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Free internet tax filing Publication 15-T - Main Content Table of Contents Introduction Notice to Employers Withholding Income Taxes on the Wages of Nonresident Alien Employees Increased Exclusion Amount for Combined Commuter Highway Vehicle Transportation and Transit Passes How To Use the Income Tax Withholding and Advance Earned Income Credit (EIC) Payment TablesIncome Tax Withholding Advance Payment Methods for the Earned Income Credit (EIC) Whole-Dollar Withholding and Paying Advance EIC (Rounding) Alternative Methods for Figuring WithholdingTerm of continuous employment. Free internet tax filing Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) Wage Bracket Percentage Method Tables (for Automated Payroll Systems) Combined Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables Introduction This publication contains the new income tax withholding percentage and wage bracket method tables. Free internet tax filing It also includes the revised advance earned income credit (EIC) payment percentage and wage bracket method tables. Free internet tax filing The revised formula percentage method, wage bracket percentage method, and combined withholding tables are also found in this publication. Free internet tax filing Publication 15-T should be used by employers in conjunction with the information in Publication 15 (Circular E), Employer's Tax Guide. Free internet tax filing Agricultural employers who use Publication 51 (Circular A), Agricultural Employer's Tax Guide, should also use these tables in lieu of the corresponding tables in Publication 51, and use Publication 15-T in conjunction with the information in Publication 51. Free internet tax filing Likewise, updated tables are included for Publication 15-A, Employer's Supplemental Tax Guide. Free internet tax filing For the calculation of income tax withholding on pensions, the new withholding tables also apply. Free internet tax filing These new tables have been developed due to changes to the tax law made in the American Recovery and Reinvestment Act of 2009. Free internet tax filing The IRS asks that employers begin using these tables in lieu of the applicable previously published tables as soon as possible, but no later than April 1, 2009. Free internet tax filing Because this publication combines withholding tables from both the Publication 15 (Circular E), Publication 51 (Circular A), and Publication 15-A, your applicable table may be on a different page from that shown in those publications. Free internet tax filing Notice to Employers Make the notice on page 73 available to employees so that they will be aware of how the new law affects their withholding. Free internet tax filing A copy of Form W-4, Employee's Withholding Allowance Certificate, is included on pages 71 and 72. Free internet tax filing Employees do not need to fill out a new Form W-4. Free internet tax filing These new tables have been developed to apply for withholding for all employees and to take into account all current tax provisions. Free internet tax filing Employees may submit a new Form W-4 to ensure that the correct amount of tax is being withheld from their pay. Free internet tax filing Note: The 2009 Form W-4 and the Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members found on page 58 of Publication 15-A are not being revised. Free internet tax filing Withholding Income Taxes on the Wages of Nonresident Alien Employees In general, you must withhold federal income taxes on the wages of nonresident alien employees. Free internet tax filing However, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for exceptions to this general rule. Free internet tax filing You must add an amount as set forth in the chart below to the nonresident alien's wages solely for calculating the income tax withholding for each payroll period. Free internet tax filing You determine the amount to be withheld by applying the income tax withholding tables to the amount of wages paid plus the additional chart amount. Free internet tax filing For more information, see Notice 2005-76, 2005-46 I. Free internet tax filing R. Free internet tax filing B. Free internet tax filing 947, available at www. Free internet tax filing irs. Free internet tax filing gov/irb/2005-46_IRB/ar10. Free internet tax filing html. Free internet tax filing As the new withholding tables were developed due to changes to the tax law made by the American Recovery and Reinvestment Act of 2009, the amount to add to a nonresident alien employee's wages for calculating income tax withholding only has been increased. Free internet tax filing See the chart below for these increased amounts. Free internet tax filing Nonresident alien students from India and business apprentices from India are not subject to this procedure. Free internet tax filing The amount to be added to the nonresident alien's wages to calculate income tax withholding is set forth in the following chart. Free internet tax filing Amount to Add to Nonresident Alien Employee's Wages for Calculating Income Tax Withholding Only Payroll Period Add Additional   Weekly $138. Free internet tax filing 00   Biweekly 276. Free internet tax filing 00   Semimonthly 299. Free internet tax filing 00   Monthly 598. Free internet tax filing 00   Quarterly 1,795. Free internet tax filing 00   Semiannually 3,590. Free internet tax filing 00   Annually 7,180. Free internet tax filing 00   Daily or Miscellaneous(each day of the payroll period) 27. Free internet tax filing 60   The amounts added under this chart are added to wages solely for calculating income tax withholding on the wages of the nonresident alien employee. Free internet tax filing These chart amounts should not be included in any box on the employee's Form W-2, Wage and Tax Statement, and do not increase the income tax liability of the employee. Free internet tax filing Also, these chart amounts do not increase the social security, Medicare, or Federal Unemployment Tax Act (FUTA) tax liability of the employer or the employee. Free internet tax filing This procedure only applies to nonresident alien employees who have wages subject to income tax withholding. Free internet tax filing Note. Free internet tax filing The following example will deal with the new withholding tables only. Free internet tax filing For withholding on wages to nonresident alien employees before the new withholding tables were implemented (after February 17, 2009, but not later than April 1, 2009), see Withholding income taxes on wages of nonresident alien employees in section 9 of Publication 15 (Circular E). Free internet tax filing Example. Free internet tax filing An employer using the percentage method of withholding pays wages of $500 for a biweekly payroll period to a married nonresident alien employee. Free internet tax filing The nonresident alien has properly completed Form W-4, entering marital status as “single” with one withholding allowance and indicating status as a nonresident alien on line 6 of Form W-4 (see page 71). Free internet tax filing The employer determines the wages to be used in the withholding tables by adding to the $500 amount of wages paid the amount of $276 from the chart above ($776 total). Free internet tax filing The employer then applies the applicable table (Table 2(a), the table for biweekly payroll period, single persons) by subtracting the applicable percentage method amount for one withholding allowance for a biweekly payroll period from $776 and making the calculations according to the table. Free internet tax filing The $276 added to wages for purposes of calculating income tax withholding is not reported on Form W-2, and does not increase the income tax liability of the employee. Free internet tax filing The $276 added amount also does not affect the social security tax, Medicare tax, or FUTA tax liability of the employer or the employee. Free internet tax filing Increased Exclusion Amount for Combined Commuter Highway Vehicle Transportation and Transit Passes