Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Free Federal 1040ez Efile

How Do I Amend My 2012 Tax ReturnWww.taxact.comHow To File Amended Tax ReturnI Need To File My State Taxes OnlyIrs 2012 Tax Forms 1040ezFile Free State Tax ReturnWww Irs Gov Com1040ez Booklet1040x Tax FormIrs Forms 1040ez 2011Tax Forms 10402012 1040ezWww Irs Amended Returns2011 Tax Software Download2011 Tax FormTax Amendment Deadline1040nrHow To File Your State Taxes For Free2012 Tax Form 1040xH And R Block Free State File1040 Ez Tax Form 2012Irs Tax Forms 1040ezTax Forms 2010Fill 1040xWhere To File 2012 Taxes For FreeDo I File My My Taxes 20102010 1040 Tax Form1040ez Forms PrintableTax Right Offs For StudentsHow To File Free State TaxesFile Amended Tax Return 2011 OnlineFree Tax ReturnsFile 2007 Tax Return FreeAmmend Tax1040ez InstructionsIrs Tax Forms 2012 1040a1040ez Earned Income CreditNeed To Do 2011 TaxesIrs 1040x FormsAmend 1040

Free Federal 1040ez Efile

Free federal 1040ez efile Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. Free federal 1040ez efile Proc. Free federal 1040ez efile 2012-23 Table of Contents SECTION 1. Free federal 1040ez efile PURPOSE SECTION 2. Free federal 1040ez efile BACKGROUND SECTION 3. Free federal 1040ez efile SCOPE SECTION 4. Free federal 1040ez efile APPLICATION. Free federal 1040ez efile 01 Limitations on Depreciation Deductions for Certain Automobiles. Free federal 1040ez efile . Free federal 1040ez efile 02 Inclusions in Income of Lessees of Passenger Automobiles. Free federal 1040ez efile SECTION 5. Free federal 1040ez efile EFFECTIVE DATE SECTION 6. Free federal 1040ez efile DRAFTING INFORMATION SECTION 1. Free federal 1040ez efile PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. Free federal 1040ez efile The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Free federal 1040ez efile SECTION 2. Free federal 1040ez efile BACKGROUND . Free federal 1040ez efile 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Free federal 1040ez efile For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Free federal 1040ez efile The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Free federal 1040ez efile This change reflects the higher rate of price inflation for trucks and vans since 1988. Free federal 1040ez efile . Free federal 1040ez efile 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. Free federal 1040ez efile L. Free federal 1040ez efile No. Free federal 1040ez efile 111-312, 124 Stat. Free federal 1040ez efile 3296 (Dec. Free federal 1040ez efile 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. Free federal 1040ez efile Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Free federal 1040ez efile . Free federal 1040ez efile 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Free federal 1040ez efile Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Free federal 1040ez efile Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). Free federal 1040ez efile Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Free federal 1040ez efile This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Free federal 1040ez efile . Free federal 1040ez efile 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Free federal 1040ez efile The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Free federal 1040ez efile Under § 1. Free federal 1040ez efile 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Free federal 1040ez efile One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Free federal 1040ez efile Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Free federal 1040ez efile SECTION 3. Free federal 1040ez efile SCOPE . Free federal 1040ez efile 01 The limitations on depreciation deductions in section 4. Free federal 1040ez efile 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. Free federal 1040ez efile . Free federal 1040ez efile 02 The tables in section 4. Free federal 1040ez efile 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. Free federal 1040ez efile Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Free federal 1040ez efile See Rev. Free federal 1040ez efile Proc. Free federal 1040ez efile 2007-30, 2007-1 C. Free federal 1040ez efile B. Free federal 1040ez efile 1104, for passenger automobiles first leased during calendar year 2007; Rev. Free federal 1040ez efile Proc. Free federal 1040ez efile 2008-22, 2008-1 C. Free federal 1040ez efile B. Free federal 1040ez efile 658, for passenger automobiles first leased during calendar year 2008; Rev. Free federal 1040ez efile Proc. Free federal 1040ez efile 2009-24, 2009-17 I. Free federal 1040ez efile R. Free federal 1040ez efile B. Free federal 1040ez efile 885, for passenger automobiles first leased during calendar year 2009; Rev. Free federal 1040ez efile Proc. Free federal 1040ez efile 2010-18, 2010-9 I. Free federal 1040ez efile R. Free federal 1040ez efile B. Free federal 1040ez efile 427, as amplified and modified by section 4. Free federal 1040ez efile 03 of Rev. Free federal 1040ez efile Proc. Free federal 1040ez efile 2011-21, 2011-12 I. Free federal 1040ez efile R. Free federal 1040ez efile B. Free federal 1040ez efile 560, for passenger automobiles first leased during calendar year 2010; and Rev. Free federal 1040ez efile Proc. Free federal 1040ez efile 2011-21, for passenger automobiles first leased during calendar year 2011. Free federal 1040ez efile SECTION 4. Free federal 1040ez efile APPLICATION . Free federal 1040ez efile 01 Limitations on Depreciation Deductions for Certain Automobiles. Free federal 1040ez efile (1) Amount of the inflation adjustment. Free federal 1040ez efile (a) Passenger automobiles (other than trucks or vans). Free federal 1040ez efile Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Free federal 1040ez efile Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Free federal 1040ez efile The new car component of the CPI was 115. Free federal 1040ez efile 2 for October 1987 and 143. Free federal 1040ez efile 419 for October 2011. Free federal 1040ez efile The October 2011 index exceeded the October 1987 index by 28. Free federal 1040ez efile 219. Free federal 1040ez efile Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. Free federal 1040ez efile 5 percent (28. Free federal 1040ez efile 219/115. Free federal 1040ez efile 2 x 100%). Free federal 1040ez efile The dollar limitations in § 280F(a) are multiplied by a factor of 0. Free federal 1040ez efile 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. Free federal 1040ez efile This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. Free federal 1040ez efile (b) Trucks and vans. Free federal 1040ez efile To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. Free federal 1040ez efile The new truck component of the CPI was 112. Free federal 1040ez efile 4 for October 1987 and 146. Free federal 1040ez efile 607 for October 2011. Free federal 1040ez efile The October 2011 index exceeded the October 1987 index by 34. Free federal 1040ez efile 207. Free federal 1040ez efile Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. Free federal 1040ez efile 43 percent (34. Free federal 1040ez efile 207/112. Free federal 1040ez efile 4 x 100%). Free federal 1040ez efile The dollar limitations in § 280F(a) are multiplied by a factor of 0. Free federal 1040ez efile 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Free federal 1040ez efile This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. Free federal 1040ez efile (2) Amount of the limitation. Free federal 1040ez efile Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. Free federal 1040ez efile Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. Free federal 1040ez efile Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. Free federal 1040ez efile REV. Free federal 1040ez efile PROC. Free federal 1040ez efile 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Free federal 1040ez efile PROC. Free federal 1040ez efile 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. Free federal 1040ez efile PROC. Free federal 1040ez efile 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Free federal 1040ez efile PROC. Free federal 1040ez efile 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . Free federal 1040ez efile 02 Inclusions in Income of Lessees of Passenger Automobiles. Free federal 1040ez efile A taxpayer must follow the procedures in § 1. Free federal 1040ez efile 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. Free federal 1040ez efile In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Free federal 1040ez efile REV. Free federal 1040ez efile PROC. Free federal 1040ez efile 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. Free federal 1040ez efile PROC. Free federal 1040ez efile 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. Free federal 1040ez efile EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. Free federal 1040ez efile SECTION 6. Free federal 1040ez efile DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Free federal 1040ez efile Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Free federal 1040ez efile For further information regarding this revenue procedure, contact Mr. Free federal 1040ez efile Harvey at (202) 622-4930 (not a toll-free call). Free federal 1040ez efile Prev  Up  Next   Home   More Internal Revenue Bulletins
Español

