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Free E File 2011 Taxes

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Free E File 2011 Taxes

Free e file 2011 taxes 1. Free e file 2011 taxes   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. Free e file 2011 taxes Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. Free e file 2011 taxes S. Free e file 2011 taxes Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. Free e file 2011 taxes S. Free e file 2011 taxes Individual Income Tax Return 2350 Application for Extension of Time To File U. Free e file 2011 taxes S. Free e file 2011 taxes Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. Free e file 2011 taxes S. Free e file 2011 taxes Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. Free e file 2011 taxes Filing Requirements If you are a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Free e file 2011 taxes Your income, filing status, and age generally determine whether you must file an income tax return. Free e file 2011 taxes Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. Free e file 2011 taxes Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. Free e file 2011 taxes Gross income. Free e file 2011 taxes   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Free e file 2011 taxes   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. Free e file 2011 taxes If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. Free e file 2011 taxes Self-employed individuals. Free e file 2011 taxes   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Free e file 2011 taxes Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. Free e file 2011 taxes 65 or older. Free e file 2011 taxes   You are considered to be age 65 on the day before your 65th birthday. Free e file 2011 taxes For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Free e file 2011 taxes Residents of U. Free e file 2011 taxes S. Free e file 2011 taxes possessions. Free e file 2011 taxes   If you are (or were) a bona fide resident of a U. Free e file 2011 taxes S. Free e file 2011 taxes possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. Free e file 2011 taxes S. Free e file 2011 taxes Possession. Free e file 2011 taxes See the instructions for the form for more information. Free e file 2011 taxes When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. Free e file 2011 taxes If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. Free e file 2011 taxes In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. Free e file 2011 taxes When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Free e file 2011 taxes — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Free e file 2011 taxes A tax return delivered by the U. Free e file 2011 taxes S. Free e file 2011 taxes mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. Free e file 2011 taxes See your Form 1040 or Form 1040A instructions for a list of designated delivery services. Free e file 2011 taxes Foreign wire transfers. Free e file 2011 taxes   If you have a U. Free e file 2011 taxes S. Free e file 2011 taxes bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). Free e file 2011 taxes If you do not have a U. Free e file 2011 taxes S. Free e file 2011 taxes bank account, ask if your financial institution has a U. Free e file 2011 taxes S. Free e file 2011 taxes affiliate that can help you make same-day wire transfers. Free e file 2011 taxes   For more information, visit www. Free e file 2011 taxes eftps. Free e file 2011 taxes gov. Free e file 2011 taxes Extensions You can get an extension of time to file your return. Free e file 2011 taxes In some circumstances, you also can get an extension of time to file and pay any tax due. Free e file 2011 taxes However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Free e file 2011 taxes This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. Free e file 2011 taxes If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. Free e file 2011 taxes Automatic 2-month extension. Free e file 2011 taxes   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Free e file 2011 taxes   If you use a calendar year, the regular due date of your return is April 15. Free e file 2011 taxes Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. Free e file 2011 taxes Married taxpayers. Free e file 2011 taxes   If you file a joint return, either you or your spouse can qualify for the automatic extension. Free e file 2011 taxes If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. Free e file 2011 taxes How to get the extension. Free e file 2011 taxes   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. Free e file 2011 taxes Automatic 6-month extension. Free e file 2011 taxes   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). Free e file 2011 taxes To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). Free e file 2011 taxes For more information about filing electronically, see E-file options , later. Free e file 2011 taxes   The form must show your properly estimated tax liability based on the information available to you. Free e file 2011 taxes    You may not be eligible. Free e file 2011 taxes You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. Free e file 2011 taxes E-file options. Free e file 2011 taxes    You can use e-file to get an extension of time to file. Free e file 2011 taxes You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. Free e file 2011 taxes   First, complete Form 4868 to use as a worksheet. Free e file 2011 taxes If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Free e file 2011 taxes    Then, do one of the following. Free e file 2011 taxes E-file Form 4868. Free e file 2011 taxes You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Free e file 2011 taxes You will need to provide certain information from your tax return for 2012. Free e file 2011 taxes If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. Free e file 2011 taxes If you e-file Form 4868, do not also send a paper Form 4868. Free e file 2011 taxes E-file and pay by credit or debit card. Free e file 2011 taxes You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. Free e file 2011 taxes You can do this by phone or over the Internet. Free e file 2011 taxes If you do this, you do not file Form 4868. Free e file 2011 taxes For more information, see the instructions for your tax return. Free e file 2011 taxes When to file. Free e file 2011 taxes   Generally, you must request the 6-month extension by the regular due date of your return. Free e file 2011 taxes Previous 2-month extension. Free e file 2011 taxes   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. Free e file 2011 taxes The 2-month period and the 6-month period start at the same time. Free e file 2011 taxes You have to request the additional 4 months by the new due date allowed by the 2-month extension. Free e file 2011 taxes   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. Free