Effective March 2009, the monthly exclusion for combined commuter highway vehicle transportation and transit passes increases to $230 through December 2009. Free internet tax filing This increase is based on a change in the tax law made in the American Recovery and Reinvestment Act of 2009. Free internet tax filing How To Use the Income Tax Withholding and Advance Earned Income Credit (EIC) Payment Tables Income Tax Withholding There are several ways to figure income tax withholding. Free internet tax filing The following methods of withholding are based on the information that you get from your employees on Form W-4, Employee's Withholding Allowance Certificate. Free internet tax filing See section 9 of Publication 15 (Circular E) for more information on Form W-4. Free internet tax filing Adjustments are not required when there will be more than the usual number of pay periods, for example, 27 biweekly pay dates instead of 26. Free internet tax filing Wage Bracket Method Under the wage bracket method, find the proper table (on pages 7-26) for your payroll period and the employee's marital status as shown on his or her Form W-4. Free internet tax filing Then, based on the number of withholding allowances claimed on the Form W-4 and the amount of wages, find the amount of federal tax to withhold. Free internet tax filing If your employee is claiming more than 10 withholding allowances, see below. Free internet tax filing If you cannot use the wage bracket tables because wages exceed the amount shown in the last bracket of the table, use the percentage method of withholding described below. Free internet tax filing Be sure to reduce wages by the amount of total withholding allowances in Table 1 on this page before using the percentage method tables (pages 5-6). Free internet tax filing Adjusting wage bracket withholding for employees claiming more than 10 withholding allowances. Free internet tax filing   The wage bracket tables can be used if an employee claims up to 10 allowances. Free internet tax filing More than 10 allowances may be claimed because of the special withholding allowance, additional allowances for deductions and credits, and the system itself. Free internet tax filing   Adapt the tables to more than 10 allowances as follows: Multiply the number of withholding allowances over 10 by the allowance value for the payroll period. Free internet tax filing The allowance values are in Table 1, Percentage Method—2009 Amount for One Withholding Allowance, later. Free internet tax filing Subtract the result from the employee's wages. Free internet tax filing On this amount, find and withhold the tax in the column for 10 allowances. Free internet tax filing   This is a voluntary method. Free internet tax filing If you use the wage bracket tables, you may continue to withhold the amount in the “10” column when your employee has more than 10 allowances, using the method above. Free internet tax filing You can also use any other method described below. Free internet tax filing Percentage Method If you do not want to use the wage bracket tables on pages 7-26 to figure how much income tax to withhold, you can use a percentage computation based on Table 1 below and the appropriate rate table. Free internet tax filing This method works for any number of withholding allowances the employee claims and any amount of wages. Free internet tax filing Use these steps to figure the income tax to withhold under the percentage method. Free internet tax filing Multiply one withholding allowance for your payroll period (see Table 1 below) by the number of allowances that the employee claims. Free internet tax filing Subtract that amount from the employee's wages. Free internet tax filing Determine the amount to withhold from the appropriate table on page 5 or 6. Free internet tax filing Table 1. Free internet tax filing Percentage Method—2009 Amount for One Withholding Allowance Payroll Period One Withholding Allowance Weekly $70. Free internet tax filing 19 Biweekly 140. Free internet tax filing 38 Semimonthly 152. Free internet tax filing 08 Monthly 304. Free internet tax filing 17 Quarterly 912. Free internet tax filing 50 Semiannually 1,825. Free internet tax filing 00 Annually 3,650. Free internet tax filing 00 Daily or miscellaneous (each day of the payroll period) 14. Free internet tax filing 04 Example. Free internet tax filing   An unmarried employee is paid $600 weekly. Free internet tax filing This employee has in effect a Form W-4 claiming two withholding allowances. Free internet tax filing Using the percentage method, figure the income tax to withhold as follows: 1. Free internet tax filing Total wage payment   $600. Free internet tax filing 00 2. Free internet tax filing One allowance $70. Free internet tax filing 19   3. Free internet tax filing Allowances claimed on Form W-4 2   4. Free internet tax filing Multiply line 2 by line 3   $140. Free internet tax filing 38 5 Amount subject to withholding (subtract line 4 from line 1)   $459. Free internet tax filing 62 6. Free internet tax filing Tax to be withheld on $459. Free internet tax filing 62 from Table 1(a)—single person, page 5   $45. Free internet tax filing 14      To figure the income tax to withhold, you may reduce the last digit of the wages to zero, or figure the wages to the nearest dollar. Free internet tax filing Annual income tax withholding. Free internet tax filing   Figure the income tax to withhold on annual wages under the Percentage Method for an annual payroll period. Free internet tax filing Then prorate the tax back to the payroll period. Free internet tax filing Example. Free internet tax filing A married person claims four withholding allowances. Free internet tax filing She is paid $1,000 a week. Free internet tax filing Multiply the weekly wages by 52 weeks to figure the annual wage of $52,000. Free internet tax filing Subtract $14,600 (the value of four withholding allowances for 2009) for a balance of $37,400. Free internet tax filing Using the table for the annual payroll period (Table 7(b)) on page 6, $2,812. Free internet tax filing 50 is withheld. Free internet tax filing Divide the annual tax by 52. Free internet tax filing The weekly income tax to withhold is $54. Free internet tax filing 09. Free internet tax filing Alternative Methods of Income Tax Withholding Rather than the Wage Bracket Method or Percentage Method described above, you can use an alternative method to withhold income tax. Free internet tax filing Alternative Methods for Figuring Withholding on page 36 describes some of these alternative methods and contains: Formula tables for percentage method withholding (for automated payroll systems), Wage bracket percentage method tables (for automated payroll systems), and Combined income, social security, and Medicare tax withholding tables. Free internet tax filing Additional alternative methods explained on page 36 are annualized wages, average estimated wages, cumulative wages, and part-year employment. Free internet tax filing Advance Payment Methods for the Earned Income Credit (EIC) To figure the advance EIC payment, you may use either the Wage Bracket Method or the Percentage Method as explained below. Free internet tax filing You may use other methods for figuring advance EIC payments if the amount of the payment is about the same as it would be using tables in this booklet. Free internet tax filing See the tolerances allowed in the chart in Other methods on page 36. Free internet tax filing See also section 10 in Publication 15 (Circular E) for an explanation of the advance payment of the EIC. Free internet tax filing The number of withholding allowances that an employee claims on Form W-4 is not used in figuring the advance EIC payment. Free internet tax filing Nor does it matter that the employee has claimed exemption from income tax withholding on Form W-4. Free internet tax filing Wage Bracket Method If you use the wage bracket tables on pages 29-35, figure the advance EIC payment as follows. Free internet tax filing Find