form 941-SS, line 14, when your tax liability shown on Form 941-SS, line 10, was $2,500 or more. Ez form 2011 IRS may also assess this penalty of 2% to 10% if you are a semiweekly schedule depositor and your tax liability shown on Form 941-SS, line 10, was $2,500 or more and you did any of the following. Ez form 2011 Completed Form 941-SS, line 14, instead of Schedule B (Form 941). Ez form 2011 Failed to attach a properly completed Schedule B (Form 941). Ez form 2011 Completed Schedule B (Form 941) incorrectly, for example, by entering tax deposits instead of tax liabilities in the numbered spaces. Ez form 2011   The IRS figures the penalty by allocating your total tax liability shown on Form 941-SS, line 10, equally throughout the tax period. Ez form 2011 Your deposits and payments may not be counted as timely because IRS does not know the actual dates of your tax liabilities. Ez form 2011   You can avoid the penalty by reviewing your return before filing it. Ez form 2011 Follow these steps before filing your Form 941-SS. Ez form 2011 If you are a monthly schedule depositor, report your tax liabilities (not your deposits) in the monthly entry spaces on Form 941-SS, line 14. Ez form 2011 If you are a semiweekly schedule depositor, report your tax liabilities (not your deposits) on Schedule B (Form 941) in the lines that represent the dates you paid your employees. Ez form 2011 Verify that your total liability shown on Form 941-SS, line 14, or the bottom of Schedule B (Form 941) equals your tax liability shown on Form 941-SS,  line 10. Ez form 2011 Do not show negative amounts on Form 941-SS, line 14, or Schedule B (Form 941). Ez form 2011 For prior period errors, do not adjust your tax liabilities reported on your current Form 941-SS, line 14, or on Schedule B (Form 941). Ez form 2011 Instead, file an adjusted return (Form 941-X (if you are adjusting a previously filed Form 941-SS) or Form 944-X (if you are adjusting a previously filed Form 944-SS or 944)) if you are also adjusting your tax liability. Ez form 2011 If you are only adjusting your deposits in response to a failure-to-deposit penalty notice, see the Instructions for Schedule B (Form 941) (if you previously filed Form 941-SS) or the Instructions for Form 944-X (if you previously filed Form 944-SS or 944). Ez form 2011 If you filed Form 944 for 2013 and line 7 was $2,500 or more, you were required to complete Form 944, lines 13a–13m, or attach Form 945-A, Annual Record of Federal Tax Liability. Ez form 2011 If you failed to complete lines 13a–13m, or failed to attach Form 945-A, whichever was required, IRS may assess an “averaged” failure-to-deposit (FTD) penalty. Ez form 2011 9. Ez form 2011 Employer's Returns General instructions. Ez form 2011   File Forms 941-SS (or Form 944) for nonfarm workers and Form 943 for farmworkers. Ez form 2011 (U. Ez form 2011 S. Ez form 2011 Virgin Islands employers may be required to file Form 940 for the combined wages of nonfarm workers and farmworkers. Ez form 2011 ) Employers with employees subject to U. Ez form 2011 S. Ez form 2011 income tax withholding. Ez form 2011   If you have both employees who are subject to U. Ez form 2011 S. Ez form 2011 income tax withholding and employees who are not subject to U. Ez form 2011 S. Ez form 2011 income tax withholding, you must file only Form 941 (or Form 944) and include all your employees’ wages on that form. Ez form 2011 Nonfarm employers. Ez form 2011   File Form 941-SS for the calendar quarter in which you first pay wages for nonfarm workers and for each quarter thereafter unless you are a seasonal employer or file a final return. Ez form 2011 Due dates for each quarter of the calendar year are as follows. Ez form 2011 Quarter Due Jan. Ez form 2011 , Feb. Ez form 2011 , Mar. Ez form 2011 Apr. Ez form 2011 30 Apr. Ez form 2011 , May, June July 31 July, Aug. Ez form 2011 , Sept. Ez form 2011 Oct. Ez form 2011 31 Oct. Ez form 2011 , Nov. Ez form 2011 , Dec. Ez form 2011 Jan. Ez form 2011 31   However, if you deposited all taxes when due for the quarter, you have 10 additional days from the due dates to file the return. Ez form 2011 If the due date for filing your return falls on a Saturday, Sunday, or legal holiday, you may file on the next business day. Ez form 2011   If you closed your business or stopped paying wages and do not have to file returns in the future, check the box on line 15 of your final Form 941-SS and show the date final wages were paid. Ez form 2011 Form 944. Ez form 2011   If IRS notified you to file Form 944, file your 2013 Form 944 by January 31, 2014, or by February 10, 2014 (if you deposited all taxes when due). Ez form 2011 Household employers reporting social security and Medicare taxes. Ez form 2011   If you are a sole proprietor and file Forms 941-SS (or Form 944) for business employees, you may include taxes for household employees on your Forms 941-SS (or Form 944). Ez form 2011 Otherwise, report social