e file 2011 taxes You must make an accurate estimate of your tax based on the information available to you. Free e file 2011 taxes If you find you cannot pay the full amount due with Form 4868, you can still get the extension. Free e file 2011 taxes You will owe interest on the unpaid amount from the original due date of the return. Free e file 2011 taxes   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. Free e file 2011 taxes Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. Free e file 2011 taxes In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). Free e file 2011 taxes Additional extension of time for taxpayers out of the country. Free e file 2011 taxes   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Free e file 2011 taxes   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Free e file 2011 taxes Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. Free e file 2011 taxes   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. Free e file 2011 taxes Extension of time to meet tests. Free e file 2011 taxes   You generally cannot get an extension of more than 6 months. Free e file 2011 taxes However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. Free e file 2011 taxes   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. Free e file 2011 taxes The tests, the exclusions, and the deduction are explained in chapter 4. Free e file 2011 taxes   You should request an extension if all three of the following apply. Free e file 2011 taxes You are a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien. Free e file 2011 taxes You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. Free e file 2011 taxes Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. Free e file 2011 taxes   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. Free e file 2011 taxes However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. Free e file 2011 taxes How to get an extension. Free e file 2011 taxes   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. Free e file 2011 taxes Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. Free e file 2011 taxes What if tests are not met. Free e file 2011 taxes   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). Free e file 2011 taxes    You should make any request for an extension early, so that if it is denied you still can file your return on time. Free e file 2011 taxes Otherwise, if you file late and additional tax is due, you may be subject to a penalty. Free e file 2011 taxes Return filed before test is met. Free e file 2011 taxes   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. Free e file 2011 taxes S. Free e file 2011 taxes and foreign sources and pay the tax on that income. Free e file 2011 taxes If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. Free e file 2011 taxes Foreign Currency You must express the amounts you report on your U. Free e file 2011 taxes S. Free e file 2011 taxes tax return in U. Free e file 2011 taxes S. Free e file 2011 taxes dollars. Free e file 2011 taxes If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. Free e file 2011 taxes S. Free e file 2011 taxes dollars. Free e file 2011 taxes How you do this depends on your functional currency. Free e file 2011 taxes Your functional currency generally is the U. Free e file 2011 taxes S. Free e file 2011 taxes dollar unless you are required to use the currency of a foreign country. Free e file 2011 taxes You must make all federal income tax determinations in your functional currency. Free e file 2011 taxes The U. Free e file 2011 taxes S. Free e file 2011 taxes dollar is the functional currency for all taxpayers except some qualified business units (QBUs). Free e file 2011 taxes A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. Free e file 2011 taxes Even if you have a QBU, your functional currency is the dollar if any of the following apply. Free e file 2011 taxes You conduct the business in U. Free e file 2011 taxes S. Free e file 2011 taxes dollars. Free e file 2011 taxes The principal place of business is located in the United States. Free e file 2011 taxes You choose to or are required to use the U. Free e file 2011 taxes S. Free e file 2011 taxes dollar as your functional currency. Free e file 2011 taxes The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. Free e file 2011 taxes Make all income tax determinations in your functional currency. Free e file 2011 taxes If your functional currency is the U. Free e file 2011 taxes S. Free e file 2011 taxes dollar, you must immediately translate into U. Free e file 2011 taxes S. Free e file 2011 taxes dollars all items of income, expense, etc. Free e file 2011 taxes (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Free e file 2011 taxes Use the exchange rate prevailing when you receive, pay, or accrue the item. Free e file 2011 taxes If there is more than one exchange rate, use the one that most properly reflects your income. Free e file 2011 taxes You can generally get exchange rates from banks and U. Free e file 2011 taxes S. Free e file 2011 taxes Embassies. Free e file 2011 taxes If your functional currency is not the U. Free e file 2011 taxes S. Free e file 2011 taxes dollar, make all income tax determinations in your functional currency. Free e file 2011 taxes At the end of the year, translate the results, such as income or loss, into U. Free e file 2011 taxes S. Free e file 2011 taxes dollars to report on your income tax return. Free e file 2011 taxes Blocked Income You generally must report your foreign income in terms of U. Free e file 2011 taxes S. Free e file 2011 taxes dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. Free e file 2011 taxes S. Free e file 2011 taxes dollars. Free e file 2011 taxes If, because of restrictions in a foreign country, your income is not readily convertible into U. Free e file 2011 taxes S. Free e file 2011 taxes dollars or into other money or property that is readily convertible into U. Free e file 2011 taxes S. Free e file 2011 taxes dollars, your income is “blocked” or “deferrable” income. Free e file 2011 taxes You can report this income in one of two ways: Report the income and pay your federal income tax with U. Free e file 2011 taxes S. Free e file 2011 taxes dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. Free e file 2011 taxes If you choose to postpone the reporting of the income, you must file an information return with your tax return. Free e file 2011 taxes For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. Free e file 2011 taxes Rul. Free e file 2011 taxes 74-351. Free e file 2011 taxes ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. Free e file 2011 taxes You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. Free e file 2011 taxes You must report your income on your information return using the foreign currency in which you received that income. Free e file 2011 taxes If you have blocked