the employee's gross wages before any deductions using the appropriate table. Free internet tax filing There are different tables for (a) single or head of household, (b) married without spouse filing certificate, and (c) married with both spouses filing certificates. Free internet tax filing Determine the amount of the advance EIC payment shown in the appropriate table for the amount of wages paid. Free internet tax filing Percentage Method If you do not want to use the wage bracket tables to figure how much to include in an employee's wages for the advance EIC payment, you can use the percentage method based on the appropriate rate table on pages 27 and 28. Free internet tax filing Find the employee's gross wages before any deductions in the appropriate table on pages 27 and 28. Free internet tax filing There are different tables for (a) single or head of household, (b) married without spouse filing certificate, and (c) married with both spouses filing certificates. Free internet tax filing Find the advance EIC payment shown in the appropriate table for the amount of wages paid. Free internet tax filing Whole-Dollar Withholding and Paying Advance EIC (Rounding) The income tax withholding amounts in the wage bracket tables (pages 7-26) have been rounded to whole-dollar amounts. Free internet tax filing When employers use the percentage method tables (pages 5-6) or an alternative method of income tax withholding table, the tax for the pay period may be rounded to the nearest dollar. Free internet tax filing The wage bracket tables for advance EIC payments (pages 29-35) have also been rounded to whole-dollar amounts. Free internet tax filing If you use the tables for percentage method of advance EIC payments (pages 27-28), the payments may be rounded to the nearest dollar. Free internet tax filing Tables for Percentage Method of Withholding (For Wages Paid Through December 2009) TABLE 1—WEEKLY Payroll Period   (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) is: The amount of income taxto withhold is: If the amount of wages (after subtracting withholding allowances) is:   The amount of incometax to withhold is: Not over $138 $0   Not over $303 $0   Over— But not over— of excess over— Over— But not over— of excess over— $138 —$200   10% —$138 $303 —$470   10% —$303 $200 —$696   $6. Free internet tax filing 20 plus 15% —$200 $470 —$1,455   $16. Free internet tax filing 70 plus 15% —$470 $696 —$1,279   $80. Free internet tax filing 60 plus 25% —$696 $1,455 —$2,272   $164. Free internet tax filing 45 plus 25% —$1,455 $1,279 —$3,338   $226. Free internet tax filing 35 plus 28% —$1,279 $2,272 —$4,165   $368. Free internet tax filing 70 plus 28% —$2,272 $3,338 —$7,212   $802. Free internet tax filing 87 plus 33% —$3,338 $4,165 —$7,321   $898. Free internet tax filing 74 plus 33% —$4,165 $7,212 $2,081. Free internet tax filing 29 plus 35% —$7,212 $7,321 $1,940. Free internet tax filing 22 plus 35% —$7,321 TABLE 2—BIWEEKLY Payroll Period       (a) SINGLE person (including head of household)—   (b) MARRIED person— If the amount of wages (after subtracting withholdingallowances) is: The amount of income taxto withhold is: If the amount of wages (after subtracting withholdingallowances) is: The amount of incometax to withhold is:   Not over $276 $0   Not over $606 $0   Over— But not over— of excess over— Over— But not over— of excess over— $276 —$400   10% —$276 $606 —$940   10% —$606 $400 —$1,392   $12. Free internet tax filing 40 plus 15% —$400 $940 —$2,910   $33. Free internet tax filing 40 plus 15% —$940 $1,392 —$2,559   $161. Free internet tax filing 20 plus 25% —$1,392 $2,910 —$4,543   $328. Free internet tax filing 90 plus 25% —$2,910 $2,559 —$6,677   $452. Free internet tax filing 95 plus 28% —$2,559 $4,543 —$8,331   $737. Free internet tax filing 15 plus 28% —$4,543 $6,677 —$14,423   $1,605. Free internet tax filing 99 plus 33% —$6,677 $8,331 —$14,642   $1,797. Free internet tax filing 79 plus 33% —$8,331 $14,423 $4,162. Free internet tax filing 17 plus 35% —$14,423 $14,642 $3,880. Free internet tax filing 42 plus 35% —$14,642 TABLE 3—SEMIMONTHLY Payroll Period       (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) is: The amount of income taxto withhold is: If the amount of wages (after subtracting withholding allowances) is:   The amount of incometax to withhold is: Not over $299 $0   Not over $656 $0   Over— But not over— of excess over— Over— But not over— of excess over— $299 —$433   10% —$299 $656 —$1,019   10% —$656 $433 —$1,508   $13. Free internet tax filing 40 plus 15% —$433 $1,019 —$3,152   $36. Free internet tax filing 30 plus 15% —$1,019 $1,508 —$2,772   $174. Free internet tax filing 65 plus 25% —$1,508 $3,152 —$4,922   $356. Free internet tax filing 25 plus 25% —$3,152 $2,772 —$7,233   $490. Free internet tax filing 65 plus 28% —$2,772 $4,922 —$9,025   $798. Free internet tax filing 75 plus 28% —$4,922 $7,233 —$15,625   $1,739. Free internet tax filing 73 plus 33% —$7,233 $9,025 —$15,863   $1,947. Free internet tax filing 59 plus 33% —$9,025 $15,625   $4,509. Free internet tax filing 09 plus 35% —$15,625 $15,863   $4,204. Free internet tax filing 13 plus 35% —$15,863 TABLE 4—MONTHLY Payroll Period   (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) is: The amount of income taxto withhold is: If the amount of wages (after subtracting withholdingallowances) is: The amount of incometax to withhold is: Not over $598 $0   Not over $1,313 $0   Over— But not over— of excess over— Over— But not over— of excess over— $598 —$867   10% —$598 $1,313 —$2,038   10% —$1,313 $867 —$3,017   $26. Free internet tax filing 90 plus 15% —$867 $2,038 —$6,304   $72. Free internet tax filing 50 plus 15% —$2,038 $3,017 —$5,544   $349. Free internet tax filing 40 plus 25% —$3,017 $6,304 —$9,844   $712. Free internet tax filing 40 plus 25% —$6,304 $5,544 —$14,467   $981. Free internet tax filing 15 plus 28% —$5,544 $9,844 —$18,050   $1,597. Free internet tax filing 40 plus 28% —$9,844 $14,467 —$31,250   $3,479. Free internet tax filing 59 plus 33% —$14,467 $18,050 —$31,725   $3,895. Free internet tax filing 08 plus 33% —$18,050 $31,250 $9,017. Free internet tax filing 98 plus 35% —$31,250 $31,725 $8,407. Free internet tax filing 83 plus 35% —$31,725 Tables for Percentage Method of Withholding (continued) (For Wages Paid Through December 2009) TABLE 5—QUARTERLY Payroll Period   (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) is: The amount of income taxto withhold is: If the amount of wages (after subtracting withholding allowances) is:   The amount of incometax to withhold is: Not over $1,795 $0   Not over $3,938 $0   Over— But not over— of excess over— Over— But not over— of excess over— $1,795 —$2,600   10% —$1,795 $3,938 —$6,113   10% —$3,938 $2,600 —$9,050   $80. Free internet tax filing 50 plus 15% —$2,600 $6,113 —$18,913   $217. Free internet tax filing 50 plus 15% —$6,113 $9,050 —$16,633   $1,048. Free internet tax filing 00 plus 25% —$9,050 $18,913 —$29,533   $2,137. Free internet tax filing 50 plus 25% —$18,913 $16,633 —$43,400   $2,943. Free internet tax filing 75 plus 28% —$16,633 $29,533 —$54,150   $4,792. Free internet tax filing 50 plus 28% —$29,533 $43,400 —$93,750   $10,438. Free internet tax filing 51 plus 33% —$43,400 $54,150 —$95,175   $11,685. Free internet tax filing 26 plus 33% —$54,150 $93,750 $27,054. Free internet tax filing 01 plus 35% —$93,750 $95,175 $25,223. Free internet tax filing 51 plus 35% —$95,175 TABLE 6—SEMIANNUAL Payroll Period   (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) is: The amount of income taxto withhold is: If the amount of wages (after subtracting withholdingallowances) is: The amount of incometax to withhold is: Not over $3,590 $0   Not over $7,875 $0   Over— But not over— of excess over— Over— But not over— of excess over— $3,590 —$5,200   10% —$3,590 $7,875 —$12,225   10% —$7,875 $5,200 —$18,100   $161. Free internet tax filing 00 plus 15% —$5,200 $12,225 —$37,825   $435. Free internet tax filing 00 plus 15% —$12,225 $18,100 —$33,265   $2,096. Free internet