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Form4868

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Form4868

Form4868 12. Form4868   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. Form4868 Name change. Form4868 Penalty for underpayment of estimated tax. Form4868 Who Must Pay Self-Employment Tax?Limited partner. Form4868 Community property. Form4868 Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. Form4868  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Form4868 4% to 12. Form4868 4%. Form4868 The Medicare part of the tax remains at 2. Form4868 9%. Form4868 As a result, the self-employment tax is increased from 13. Form4868 3% to 15. Form4868 3%. Form4868 Additional Medicare Tax. Form4868 . Form4868  For tax years beginning in 2013, a 0. Form4868 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Form4868 Use Form 8959, Additional Medicare Tax, to figure this tax. Form4868 For more information, see the Instructions for Form 8959. Form4868 Maximum net earnings. Form4868  The maximum net self-employment earnings subject to the social security part (12. Form4868 4%) of the self-employment tax increased to $113,700 for 2013. Form4868 There is no maximum limit on earnings subject to the Medicare part (2. Form4868 9%). Form4868 What's New for 2014 Maximum net earnings. Form4868  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Form4868 Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Form4868 It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Form4868 You usually have to pay SE tax if you are self-employed. Form4868 You are usually self-employed if you operate your own farm on land you either own or rent. Form4868 You have to figure SE tax on Schedule SE (Form 1040). Form4868 Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. Form4868 See chapter 13 for information on employment taxes. Form4868 Self-employment tax rate. Form4868   For tax years beginning in 2013, the self-employment tax rate is 15. Form4868 3%. Form4868 The rate consists of two parts: 12. Form4868 4% for social security (old-age, survivors, and disability insurance) and 2. Form4868 9% for Medicare (hospital insurance). Form4868 Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. Form4868 S. Form4868 Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. Form4868 S. Form4868 Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Form4868 See chapter 16 for information about getting publications and forms. Form4868 Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. Form4868 Your payments of SE tax contribute to your coverage under the social security system. Form4868 Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Form4868 How to become insured under social security. Form4868   You must be insured under the social security system before you begin receiving social security benefits. Form4868 You are insured if you have the required number of credits (also called quarters of coverage). Form4868 Earning credits in 2013. Form4868   You can earn a maximum of four credits per year. Form4868 For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. Form4868 You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. Form4868 It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. Form4868 For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. Form4868 socialsecurity. Form4868 gov. Form4868 Making false statements to get or to increase social security benefits may subject you to penalties. Form4868 The Social Security Administration (SSA) time limit for posting self-employment earnings. Form4868   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Form4868    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. Form4868 The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. Form4868 How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). Form4868 This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. Form4868 An ITIN does not entitle you to social security benefits. Form4868 Obtaining an ITIN does not change your immigration or employment status under U. Form4868 S. Form4868 law. Form4868 Obtaining a social security number. Form4868   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. Form4868 The application is also available in Spanish. Form4868 You can get this form at any Social Security office or by calling 1-800-772-1213. Form4868    You can also download Form SS-5 from the Social Security Administration website at  www. Form4868 socialsecurity. Form4868 gov. Form4868   If you have a social security number from the time you were an employee, you must use that number. Form4868 Do not apply for a new one. Form4868 Replacing a lost social security card. Form4868   If you have a number but lost your card, file Form SS-5. Form4868 You will get a new card showing your original number, not a new number. Form4868 Name change. Form4868   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. Form4868 Obtaining an individual taxpayer identification number. Form4868   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. Form4868 To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. Form4868 You can get this form by calling 1-800-829-3676. Form4868 For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. Form4868 Form W-7 and Publication 1915 are also available in Spanish. Form4868    You can also download Form W-7 from the IRS website at IRS. Form4868 gov. Form4868 Paying estimated tax. Form4868   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. Form4868 You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. Form4868 Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. Form4868   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. Form4868 For more information about estimated tax for farmers, see chapter 15. Form4868 Penalty for underpayment of estimated tax. Form4868   You may have to pay a penalty if you do not pay enough estimated tax by its due date. Form4868 Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. Form4868 The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Form4868 Aliens. Form4868   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. Form4868 S. Form4868 citizens. Form4868 Nonresident aliens are not subject to self-employment tax. Form4868 However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. Form4868 S. Form4868 residents for self-employment tax purposes. Form4868 For more information on aliens, see Publication 519, U. Form4868 S. Form4868 Tax Guide for Aliens. Form4868 Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. Form4868 A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. Form4868 Share farmer. Form4868   You are a self-employed farmer under an income-sharing arrangement if both the following apply. Form4868 You produce a crop or raise livestock on land belonging to another person. Form4868 Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. Form4868 Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. Form4868   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. Form4868 This will depend on whether the landowner has the right to direct or control your performance of services. Form4868 Example. Form4868 A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. Form4868 Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. Form4868 The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. Form4868 The share farmer is provided a house in which to live. Form4868 The landowner and the share farmer decide on a cropping plan. Form4868 The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. Form4868 The tax treatment of the landowner is discussed later under Landlord Participation in Farming. Form4868 Contract farming. Form4868   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. Form4868 Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. Form4868 4-H Club or FFA project. Form4868   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Form4868 Report the net income as “Other income” on line 21 of Form 1040. Form4868 If necessary, attach a statement showing the gross income and expenses. Form4868 The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. Form4868 Such a project is generally not considered a trade or business. Form4868 Partners in a partnership. Form4868   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. Form4868 Limited partner. Form4868   If you are a limited partner, your partnership income is generally not subject to SE tax. Form4868 However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). Form4868 Business Owned and Operated by Spouses. Form4868   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. Form4868 You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. Form4868 Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Form4868 Qualified joint venture. Form4868   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Form4868 For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. Form4868   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Form4868 Each of you must file a separate Schedule F and a separate Schedule SE. Form4868 For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). Form4868 Spouse employee. Form4868   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. Form4868 For more information about employment taxes, see chapter 13. Form4868 Community property. Form4868   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. Form4868 Do not treat any of your share as self-employment earnings of your spouse. Form4868 Figuring Self-Employment Earnings Farmer. Form4868   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. Form4868 Partnership income or loss. Form4868   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). Form4868 Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). Form4868 Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). Form4868   