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Federal Tax Amendment Form

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Federal Tax Amendment Form

Federal tax amendment form Publication 957 - Main Content Table of Contents 1. Federal tax amendment form What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Federal tax amendment form Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). Federal tax amendment form 1. Federal tax amendment form What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). Federal tax amendment form For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Federal tax amendment form Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Federal tax amendment form Report all back pay. Federal tax amendment form However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. Federal tax amendment form See Back Pay Under a Statute , later, for more information. Federal tax amendment form Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Federal tax amendment form However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Federal tax amendment form Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. Federal tax amendment form The SSA no longer accepts reports on tapes, cartridges, and diskettes. Federal tax amendment form Example. Federal tax amendment form In 2012, Terry Morris earned wages of $50,000. Federal tax amendment form In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. Federal tax amendment form Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Federal tax amendment form However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. Federal tax amendment form Example. Federal tax amendment form If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. Federal tax amendment form A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. Federal tax amendment form SSA treatment of back pay under a statute. Federal tax amendment form   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. Federal tax amendment form This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. Federal tax amendment form   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. Federal tax amendment form Then, the SSA can allocate the statutory back pay to the appropriate periods. Federal tax amendment form   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Federal tax amendment form    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. Federal tax amendment form    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. Federal tax amendment form No further action is necessary. Federal tax amendment form Example. Federal tax amendment form In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. Federal tax amendment form Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Federal tax amendment form No further action is necessary. Federal tax amendment form Information the SSA needs to properly credit back pay under a statute (special report). Federal tax amendment form   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. Federal tax amendment form There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Federal tax amendment form The special report must include the following information. Federal tax amendment form The employer's name, address, and employer identification number (EIN). Federal tax amendment form A signed statement citing the federal or state statute under which the payment was made. Federal tax amendment form If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). Federal tax amendment form The name and telephone number of a person to contact. Federal tax amendment form The SSA may have additional questions concerning the back pay case or the individual employee's information. Federal tax amendment form A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Federal tax amendment form The employee's social security number (SSN). Federal tax amendment form The employee's name (as shown on his or her social security card). Federal tax amendment form The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Federal tax amendment form The period(s) the back pay award covers (beginning and ending dates—month and year). Federal tax amendment form The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. Federal tax amendment form Do not include the back pay award shown in that wage report. Federal tax amendment form If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. Federal tax amendment form The amount to allocate to each reporting period*. Federal tax amendment form This includes any amount you want allocated (if applicable) to the tax year of the award payment. Federal tax amendment form If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. Federal tax amendment form *Note. Federal tax amendment form   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. Federal tax amendment form For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Federal tax amendment form MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Federal tax amendment form For tax years 1991 and later, list the social security and Medicare wages separately. Federal tax amendment form If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. Federal tax amendment form Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. Federal tax amendment form Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. Federal tax amendment form Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Federal tax amendment form Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Federal tax amendment form Such awards are not wages for social security coverage purposes. Federal tax amendment form If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. Federal tax amendment form The payments made in such a settlement may still be back pay and wages under the rules discussed here. Federal tax amendment form Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. Federal tax amendment form Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Federal tax amendment form However, they are not payments made under a statute. Federal tax amendment form If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. Federal tax amendment form Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. Federal tax amendment form In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. Federal tax amendment form Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Federal tax amendment form If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Federal tax amendment form Read Special Wage Payments, later, for additional reporting instructions. Federal tax amendment form Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Federal tax amendment form Exception. Federal tax amendment form   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. Federal tax amendment form Table 1. Federal tax amendment form Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. Federal tax amendment form Sec. Federal tax amendment form /Med. Federal tax amendment form Wages Paid In Award Year (4)3 Allocation     Soc. Federal tax amendment form Sec. Federal tax amendment form Med. Federal tax amendment form /MQGE Year Soc. Federal tax amendment form Sec. Federal tax amendment form Med. Federal tax amendment form /MQGE xxx-xx-xxxx HELEN T. Federal tax amendment form SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. Federal