tax filing 00 plus 25% —$18,100 $37,825 —$59,065   $4,275. Free internet tax filing 00 plus 25% —$37,825 $33,265 —$86,800   $5,887. Free internet tax filing 25 plus 28% —$33,265 $59,065 —$108,300   $9,585. Free internet tax filing 00 plus 28% —$59,065 $86,800 —$187,500   $20,877. Free internet tax filing 05 plus 33% —$86,800 $108,300 —$190,350   $23,370. Free internet tax filing 80 plus 33% —$108,300 $187,500 $54,108. Free internet tax filing 05 plus 35% —$187,500 $190,350 $50,447. Free internet tax filing 30 plus 35% —$190,350 TABLE 7—ANNUAL Payroll Period   (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) is: The amount of income taxto withhold is: If the amount of wages (after subtracting withholdingallowances) is: The amount of incometax to withhold is: Not over $7,180 $0   Not over $15,750 $0   Over— But not over— of excess over— Over— But not over— of excess over— $7,180 —$10,400   10% —$7,180 $15,750 —$24,450   10% —$15,750 $10,400 —$36,200   $322. Free internet tax filing 00 plus 15% —$10,400 $24,450 —$75,650   $870. Free internet tax filing 00 plus 15% —$24,450 $36,200 —$66,530   $4,192. Free internet tax filing 00 plus 25% —$36,200 $75,650 —$118,130   $8,550. Free internet tax filing 00 plus 25% —$75,650 $66,530 —$173,600   $11,774. Free internet tax filing 50 plus 28% —$66,530 $118,130 —$216,600   $19,170. Free internet tax filing 00 plus 28% —$118,130 $173,600 —$375,000   $41,754. Free internet tax filing 10 plus 33% —$173,600 $216,600 —$380,700   $46,741. Free internet tax filing 60 plus 33% —$216,600 $375,000 $108,216. Free internet tax filing 10 plus 35% —$375,000 $380,700 $100,894. Free internet tax filing 60 plus 35% —$380,700 TABLE 8—DAILY or MISCELLANEOUS Payroll Period   (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) divided by the number of days in the payroll period is: The amount of income taxto withhold per day is: If the amount of wages (after subtracting withholding allowances) divided by the number of days in the payroll period is: The amount of incometax to withhold per day is: Not over $27. Free internet tax filing 60 $0   Not over $60. Free internet tax filing 60 $0   Over— But not over— of excess over— Over— But not over— of excess over— $27. Free internet tax filing 60 —$40. Free internet tax filing 00   10% —$27. Free internet tax filing 60 $60. Free internet tax filing 60 —$94. Free internet tax filing 00   10% —$60. Free internet tax filing 60 $40. Free internet tax filing 00 —$139. Free internet tax filing 20   $1. Free internet tax filing 24 plus 15% —$40. Free internet tax filing 00 $94. Free internet tax filing 00 —$291. Free internet tax filing 00   $3. Free internet tax filing 34 plus 15% —$94. Free internet tax filing 00 $139. Free internet tax filing 20 —$255. Free internet tax filing 90   $16. Free internet tax filing 12 plus 25% —$139. Free internet tax filing 20 $291. Free internet tax filing 00 —$454. Free internet tax filing 30   $32. Free internet tax filing 89 plus 25% —$291. Free internet tax filing 00 $255. Free internet tax filing 90 —$667. Free internet tax filing 70   $45. Free internet tax filing 30 plus 28% —$255. Free internet tax filing 90 $454. Free internet tax filing 30 —$833. Free internet tax filing 10   $73. Free internet tax filing 72 plus 28% —$454. Free internet tax filing 30 $667. Free internet tax filing 70 —$1,442. Free internet tax filing 30   $160. Free internet tax filing 60 plus 33% —$667. Free internet tax filing 70 $833. Free internet tax filing 10 —$1,464. Free internet tax filing 20   $179. Free internet tax filing 78 plus 33% —$833. Free internet tax filing 10 $1,442. Free internet tax filing 30 $416. Free internet tax filing 22 plus 35% —$1,442. Free internet tax filing 30 $1,464. Free internet tax filing 20 $388. Free internet tax filing 04 plus 35% —$1,464. Free internet tax filing 20 SINGLE Persons—WEEKLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $145 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 145 150 1 0 0 0 0 0 0 0 0 0 0 150 155 1 0 0 0 0 0 0 0 0 0 0 155 160 2 0 0 0 0 0 0 0 0 0 0 160 165 2 0 0 0 0 0 0 0 0 0 0 165 170 3 0 0 0 0 0 0 0 0 0 0 170 175 3 0 0 0 0 0 0 0 0 0 0 175 180 4 0 0 0 0 0 0 0 0 0 0 180 185 4 0 0 0 0 0 0 0 0 0 0 185 190 5 0 0 0 0 0 0 0 0 0 0 190 195 5 0 0 0 0 0 0 0 0 0 0 195 200 6 0 0 0 0 0 0 0 0 0 0 200 210 7 0 0 0 0 0 0 0 0 0 0 210 220 8 1 0 0 0 0 0 0 0 0 0 220 230 10 2 0 0 0 0 0 0 0 0 0 230 240 11 3 0 0 0 0 0 0 0 0 0 240 250 13 4 0 0 0 0 0 0 0 0 0 250 260 14 5 0 0 0 0 0 0 0 0 0 260 270 16 6 0 0 0 0 0 0 0 0 0 270 280 17 7 0 0 0 0 0 0 0 0 0 280 290 19 8 1 0 0 0 0 0 0 0 0 290 300 20 10 2 0 0 0 0 0 0 0 0 300 310 22 11 3 0 0 0 0 0 0 0 0 310 320 23 13 4 0 0 0 0 0 0 0 0 320 330 25 14 5 0 0 0 0 0 0 0 0 330 340 26 16 6 0 0 0 0 0 0 0 0 340 350 28 17 7 0 0 0 0 0 0 0 0 350 360 29 19 8 1 0 0 0 0 0 0 0 360 370 31 20 10 2 0 0 0 0 0 0 0 370 380 32 22 11 3 0 0 0 0 0 0 0 380 390 34 23 13 4 0 0 0 0 0 0 0 390 400 35 25 14 5 0 0 0 0 0 0 0 400 410 37 26 16 6 0 0 0 0 0 0 0 410 420 38 28 17 7 0 0 0 0 0 0 0 420 430 40 29 19 8 1 0 0 0 0 0 0 430 440 41 31 20 10 2 0 0 0 0 0 0 440 450 43 32 22 11 3 0 0 0 0 0 0 450 460 44 34 23 13 4 0 0 0 0 0 0 460 470 46 35 25 14 5 0 0 0 0 0 0 470 480 47 37 26 16 6 0 0 0 0 0 0 480 490 49 38 28 17 7 0 0 0 0 0 0 490 500 50 40 29 19 8 1 0 0 0 0 0 500 510 52 41 31 20 10 2 0 0 0 0 0 510 520 53 43 32 22 11 3 0 0 0 0 0 520 530 55 44 34 23 13 4 0 0 0 0 0 530 540 56 46 35 25 14 5 0 0 0 0 0 540 550 58 47 37 26 16 6 0 0 0 0 0 550 560 59 49 38 28 17 7 0 0 0 0 0 560 570 61 50 40 29 19 8 1 0 0 0 0 570 580 62 52 41 31 20 10 2 0 0 0 0 580 590 64 53 43 32 22 11 3 0 0 0 0 590 600 65 55 44 34 23 13 4 0 0 0 0 600 610 67 56 46 35 25 14 5 0 0 0 0 610 620 68 58 47 37 26 16 6 0 0 0 0 620 630 70 59 49 38 28 17 7 0 0 0 0 630 640 71 61 50 40 29 19 8 1 0 0 0 640 650 73 62 52 41 31 20 10 2 0 0 0 650 660 74 64 53 43 32 22 11 3 0 0 0 660 670 76 65 55 44 34 23 13 4 0 0 0 670 680 77 67 56 46 35 25 14 5 0 0 0 680 690 79 68 58 47 37 26 16 6 0 0 0 690 700 80 70 59 49 38 28 17 7 0 0 0 700 710 83 71 61 50 40 29 19 8 1 0 0 710 720 85 73 62 52 41 31 20 10 2 0 0 720 730 88 74 64 53 43 32 22 11 3 0 0 730 740 90 76 65 55 44 34 23 13 4 0 0 740 750 93 77 67 56 46 35 25 14 5 0 0 750 760 95 79 68 58 47 37 26 16 6 0 0 760 770 98 80 70 59 49 38 28 17 7 0 0 770 780 100 83 71 61 50 40 29 19 8 1 0 $780 $790 $103 $85 $73 $62 $52 $41 $31 $20 $10 $2 $0 790 800 105 88 74 64 53 43 32 22 11 3 0 800 810 108 90 76 65 55 44 34 23 13 4 0 810 820 110 93 77 67 56 46 35 25 14 5 0 820 830 113 95 79 68 58 47 37 26 16 6 0 830 840 115 98 80 70 59 49 38 28 17 7 0 840 850 118 100 83 71 61 50 40 29 19 8 1 850 860 120 103 85 73 62 52 41 31 20 10 2 860 870 123 105 88 74 64 53 43 32 22 11 3 870 880 125 108 90 76 65 55 44 34 23 13 4 880 890 128 110 93 77 67 56 46 35 25 14 5 890 900 130 113 95 79 68 58 47 37 26 16 6 900 910 133 115 98 80 70 59 49 38 28 17 7 910 920 135 118 100 83 71 61 50 40 29 19 8 920 930 138 120 103 85 73 62 52 41 31 20 10 930 940 140 123 105 88 74 64 53 43 32 22 11 940 950 143 125 108 90 76 65 55 44 34 23 13 950 960 145 128 110 93 77 67 56 46 35 25 14 960 970 148 130 113 95 79 68 58 47 37 26 16 970 980 150 133 115 98 80 70 59 49 38 28 17 980 990 153 135 118 100 83 71 61 50 40 29 19 990 1,000 155 138 120 103 85 73 62 52 41 31 20 1,000 1,010 158 140 123 105 88 74 64 53 43 32 22 1,010 1,020 160 143 125 108 90 76 65 55 44 34 23 1,020 1,030 163 145 128 110 93 77 67 56 46 35 25 1,030 1,040 165 148 130 113 95 79 68 58 47 37 26 1,040 1,050 168 150 133 115 98 80 70 59 49 38 28 1,050 1,060 170 153 135 118 100 83 71 61 50 40 29 1,060 1,070 173 155 138 120 103 85 73 62 52 41 31 1,070 1,080 175 158 140 123 105 88 74 64 53 43 32 1,080 1,090 178 160 143 125 108 90 76 65 55 44 34 1,090 1,100 180 163 145 128 110 93 77 67 56 46 35 1,100 1,110 183 165 148 130 113 95 79 68 58 47 37 1,110 1,120 185 168 150 133 115 98 80 70 59 49 38 1,120 1,130 188 170 153 135 118 100 83 71 61 50 40 1,130 1,140 190 173 155 138 120 103 85 73 62 52 41 1,140 1,150 193 175 158 140 123 105 88 74 64 53 43 1,150 1,160 195 178 160 143 125 108 90 76 65 55 44 1,160 1,170 198 180 163 145 128 