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. Form4868   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. Form4868   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). Form4868   For general information on partnerships, see Publication 541. Form4868 More than one business. Form4868   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. Form4868 A loss from one business reduces your profit from another business. Form4868 However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. Form4868 Community property. Form4868   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. Form4868 Lost income payments. Form4868   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. Form4868 These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. Form4868 Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). Form4868 A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. Form4868 Gain or loss. Form4868   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. Form4868 It does not matter whether the disposition is a sale, exchange, or involuntary conversion. Form4868 For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. Form4868 Investment property. Form4868 Depreciable property or other fixed assets used in your trade or business. Form4868 Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. Form4868 Unharvested standing crops sold with land held more than 1 year. Form4868 Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. Form4868   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. Form4868 For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. Form4868 Wages and salaries. Form4868   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. Form4868   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. Form4868 Retired partner. Form4868   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. Form4868 The retired partner performs no services for the partnership during the year. Form4868 The retired partner is owed only the retirement payments. Form4868 The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. Form4868 The payments to the retired partner are lifelong periodic payments. Form4868 Conservation Reserve Program (CRP) payments. Form4868   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. Form4868 You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. Form4868 Cost share payments you receive may qualify for the costsharing exclusion. Form4868 See Cost-Sharing Exclusion (Improvements), above. Form4868 CRP payments are reported to you on Form 1099G. Form4868 Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. Form4868 See the instructions for Schedule SE (Form 1040). Form4868 Self-employed health insurance deduction. Form4868   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). Form4868 Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. Form4868 However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. Form4868 Crop shares. Form4868   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. Form4868 Feeding such crop shares to livestock is considered using them. Form4868 Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. Form4868 Material participation for landlords. Form4868   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. Form4868 You do at least three of the following. Form4868 Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. Form4868 Furnish at least half the tools, equipment, and livestock used in the production activities. Form4868 Advise or consult with your tenant. Form4868 Inspect the production activities periodically. Form4868 You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. Form4868 You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. Form4868 You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. Form4868 These tests may be used as general guides for determining whether you are a material participant. Form4868 Example. Form4868 Drew Houston agrees to produce a crop on J. Form4868 Clarke's cotton farm, with each receiving half the proceeds. Form4868 Clarke advises Houston when to plant, spray, and pick the cotton. Form4868 During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. Form4868 Houston furnishes all labor needed to grow and harvest the crop. Form4868 The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. Form4868 The income Clarke receives from his cotton farm is included in his self-employment earnings. Form4868 Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. Form4868 The regular method. Form4868 The farm optional method. Form4868 The nonfarm optional method. Form4868 You must use the regular method unless you are eligible to use one or both of the optional methods. Form4868 See Figure 12-1 , shown later. Form4868 Figure 12-1. Form4868 Can I Use the Optional Methods? Please click here for the text description of the image. Form4868 Figure 12–1. Form4868 Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. Form4868 You want to receive credit for social security benefit coverage. Form4868 You incurred child or dependent care expenses for which you could claim a credit. Form4868 (An optional method may increase your earned income, which could increase your credit. Form4868 ) You are entitled to the earned income credit. Form4868 (An optional method may increase your earned income, which could increase your credit. Form4868 ) You are entitled to the additional child tax credit. Form4868 (An optional method may increase your earned income, which could increase your credit. Form4868 ) Effects of using an optional method. Form4868   Using an optional method could increase your SE tax. Form4868 Paying more SE tax may result in you getting higher social security disability or retirement benefits. Form4868   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. Form4868   The optional methods may be used only to figure your SE tax. Form4868 To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. Form4868 Regular Method Multiply your total self-employment earnings by 92. Form4868 35% (. Form4868 9235) to get your net earnings under the regular method. Form4868 See Short Schedule SE, line 4, or Long Schedule SE, line 4a. Form4868 Net earnings figured using the regular method are also called “actual net earnings. Form4868 ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. Form4868 You can use this method if you meet either of the following tests. Form4868 Your gross farm income is $6,960 or less. Form4868 Your net farm profits are less than $5,024. Form4868 Gross farm income. Form4868   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). Form4868 Net farm profits. Form4868   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). Form4868 However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. Form4868 For more information, see Partnership income or loss , earlier. Form4868 Figuring farm net earnings. Form4868   If you meet either of the two tests explained above, use Table 12-1. Form4868 Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. Form4868 Table 12-1. Form4868 Figuring Farm Net Earnings IF your gross farm income  is. Form4868 . Form4868 . Form4868 THEN your net earnings are equal to. Form4868 . Form4868 . Form4868 $6,960 or less Two-thirds of your gross farm income. Form4868 More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. Form4868   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. Form4868 Your actual net earnings are your net earnings figured using the regular method, explained earlier. Form4868 Example. Form4868 Your gross farm income is $540 and your net farm profit is $460. Form4868 Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. Form4868 35% of $460). Form4868 You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. Form4868 Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. Form4868 If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. Form4868 You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. Form4868 For more information about the nonfarm optional method, see Publication 334. Form4868 You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. Form4868 Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. Form4868 You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. Form4868 If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. Form4868 Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. Form4868 Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. Form4868 Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. Form4868 However, certain taxpayers must use Section B–Long Schedule SE. Form4868 Use the chart on page 1 of Schedule SE to find out which one to use. Form4868 If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. Form4868 Deduction for employer-equivalent portion of self-employment tax. Form4868   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Form4868 This deduction only affects your income tax. Form4868 It does not affect either your net earnings from self-employment or your SE tax. Form4868   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. Form4868 Joint return. Form4868   Even if you file a joint return, you cannot file a joint Schedule SE. Form4868 This is true whether one spouse or both spouses have self-employment earnings. Form4868 Your spouse is not considered self-employed just because you are. Form4868 If both of you have self-employment earnings, each of you must complete a separate Schedule SE. Form4868 However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. Form4868 Attach both schedules to the joint return. Form4868 If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . Form4868 Prev  Up  Next   Home   More Online Publications
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Know Your Rights When Shopping for Credit