income from more than one foreign country, include a separate information return for each country. Free e file 2011 taxes Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. Free e file 2011 taxes S. Free e file 2011 taxes dollars or into other money or property that is convertible into U. Free e file 2011 taxes S. Free e file 2011 taxes currency. Free e file 2011 taxes Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. Free e file 2011 taxes If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. Free e file 2011 taxes If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. Free e file 2011 taxes If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. Free e file 2011 taxes To apply for permission, file Form 3115, Application for Change in Accounting Method. Free e file 2011 taxes You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. Free e file 2011 taxes See the instructions for Form 3115 for information on changing your accounting method. Free e file 2011 taxes Fulbright Grant All income must be reported in U. Free e file 2011 taxes S. Free e file 2011 taxes dollars. Free e file 2011 taxes In most cases, the tax also must be paid in U. Free e file 2011 taxes S. Free e file 2011 taxes dollars. Free e file 2011 taxes If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. Free e file 2011 taxes S. Free e file 2011 taxes tax that is based on the blocked income. Free e file 2011 taxes Paying U. Free e file 2011 taxes S. Free e file 2011 taxes tax in foreign currency. Free e file 2011 taxes   To qualify for this method of payment, you must prepare a statement that shows the following information. Free e file 2011 taxes You were a Fulbright grantee and were paid in nonconvertible foreign currency. Free e file 2011 taxes The total grant you received during the year and the amount you received in nonconvertible foreign currency. Free e file 2011 taxes At least 70% of the grant was paid in nonconvertible foreign currency. Free e file 2011 taxes The statement must be certified by the U. Free e file 2011 taxes S. Free e file 2011 taxes educational foundation or commission paying the grant or other person having control of grant payments to you. Free e file 2011 taxes   You should prepare at least two copies of this statement. Free e file 2011 taxes Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. Free e file 2011 taxes Figuring actual tax. Free e file 2011 taxes   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. Free e file 2011 taxes If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. Free e file 2011 taxes   Adjusted gross income that is blocked income × Total U. Free e file 2011 taxes S. Free e file 2011 taxes tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. Free e file 2011 taxes A copy of the certified statement discussed earlier. Free e file 2011 taxes A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. Free e file 2011 taxes S. Free e file 2011 taxes dollars. Free e file 2011 taxes The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. Free e file 2011 taxes Figuring estimated tax on nonconvertible foreign currency. Free e file 2011 taxes   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. Free e file 2011 taxes   Adjusted gross income that is blocked income × Total estimated U. Free e file 2011 taxes S. Free e file 2011 taxes tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. Free e file 2011 taxes Deposit of foreign currency with disbursing officer. Free e file 2011 taxes   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. Free e file 2011 taxes Estimated tax installments. Free e file 2011 taxes   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. Free e file 2011 taxes See Estimated Tax , later. Free e file 2011 taxes Deposit receipt. Free e file 2011 taxes   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. Free e file 2011 taxes The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. Free e file 2011 taxes S. Free e file 2011 taxes dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. Free e file 2011 taxes Keep the copy for your records. Free e file 2011 taxes Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. Free e file 2011 taxes IRS e-file offers accurate, safe, and fast alternatives to filing on paper. Free e file 2011 taxes IRS computers quickly and automatically check for errors or other missing information. Free e file 2011 taxes Even returns with a foreign address can be e-filed! How to e-file. Free e file 2011 taxes   There are three ways you can e-file. Free e file 2011 taxes Use your personal computer. Free e file 2011 taxes Use a volunteer. Free e file 2011 taxes Many programs offering free tax help can e-file your return. Free e file 2011 taxes Use a tax professional. Free e file 2011 taxes Most tax professionals can e-file your return. Free e file 2011 taxes These methods are explained in detail in the instructions for your tax return. Free e file 2011 taxes Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. Free e file 2011 taxes You claim the foreign earned income exclusion. Free e file 2011 taxes You claim the foreign housing exclusion or deduction. Free e file 2011 taxes You live in a foreign country. Free e file 2011 taxes Instead, use one of the following special addresses. Free e file 2011 taxes If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. Free e file 2011 taxes O. Free e file 2011 taxes Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. Free e file 2011 taxes However, you should not file with the addresses listed above if you are a bona fide resident of the U. Free e file 2011 taxes S. Free e file 2011 taxes Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. Free e file 2011 taxes Resident of U. Free e file 2011 taxes S. Free e file 2011 taxes Virgin Islands (USVI). Free e file 2011 taxes   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. Free e file 2011 taxes S. Free e file 2011 taxes return. Free e file 2011 taxes However, you must file a return with the USVI. Free e file 2011 taxes    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Free e file 2011 taxes Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. Free e file 2011 taxes   If you are a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. Free e file 2011 taxes File the original return with the United States and file a signed copy of the U. Free e file 2011 taxes S. Free e file 2011 taxes return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. Free e file 2011 taxes   You must complete Form 8689, Allocation of Individual Income Tax to the U. Free e file 2011 taxes S. Free e file 2011 taxes Virgin Islands, and attach a copy to both your U. Free e file 2011 taxes S. Free e file 2011 taxes return and your USVI return. Free e file 2011 taxes You should file your U. Free e file 2011 taxes S. Free e file 2011 taxes return with the address listed under Where To File. Free e file 2011 taxes   See Publication 