110 93 77 67 56 46 1,170 1,180 200 183 165 148 130 113 95 79 68 58 47 1,180 1,190 203 185 168 150 133 115 98 80 70 59 49 1,190 1,200 205 188 170 153 135 118 100 82 71 61 50 1,200 1,210 208 190 173 155 138 120 103 85 73 62 52 1,210 1,220 210 193 175 158 140 123 105 87 74 64 53 1,220 1,230 213 195 178 160 143 125 108 90 76 65 55 1,230 1,240 215 198 180 163 145 128 110 92 77 67 56 1,240 1,250 218 200 183 165 148 130 113 95 79 68 58                           $1,250 and over Use Table 1(a) for a SINGLE person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           MARRIED Persons—WEEKLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $310 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 310 320 1 0 0 0 0 0 0 0 0 0 0 320 330 2 0 0 0 0 0 0 0 0 0 0 330 340 3 0 0 0 0 0 0 0 0 0 0 340 350 4 0 0 0 0 0 0 0 0 0 0 350 360 5 0 0 0 0 0 0 0 0 0 0 360 370 6 0 0 0 0 0 0 0 0 0 0 370 380 7 0 0 0 0 0 0 0 0 0 0 380 390 8 1 0 0 0 0 0 0 0 0 0 390 400 9 2 0 0 0 0 0 0 0 0 0 400 410 10 3 0 0 0 0 0 0 0 0 0 410 420 11 4 0 0 0 0 0 0 0 0 0 420 430 12 5 0 0 0 0 0 0 0 0 0 430 440 13 6 0 0 0 0 0 0 0 0 0 440 450 14 7 0 0 0 0 0 0 0 0 0 450 460 15 8 1 0 0 0 0 0 0 0 0 460 470 16 9 2 0 0 0 0 0 0 0 0 470 480 17 10 3 0 0 0 0 0 0 0 0 480 490 19 11 4 0 0 0 0 0 0 0 0 490 500 20 12 5 0 0 0 0 0 0 0 0 500 510 22 13 6 0 0 0 0 0 0 0 0 510 520 23 14 7 0 0 0 0 0 0 0 0 520 530 25 15 8 1 0 0 0 0 0 0 0 530 540 26 16 9 2 0 0 0 0 0 0 0 540 550 28 17 10 3 0 0 0 0 0 0 0 550 560 29 19 11 4 0 0 0 0 0 0 0 560 570 31 20 12 5 0 0 0 0 0 0 0 570 580 32 22 13 6 0 0 0 0 0 0 0 580 590 34 23 14 7 0 0 0 0 0 0 0 590 600 35 25 15 8 1 0 0 0 0 0 0 600 610 37 26 16 9 2 0 0 0 0 0 0 610 620 38 28 17 10 3 0 0 0 0 0 0 620 630 40 29 19 11 4 0 0 0 0 0 0 630 640 41 31 20 12 5 0 0 0 0 0 0 640 650 43 32 22 13 6 0 0 0 0 0 0 650 660 44 34 23 14 7 0 0 0 0 0 0 660 670 46 35 25 15 8 1 0 0 0 0 0 670 680 47 37 26 16 9 2 0 0 0 0 0 680 690 49 38 28 17 10 3 0 0 0 0 0 690 700 50 40 29 19 11 4 0 0 0 0 0 700 710 52 41 31 20 12 5 0 0 0 0 0 710 720 53 43 32 22 13 6 0 0 0 0 0 720 730 55 44 34 23 14 7 0 0 0 0 0 730 740 56 46 35 25 15 8 1 0 0 0 0 740 750 58 47 37 26 16 9 2 0 0 0 0 750 760 59 49 38 28 17 10 3 0 0 0 0 760 770 61 50 40 29 19 11 4 0 0 0 0 770 780 62 52 41 31 20 12 5 0 0 0 0 780 790 64 53 43 32 22 13 6 0 0 0 0 790 800 65 55 44 34 23 14 7 0 0 0 0 800 810 67 56 46 35 25 15 8 1 0 0 0 810 820 68 58 47 37 26 16 9 2 0 0 0 820 830 70 59 49 38 28 17 10 3 0 0 0 830 840 71 61 50 40 29 19 11 4 0 0 0 840 850 73 62 52 41 31 20 12 5 0 0 0 850 860 74 64 53 43 32 22 13 6 0 0 0 860 870 76 65 55 44 34 23 14 7 0 0 0 870 880 77 67 56 46 35 25 15 8 1 0 0 880 890 79 68 58 47 37 26 16 9 2 0 0 890 900 80 70 59 49 38 28 17 10 3 0 0 900 910 82 71 61 50 40 29 19 11 4 0 0 910 920 83 73 62 52 41 31 20 12 5 0 0 920 930 85 74 64 53 43 32 22 13 6 0 0 930 940 86 76 65 55 44 34 23 14 7 0 0 940 950 88 77 67 56 46 35 25 15 8 1 0 950 960 89 79 68 58 47 37 26 16 9 2 0 960 970 91 80 70 59 49 38 28 17 10 3 0 970 980 92 82 71 61 50 40 29 19 11 4 0 980 990 94 83 73 62 52 41 31 20 12 5 0 990 1,000 95 85 74 64 53 43 32 22 13 6 0 $1,000 $1,010 $97 $86 $76 $65 $55 $44 $34 $23 $14 $7 $0 1,010 1,020 98 88 77 67 56 46 35 25 15 8 1 1,020 1,030 100 89 79 68 58 47 37 26 16 9 2 1,030 1,040 101 91 80 70 59 49 38 28 17 10 3 1,040 1,050 103 92 82 71 61 50 40 29 19 11 4 1,050 1,060 104 94 83 73 62 52 41 31 20 12 5 1,060 1,070 106 95 85 74 64 53 43 32 22 13 6 1,070 1,080 107 97 86 76 65 55 44 34 23 14 7 1,080 1,090 109 98 88 77 67 56 46 35 25 15 8 1,090 1,100 110 100 89 79 68 58 47 37 26 16 9 1,100 1,110 112 101 91 80 70 59 49 38 28 17 10 1,110 1,120 113 103 92 82 71 61 50 40 29 19 11 1,120 1,130 115 104 94 83 73 62 52 41 31 20 12 1,130 1,140 116 106 95 85 74 64 53 43 32 22 13 1,140 1,150 118 107 97 86 76 65 55 44 34 23 14 1,150 1,160 119 109 98 88 77 67 56 46 35 25 15 1,160 1,170 121 110 100 89 79 68 58 47 37 26 16 1,170 1,180 122 112 101 91 80 70 59 49 38 28 17 1,180 1,190 124 113 103 92 82 71 61 50 40 29 19 1,190 1,200 125 115 104 94 83 73 62 52 41 31 20 1,200 1,210 127 116 106 95 85 74 64 53 43 32 22 1,210 1,220 128 118 107 97 86 76 65 55 44 34 23 1,220 1,230 130 119 109 98 88 77 67 56 46 35 25 1,230 1,240 131 121 110 100 89 79 68 58 47 37 26 1,240 1,250 133 122 112 101 91 80 70 59 49 38 28 1,250 1,260 134 124 113 103 92 82 71 61 50 40 29 1,260 1,270 136 125 115 104 94 83 73 62 52 41 31 1,270 1,280 137 127 116 106 95 85 74 64 53 43 32 1,280 1,290 139 128 118 107 97 86 76 65 55 44 34 1,290 1,300 140 130 119 109 98 88 77 67 56 46 35 1,300 1,310 142 131 121 110 100 89 79 68 58 47 37 1,310 1,320 143 133 122 112 101 91 80 70 59 49 38 1,320 1,330 145 134 124 113 103 92 82 71 61 50 40 1,330 1,340 146 136 125 115 104 94 83 73 62 52 41 1,340 1,350 148 137 127 116 106 95 85 74 64 53 43 1,350 1,360 149 139 128 118 107 97 86 76 65 55 44 1,360 1,370 151 140 130 119 109 98 88 77 67 56 46 1,370 1,380 152 142 131 121 110 100 89 79 68 58 47 1,380 1,390 154 143 133 122 112 101 91 80 70 59 49 1,390 1,400 155 145 134 124 113 103 92 82 71 61 50                           $1,400 and over Use Table 1(b) for a MARRIED person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           SINGLE Persons—BIWEEKLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $280 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 280 290 1 0 0 0 0 0 0 0 0 0 0 290 300 2 0 0 0 0 0 0 0 0 0 0 300 310 3 0 0 0 0 0 0 0 0 0 0 310 320 4 0 0 0 0 0 0 0 0 0 0 320 330 5 0 0 0 0 0 0 0 0 0 0 330 340 6 0 0 0 0 0 0 0 0 0 0 340 350 7 0 0 0 0 0 0 0 0 0 0 350 360 8 0 0 0 0 0 0 0 0 0 0 360 370 9 0 0 0 0 0 0 0 0 0 0 370 380 10 0 0 0 0 0 0 0 0 0 0 380 390 11 0 0 0 0 0 0 0 0 0 0 390 400 12 0 0 0 0 0 0 0 0 0 0 400 410 13 0 0 0 0 0 0 0 0 0 0 410 420 15 0 0 0 0 0 0 0 0 0 0 420 430 16 1 0 0 0 0 0 0 0 0 0 430 440 18 2 0 0 0 0 0 0 0 0 0 440 450 19 3 0 0 0 0 0 0 0 0 0 450 460 21 4 0 0 0 0 0 0 0 0 0 460 470 22 5 0 0 0 0 0 0 0 0 0 470 480 24 6 0 0 0 0 0 0 0 0 0 480 490 25 7 0 0 0 0 0 0 0 0 0 490 500 27 8 0 0 0 0 0 0 0 0 0 500 520 29 9 0 0 0 0 0 0 0 0 0 520 540 32 11 0 0 0 0 0 0 0 0 0 540 560 35 14 0 0 0 0 0 0 0 0 0 560 580 38 17 1 0 0 0 0 0 0 0 0 580 600 41 20 3 0 0 0 0 0 0 0 0 600 620 44 23 5 0 0 0 0 0 0 0 0 620 640 47 26 7 0 0 0 0 0 0 0 0 640 660 50 29 9 0 0 0 0 0 0 0 0 660 680 53 32 11 0 0 0 0 0 0 0 0 680 700 56 35 14 0 0 0 0 0 0 0 0 700 720 59 38 17 1 0 0 0 0 0 0 0 720 740 62 41 20 3 0 0 0 0 0 0 0 740 760 65 44 23 5 0 0 0 0 0 0 0 760 780 68 47 26 7 0 0 0 0 0 0 0 780 800 71 50 29 9 0 0 0 0 0 0 0 800 820 74 53 32 11 0 0 0 0 0 0 0 820 840 77 56 35 14 0 0 0 0 0 0 0 840 860 80 59 38 17 1 0 0 0 0 0 0 860 880 83 62 41 20 3 0 0 0 0 0 0 880 900 86 65 44 23 5 0 0 0 0 0 0 900 920 89 68 47 26 7 0 0 0 0 0 0 920 940 92 71 50 29 9 0 0 0 0 0 0 940 960 95 74 53 32 11 0 0 0 0 0 0 960 980 98 77 56 35 14 0 0 0 0 0 0 980 1,000 101 80 59 38 17 1 0 0 0 0 0 1,000 1,020 104 83 62 41 20 3 0 0 0 0 0 1,020 1,040 107 86 65 44 23 5 0 0 0 0 0 1,040 1,060 110 89 68 47 26 7 0 0 0 0 0 1,060 1,080 113 92 71 50 29 9 0 0 0 0 0 1,080 1,100 116 95 74 53 32 11 0 0 0 0 0 1,100 1,120 119 98 77 56 35 14 0 0 0 0 0 1,120 1,140 122 101 80 59 38 17 1 0 0 0 0 1,140 1,160 125 104 83 62 41 20 3 0 0 0 0 1,160 1,180 128 107 86 65 44 23 5 0 0 0 0 1,180 1,200 131 110 89 68 47 26 7 0 0 0 0 1,200 1,220 134 113 92 71 50 29 9 0 0 0 0 1,220 1,240 137 116 95 74 53 32 11 0 0 0 0 1,240 1,260 140 119 98 77 56 35 14 0 0 0 0 1,260 1,280 143 122 101 80 59 38 17 1 0 0 0 1,280 1,300 146 125 104 83 62 41 20 3 0 0 0 1,300 1,320 149 128 107 86 65 44 23 5 0 0 0 1,320 1,340 152 131 110 89 68 47 26 7 0 0 0 1,340 1,360 155 134 113 92 71 50 29 9 0 0 0 1,360 1,380 158 137 116 95 74 53 32 11 0 0 0 1,380 1,400 161 140 119 98 77 56 35 13 0 0 0 1,400 1,420 166 143 122 101 80 59 38 16 1 0 0 1,420 1,440 171 146 125 104 83 62 41 19 3 0 0 $1,440 $1,460 $176 $149 $128 $107 $86 $65 $44 $22 $5 $0 $0 1,460 1,480 181 152 131 110 89 68 47 25 7 0 0 1,480 1,500 186 155 134 113 92 71 50 28 9 0 0 1,500 1,520 191 158 137 116 95 74 53 31 11 0 0 1,520 1,540 196 161 140 119 98 77 56 34 13 0 0 1,540 1,560 201 166 143 122 101 80 59 37 16 1 0 1,560 1,580 206 171 146 125 104 83 62 40 19 3 0 1,580 1,600 211 176 149 128 107 