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Free filing for 2012 taxes Publication 957 - Main Content Table of Contents 1. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes 1. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Free filing for 2012 taxes Report all back pay. Free filing for 2012 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 filing for 2012 taxes See Back Pay Under a Statute , later, for more information. Free filing for 2012 taxes Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Free filing for 2012 taxes However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Free filing for 2012 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 filing for 2012 taxes The SSA no longer accepts reports on tapes, cartridges, and diskettes. Free filing for 2012 taxes Example. Free filing for 2012 taxes In 2012, Terry Morris earned wages of $50,000. Free filing for 2012 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 filing for 2012 taxes Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Free filing for 2012 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 filing for 2012 taxes Example. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes SSA treatment of back pay under a statute. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Then, the SSA can allocate the statutory back pay to the appropriate periods. Free filing for 2012 taxes   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes No further action is necessary. Free filing for 2012 taxes Example. Free filing for 2012 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 filing for 2012 taxes Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Free filing for 2012 taxes No further action is necessary. Free filing for 2012 taxes Information the SSA needs to properly credit back pay under a statute (special report). Free filing for 2012 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 filing for 2012 taxes There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Free filing for 2012 taxes The special report must include the following information. Free filing for 2012 taxes The employer's name, address, and employer identification number (EIN). Free filing for 2012 taxes A signed statement citing the federal or state statute under which the payment was made. Free filing for 2012 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 filing for 2012 taxes The name and telephone number of a person to contact. Free filing for 2012 taxes The SSA may have additional questions concerning the back pay case or the individual employee's information. Free filing for 2012 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 filing for 2012 taxes The employee's social security number (SSN). Free filing for 2012 taxes The employee's name (as shown on his or her social security card). Free filing for 2012 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 filing for 2012 taxes The period(s) the back pay award covers (beginning and ending dates—month and year). Free filing for 2012 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 filing for 2012 taxes Do not include the back pay award shown in that wage report. Free filing for 2012 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 filing for 2012 taxes The amount to allocate to each reporting period*. Free filing for 2012 taxes This includes any amount you want allocated (if applicable) to the tax year of the award payment. Free filing for 2012 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 filing for 2012 taxes *Note. Free filing for 2012 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 filing for 2012 taxes For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Free filing for 2012 taxes MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Free filing for 2012 taxes For tax years 1991 and later, list the social security and Medicare wages separately. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Free filing for 2012 taxes Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Free filing for 2012 taxes Such awards are not wages for social security coverage purposes. Free filing for 2012 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 filing for 2012 taxes The payments made in such a settlement may still be back pay and wages under the rules discussed here. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes However, they are not payments made under a statute. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Free filing for 2012 taxes If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Free filing for 2012 taxes Read Special Wage Payments, later, for additional reporting instructions. Free filing for 2012 taxes Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Free filing for 2012 taxes Exception. Free filing for 2012 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 filing for 2012 taxes Table 1. Free filing for 2012 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 filing for 2012 taxes Sec. Free filing for 2012 taxes /Med. Free filing for 2012 taxes Wages Paid In Award Year (4)3 Allocation     Soc. Free filing for 2012 taxes Sec. Free filing for 2012 taxes Med. Free filing for 2012 taxes /MQGE Year Soc. Free filing for 2012 taxes Sec. Free filing for 2012 taxes Med. Free filing for 2012 taxes /MQGE xxx-xx-xxxx HELEN T. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes  2Exclude the amount of back pay, if any, included in that amount. Free filing for 2012 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 filing for 2012 taxes The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Free filing for 2012 taxes (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Free filing for 2012 taxes Sec. Free filing for 2012 taxes column. Free filing for 2012 taxes ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Free filing for 2012 taxes Explanation of examples. Free filing for 2012 taxes Helen T. Free filing for 2012 taxes Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Free filing for 2012 taxes In 2012, this employee was also paid $40,000 in other wages. Free filing for 2012 taxes (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Free filing for 2012 taxes The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Free filing for 2012 taxes ) Sam W. Free filing for 2012 taxes Evans–The back pay award was $30,000 for the periods 7/89-12/91. Free filing for 2012 taxes This employee was hired in 1989 and was subject to MQGE only. Free filing for 2012 taxes He was no longer employed by this governmental employer in 2012. Free filing for 2012 taxes (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Free filing for 2012 taxes After the SSA allocation, he will not have any net posted wages for 2012. Free filing for 2012 taxes ) Roland S. Free filing for 2012 taxes Adams–The back pay award was $15,000 for the periods 7/80-12/81. Free filing for 2012 taxes He was no longer employed by this state and local government (Section 218) employer in 2012. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Note. Free filing for 2012 taxes Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Free filing for 2012 taxes Earnings Test. Free filing for 2012 taxes   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Free filing for 2012 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 filing for 2012 taxes Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Free filing for 2012 taxes See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Free filing for 2012 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 filing for 2012 taxes Submit reports after the close of the tax year. Free filing for 2012 taxes To avoid delays in processing, submit reports in time to reach the SSA by April 1. Free filing for 2012 taxes Use one of the following reporting methods. Free filing for 2012 taxes Electronic reporting. Free filing for 2012 taxes   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Free filing for 2012 taxes gov website. Free filing for 2012 taxes BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Free filing for 2012 taxes You must register to use this website. Free filing for 2012 taxes The web address is www. Free filing for 2012 taxes socialsecurity. Free filing for 2012 taxes gov/bso/bsowelcome. Free filing for 2012 taxes htm. Free filing for 2012 taxes   Use the specifications and record layout shown in  Table 2, later. Free filing for 2012 taxes Only one file at a time may be submitted. Free filing for 2012 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 filing for 2012 taxes A zipped file contains a file that has been compressed to reduce its file size. Free filing for 2012 taxes WinZip and PKZIP are examples of acceptable compression packages. Free filing for 2012 taxes   Electronic submissions not meeting the specifications in Table 2 will be rejected. Free filing for 2012 taxes Paper listing. Free filing for 2012 taxes   A paper listing can be used to report special wage payments to several employees. Free filing for 2012 taxes Use the format shown in Table 3, later. Free filing for 2012 taxes Submit paper listings to the local SSA office nearest your place of business. Free filing for 2012 taxes Visit www. Free filing for 2012 taxes socialsecurity. Free filing for 2012 taxes gov/locator to find a Social Security office near you. Free filing for 2012 taxes Form SSA-131. Free filing for 2012 taxes   Use Form SSA-131 to report special wage payments made to an employee. Free filing for 2012 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 filing for 2012 taxes    This image is too large to be displayed in the current screen. Free filing for 2012 taxes Please click the link to view the image. Free filing for 2012 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 filing for 2012 taxes Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Free filing for 2012 taxes 2. Free filing for 2012 taxes Enter the date the employee retired. Free filing for 2012 taxes Enter “Not Retired” if the employee has not retired. Free filing for 2012 taxes 3. Free filing for 2012 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 filing for 2012 taxes This date should be the same as or earlier than the date in item “2”. Free filing for 2012 taxes Enter “Not Retired” if the employee has not retired. Free filing for 2012 taxes 4. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Free filing for 2012 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 filing for 2012 taxes Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Free filing for 2012 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 filing for 2012 taxes Stock Options. Free filing for 2012 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 filing for 2012 taxes That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Free filing for 2012 taxes That were deducted from the employee's wages and paid to a deferred compensation plan (e. Free filing for 2012 taxes g. Free filing for 2012 taxes , 401k). Free filing for 2012 taxes Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Free filing for 2012 taxes Bonuses earned and paid in the tax year. Free filing for 2012 taxes 5. Free filing for 2012 taxes Check whether payments listed in item 4 will be made for years after the tax year. Free filing for 2012 taxes If yes, please show the amounts and years in which these will be paid, if known. Free filing for 2012 taxes 6. Free filing for 2012 taxes Nonqualified deferred compensation and section 457 plans only. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Free filing for 2012 taxes 702. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes We may also use the information you give us when we match records by computer. Free filing for 2012 taxes Matching programs compare our records with those of other Federal, State, or local government agencies. Free filing for 2012 taxes Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Free filing for 2012 taxes The law allows us to do this even if you do not agree to it. Free filing for 2012 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 filing for 2012 taxes If you want to learn more about this, contact any Social Security Office. Free filing for 2012 taxes The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Free filing for 2012 taxes S. Free filing for 2012 taxes C. Free filing for 2012 taxes §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Free filing for 2012 taxes You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Free filing for 2012 taxes We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Free filing for 2012 taxes Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Free filing for 2012 taxes Or, the employee can submit it to the SSA office handling the claim. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Free filing for 2012 taxes Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Free filing for 2012 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 filing for 2012 taxes It should not count for the social security earnings test. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Nonqualified and section 457 plans are reported differently than other special wage payments. Free filing for 2012 taxes See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes No risk of forfeiture. Free filing for 2012 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 filing for 2012 taxes Example. Free filing for 2012 taxes Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Free filing for 2012 taxes The plan has no risk of forfeiture. Free filing for 2012 taxes In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Free filing for 2012 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 filing for 2012 taxes If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Free filing for 2012 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 filing for 2012 taxes Risk of forfeiture lapses at retirement. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Example—risk of forfeiture. Free filing for 2012 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 filing for 2012 taxes B's wages, including this year's deferred amount, are $80,000. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Example. Free filing for 2012 taxes Employee D retired from the XYZ company and began receiving social security benefits. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes D made no deferrals to the nonqualified plan this year. Free filing for 2012 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 filing for 2012 taxes For more information, see Reporting Special Wage Payments , earlier. Free filing for 2012 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 filing for 2012 taxes Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Free filing for 2012 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 filing for 2012 taxes See Form SSA-131 and its instructions, earlier. Free filing for 2012 taxes Example. Free filing for 2012 taxes Employee K retired this year from Company XYZ and began receiving social security benefits. Free filing for 2012 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 filing for 2012 taxes K also received $75,000 in payments from the company's nonqualified plan. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Free filing for 2012 taxes For more information, see Notice 2008-115, 2008-52 I. Free filing for 2012 taxes R. Free filing for 2012 taxes B. Free filing for 2012 taxes 1367, available at www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/irb/2008-52_IRB/ar10. Free filing for 2012 taxes html. Free filing for 2012 taxes Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Free filing for 2012 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 filing for 2012 taxes See Notice 2008-115. Free filing for 2012 taxes The following examples use small dollar amounts for illustrative purposes. Free filing for 2012 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 filing for 2012 taxes The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Free filing for 2012 taxes Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes The deferral of $20 was vested upon deferral. Free filing for 2012 taxes During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Free filing for 2012 taxes There was no vesting of prior-year deferrals under the plan. Free filing for 2012 taxes During the year, there were total distributions of $50 from the plan to the employee. Free filing for 2012 taxes Regular pay = $100; Distribution = $50. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes Instead, report on Form SSA-131 the total amount the employee earned during the year. Free filing for 2012 taxes * Submit the SSA-131 to the nearest SSA office or give it to the employee. Free filing for 2012 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 filing for 2012 taxes Do not consider prior-year deferrals that are vesting in the current year. Free filing for 2012 taxes If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Free filing for 2012 taxes Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Free filing for 2012 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 filing for 2012 taxes There was also an employer match of $10. Free filing for 2012 taxes The deferral and employer match were vested upon deferral. Free filing for 2012 taxes There was no vesting of prior-year deferrals under the plan. Free filing for 2012 taxes During the year, there were total distributions of $50 from the plan to the employee. Free filing for 2012 taxes Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes The deferral was not vested upon deferral. Free filing for 2012 taxes There was no vesting of prior-year deferrals under the plan. Free filing for 2012 taxes During the year, there were total distributions of $50 from the plan to the employee. Free filing for 2012 taxes Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes The deferral was vested upon deferral. Free filing for 2012 taxes There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Free filing for 2012 taxes During the year, there were total distributions of $50 from the plan to the employee. Free filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 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 filing for 2012 taxes The deferral was not vested upon deferral. Free filing for 2012 taxes There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Free filing for 2012 taxes During the year, there were total distributions of $50 from the plan to the employee. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Free filing for 2012 taxes Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Free filing for 2012 taxes  The file format is ASCII. Free filing for 2012 taxes  Submit only one file at a time. Free filing for 2012 taxes   Table 3. Free filing for 2012 taxes Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Free filing for 2012 taxes Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Free filing for 2012 taxes 1) B. Free filing for 2012 taxes Employee Name: (Last) (First) (MI)   C. Free filing for 2012 taxes SSN: D. Free filing for 2012 taxes SWP:$ E. Free filing for 2012 taxes Type: Other: 2) B. Free filing for 2012 taxes Employee Name: (Last) (First) (MI)   C. Free filing for 2012 taxes SSN: D. Free filing for 2012 taxes SWP:$ E. Free filing for 2012 taxes Type: Other: 3) B. Free filing for 2012 taxes Employee Name: (Last) (First) (MI)   C. Free filing for 2012 taxes SSN: D. Free filing for 2012 taxes SWP:$ E. Free filing for 2012 taxes Type: Other: 4) B. Free filing for 2012 taxes Employee Name: (Last) (First) (MI)   C. Free filing for 2012 taxes SSN: D. Free filing for 2012 taxes SWP:$ E. Free filing for 2012 taxes Type: Other: 5) B. Free filing for 2012 taxes Employee Name: (Last) (First) (MI)   C. Free filing for 2012 taxes SSN: D. Free filing for 2012 taxes SWP:$ E. Free filing for 2012 taxes Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Free filing for 2012 taxes   A. Free filing for 2012 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 filing for 2012 taxes   B. Free filing for 2012 taxes Employee's name. Free filing for 2012 taxes   C. Free filing for 2012 taxes Employee's social security number (SSN). Free filing for 2012 taxes   D. Free filing for 2012 taxes Total amount of special wage payments made to the employee. Free filing for 2012 taxes   E. Free filing for 2012 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 filing for 2012 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 filing for 2012 taxes (Get Form SSA-131. Free filing for 2012 taxes )                 Prev  Up  Next   Home   More Online Publications
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Understanding Your CP267A Notice