tax amendment form EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Federal tax amendment form ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. Federal tax amendment form  2Exclude the amount of back pay, if any, included in that amount. Federal tax amendment form  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. Federal tax amendment form The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Federal tax amendment form (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Federal tax amendment form Sec. Federal tax amendment form column. Federal tax amendment form ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Federal tax amendment form Explanation of examples. Federal tax amendment form Helen T. Federal tax amendment form Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Federal tax amendment form In 2012, this employee was also paid $40,000 in other wages. Federal tax amendment form (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Federal tax amendment form The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Federal tax amendment form ) Sam W. Federal tax amendment form Evans–The back pay award was $30,000 for the periods 7/89-12/91. Federal tax amendment form This employee was hired in 1989 and was subject to MQGE only. Federal tax amendment form He was no longer employed by this governmental employer in 2012. Federal tax amendment form (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Federal tax amendment form After the SSA allocation, he will not have any net posted wages for 2012. Federal tax amendment form ) Roland S. Federal tax amendment form Adams–The back pay award was $15,000 for the periods 7/80-12/81. Federal tax amendment form He was no longer employed by this state and local government (Section 218) employer in 2012. Federal tax amendment form (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. Federal tax amendment form ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. Federal tax amendment form Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. Federal tax amendment form Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Federal tax amendment form Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. Federal tax amendment form Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. Federal tax amendment form Note. Federal tax amendment form Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Federal tax amendment form Earnings Test. Federal tax amendment form   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Federal tax amendment form The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Federal tax amendment form Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. Federal tax amendment form If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. Federal tax amendment form Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Federal tax amendment form Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Federal tax amendment form Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Federal tax amendment form See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Federal tax amendment form In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. Federal tax amendment form Submit reports after the close of the tax year. Federal tax amendment form To avoid delays in processing, submit reports in time to reach the SSA by April 1. Federal tax amendment form Use one of the following reporting methods. Federal tax amendment form Electronic reporting. Federal tax amendment form   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Federal tax amendment form gov website. Federal tax amendment form BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Federal tax amendment form You must register to use this website. Federal tax amendment form The web address is www. Federal tax amendment form socialsecurity. Federal tax amendment form gov/bso/bsowelcome. Federal tax amendment form htm. Federal tax amendment form   Use the specifications and record layout shown in  Table 2, later. Federal tax amendment form Only one file at a time may be submitted. Federal tax amendment form If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Federal tax amendment form A zipped file contains a file that has been compressed to reduce its file size. Federal tax amendment form WinZip and PKZIP are examples of acceptable compression packages. Federal tax amendment form   Electronic submissions not meeting the specifications in Table 2 will be rejected. Federal tax amendment form Paper listing. Federal tax amendment form   A paper listing can be used to report special wage payments to several employees. Federal tax amendment form Use the format shown in Table 3, later. Federal tax amendment form Submit paper listings to the local SSA office nearest your place of business. Federal tax amendment form Visit www. Federal tax amendment form socialsecurity. Federal tax amendment form gov/locator to find a Social Security office near you. Federal tax amendment form Form SSA-131. Federal tax amendment form   Use Form SSA-131 to report special wage payments made to an employee. Federal tax amendment form Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. Federal tax amendment form    This image is too large to be displayed in the current screen. Federal tax amendment form Please click the link to view the image. Federal tax amendment form Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Federal tax amendment form Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Federal tax amendment form 2. Federal tax amendment form Enter the date the employee retired. Federal tax amendment form Enter “Not Retired” if the employee has not retired. Federal tax amendment form 3. Federal tax amendment form Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. Federal tax amendment form This date should be the same as or earlier than the date in item “2”. Federal tax amendment form Enter “Not Retired” if the employee has not retired. Federal tax amendment form 4. Federal tax amendment form Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. Federal tax amendment form  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. Federal tax amendment form Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Federal tax amendment form Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Federal tax amendment form Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Federal tax amendment form Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. Federal tax amendment form Stock Options. Federal tax amendment form   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). Federal tax amendment form That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Federal tax amendment form That were deducted from the employee's wages and paid to a deferred compensation plan (e. Federal tax amendment form g. Federal tax amendment form , 401k). Federal tax amendment form Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Federal tax amendment form Bonuses earned and paid in the tax year. Federal tax amendment form 5. Federal tax amendment form Check whether payments listed in item 4 will be made for years after the tax year. Federal tax amendment form If yes, please show the amounts and years in which these will be paid, if known. Federal tax amendment form 6. Federal tax amendment