570, Tax Guide for Individuals With Income From U. Free e file 2011 taxes S. Free e file 2011 taxes Possessions, for information about filing Virgin Islands returns. Free e file 2011 taxes Resident of Guam. Free e file 2011 taxes   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. Free e file 2011 taxes    Send your return to the:     Department of Revenue and Taxation Government of Guam P. Free e file 2011 taxes O. Free e file 2011 taxes Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. Free e file 2011 taxes Send your return to the address listed under Where To File. Free e file 2011 taxes   See Publication 570 for information about filing Guam returns. Free e file 2011 taxes Resident of the Commonwealth of the Northern Mariana Islands. Free e file 2011 taxes   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. Free e file 2011 taxes    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Free e file 2011 taxes O. Free e file 2011 taxes Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. Free e file 2011 taxes Send your return to the address listed under Where To File. Free e file 2011 taxes   See Publication 570 for information about filing Northern Mariana Islands returns. Free e file 2011 taxes Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. Free e file 2011 taxes S. Free e file 2011 taxes resident. Free e file 2011 taxes This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. Free e file 2011 taxes If you make this choice, the following two rules apply. Free e file 2011 taxes You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. Free e file 2011 taxes You must file a joint income tax return for the year you make the choice. Free e file 2011 taxes This means that neither of you can claim under any tax treaty not to be a U. Free e file 2011 taxes S. Free e file 2011 taxes resident for a tax year for which the choice is in effect. Free e file 2011 taxes You can file joint or separate returns in years after the year in which you make the choice. Free e file 2011 taxes Example 1. Free e file 2011 taxes Pat Smith, a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen, is married to Norman, a nonresident alien. Free e file 2011 taxes Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. Free e file 2011 taxes Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. Free e file 2011 taxes Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. Free e file 2011 taxes Example 2. Free e file 2011 taxes When Bob and Sharon Williams got married, both were nonresident aliens. Free e file 2011 taxes In June of last year, Bob became a resident alien and remained a resident for the rest of the year. Free e file 2011 taxes Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. Free e file 2011 taxes Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. Free e file 2011 taxes Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. Free e file 2011 taxes If you do not choose to treat your nonresident alien spouse as a U. Free e file 2011 taxes S. Free e file 2011 taxes resident, you may be able to use head of household filing status. Free e file 2011 taxes To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. Free e file 2011 taxes For more information, see Publication 501. Free e file 2011 taxes Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. Free e file 2011 taxes S. Free e file 2011 taxes resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). Free e file 2011 taxes To get an SSN for a nonresident alien spouse, apply at an office of the U. Free e file 2011 taxes S. Free e file 2011 taxes Social Security Administration (SSA) or U. Free e file 2011 taxes S. Free e file 2011 taxes consulate. Free e file 2011 taxes You must complete Form SS-5, Application for a Social Security Card, available at www. Free e file 2011 taxes socialsecurity. Free e file 2011 taxes gov or by calling 1-800-772-1213. Free e file 2011 taxes You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. Free e file 2011 taxes If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. Free e file 2011 taxes How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. Free e file 2011 taxes It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien on the last day of your tax year and that you choose to be treated as U. Free e file 2011 taxes S. Free e file 2011 taxes residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. Free e file 2011 taxes (If one spouse died, include the name and address of the person making the choice for the deceased spouse. Free e file 2011 taxes ) You generally make this choice when you file your joint return. Free e file 2011 taxes However, you also can make the choice by filing a joint amended return on Form 1040X. Free e file 2011 taxes Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. Free e file 2011 taxes If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. Free e file 2011 taxes You generally must file the amended joint return within 3 years from the date you filed your original U. Free e file 2011 taxes S. Free e file 2011 taxes income tax return or 2 years from the date you paid your income tax for that year, whichever is later. Free e file 2011 taxes Table 1–1. Free e file 2011 taxes Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. Free e file 2011 taxes   • The revocation must be made by the due date for filing the tax return for that tax year. Free e file 2011 taxes   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. Free e file 2011 taxes The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. Free e file 2011 taxes     • The name and address of any person who is revoking the choice for a deceased spouse. Free e file 2011 taxes     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. Free e file 2011 taxes   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. Free e file 2011 taxes Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. Free e file 2011 taxes   • If the surviving spouse is a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. Free e file 2011 taxes   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. Free e file 2011 taxes Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. Free e file 2011 taxes Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. Free e file 2011 taxes Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident alien at any time during the later tax year. Free e file 2011 taxes Example. Free e file 2011 taxes Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. Free e file 2011 taxes They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. Free e file 2011 taxes On January 10, 2012, Dick became a nonresident alien. Free e file 2011 taxes Judy had remained a nonresident alien. Free e file 2011 taxes Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. Free e file 2011 taxes Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. Free e file 2011 taxes For 2013, both are treated as nonresident aliens. Free e file 2011 