You received a CP267A Notice because you’ve overpaid the Branded Prescription Drug Fee.


What you need to do

  • Call us within 30 days of the notice date between 8:00 a.m. and 4:30 p.m. Central Time at the number on your notice.
  • Identify your payments by tax form, fee year, and amount.
  • Tell us if we have misapplied any of your payments.
  • Inform us where you want to apply the overpayment.

You may want to...

  • Review your Letter 4658, Final Fee Calculation
  • Visit www.irs.gov and search for the key phrase “Branded Prescription Drug.”
  • For tax forms, instructions, and publications, visit www.irs.gov or call 1-800-TAX-FORM (1-800-829-3676).

Answers to Common Questions

Why am I getting this notice?

We've sent you this notice because our records indicate you over paid your Branded Prescription Drug Fee. We need you to confirm that your payment was intended for another fee year or inform us where you want to apply the overpayment.

What is an "overpayment," and how is that different from a "refund?"

An "overpayment" occurs when you pay more taxes during the year than what you owe. This can either be refunded to you or applied to other taxes.


Tax forms or publications you may find useful

  • Report of Branded Prescription Drug Information Form 8947

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using the Power of Attorney and Declaration of Representative (Form 2848).


Reading your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP267A, Page 1

Page Last Reviewed or Updated: 24-Sep-2013

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free Filing For 2012 Taxes

Free filing for 2012 taxes Publication 15-A - Introductory Material Table of Contents Future Developments What's New Reminders Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 15-A, such as legislation enacted after it was published, go to www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/pub15a. Free filing for 2012 taxes What's New Social security and Medicare tax for 2014. Free filing for 2012 taxes  The social security tax rate is 6. Free filing for 2012 taxes 2% each for the employee and employer, unchanged from 2013. Free filing for 2012 taxes The social security wage base limit is $117,000. Free filing for 2012 taxes The Medicare tax rate is 1. Free filing for 2012 taxes 45% each for the employee and employer, unchanged from 2013. Free filing for 2012 taxes There is no wage base limit for Medicare tax. Free filing for 2012 taxes Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Free filing for 2012 taxes Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Free filing for 2012 taxes Withholding allowance. Free filing for 2012 taxes  The 2014 amount for one withholding allowance on an annual basis is $3,950. Free filing for 2012 taxes Same-sex marriage. Free filing for 2012 taxes  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Free filing for 2012 taxes For more information, see Revenue Ruling 2013-17, 2013-38 I. Free filing for 2012 taxes R. Free filing for 2012 taxes B. Free filing for 2012 taxes 201, available at www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/irb/2013-38_IRB/ar07. Free filing for 2012 taxes html. Free filing for 2012 taxes Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Free filing for 2012 taxes Notice 2013-61, 2013-44 I. Free filing for 2012 taxes R. Free filing for 2012 taxes B. Free filing for 2012 taxes 432, is available at www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/irb/2013-44_IRB/ar10. Free filing for 2012 taxes html. Free filing for 2012 taxes Reminders Additional Medicare Tax withholding. Free filing for 2012 taxes . Free filing for 2012 taxes  In addition to withholding Medicare tax at 1. Free filing for 2012 taxes 45%, you must withhold a 0. Free filing for 2012 taxes 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free filing for 2012 taxes You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free filing for 2012 taxes Additional Medicare Tax is only imposed on the employee. Free filing for 2012 taxes There is no employer share of Additional Medicare Tax. Free filing for 2012 taxes All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Free filing for 2012 taxes For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Free filing for 2012 taxes For more information on Additional Medicare Tax, visit IRS. Free filing for 2012 taxes gov and enter “Additional Medicare Tax” in the search box. Free filing for 2012 taxes Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Free filing for 2012 taxes  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Free filing for 2012 taxes Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Free filing for 2012 taxes For more information, visit IRS. Free filing for 2012 taxes gov and enter “work opportunity tax credit” in the search box. Free filing for 2012 taxes COBRA premium assistance credit. Free filing for 2012 taxes  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. Free filing for 2012 taxes For more information, see COBRA premium assistance credit in Publication 15 (Circular E). Free filing for 2012 taxes Federal tax deposits must be made by electronic funds transfer. Free filing for 2012 taxes  You must use electronic funds transfer to make all federal tax deposits. Free filing for 2012 taxes Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Free filing for 2012 taxes If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Free filing for 2012 taxes Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Free filing for 2012 taxes EFTPS is a free service provided by the