Like everything else you buy, it pays to comparison shop for credit. Check financial and banking websites to find up-to-date interest rate reports on mortgages, auto loans, credit cards, home equity loans, and other banking products. The Equal Credit Opportunity Act protects you when dealing with anyone who regularly offers credit, including banks, finance companies, stores, credit card companies and credit unions. When you apply for credit, a creditor may not:

  • Ask about or consider your sex, race, national origin or religion.
  • Ask about your marital status or your spouse, unless you are applying for a joint account or relying on your spouse's income, or you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin)
  • Ask about your plans to have or raise children
  • Refuse to consider public assistance income or regularly received alimony or child support
  • Refuse to consider income because of your sex or marital status or because it is from part-time work or retirement benefits

You have the right to:

  • Have credit in your birth name, your first name and your spouse/ partner's last name, or your first name and a combined last name
  • Have a co-signer other than your spouse if one is necessary
  • Keep your own accounts after you change your name or marital status or retire, unless the creditor has evidence you are unable or unwilling to pay
  • Know why a credit application was rejected-the creditor must give you the specific reasons or tell you where and how you can get them if you ask within 60 days
  • Have accounts shared with your spouse reported in both your names
  • Know how much it will cost to borrow money
  • YOU HAVE THE RIGHT TO A FREE ANNUAL CREDIT REPORT .

For additional information on credit, see Buying a Home. Other sources of information include the HUD Housing Counseling Clearinghouse (1-888-466-3487), the FTC and the National Consumer Law Center.

The Form4868

Form4868 10. Form4868   Indoor Tanning Services Tax Table of Contents The tax on indoor tanning service is 10% of the amount paid for that service. Form4868 The tax is paid by the person paying for the services and is collected by the person receiving payment for the indoor tanning services. Form4868 Definition of indoor tanning services. Form4868   Indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning. Form4868 The term does not include phototherapy service performed by, and on the premises of, a licensed medical professional (such as a dermatologist, psychologist, or registered nurse). Form4868 See regulations section 49. Form4868 5000B-1 for more information, and special rules for qualified physical fitness facilities, undesignated payment cards, and bundled payments. Form4868 File Form 720. Form4868   The person receiving the payment for indoor tanning services (collector) must collect and remit the tax and file the return. Form4868 If the tax is not collected for any reason, the collector is liable for the tax. Form4868 The collector is not required to make semimonthly deposits of the tax. Form4868 Prev  Up  Next   Home   More Online Publications