form Nonqualified deferred compensation and section 457 plans only. Federal tax amendment form If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. Federal tax amendment form Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). Federal tax amendment form Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Federal tax amendment form 702. Federal tax amendment form The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. Federal tax amendment form While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. Federal tax amendment form We may also use the information you give us when we match records by computer. Federal tax amendment form Matching programs compare our records with those of other Federal, State, or local government agencies. Federal tax amendment form Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Federal tax amendment form The law allows us to do this even if you do not agree to it. Federal tax amendment form Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Federal tax amendment form If you want to learn more about this, contact any Social Security Office. Federal tax amendment form The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Federal tax amendment form S. Federal tax amendment form C. Federal tax amendment form §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Federal tax amendment form You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Federal tax amendment form We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Federal tax amendment form Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Federal tax amendment form Or, the employee can submit it to the SSA office handling the claim. Federal tax amendment form You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Federal tax amendment form If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. Federal tax amendment form Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Federal tax amendment form Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Federal tax amendment form Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. Federal tax amendment form It should not count for the social security earnings test. Federal tax amendment form Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. Federal tax amendment form Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. Federal tax amendment form For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. Federal tax amendment form Nonqualified and section 457 plans are reported differently than other special wage payments. Federal tax amendment form See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Federal tax amendment form Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. Federal tax amendment form However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. Federal tax amendment form The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Federal tax amendment form No risk of forfeiture. Federal tax amendment form   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Federal tax amendment form Example. Federal tax amendment form Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Federal tax amendment form The plan has no risk of forfeiture. Federal tax amendment form In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Federal tax amendment form Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. Federal tax amendment form   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Federal tax amendment form The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Federal tax amendment form   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Federal tax amendment form If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Federal tax amendment form    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Federal tax amendment form Risk of forfeiture lapses at retirement. Federal tax amendment form   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. Federal tax amendment form Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Federal tax amendment form   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Federal tax amendment form    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Federal tax amendment form Example—risk of forfeiture. Federal tax amendment form At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. Federal tax amendment form B's wages, including this year's deferred amount, are $80,000. Federal tax amendment form Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. Federal tax amendment form Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Federal tax amendment form Example. Federal tax amendment form Employee D retired from the XYZ company and began receiving social security benefits. Federal tax amendment form XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. Federal tax amendment form In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Federal tax amendment form D made no deferrals to the nonqualified plan this year. Federal tax amendment form Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. Federal tax amendment form For more information, see Reporting Special Wage Payments , earlier. Federal tax amendment form Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). Federal tax amendment form Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Federal tax amendment form Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. Federal tax amendment form See Form SSA-131 and its instructions, earlier. Federal tax amendment form Example. Federal tax amendment form Employee K retired this year from Company XYZ and began receiving social security benefits. Federal tax amendment form During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Federal tax amendment form K also received $75,000 in payments from the company's nonqualified plan. Federal tax amendment form Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. Federal tax amendment form File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. Federal tax amendment form If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Federal tax amendment form For more information, see Notice 2008-115, 2008-52 I. Federal tax amendment form R. Federal tax amendment form B. Federal tax amendment form 1367, available at www. Federal tax amendment form irs. Federal tax amendment form gov/irb/2008-52_IRB/ar10. Federal tax amendment form html. Federal tax amendment form Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Federal tax amendment form Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Federal tax amendment form See Notice 2008-115. Federal tax amendment form The following examples use small dollar amounts for illustrative purposes. Federal tax amendment form However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). Federal tax amendment form The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Federal tax amendment form Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Federal tax amendment form The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. Federal tax amendment form For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. Federal tax amendment form Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Federal tax amendment form For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Federal tax amendment form The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Federal tax amendment form Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Federal tax amendment form Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). Federal tax amendment form For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Federal tax amendment form The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. Federal tax amendment form Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Federal tax amendment form Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). Federal tax amendment form For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Federal tax amendment form The deferral of $20 was vested upon deferral. Federal tax amendment form During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Federal tax amendment form Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Federal tax amendment form Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). Federal tax amendment form For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Federal tax amendment form There was no vesting of prior-year deferrals under the plan. Federal tax amendment form During the year, there were total distributions of $50 from the plan to the employee. Federal tax amendment form Regular pay = $100; Distribution = $50. Federal tax amendment form Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). Federal tax amendment form   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. Federal tax amendment form Instead, report on Form SSA-131 the total amount the employee earned during the year. Federal tax amendment form * Submit the SSA-131 to the nearest SSA office or give it to the employee. Federal tax amendment form   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. Federal tax amendment form Do not consider prior-year deferrals that are vesting in the current year. Federal tax amendment form If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Federal tax amendment form Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Federal tax amendment form For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax amendment form There was also an employer match of $10. Federal tax amendment form The deferral and employer match were vested upon deferral. Federal tax amendment form There was no vesting of prior-year deferrals under the plan. Federal tax amendment form During the year, there were total distributions of $50 from the plan to the employee. Federal tax amendment form Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Federal tax amendment form Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. Federal tax amendment form File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). Federal tax amendment form For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax amendment form The deferral was not vested upon deferral. Federal tax amendment form There was no vesting of prior-year deferrals under the plan. Federal tax amendment form During the year, there were total distributions of $50 from the plan to the employee. Federal tax amendment form Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Federal tax amendment form Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). Federal tax amendment form 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). Federal tax amendment form For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax amendment form The deferral was vested upon deferral. Federal tax amendment form There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Federal tax amendment form During the year, there were total distributions of $50 from the plan to the employee. Federal tax amendment form Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Federal tax amendment form Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. Federal tax amendment form File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). Federal tax amendment form For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Federal tax amendment form The deferral was not vested upon deferral. Federal tax amendment form There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Federal tax amendment form During the year, there were total distributions of $50 from the plan to the employee. Federal tax amendment form Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. Federal tax amendment form Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. Federal tax amendment form File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Federal tax amendment form Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Federal tax amendment form  The file format is ASCII. Federal tax amendment form  Submit only one file at a time. Federal tax amendment form   Table 3. Federal tax amendment form Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Federal tax amendment form Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Federal tax amendment form 1) B. Federal tax amendment form Employee Name: (Last) (First) (MI)   C. Federal tax amendment form SSN: D. Federal tax amendment form SWP:$ E. Federal tax amendment form Type: Other: 2) B. Federal tax amendment form Employee Name: (Last) (First) (MI)   C. Federal tax amendment form SSN: D. Federal tax amendment form SWP:$ E. Federal tax amendment form Type: Other: 3) B. Federal tax amendment form Employee Name: (Last) (First) (MI)   C. Federal tax amendment form SSN: D. Federal tax amendment form SWP:$ E. Federal tax amendment form Type: Other: 4) B. Federal tax amendment form Employee Name: (Last) (First) (MI)   C. Federal tax amendment form SSN: D. Federal tax amendment form SWP:$ E. Federal tax amendment form Type: Other: 5) B. Federal tax amendment form Employee Name: (Last) (First) (MI)   C. Federal tax amendment form SSN: D. Federal tax amendment form SWP:$ E. Federal tax amendment form Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Federal tax amendment form   A. Federal tax amendment form Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. Federal tax amendment form   B. Federal tax amendment form Employee's name. Federal tax amendment form   C. Federal tax amendment form Employee's social security number (SSN). Federal tax amendment form   D. Federal tax amendment form Total amount of special wage payments made to the employee. Federal tax amendment form   E. Federal tax amendment form Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. Federal tax amendment form   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. Federal tax amendment form (Get Form SSA-131. Federal tax amendment form )                 Prev  Up  Next   Home   More Online Publications
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CP 297A - Notice of Levy and Notice of Your Right to a Hearing

Details About This Notice:
Sample Content: Page 1, Page 2
Purpose:   We send CP 297A to notify the recipient of our levy and of  their right to a hearing.
Reason for Issuance:   There is a balance due on the recipient's account we've previously asked them to pay. We're sending the notice to inform them the account is still unpaid and to notify them of our levy and of their right to receive appeals consideration.
Account Balance:   Balance Due
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Page Last Reviewed or Updated: 31-Mar-2014

The Federal Tax Amendment Form

Federal tax amendment form Publication 524 - Additional Material Prev  Up  Next   Home   More Online Publications