security and Medicare taxes for household employees on Schedule H (Form 1040), Household Employment Taxes. Ez form 2011 See Publication 926, Household Employer's Tax Guide, for more information. Ez form 2011 Employers of farmworkers. Ez form 2011   Every employer of farmworkers must file a Form 943 for each calendar year beginning with the first year the employer pays $2,500 or more for farmwork or employs a farmworker who meets the $150 test described in section 6. Ez form 2011   File a Form 943 each year for all taxable wages paid for farmwork. Ez form 2011 You may report household workers in a private home on a farm operated for profit on Form 943. Ez form 2011 Do not report wages for farmworkers on Form 941-SS or 944. Ez form 2011   Send Form 943 to the IRS by January 31 of the following year. Ez form 2011 Send it with payment of any taxes due that you are not required to deposit. Ez form 2011 If you deposited all taxes when due, you have 10 additional days to file. Ez form 2011 Penalties. Ez form 2011   For each whole or part month that a return is not filed when required (disregarding any extensions of the filing deadline), there is a failure-to-file penalty of 5% of the unpaid tax due with that return. Ez form 2011 The maximum penalty is generally 25% of the tax due. Ez form 2011 Also, for each whole or part month that the tax is paid late (disregarding any extensions of the payment deadline), there is a failure-to-pay penalty of 0. Ez form 2011 5% per month of the amount of tax. Ez form 2011 For individual filers only, the failure-to-pay penalty is reduced from 0. Ez form 2011 5% per month to 0. Ez form 2011 25% per month if an installment agreement is in effect. Ez form 2011 You must have filed your return on or before the due date of the return to qualify for the reduced penalty. Ez form 2011 The maximum amount of the failure-to-pay penalty is also 25% of the tax due. Ez form 2011 If both penalties apply in any month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Ez form 2011 The penalties will not be charged if you have a reasonable cause for failing to file or pay. Ez form 2011 If you receive a penalty notice, you can provide an explanation of why you believe reasonable cause exists. Ez form 2011 Reporting Adjustments to Form 941-SS, 944-SS, 944, or 943 Current Period Adjustments Make current period adjustments for fractions of cents, sick pay, tips, and group-term life insurance on your Form 941-SS, 944, or 943. Ez form 2011 See the Instructions for Form 941-SS, Instructions for Form 944, or Instructions for Form 943 for information on how to report these adjustments. Ez form 2011 Prior Period Adjustments Forms for prior period adjustments. Ez form 2011   Use Form 941-X or Form 944-X to make a correction after you discover an error on a previously filed Form 941 or Form 944. Ez form 2011 There are also Forms 943-X, 945-X, and CT-1X to report corrections on the corresponding returns. Ez form 2011 Form 941-X and Form 944-X also replace Form 843, Claim for Refund and Request for Abatement, for employers to request a refund or abatement of overreported employment taxes. Ez form 2011 Continue to use Form 843 when requesting a refund or abatement of assessed interest or penalties. Ez form 2011 See Revenue Ruling 2009-39, 2009-52 I. Ez form 2011 R. Ez form 2011 B. Ez form 2011 951, for examples of how the interest-free adjustment and claim for refund rules apply in 10 different situations. Ez form 2011 You can find Revenue Ruling 2009-39, at www. Ez form 2011 irs. Ez form 2011 gov/irb/2009-52_IRB/ar14. Ez form 2011 html. Ez form 2011 Background. Ez form 2011   Treasury Decision 9405 changed the process for making interest-free adjustments to employment taxes reported on Forms 941-SS, 943, 944-SS, and 944, and for filing a claim for refund of employment taxes. Ez form 2011 Treasury Decision 9405, 2008-32 I. Ez form 2011 R. Ez form 2011 B. Ez form 2011 293, is available at www. Ez form 2011 irs. Ez form 2011 gov/irb/2008-32_IRB/ar13. Ez form 2011 html. Ez form 2011 You will use the adjustment process if you underreported employment taxes and are making a payment, or if you overreported employment taxes and will be applying the credit to the Form 941-SS, 943, or 944 period during which you file Forms 941-X, 943-X, or 944-X, respectively. Ez form 2011 You will use the claim process if you overreported employment taxes and are requesting a refund or abatement of the overreported amount. Ez form 2011 We use the terms “correct” and “corrections” to include interest-free adjustments under sections 6205 and 6413, and claims for refund and abatement under sections 6402, 6414, and 6404 of the Internal Revenue Code. Ez form 2011 Correcting employment taxes. Ez form 2011   When you discover an error on a previously filed Form 941-SS, 943, 944-SS, or 944, you must: Correct that error using Form 941-X, Form 943-X, or Form 944-X, File a separate Form 941-X, Form 943-X, or Form 944-X for