86 65 43 22 5 0 1,600 1,620 216 181 152 131 110 89 68 46 25 7 0 1,620 1,640 221 186 155 134 113 92 71 49 28 9 0 1,640 1,660 226 191 158 137 116 95 74 52 31 11 0 1,660 1,680 231 196 161 140 119 98 77 55 34 13 0 1,680 1,700 236 201 165 143 122 101 80 58 37 16 1 1,700 1,720 241 206 170 146 125 104 83 61 40 19 3 1,720 1,740 246 211 175 149 128 107 86 64 43 22 5 1,740 1,760 251 216 180 152 131 110 89 67 46 25 7 1,760 1,780 256 221 185 155 134 113 92 70 49 28 9 1,780 1,800 261 226 190 158 137 116 95 73 52 31 11 1,800 1,820 266 231 195 161 140 119 98 76 55 34 13 1,820 1,840 271 236 200 165 143 122 101 79 58 37 16 1,840 1,860 276 241 205 170 146 125 104 82 61 40 19 1,860 1,880 281 246 210 175 149 128 107 85 64 43 22 1,880 1,900 286 251 215 180 152 131 110 88 67 46 25 1,900 1,920 291 256 220 185 155 134 113 91 70 49 28 1,920 1,940 296 261 225 190 158 137 116 94 73 52 31 1,940 1,960 301 266 230 195 161 140 119 97 76 55 34 1,960 1,980 306 271 235 200 165 143 122 100 79 58 37 1,980 2,000 311 276 240 205 170 146 125 103 82 61 40 2,000 2,020 316 281 245 210 175 149 128 106 85 64 43 2,020 2,040 321 286 250 215 180 152 131 109 88 67 46 2,040 2,060 326 291 255 220 185 155 134 112 91 70 49 2,060 2,080 331 296 260 225 190 158 137 115 94 73 52 2,080 2,100 336 301 265 230 195 161 140 118 97 76 55                           $2,100 and over Use Table 2(a) for a SINGLE person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           MARRIED Persons—BIWEEKLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $620 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 620 640 2 0 0 0 0 0 0 0 0 0 0 640 660 4 0 0 0 0 0 0 0 0 0 0 660 680 6 0 0 0 0 0 0 0 0 0 0 680 700 8 0 0 0 0 0 0 0 0 0 0 700 720 10 0 0 0 0 0 0 0 0 0 0 720 740 12 0 0 0 0 0 0 0 0 0 0 740 760 14 0 0 0 0 0 0 0 0 0 0 760 780 16 2 0 0 0 0 0 0 0 0 0 780 800 18 4 0 0 0 0 0 0 0 0 0 800 820 20 6 0 0 0 0 0 0 0 0 0 820 840 22 8 0 0 0 0 0 0 0 0 0 840 860 24 10 0 0 0 0 0 0 0 0 0 860 880 26 12 0 0 0 0 0 0 0 0 0 880 900 28 14 0 0 0 0 0 0 0 0 0 900 920 30 16 2 0 0 0 0 0 0 0 0 920 940 32 18 4 0 0 0 0 0 0 0 0 940 960 35 20 6 0 0 0 0 0 0 0 0 960 980 38 22 8 0 0 0 0 0 0 0 0 980 1,000 41 24 10 0 0 0 0 0 0 0 0 1,000 1,020 44 26 12 0 0 0 0 0 0 0 0 1,020 1,040 47 28 14 0 0 0 0 0 0 0 0 1,040 1,060 50 30 16 2 0 0 0 0 0 0 0 1,060 1,080 53 32 18 4 0 0 0 0 0 0 0 1,080 1,100 56 35 20 6 0 0 0 0 0 0 0 1,100 1,120 59 38 22 8 0 0 0 0 0 0 0 1,120 1,140 62 41 24 10 0 0 0 0 0 0 0 1,140 1,160 65 44 26 12 0 0 0 0 0 0 0 1,160 1,180 68 47 28 14 0 0 0 0 0 0 0 1,180 1,200 71 50 30 16 2 0 0 0 0 0 0 1,200 1,220 74 53 32 18 4 0 0 0 0 0 0 1,220 1,240 77 56 35 20 6 0 0 0 0 0 0 1,240 1,260 80 59 38 22 8 0 0 0 0 0 0 1,260 1,280 83 62 41 24 10 0 0 0 0 0 0 1,280 1,300 86 65 44 26 12 0 0 0 0 0 0 1,300 1,320 89 68 47 28 14 0 0 0 0 0 0 1,320 1,340 92 71 50 30 16 2 0 0 0 0 0 1,340 1,360 95 74 53 32 18 4 0 0 0 0 0 1,360 1,380 98 77 56 35 20 6 0 0 0 0 0 1,380 1,400 101 80 59 38 22 8 0 0 0 0 0 1,400 1,420 104 83 62 41 24 10 0 0 0 0 0 1,420 1,440 107 86 65 44 26 12 0 0 0 0 0 1,440 1,460 110 89 68 47 28 14 0 0 0 0 0 1,460 1,480 113 92 71 50 30 16 2 0 0 0 0 1,480 1,500 116 95 74 53 32 18 4 0 0 0 0 1,500 1,520 119 98 77 56 35 20 6 0 0 0 0 1,520 1,540 122 101 80 59 38 22 8 0 0 0 0 1,540 1,560 125 104 83 62 41 24 10 0 0 0 0 1,560 1,580 128 107 86 65 44 26 12 0 0 0 0 1,580 1,600 131 110 89 68 47 28 14 0 0 0 0 1,600 1,620 134 113 92 71 50 30 16 2 0 0 0 1,620 1,640 137 116 95 74 53 32 18 4 0 0 0 1,640 1,660 140 119 98 77 56 35 20 6 0 0 0 1,660 1,680 143 122 101 80 59 38 22 8 0 0 0 1,680 1,700 146 125 104 83 62 41 24 10 0 0 0 1,700 1,720 149 128 107 86 65 44 26 12 0 0 0 1,720 1,740 152 131 110 89 68 47 28 14 0 0 0 1,740 1,760 155 134 113 92 71 50 30 16 2 0 0 1,760 1,780 158 137 116 95 74 53 32 18 4 0 0 1,780 1,800 161 140 119 98 77 56 35 20 6 0 0 1,800 1,820 164 143 122 101 80 59 38 22 8 0 0 1,820 1,840 167 146 125 104 83 62 41 24 10 0 0 1,840 1,860 170 149 128 107 86 65 44 26 12 0 0 1,860 1,880 173 152 131 110 89 68 47 28 14 0 0 1,880 1,900 176 155 134 113 92 71 50 30 16 2 0 1,900 1,920 179 158 137 116 95 74 53 32 18 4 0 1,920 1,940 182 161 140 119 98 77 56 35 20 6 0 1,940 1,960 185 164 143 122 101 80 59 38 22 8 0 1,960 1,980 188 167 146 125 104 83 62 41 24 10 0 1,980 2,000 191 170 149 128 107 86 65 44 26 12 0 $2,000 $2,020 $194 $173 $152 $131 $110 $89 $68 $47 $28 $14 $0 2,020 2,040 197 176 155 134 113 92 71 50 30 16 2 2,040 2,060 200 179 158 137 116 95 74 53 32 18 4 2,060 2,080 203 182 161 140 119 98 77 56 34 20 6 2,080 2,100 206 185 164 143 122 101 80 59 37 22 8 2,100 2,120 209 188 167 146 125 104 83 62 40 24 10 2,120 2,140 212 191 170 149 128 107 86 65 43 26 12 2,140 2,160 215 194 173 152 131 110 89 68 46 28 14 2,160 2,180 218 197 176 155 134 113 92 71 49 30 16 2,180 2,200 221 200 179 158 137 116 95 74 52 32 18 2,200 2,220 224 203 182 161 140 119 98 77 55 34 20 2,220 2,240 227 206 185 164 143 122 101 80 58 37 22 2,240 2,260 230 209 188 167 146 125 104 83 61 40 24 2,260 2,280 233 212 191 170 149 128 107 86 64 43 26 2,280 2,300 236 215 194 173 152 131 110 89 67 46 28 2,300 2,320 239 218 197 176 155 134 113 92 70 49 30 2,320 2,340 242 221 200 179 158 137 116 95 73 52 32 2,340 2,360 245 224 203 182 161 140 119 98 76 55 34 2,360 2,380 248 227 206 185 164 143 122 101 79 58 37 2,380 2,400 251 230 209 188 167 146 125 104 82 61 40 2,400 2,420 254 233 212 191 170 149 128 107 85 64 43 2,420 2,440 257 236 215 194 173 152 131 110 88 67 46 2,440 2,460 260 239 218 197 176 155 134 113 91 70 49 2,460 2,480 263 242 221 200 179 158 137 116 94 73 52 2,480 2,500 266 245 224 203 182 161 140 119 97 76 55 2,500 2,520 269 248 227 206 185 164 143 122 100 79 58 2,520 2,540 272 251 230 209 188 167 146 125 103 82 61 2,540 2,560 275 254 233 212 191 170 149 128 106 85 64 2,560 2,580 278 257 236 215 194 173 152 131 109 88 67 2,580 2,600 281 260 239 218 197 176 155 134 112 91 70 2,600 2,620 284 263 242 221 200 179 158 137 115 94 73 2,620 2,640 287 266 245 224 203 182 161 140 118 97 76 2,640 2,660 290 269 248 227 206 185 164 143 121 100 79 2,660 2,680 293 272 251 230 209 188 167 146 124 103 82 2,680 2,700 296 275 254 233 212 191 170 149 127 106 85                           $2,700 and over Use Table 2(b) for a MARRIED person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           SINGLE Persons—SEMIMONTHLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 300 310 1 0 0 0 0 0 0 0 0 0 0 310 320 2 0 0 0 0 0 0 0 0 0 0 320 330 3 0 0 0 0 0 0 0 0 0 0 330 340 4 0 0 0 0 0 0 0 0 0 0 340 350 5 0 0 0 0 0 0 0 0 0 0 350 360 6 0 0 0 0 0 0 0 0 0 0 360 370 7 0 0 0 0 0 0 0 0 0 0 370 380 8 0 0 0 0 0 0 0 0 0 0 380 390 9 0 0 0 0 0 0 0 0 0 0 390 400 10 0 0 0 0 0 0 0 0 0 0 400 410 11 0 0 0 0 0 0 0 0 0 0 410 420 12 0 0 0 0 0 0 0 0 0 0 420 430 13 0 0 0 0 0 0 0 0 0 0 430 440 14 0 0 0 0 0 0 0 0 0 0 440 450 15 0 0 0 0 0 0 0 0 0 0 450 460 17 0 0 0 0 0 0 0 0 0 0 460 470 18 1 0 0 0 0 0 0 0 0 0 470 480 20 2 0 0 0 0 0 0 0 0 0 480 490 21 3 0 0 0 0 0 0 0 0 0 490 500 23 4 0 0 0 0 0 0 0 0 0 500 520 25 6 0 0 0 0 0 0 0 0 0 520 540 28 8 0 0 0 0 0 0 0 0 0 540 560 31 10 0 0 0 0 0 0 0 0 0 560 580 34 12 0 0 0 0 0 0 0 0 0 580 600 37 14 0 0 0 0 0 0 0 0 0 600 620 40 17 1 0 0 0 0 0 0 0 0 620 640 43 20 3 0 0 0 0 0 0 0 0 640 660 46 23 5 0 0 0 0 0 0 0 0 660 680 49 26 7 0 0 0 0 0 0 0 0 680 700 52 29 9 0 0 0 0 0 0 0 0 700 720 55 32 11 0 0 0 0 0 0 0 0 720 740 58 35 13 0 0 0 0 0 0 0 0 740 760 61 38 15 0 0 0 0 0 0 0 0 760 780 64 41 18 1 0 0 0 0 0 0 0 780 800 67 44 21 3 0 0 0 0 0 0 0 800 820 70 47 24 5 0 0 0 0 0 0 0 820 840 73 50 27 7 0 0 0 0 0 0 0 840 860 76 53 30 9 0 0 0 0 0 0 0 860 880 79 56 33 11 0 0 0 0 0 0 0 880 900 82 59 36 13 0 0 0 0 0 0 0 900 920 85 62 39 16 0 0 0 0 0 0 0 920 940 88 65 42 19 2 0 0 0 0 0 0 940 960 91 68 45 22 4 0 0 0 0 0 0 960 980 94 71 48 25 6 0 0 0 0 0 0 980 1,000 97 74 51 28 8 0 0 0 0 0 0 1,000 1,020 100 77 54 31 10 0 0 0 0 0 0 1,020 1,040 103 80 57 34 12 0 0 0 0 0 0 1,040 1,060 106 83 60 37 15 0 0 0 0 0 0 1,060 1,080 109 86 63 40 18 1 0 0 0 0 0 1,080 1,100 112 89 66 43 21 3 0 0 0 0 0 1,100 1,120 115 92 69 46 24 5 0 0 0 0 0 1,120 1,140 118 95 72 49 27 7 0 0 0 0 0 1,140 1,160 121 98 75 52 30 9 0 0 0 0 0 