Health Issues for Parents

Find resources on a few of the health issues that can affect children.

The Free Federal 1040ez Efile

Free federal 1040ez efile It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. Free federal 1040ez efile Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. Free federal 1040ez efile Select the Scenario that Applies to You: Free federal 1040ez efile I am an independent contractor or in business for myself Free federal 1040ez efile If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. For more information on your tax obligations if you are self-employed (an independent contractor), see our Self-Employed Tax Center. Free federal 1040ez efile I hire or contract with individuals to provide services to my business Free federal 1040ez efile If you are a business owner hiring or contracting with other individuals to provide services, you must determine whether the individuals providing services are employees or independent contractors. Follow the rest of this page to find out more about this topic and what your responsibilities are. Free federal 1040ez efile Determining Whether the Individuals Providing Services are Employees or Independent Contractors Free federal 1040ez efile Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be - Free federal 1040ez efile An independent contractor Free federal 1040ez efile An employee (common-law employee) Free federal 1040ez efile A statutory employee Free federal 1040ez efile A statutory nonemployee Free federal 1040ez efile In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered. Free federal 1040ez efile Common Law Rules Free federal 1040ez efile Facts that provide evidence of the degree of control and independence fall into three categories: Free federal 1040ez efile Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job? Free federal 1040ez efile Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.) Free federal 1040ez efile Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business? Free federal 1040ez efile Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another. Free federal 1040ez efile The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination. Free federal 1040ez efile Form SS-8 Free federal 1040ez efile If, after reviewing the three categories of evidence, it is still unclear whether a worker is an employee or an independent contractor, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) can be filed with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker’s status. Free federal 1040ez efile Be aware that it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8 (PDF).