taxes If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. Free e file 2011 taxes Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. Free e file 2011 taxes If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. Free e file 2011 taxes Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. Free e file 2011 taxes S. Free e file 2011 taxes citizen or resident abroad as for a taxpayer in the United States. Free e file 2011 taxes For current instructions on making estimated tax payments, see Form 1040-ES. Free e file 2011 taxes If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Free e file 2011 taxes Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Free e file 2011 taxes (The return must cover all 12 months. Free e file 2011 taxes ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). Free e file 2011 taxes See Publication 505 for more information. Free e file 2011 taxes The first installment of estimated tax is due on April 15, 2014. Free e file 2011 taxes Foreign earned income exclusion. Free e file 2011 taxes   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. Free e file 2011 taxes In addition, you can reduce your income by your estimated foreign housing deduction. Free e file 2011 taxes However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. Free e file 2011 taxes If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. Free e file 2011 taxes   For more information about figuring your estimated tax, see Publication 505. Free e file 2011 taxes Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. Free e file 2011 taxes 1). Free e file 2011 taxes   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. Free e file 2011 taxes 1. Free e file 2011 taxes Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). Free e file 2011 taxes See the filing instructions at www. Free e file 2011 taxes bsaefiling. Free e file 2011 taxes fincen. Free e file 2011 taxes treas. Free e file 2011 taxes gov/main. Free e file 2011 taxes html. Free e file 2011 taxes   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. Free e file 2011 taxes You do not need to file the report if the assets are with a U. Free e file 2011 taxes S. Free e file 2011 taxes military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. Free e file 2011 taxes   More information about the filing of Form 114 can be found in the instructions for the form. Free e file 2011 taxes FinCEN Form 105. Free e file 2011 taxes   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. Free e file 2011 taxes Certain recipients of currency or monetary instruments also must file Form 105. Free e file 2011 taxes   More information about the filing of Form 105 can be found in the instructions on the back of the form. Free e file 2011 taxes Form 8938. Free e file 2011 taxes   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). Free e file 2011 taxes The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Free e file 2011 taxes Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Free e file 2011 taxes S. Free e file 2011 taxes person. Free e file 2011 taxes   You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Free e file 2011 taxes   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Free e file 2011 taxes Prev  Up  Next   Home   More Online Publications
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Free e file 2011 taxes Publication 957 - Main Content Table of Contents 1. Free e file 2011 taxes What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Free e file 2011 taxes 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). Free e file 2011 taxes 1. Free e file 2011 taxes 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). Free e file 2011 taxes 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. Free e file 2011 taxes Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Free e file 2011 taxes Report all back pay. Free e file 2011 taxes 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. Free e file 2011 taxes See Back Pay Under a Statute , later, for more information. Free e file 2011 taxes Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Free e file 2011 taxes However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Free e file 2011 taxes 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. Free e file 2011 taxes The SSA no longer accepts reports on tapes, cartridges, and diskettes. Free e file 2011 taxes Example. Free e file 2011 taxes In 2012, Terry Morris earned wages of $50,000. Free e file 2011 taxes 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. Free e file 2011 taxes Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Free e file 2011 taxes 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. Free e file 2011 taxes Example. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes SSA treatment of back pay under a statute. Free e file 2011 taxes   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. Free e file 2011 taxes 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. Free e file 2011 taxes   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. Free e file 2011 taxes Then, the SSA can allocate the statutory back pay to the appropriate periods. Free e file 2011 taxes   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Free e file 2011 taxes    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. Free e file 2011 taxes    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. Free e file 2011 taxes No further action is necessary. Free e file 2011 taxes Example. Free e file 2011 taxes 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. Free e file 2011 taxes Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Free e file 2011 taxes No further action is necessary. Free e file 2011 taxes Information the SSA needs to properly credit back pay under a statute (special report). Free e file 2011 taxes   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. Free e file 2011 taxes There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Free e file 2011 taxes The special report must include the following information. Free e file 2011 taxes The employer's name, address, and employer identification number (EIN). Free e file 2011 taxes A signed statement citing the federal or state statute under which the payment was made. Free e file 2011 taxes 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). Free e file 2011 taxes The name and telephone number of a person to contact. Free e file 2011 taxes The SSA may have additional questions concerning the back pay case or the individual employee's information. Free e file 2011 taxes A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Free e file 2011 taxes The employee's social security number (SSN). Free e file 2011 taxes The employee's name (as shown on his or her social security card). Free e file 2011 taxes The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Free e file 2011 taxes The period(s) the back pay award covers (beginning and ending dates—month and year). Free e file 2011 taxes 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)*. Free e file 2011 taxes Do not include the back pay award shown in that wage report. Free e file 2011 taxes 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. Free e file 2011 taxes The amount to allocate to each reporting period*. Free e file 2011 taxes This includes any amount you want allocated (if applicable) to the tax year of the award payment. Free e file 2011 taxes 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. Free e file 2011 taxes *Note. Free e file 2011 taxes   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. Free e file 2011 taxes For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Free e file 2011 taxes MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Free e file 2011 taxes For tax years 1991 and later, list the social security and Medicare wages separately. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Free e file 2011 taxes Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Free e file 2011 taxes Such awards are not wages for social security coverage purposes. Free e file 2011 taxes 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. Free e file 2011 taxes The payments made in such a settlement may still be back pay and wages under the rules discussed here. Free e file 2011 taxes 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. Free e file 2011 taxes Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Free e file 2011 taxes However, they are not payments made under a statute. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Free e file 2011 taxes If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Free e file 2011 taxes Read Special Wage Payments, later, for additional reporting instructions. Free e file 2011 taxes Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Free e file 2011 taxes Exception. Free e file 2011 taxes   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. Free e file 2011 taxes Table 1. Free e file 2011 taxes 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. Free e file 2011 taxes Sec. Free e file 2011 taxes /Med. Free e file 2011 taxes Wages Paid In Award Year (4)3 Allocation     Soc. Free e file 2011 taxes Sec. Free e file 2011 taxes Med. Free e file 2011 taxes /MQGE Year Soc. Free e file 2011 taxes Sec. Free e file 2011 taxes Med. Free e file 2011 taxes /MQGE xxx-xx-xxxx HELEN T. Free e file 2011 taxes 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. Free e file 2011 taxes EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Free e file 2011 taxes 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. Free e file 2011 taxes  2Exclude the amount of back pay, if any, included in that amount. Free e file 2011 taxes  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. Free e file 2011 taxes The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Free e file 2011 taxes (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Free e file 2011 taxes Sec. Free e file 2011 taxes column. Free e file 2011 taxes ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Free e file 2011 taxes Explanation of examples. Free e file 2011 taxes Helen T. Free e file 2011 taxes Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Free e file 2011 taxes In 2012, this employee was also paid $40,000 in other wages. Free e file 2011 taxes (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Free e file 2011 taxes The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Free e file 2011 taxes ) Sam W. Free e file 2011 taxes Evans–The back pay award was $30,000 for the periods 7/89-12/91. Free e file 2011 taxes This employee was hired in 1989 and was subject to MQGE only. Free e file 2011 taxes He was no longer employed by this governmental employer in 2012. Free e file 2011 taxes (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Free e file 2011 taxes After the SSA allocation, he will not have any net posted wages for 2012. Free e file 2011 taxes ) Roland S. Free e file 2011 taxes Adams–The back pay award was $15,000 for the periods 7/80-12/81. Free e file 2011 taxes He was no longer employed by this state and local government (Section 218) employer in 2012. Free e file 2011 taxes (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. Free e file 2011 taxes ) 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. Free e file 2011 taxes 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. Free e file 2011 taxes Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Note. Free e file 2011 taxes Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Free e file 2011 taxes Earnings Test. Free e file 2011 taxes   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Free e file 2011 taxes The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Free e file 2011 taxes Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Free e file 2011 taxes Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Free e file 2011 taxes See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Free e file 2011 taxes 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. Free e file 2011 taxes Submit reports after the close of the tax year. Free e file 2011 taxes To avoid delays in processing, submit reports in time to reach the SSA by April 1. Free e file 2011 taxes Use one of the following reporting methods. Free e file 2011 taxes Electronic reporting. Free e file 2011 taxes   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Free e file 2011 taxes gov website. Free e file 2011 taxes BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Free e file 2011 taxes You must register to use this website. Free e file 2011 taxes The web address is www. Free e file 2011 taxes socialsecurity. Free e file 2011 taxes gov/bso/bsowelcome. Free e file 2011 taxes htm. Free e file 2011 taxes   Use the specifications and record layout shown in  Table 2, later. Free e file 2011 taxes Only one file at a time may be submitted. Free e file 2011 taxes If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Free e file 2011 taxes A zipped file contains a file that has been compressed to reduce its file size. Free e file 2011 taxes WinZip and PKZIP are examples of acceptable compression packages. Free e file 2011 taxes   Electronic submissions not meeting the specifications in Table 2 will be rejected. Free e file 2011 taxes Paper listing. Free e file 2011 taxes   A paper listing can be used to report special wage payments to several employees. Free e file 2011 taxes Use the format shown in Table 3, later. Free e file 2011 taxes Submit paper listings to the local SSA office nearest your place of business. Free e file 2011 taxes Visit www. Free e file 2011 taxes socialsecurity. Free e file 2011 taxes gov/locator to find a Social Security office near you. Free e file 2011 taxes Form SSA-131. Free e file 2011 taxes   Use Form SSA-131 to report special wage payments made to an employee. Free