1,160 1,180 124 101 78 55 33 11 0 0 0 0 0 1,180 1,200 127 104 81 58 36 13 0 0 0 0 0 1,200 1,220 130 107 84 61 39 16 0 0 0 0 0 1,220 1,240 133 110 87 64 42 19 2 0 0 0 0 1,240 1,260 136 113 90 67 45 22 4 0 0 0 0 1,260 1,280 139 116 93 70 48 25 6 0 0 0 0 1,280 1,300 142 119 96 73 51 28 8 0 0 0 0 1,300 1,320 145 122 99 76 54 31 10 0 0 0 0 1,320 1,340 148 125 102 79 57 34 12 0 0 0 0 1,340 1,360 151 128 105 82 60 37 14 0 0 0 0 1,360 1,380 154 131 108 85 63 40 17 1 0 0 0 1,380 1,400 157 134 111 88 66 43 20 3 0 0 0 1,400 1,420 160 137 114 91 69 46 23 5 0 0 0 1,420 1,440 163 140 117 94 72 49 26 7 0 0 0 1,440 1,460 166 143 120 97 75 52 29 9 0 0 0 1,460 1,480 169 146 123 100 78 55 32 11 0 0 0 $1,480 $1,500 $172 $149 $126 $103 $81 $58 $35 $13 $0 $0 $0 1,500 1,520 175 152 129 106 84 61 38 15 0 0 0 1,520 1,540 180 155 132 109 87 64 41 18 1 0 0 1,540 1,560 185 158 135 112 90 67 44 21 3 0 0 1,560 1,580 190 161 138 115 93 70 47 24 5 0 0 1,580 1,600 195 164 141 118 96 73 50 27 7 0 0 1,600 1,620 200 167 144 121 99 76 53 30 9 0 0 1,620 1,640 205 170 147 124 102 79 56 33 11 0 0 1,640 1,660 210 173 150 127 105 82 59 36 13 0 0 1,660 1,680 215 177 153 130 108 85 62 39 16 0 0 1,680 1,700 220 182 156 133 111 88 65 42 19 2 0 1,700 1,720 225 187 159 136 114 91 68 45 22 4 0 1,720 1,740 230 192 162 139 117 94 71 48 25 6 0 1,740 1,760 235 197 165 142 120 97 74 51 28 8 0 1,760 1,780 240 202 168 145 123 100 77 54 31 10 0 1,780 1,800 245 207 171 148 126 103 80 57 34 12 0 1,800 1,820 250 212 174 151 129 106 83 60 37 15 0 1,820 1,840 255 217 179 154 132 109 86 63 40 18 1 1,840 1,860 260 222 184 157 135 112 89 66 43 21 3 1,860 1,880 265 227 189 160 138 115 92 69 46 24 5 1,880 1,900 270 232 194 163 141 118 95 72 49 27 7 1,900 1,920 275 237 199 166 144 121 98 75 52 30 9 1,920 1,940 280 242 204 169 147 124 101 78 55 33 11 1,940 1,960 285 247 209 172 150 127 104 81 58 36 13 1,960 1,980 290 252 214 176 153 130 107 84 61 39 16 1,980 2,000 295 257 219 181 156 133 110 87 64 42 19 2,000 2,020 300 262 224 186 159 136 113 90 67 45 22 2,020 2,040 305 267 229 191 162 139 116 93 70 48 25 2,040 2,060 310 272 234 196 165 142 119 96 73 51 28 2,060 2,080 315 277 239 201 168 145 122 99 76 54 31 2,080 2,100 320 282 244 206 171 148 125 102 79 57 34 2,100 2,120 325 287 249 211 174 151 128 105 82 60 37 2,120 2,140 330 292 254 216 178 154 131 108 85 63 40                           $2,140 and over Use Table 3(a) for a SINGLE person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           MARRIED Persons—SEMIMONTHLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $660 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 660 680 1 0 0 0 0 0 0 0 0 0 0 680 700 3 0 0 0 0 0 0 0 0 0 0 700 720 5 0 0 0 0 0 0 0 0 0 0 720 740 7 0 0 0 0 0 0 0 0 0 0 740 760 9 0 0 0 0 0 0 0 0 0 0 760 780 11 0 0 0 0 0 0 0 0 0 0 780 800 13 0 0 0 0 0 0 0 0 0 0 800 820 15 0 0 0 0 0 0 0 0 0 0 820 840 17 2 0 0 0 0 0 0 0 0 0 840 860 19 4 0 0 0 0 0 0 0 0 0 860 880 21 6 0 0 0 0 0 0 0 0 0 880 900 23 8 0 0 0 0 0 0 0 0 0 900 920 25 10 0 0 0 0 0 0 0 0 0 920 940 27 12 0 0 0 0 0 0 0 0 0 940 960 29 14 0 0 0 0 0 0 0 0 0 960 980 31 16 1 0 0 0 0 0 0 0 0 980 1,000 33 18 3 0 0 0 0 0 0 0 0 1,000 1,020 35 20 5 0 0 0 0 0 0 0 0 1,020 1,040 38 22 7 0 0 0 0 0 0 0 0 1,040 1,060 41 24 9 0 0 0 0 0 0 0 0 1,060 1,080 44 26 11 0 0 0 0 0 0 0 0 1,080 1,100 47 28 13 0 0 0 0 0 0 0 0 1,100 1,120 50 30 15 0 0 0 0 0 0 0 0 1,120 1,140 53 32 17 2 0 0 0 0 0 0 0 1,140 1,160 56 34 19 4 0 0 0 0 0 0 0 1,160 1,180 59 36 21 6 0 0 0 0 0 0 0 1,180 1,200 62 39 23 8 0 0 0 0 0 0 0 1,200 1,220 65 42 25 10 0 0 0 0 0 0 0 1,220 1,240 68 45 27 12 0 0 0 0 0 0 0 1,240 1,260 71 48 29 14 0 0 0 0 0 0 0 1,260 1,280 74 51 31 16 1 0 0 0 0 0 0 1,280 1,300 77 54 33 18 3 0 0 0 0 0 0 1,300 1,320 80 57 35 20 5 0 0 0 0 0 0 1,320 1,340 83 60 37 22 7 0 0 0 0 0 0 1,340 1,360 86 63 40 24 9 0 0 0 0 0 0 1,360 1,380 89 66 43 26 11 0 0 0 0 0 0 1,380 1,400 92 69 46 28 13 0 0 0 0 0 0 1,400 1,420 95 72 49 30 15 0 0 0 0 0 0 1,420 1,440 98 75 52 32 17 1 0 0 0 0 0 1,440 1,460 101 78 55 34 19 3 0 0 0 0 0 1,460 1,480 104 81 58 36 21 5 0 0 0 0 0 1,480 1,500 107 84 61 39 23 7 0 0 0 0 0 1,500 1,520 110 87 64 42 25 9 0 0 0 0 0 1,520 1,540 113 90 67 45 27 11 0 0 0 0 0 1,540 1,560 116 93 70 48 29 13 0 0 0 0 0 1,560 1,580 119 96 73 51 31 15 0 0 0 0 0 1,580 1,600 122 99 76 54 33 17 2 0 0 0 0 1,600 1,620 125 102 79 57 35 19 4 0 0 0 0 1,620 1,640 128 105 82 60 37 21 6 0 0 0 0 1,640 1,660 131 108 85 63 40 23 8 0 0 0 0 1,660 1,680 134 111 88 66 43 25 10 0 0 0 0 1,680 1,700 137 114 91 69 46 27 12 0 0 0 0 1,700 1,720 140 117 94 72 49 29 14 0 0 0 0 1,720 1,740 143 120 97 75 52 31 16 1 0 0 0 1,740 1,760 146 123 100 78 55 33 18 3 0 0 0 1,760 1,780 149 126 103 81 58 35 20 5 0 0 0 1,780 1,800 152 129 106 84 61 38 22 7 0 0 0 1,800 1,820 155 132 109 87 64 41 24 9 0 0 0 1,820 1,840 158 135 112 90 67 44 26 11 0 0 0 1,840 1,860 161 138 115 93 70 47 28 13 0 0 0 1,860 1,880 164 141 118 96 73 50 30 15 0 0 0 1,880 1,900 167 144 121 99 76 53 32 17 2 0 0 1,900 1,920 170 147 124 102 79 56 34 19 4 0 0 1,920 1,940 173 150 127 105 82 59 36 21 6 0 0 1,940 1,960 176 153 130 108 85 62 39 23 8 0 0 1,960 1,980 179 156 133 111 88 65 42 25 10 0 0 1,980 2,000 182 159 136 114 91 68 45 27 12 0 0 2,000 2,020 185 162 139 117 94 71 48 29 14 0 0 2,020 2,040 188 165 142 120 97 74 51 31 16 1 0 $2,040 $2,060 $191 $168 $145 $123 $100 $77 $54 $33 $18 $3 $0 2,060 2,080 194 171 148 126 103 80 57 35 20 5 0 2,080 2,100 197 174 151 129 106 83 60 37 22 7 0 2,100 2,120 200 177 154 132 109 86 63 40 24 9 0 2,120 2,140 203 180 157 135 112 89 66 43 26 11 0 2,140 2,160 206 183 160 138 115 92 69 46 28 13 0 2,160 2,180 209 186 163 141 118 95 72 49 30 15 0 2,180 2,200 212 189 166 144 121 98 75 52 32 17 1 2,200 2,220 215 192 169 147 124 101 78 55 34 19 3 2,220 2,240 218 195 172 150 127 104 81 58 36 21 5 2,240 2,260 221 198 175 153 130 107 84 61 38 23 7 2,260 2,280 224 201 178 156 133 110 87 64 41 25 9 2,280 2,300 227 204 181 159 136 113 90 67 44 27 11 2,300 2,320 230 207 184 162 139 116 93 70 47 29 13 2,320 2,340 233 210 187 165 142 119 96 73 50 31 15 2,340 2,360 236 213 190 168 145 122 99 76 53 33 17 2,360 2,380 239 216 193 171 148 125 102 79 56 35 19 2,380 2,400 242 219 196 174 151 128 105 82 59 37 21 2,400 2,420 245 222 199 177 154 131 108 85 62 40 23 2,420 2,440 248 225 202 180 157 134 111 88 65 43 25 2,440 2,460 251 228 205 183 160 137 114 91 68 46 27 2,460 2,480 254 231 208 186 163 140 117 94 71 49 29 2,480 2,500 257 234 211 189 166 143 120 97 74 52 31 2,500 2,520 260 237 214 192 169 146 123 100 77 55 33 2,520 2,540 263 240 217 195 172 149 126 103 80 58 35 2,540 2,560 266 243 220 198 175 152 129 106 83 61 38 2,560 2,580 269 246 223 201 178 155 132 109 86 64 41 2,580 2,600 272 249 226 204 181 158 135 112 89 67 44 2,600 2,620 275 252 229 207 184 161 138 115 92 70 47 2,620 2,640 278 255 232 210 187 164 141 118 95 73 50 2,640 2,660 281 258 235 213 190 167 144 121 98 76 53 2,660 2,680 284 261 238 216 193 170 147 124 101 79 56 2,680 2,700 287 264 241 219 196 173 150 127 104 82 59 2,700 2,720 290 267 244 222 199 176 153 130 107 85 62 2,720 2,740 293 270 247 225 202 179 156 133 110 88 65                           $2,740 and over Use Table 3(b) for a MARRIED person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           SINGLE Persons—MONTHLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 600 640 2 0 0 0 0 0 0 0 0 0 0 640 680 6 0 0 0 0 0 0 0 0 0 0 680 720 10 0 0 0 0 0 0 0 0 0 0 720 760 14 0 0 0 0 0 0 0 0 0 0 760 800 18 0 0 0 0 0 0 0 0 0 0 800 840 22 0 0 0 0 0 0 0 0 0 0 840 880 26 0 0 0 0 0 0 0 0 0 0 880 920 32 0 0 0 0 0 0 0 0 0 0 920 960 38 4 0 0 0 0 0 0 0 0 0 960 1,000 44 8 0 0 0 0 0 0 0 0 0 1,000 1,040 50 12 0 0 0 0 0 0 0 0 0 1,040 1,080 56 16 0 0 0 0 0 0 0 0 0 1,080 1,120 62 20 0 0 0 0 0 0 0 0 0 1,120 1,160 68 24 0 0 0 0 0 0 0 0 0 1,160 1,200 74 28 0 0 0 0 0 0 0 0 0 1,200 1,240 80 34 1 0 0 0 0 0 0 0 0 1,240 1,280 86 40 5 0 0 0 0 0 0 0 0 1,280 1,320 92 46 9 0 0 0 0 0 0 0 0 1,320 1,360 98 52 13 0 0 0 0 0 0 0 0 1,360 1,400 104 58 17 0 0 0 0 0 0 0 0 1,400 1,440 110 64 21 0 0 0 0 0 0 0 0 1,440 1,480 116 70 25 0 0 0 0 0 0 0 0 1,480 1,520 122 76 31 0 0 0 0 0 0 0 