Department of Treasury. Free filing for 2012 taxes Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Free filing for 2012 taxes For more information on making federal tax deposits, see How To Deposit in Publication 15 (Circular E). Free filing for 2012 taxes To get more information about EFTPS or to enroll in EFTPS, visit www. Free filing for 2012 taxes eftps. Free filing for 2012 taxes gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Free filing for 2012 taxes Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Free filing for 2012 taxes You must receive written notice from the IRS to file Form 944. Free filing for 2012 taxes  If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. Free filing for 2012 taxes S. Free filing for 2012 taxes Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. Free filing for 2012 taxes You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. Free filing for 2012 taxes For more information on requesting to file Form 944, visit IRS. Free filing for 2012 taxes gov and enter “file employment taxes annually” in the search box. Free filing for 2012 taxes Employers can request to file Forms 941 instead of Form 944. Free filing for 2012 taxes  If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. Free filing for 2012 taxes You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. Free filing for 2012 taxes For more information on requesting to file Form 944, visit IRS. Free filing for 2012 taxes gov and enter “file employment taxes annually” in the search box. Free filing for 2012 taxes Aggregate Form 941 filers. Free filing for 2012 taxes  Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. Free filing for 2012 taxes Aggregate Forms 941 can only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. Free filing for 2012 taxes To request approval to act as an agent for an employer, the agent must file Form 2678, Employer/Payer Appointment of Agent, with the IRS. Free filing for 2012 taxes Aggregate Form 940 filers. Free filing for 2012 taxes  Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Free filing for 2012 taxes Aggregate Forms 940 may only be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. Free filing for 2012 taxes To request approval to act as an agent on behalf of home care service recipients, the agent must file Form 2678 with the IRS. Free filing for 2012 taxes Electronic filing and payment. Free filing for 2012 taxes  Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Free filing for 2012 taxes Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. Free filing for 2012 taxes Spend less time and worry about taxes and more time running your business. Free filing for 2012 taxes Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. Free filing for 2012 taxes For e-file, visit www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/efile for additional information. Free filing for 2012 taxes For EFTPS, visit www. Free filing for 2012 taxes eftps. Free filing for 2012 taxes gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). Free filing for 2012 taxes Electronic submission of Forms W-4, W-4P, W-4S and W-4V. Free filing for 2012 taxes  You may set up a system to electronically receive any or all of the following forms (and their Spanish versions, if available) from an employee or payee. Free filing for 2012 taxes Form W-4, Employee's Withholding Allowance Certificate. Free filing for 2012 taxes Form W-4P, Withholding Certificate for Pension or Annuity Payments. Free filing for 2012 taxes Form W-4S, Request for Federal Income Tax Withholding From Sick Pay. Free filing for 2012 taxes Form W-4V, Voluntary Withholding Request. Free filing for 2012 taxes For each form that you establish an electronic submission system for, you must meet each of the following five requirements. Free filing for 2012 taxes The electronic system must ensure that the information received by the payer is the information sent by the payee. Free filing for 2012 taxes The system must document all occasions of user access that result in a submission. Free filing for 2012 taxes In addition, the design and operation of the electronic system, including access procedures, must make it reasonably certain that the person accessing the system and submitting the form is the person identified on the form. Free filing for 2012 taxes The electronic system must provide exactly the same information as the paper form. Free filing for 2012 taxes The electronic submission must be signed with an electronic signature by the payee whose name is on the form. Free filing for 2012 taxes The electronic signature must be the final entry in the submission. Free filing for 2012 taxes Upon request, you must furnish a hard copy of any completed electronic form to the IRS and a statement that, to the best of the payer's knowledge, the electronic form was submitted by the named payee. Free filing for 2012 taxes The hard copy of the electronic form must provide exactly the same information as, but need not be a facsimile of, the paper form. Free filing for 2012 taxes For Form W-4, the signature must be under penalty of perjury, and must contain the same language that appears on the paper version of the form. Free filing for 2012 taxes The electronic system must inform the employee that he or she must make a declaration contained in the perjury statement and that the declaration is made by signing the Form W-4. Free filing for 2012 taxes You must also meet all recordkeeping requirements that apply to the paper forms. Free filing for 2012 taxes For more information, see: Regulations sections 31. Free