e file 2011 taxes 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. Free e file 2011 taxes    This image is too large to be displayed in the current screen. Free e file 2011 taxes Please click the link to view the image. Free e file 2011 taxes Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Free e file 2011 taxes Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Free e file 2011 taxes 2. Free e file 2011 taxes Enter the date the employee retired. Free e file 2011 taxes Enter “Not Retired” if the employee has not retired. Free e file 2011 taxes 3. Free e file 2011 taxes 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. Free e file 2011 taxes This date should be the same as or earlier than the date in item “2”. Free e file 2011 taxes Enter “Not Retired” if the employee has not retired. Free e file 2011 taxes 4. Free e file 2011 taxes 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. Free e file 2011 taxes  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. Free e file 2011 taxes Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Free e file 2011 taxes Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Free e file 2011 taxes Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Free e file 2011 taxes 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. Free e file 2011 taxes Stock Options. Free e file 2011 taxes   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”). Free e file 2011 taxes That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Free e file 2011 taxes That were deducted from the employee's wages and paid to a deferred compensation plan (e. Free e file 2011 taxes g. Free e file 2011 taxes , 401k). Free e file 2011 taxes Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Free e file 2011 taxes Bonuses earned and paid in the tax year. Free e file 2011 taxes 5. Free e file 2011 taxes Check whether payments listed in item 4 will be made for years after the tax year. Free e file 2011 taxes If yes, please show the amounts and years in which these will be paid, if known. Free e file 2011 taxes 6. Free e file 2011 taxes Nonqualified deferred compensation and section 457 plans only. Free e file 2011 taxes 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. Free e file 2011 taxes 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). Free e file 2011 taxes Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Free e file 2011 taxes 702. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes We may also use the information you give us when we match records by computer. Free e file 2011 taxes Matching programs compare our records with those of other Federal, State, or local government agencies. Free e file 2011 taxes Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Free e file 2011 taxes The law allows us to do this even if you do not agree to it. Free e file 2011 taxes Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Free e file 2011 taxes If you want to learn more about this, contact any Social Security Office. Free e file 2011 taxes The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Free e file 2011 taxes S. Free e file 2011 taxes C. Free e file 2011 taxes §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Free e file 2011 taxes You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Free e file 2011 taxes We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Free e file 2011 taxes Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Free e file 2011 taxes Or, the employee can submit it to the SSA office handling the claim. Free e file 2011 taxes You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Free e file 2011 taxes 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. Free e file 2011 taxes Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Free e file 2011 taxes Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Free e file 2011 taxes 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. Free e file 2011 taxes It should not count for the social security earnings test. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Nonqualified and section 457 plans are reported differently than other special wage payments. Free e file 2011 taxes See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Free e file 2011 taxes No risk of forfeiture. Free e file 2011 taxes   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. Free e file 2011 taxes Example. Free e file 2011 taxes Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Free e file 2011 taxes The plan has no risk of forfeiture. Free e file 2011 taxes In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Free e file 2011 taxes 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. Free e file 2011 taxes   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. Free e file 2011 taxes The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Free e file 2011 taxes   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. Free e file 2011 taxes If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Free e file 2011 taxes    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free e file 2011 taxes Risk of forfeiture lapses at retirement. Free e file 2011 taxes   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. Free e file 2011 taxes 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. Free e file 2011 taxes   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. Free e file 2011 taxes    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free e file 2011 taxes Example—risk of forfeiture. Free e file 2011 taxes 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. Free e file 2011 taxes B's wages, including this year's deferred amount, are $80,000. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Example. Free e file 2011 taxes Employee D retired from the XYZ company and began receiving social security benefits. Free e file 2011 taxes 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. Free e file 2011 taxes In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Free e file 2011 taxes D made no deferrals to the nonqualified plan this year. Free e file 2011 taxes 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. Free e file 2011 taxes For more information, see Reporting Special Wage Payments , earlier. Free e file 2011 taxes 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). Free e file 2011 taxes Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Free e file 2011 taxes 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. Free e file 2011 taxes See Form SSA-131 and its instructions, earlier. Free e file 2011 taxes Example. Free e file 2011 taxes Employee K retired this year from Company XYZ and began receiving social security benefits. Free e file 2011 taxes During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Free e file 2011 taxes K also received $75,000 in payments from the company's nonqualified plan. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Free e file 2011 taxes For more information, see Notice 2008-115, 2008-52 I. Free e file 2011 taxes R. Free e file 2011 taxes B. Free e file 2011 taxes 1367, available at www. Free e file 2011 taxes irs. Free e file 2011 taxes gov/irb/2008-52_IRB/ar10. Free e file 2011 taxes html. Free e file 2011 taxes Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Free e file 2011 taxes Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Free e file 2011 taxes See Notice 2008-115. Free e file 2011 taxes The following examples use small dollar amounts for illustrative purposes. Free e file 2011 taxes 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). Free e file 2011 taxes The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Free e file 2011 taxes Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Free e file 2011 taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Free e file 2011 taxes The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Free e file 2011 taxes Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Free e file 2011 taxes 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). Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Free e file 2011 taxes 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). Free e file 2011 taxes 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. Free e file 2011 taxes The deferral of $20 was vested upon deferral. Free e file 2011 taxes During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Free e file 2011 taxes Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Free e file 2011 taxes 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). Free e file 2011 taxes For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Free e file 2011 taxes There was no vesting of prior-year deferrals under the plan. Free e file 2011 taxes During the year, there were total distributions of $50 from the plan to the employee. Free e file 2011 taxes Regular pay = $100; Distribution = $50. Free e file 2011 taxes 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). Free e file 2011 taxes   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. Free e file 2011 taxes Instead, report on Form SSA-131 the total amount the employee earned during the year. Free e file 2011 taxes * Submit the SSA-131 to the nearest SSA office or give it to the employee. Free e file 2011 taxes   *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. Free e file 2011 taxes Do not consider prior-year deferrals that are vesting in the current year. Free e file 2011 taxes If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Free e file 2011 taxes Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Free e file 2011 taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free e file 2011 taxes There was also an employer match of $10. Free e file 2011 taxes The deferral and employer match were vested upon deferral. Free e file 2011 taxes There was no vesting of prior-year deferrals under the plan. Free e file 2011 taxes During the year, there were total distributions of $50 from the plan to the employee. Free e file 2011 taxes Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Free e file 2011 taxes 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. Free e file 2011 taxes 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). Free e file 2011 taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free e file 2011 taxes The deferral was not vested upon deferral. Free e file 2011 taxes There was no vesting of prior-year deferrals under the plan. Free e file 2011 taxes During the year, there were total distributions of $50 from the plan to the employee. Free e file 2011 taxes Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Free e file 2011 taxes 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). Free e file 2011 taxes 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). Free e file 2011 taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free e file 2011 taxes The deferral was vested upon deferral. Free e file 2011 taxes There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Free e file 2011 taxes During the year, there were total distributions of $50 from the plan to the employee. Free e file 2011 taxes Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Free e file 2011 taxes 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. Free e file 2011 taxes 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). Free e file 2011 taxes For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free e file 2011 taxes The deferral was not vested upon deferral. Free e file 2011 taxes There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Free e file 2011 taxes During the year, there were total distributions of $50 from the plan to the employee. Free e file 2011 taxes 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. Free e file 2011 taxes 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. Free e file 2011 taxes File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Free e file 2011 taxes Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Free e file 2011 taxes  The file format is ASCII. Free e file 2011 taxes  Submit only one file at a time. Free e file 2011 taxes   Table 3. Free e file 2011 taxes Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Free e file 2011 taxes Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Free e file 2011 taxes 1) B. Free e file 2011 taxes Employee Name: (Last) (First) (MI)   C. Free e file 2011 taxes SSN: D. Free e file 2011 taxes SWP:$ E. Free e file 2011 taxes Type: Other: 2) B. Free e file 2011 taxes Employee Name: (Last) (First) (MI)   C. Free e file 2011 taxes SSN: D. Free e file 2011 taxes SWP:$ E. Free e file 2011 taxes Type: Other: 3) B. Free e file 2011 taxes Employee Name: (Last) (First) (MI)   C. Free e file 2011 taxes SSN: D. Free e file 2011 taxes SWP:$ E. Free e file 2011 taxes Type: Other: 4) B. Free e file 2011 taxes Employee Name: (Last) (First) (MI)   C. Free e file 2011 taxes SSN: D. Free e file 2011 taxes SWP:$ E. Free e file 2011 taxes Type: Other: 5) B. Free e file 2011 taxes Employee Name: (Last) (First) (MI)   C. Free e file 2011 taxes SSN: D. Free e file 2011 taxes SWP:$ E. Free e file 2011 taxes Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Free e file 2011 taxes   A. Free e file 2011 taxes 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. Free e file 2011 taxes   B. Free e file 2011 taxes Employee's name. Free e file 2011 taxes   C. Free e file 2011 taxes Employee's social security number (SSN). Free e file 2011 taxes   D. Free e file 2011 taxes Total amount of special wage payments made to the employee. Free e file 2011 taxes   E. Free e file 2011 taxes 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. Free e file 2011 taxes   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. Free e file 2011 taxes (Get Form SSA-131. Free e file 2011 taxes )                 Prev  Up  Next   Home   More Online Publications