filing for 2012 taxes 3402(f)(5)-1(c) (for Form W-4), and Announcement 99-6 (for Forms W-4P, W-4S, and W-4V). Free filing for 2012 taxes You can find Announcement 99-6 on page 24 of Internal Revenue Bulletin 1999-4 at www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/pub/irs-irbs/irb99-04. Free filing for 2012 taxes pdf. Free filing for 2012 taxes Additional employment tax information. Free filing for 2012 taxes  Visit the IRS website at www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/businesses and click on the Employment Taxes link under Businesses Topics. Free filing for 2012 taxes Telephone help. Free filing for 2012 taxes  You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. Free filing for 2012 taxes Help for people with disabilities. Free filing for 2012 taxes  You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability) with any tax question or to order forms and publications. Free filing for 2012 taxes You may also use this number for assistance with unresolved tax problems. Free filing for 2012 taxes Furnishing Form W-2 to employees electronically. Free filing for 2012 taxes  You may set up a system to furnish Form W-2, Wage and Tax Statement, electronically. Free filing for 2012 taxes Each employee participating must consent (either electronically or by paper document) to receive his or her Form W-2 electronically, and you must notify the employee of all hardware and software requirements to receive the form. Free filing for 2012 taxes You may not send a Form W-2 electronically to any employee who does not consent or who has revoked consent previously provided. Free filing for 2012 taxes To furnish Forms W-2 electronically, you must meet the following disclosure requirements and provide a clear and conspicuous statement of each requirement to your employees. Free filing for 2012 taxes The employee must be informed that he or she will receive a paper Form W-2 if consent is not given to receive it electronically. Free filing for 2012 taxes The employee must be informed of the scope and duration of the consent. Free filing for 2012 taxes The employee must be informed of any procedure for obtaining a paper copy of his or her Form W-2 and whether or not the request for a paper statement is treated as a withdrawal of his or her consent to receiving his or her Form W-2 electronically. Free filing for 2012 taxes The employee must be notified about how to withdraw a consent and the effective date and manner by which the employer will confirm the withdrawn consent. Free filing for 2012 taxes The employee must also be notified that the withdrawn consent does not apply to the previously issued Forms W-2. Free filing for 2012 taxes The employee must be informed about any conditions under which electronic Forms W-2 will no longer be furnished (for example, termination of employment). Free filing for 2012 taxes The employee must be informed of any procedures for updating his or her contact information that enables the employer to provide electronic Forms W-2. Free filing for 2012 taxes The employer must notify the employee of any changes to the employer's contact information. Free filing for 2012 taxes You must furnish electronic Forms W-2 by the same due date as the paper Forms W-2. Free filing for 2012 taxes For more information on furnishing Form W-2 to employees electronically, see Regulations section 31. Free filing for 2012 taxes 6051-1(j). Free filing for 2012 taxes Photographs of missing children. Free filing for 2012 taxes  The IRS is a proud partner with the National Center for Missing and Exploited Children. Free filing for 2012 taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free filing for 2012 taxes You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free filing for 2012 taxes Introduction This publication supplements Publication 15 (Circular E). Free filing for 2012 taxes It contains specialized and detailed employment tax information supplementing the basic information provided in Publication 15 (Circular E). Free filing for 2012 taxes This publication also contains tables for withholding on distributions of Indian gaming profits to tribal members. Free filing for 2012 taxes Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment of various types of noncash compensation. Free filing for 2012 taxes Ordering publications and forms. Free filing for 2012 taxes   See Ordering Employer Tax Forms and Publications in Publication 15 (Circular E) and How To Get Tax Help , later, for more information on how to obtain forms and publications. Free filing for 2012 taxes Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 505 Tax Withholding and Estimated Tax 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Comments and suggestions. Free filing for 2012 taxes   We welcome your comments about this publication and your suggestions for future editions. Free filing for 2012 taxes    You can write to us at the following address: Internal Revenue Service Tax Forms & Publications Division 1111 Constitution Ave. Free filing for 2012 taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free filing for 2012 taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free filing for 2012 taxes   You can also send us comments from www. Free filing for 2012 taxes irs. Free filing for 2012 taxes gov/formspubs. Free filing for 2012 taxes Click on More Information and then click on Comment on Tax Forms and Publications. Free filing for 2012 taxes   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. Free filing for 2012 taxes Prev  Up  Next   Home   More Online Publications