0 1,520 1,560 128 82 37 3 0 0 0 0 0 0 0 1,560 1,600 134 88 43 7 0 0 0 0 0 0 0 1,600 1,640 140 94 49 11 0 0 0 0 0 0 0 1,640 1,680 146 100 55 15 0 0 0 0 0 0 0 1,680 1,720 152 106 61 19 0 0 0 0 0 0 0 1,720 1,760 158 112 67 23 0 0 0 0 0 0 0 1,760 1,800 164 118 73 27 0 0 0 0 0 0 0 1,800 1,840 170 124 79 33 1 0 0 0 0 0 0 1,840 1,880 176 130 85 39 5 0 0 0 0 0 0 1,880 1,920 182 136 91 45 9 0 0 0 0 0 0 1,920 1,960 188 142 97 51 13 0 0 0 0 0 0 1,960 2,000 194 148 103 57 17 0 0 0 0 0 0 2,000 2,040 200 154 109 63 21 0 0 0 0 0 0 2,040 2,080 206 160 115 69 25 0 0 0 0 0 0 2,080 2,120 212 166 121 75 29 0 0 0 0 0 0 2,120 2,160 218 172 127 81 35 2 0 0 0 0 0 2,160 2,200 224 178 133 87 41 6 0 0 0 0 0 2,200 2,240 230 184 139 93 47 10 0 0 0 0 0 2,240 2,280 236 190 145 99 53 14 0 0 0 0 0 2,280 2,320 242 196 151 105 59 18 0 0 0 0 0 2,320 2,360 248 202 157 111 65 22 0 0 0 0 0 2,360 2,400 254 208 163 117 71 26 0 0 0 0 0 2,400 2,440 260 214 169 123 77 32 0 0 0 0 0 2,440 2,480 266 220 175 129 83 38 4 0 0 0 0 2,480 2,520 272 226 181 135 89 44 8 0 0 0 0 2,520 2,560 278 232 187 141 95 50 12 0 0 0 0 2,560 2,600 284 238 193 147 101 56 16 0 0 0 0 2,600 2,640 290 244 199 153 107 62 20 0 0 0 0 2,640 2,680 296 250 205 159 113 68 24 0 0 0 0 2,680 2,720 302 256 211 165 119 74 28 0 0 0 0 2,720 2,760 308 262 217 171 125 80 34 1 0 0 0 2,760 2,800 314 268 223 177 131 86 40 5 0 0 0 2,800 2,840 320 274 229 183 137 92 46 9 0 0 0 2,840 2,880 326 280 235 189 143 98 52 13 0 0 0 2,880 2,920 332 286 241 195 149 104 58 17 0 0 0 2,920 2,960 338 292 247 201 155 110 64 21 0 0 0 2,960 3,000 344 298 253 207 161 116 70 25 0 0 0 3,000 3,040 350 304 259 213 167 122 76 30 0 0 0 3,040 3,080 360 310 265 219 173 128 82 36 3 0 0 3,080 3,120 370 316 271 225 179 134 88 42 7 0 0 3,120 3,160 380 322 277 231 185 140 94 48 11 0 0 3,160 3,200 390 328 283 237 191 146 100 54 15 0 0 3,200 3,240 400 334 289 243 197 152 106 60 19 0 0 3,240 3,280 410 340 295 249 203 158 112 66 23 0 0 3,280 3,320 420 346 301 255 209 164 118 72 27 0 0 3,320 3,360 430 354 307 261 215 170 124 78 33 0 0 $3,360 $3,400 $440 $364 $313 $267 $221 $176 $130 $84 $39 $4 $0 3,400 3,440 450 374 319 273 227 182 136 90 45 8 0 3,440 3,480 460 384 325 279 233 188 142 96 51 12 0 3,480 3,520 470 394 331 285 239 194 148 102 57 16 0 3,520 3,560 480 404 337 291 245 200 154 108 63 20 0 3,560 3,600 490 414 343 297 251 206 160 114 69 24 0 3,600 3,640 500 424 349 303 257 212 166 120 75 29 0 3,640 3,680 510 434 358 309 263 218 172 126 81 35 2 3,680 3,720 520 444 368 315 269 224 178 132 87 41 6 3,720 3,760 530 454 378 321 275 230 184 138 93 47 10 3,760 3,800 540 464 388 327 281 236 190 144 99 53 14 3,800 3,840 550 474 398 333 287 242 196 150 105 59 18 3,840 3,880 560 484 408 339 293 248 202 156 111 65 22 3,880 3,920 570 494 418 345 299 254 208 162 117 71 26 3,920 3,960 580 504 428 352 305 260 214 168 123 77 32 3,960 4,000 590 514 438 362 311 266 220 174 129 83 38 4,000 4,040 600 524 448 372 317 272 226 180 135 89 44 4,040 4,080 610 534 458 382 323 278 232 186 141 95 50 4,080 4,120 620 544 468 392 329 284 238 192 147 101 56 4,120 4,160 630 554 478 402 335 290 244 198 153 107 62 4,160 4,200 640 564 488 412 341 296 250 204 159 113 68 4,200 4,240 650 574 498 422 347 302 256 210 165 119 74 4,240 4,280 660 584 508 432 356 308 262 216 171 125 80 4,280 4,320 670 594 518 442 366 314 268 222 177 131 86 4,320 4,360 680 604 528 452 376 320 274 228 183 137 92 4,360 4,400 690 614 538 462 386 326 280 234 189 143 98 4,400 4,440 700 624 548 472 396 332 286 240 195 149 104 4,440 4,480 710 634 558 482 406 338 292 246 201 155 110 4,480 4,520 720 644 568 492 416 344 298 252 207 161 116 4,520 4,560 730 654 578 502 426 350 304 258 213 167 122 4,560 4,600 740 664 588 512 436 360 310 264 219 173 128 4,600 4,640 750 674 598 522 446 370 316 270 225 179 134 4,640 4,680 760 684 608 532 456 380 322 276 231 185 140 4,680 4,720 770 694 618 542 466 390 328 282 237 191 146 4,720 4,760 780 704 628 552 476 400 334 288 243 197 152 4,760 4,800 790 714 638 562 486 410 340 294 249 203 158 4,800 4,840 800 724 648 572 496 420 346 300 255 209 164 4,840 4,880 810 734 658 582 506 430 354 306 261 215 170 4,880 4,920 820 744 668 592 516 440 364 312 267 221 176 4,920 4,960 830 754 678 602 526 450 374 318 273 227 182 4,960 5,000 840 764 688 612 536 460 384 324 279 233 188 5,000 5,040 850 774 698 622 546 470 394 330 285 239 194 5,040 5,080 860 784 708 632 556 480 404 336 291 245 200                           $5,080 and over Use Table 4(a) for a SINGLE person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           MARRIED Persons—MONTHLY Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $1,320 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 1,320 1,360 3 0 0 0 0 0 0 0 0 0 0 1,360 1,400 7 0 0 0 0 0 0 0 0 0 0 1,400 1,440 11 0 0 0 0 0 0 0 0 0 0 1,440 1,480 15 0 0 0 0 0 0 0 0 0 0 1,480 1,520 19 0 0 0 0 0 0 0 0 0 0 1,520 1,560 23 0 0 0 0 0 0 0 0 0 0 1,560 1,600 27 0 0 0 0 0 0 0 0 0 0 1,600 1,640 31 0 0 0 0 0 0 0 0 0 0 1,640 1,680 35 4 0 0 0 0 0 0 0 0 0 1,680 1,720 39 8 0 0 0 0 0 0 0 0 0 1,720 1,760 43 12 0 0 0 0 0 0 0 0 0 1,760 1,800 47 16 0 0 0 0 0 0 0 0 0 1,800 1,840 51 20 0 0 0 0 0 0 0 0 0 1,840 1,880 55 24 0 0 0 0 0 0 0 0 0 1,880 1,920 59 28 0 0 0 0 0 0 0 0 0 1,920 1,960 63 32 2 0 0 0 0 0 0 0 0 1,960 2,000 67 36 6 0 0 0 0 0 0 0 0 2,000 2,040 71 40 10 0 0 0 0 0 0 0 0 2,040 2,080 76 44 14 0 0 0 0 0 0 0 0 2,080 2,120 82 48 18 0 0 0 0 0 0 0 0 2,120 2,160 88 52 22 0 0 0 0 0 0 0 0 2,160 2,200 94 56 26 0 0 0 0 0 0 0 0 2,200 2,240 100 60 30 0 0 0 0 0 0 0 0 2,240 2,280 106 64 34 4 0 0 0 0 0 0 0 2,280 2,320 112 68 38 8 0 0 0 0 0 0 0 2,320 2,360 118 72 42 12 0 0 0 0 0 0 0 2,360 2,400 124 78 46 16 0 0 0 0 0 0 0 2,400 2,440 130 84 50 20 0 0 0 0 0 0 0 2,440 2,480 136 90 54 24 0 0 0 0 0 0 0 2,480 2,520 142 96 58 28 0 0 0 0 0 0 0 2,520 2,560 148 102 62 32 1 0 0 0 0 0 0 2,560 2,600 154 108 66 36 5 0 0 0 0 0 0 2,600 2,640 160 114 70 40 9 0 0 0 0 0 0 2,640 2,680 166 120 75 44 13 0 0 0 0 0 0 2,680 2,720 172 126 81 48 17 0 0 0 0 0 0 2,720 2,760 178 132 87 52 21 0 0 0 0 0 0 2,760 2,800 184 138 93 56 25 0 0 0 0 0 0 2,800 2,840 190 144 99 60 29 0 0 0 0 0 0 2,840 2,880 196 150 105 64 33 3 0 0 0 0 0 2,880 2,920 202 156 111 68 37 7 0 0 0 0 0 2,920 2,960 208 162 117 72 41 11 0 0 0 0 0 2,960 3,000 214 168 123 77 45 15 0 0 0 0 0 3,000 3,040 220 174 129 83 49 19 0 0 0 0 0 3,040 3,080 226 180 135 89 53 23 0 0 0 0 0 3,080 3,120 232 186 141 95 57 27 0 0 0 0 0 3,120 3,160 238 192 147 101 61 31 0 0 0 0 0 3,160 3,200 244 198 153 107 65 35 4 0 0 0 0 3,200 3,240 250 204 159 113 69 39 8 0 0 0 0 3,240 3,280 256 210 165 119 73 43 12 0 0 0 0 3,280 3,320 262 216 171 125 79 47 16 0 0 0 0 3,320 3,360 268 222 177 131 85 51 20 0 0 0 0 3,360 3,400 274 228 183 137 91 55 24 0 0 0 0 3,400 3,440 280 234 189 143 97 59 28 0 0 0 0 3,440 3,480 286 240 195 149 103 63 32 2 0 0 0 3,480 3,520 292 246 201 155 109 67 36 6 0 0 0 3,520 3,560 298 252 207 161 115 71 40 10 0 0 0 3,560 3,600 304 258 213 167 121 76 44 14 0 0 0 3,600 3,640 310 264 219 173 127 82 48 18 0 0 0 3,640 3,680 316 270 225 179 133 88 52 22 0 0 0 3,680 3,720 322 276 231 185 139 94 56 26 0 0 0 3,720 3,760 328 282 237 191 145 100 60 30 0 0 0 3,760 3,800 334 288 243 197 151 106 64 34 3 0 0 3,800 3,840 340 294 249 203 157 112 68 38 7 0 0 3,840 3,880 346 300 255 209 163 118 72 42 11 0 0 3,880 3,920 352 306 261 215 169 124 78 46 15 0 0 3,920 3,960 358 312 267 221 175 130 84 50 19 0 0 3,960 4,000 364 318 273 227 181 136 90 54 23 0 0 4,000 4,040 370 324 279 233 187 142 96 58 27 0 0 4,040 4,080 376 330 285 239 193 148 102 62 31 1 0 $4,080 $4,120 $382 $336 $291 $245 $199 $154 $108 $66 $35 $5 $0 4,120 4,160 388 342 297 251 205 160 114 70 39 9 0 4,160 4,200 394 348 303 257 211 166 120 75 43 13 0 4,200 4,240 400 354 309 263 217 172 126 81 47 17 0 4,240 4,280 406 360 315 269 223 178 132 87 51 21 0 4,280 4,320 412 366 321 275 229 184 138 93 55 25 0 4,320 4,360 418 372 327 281 235 190 144 99 59 29 0 4,360 4,400 424 378 333 287 241 196 150 105 63 33 3 4,400 4,440 430 384 339 293 247 202 156 111 67 37 7 4,440 4,480 436 390 345 299 253 208 162 117 71 41 11 4,480 4,520 442 396 351 305 259 214 168 123 77 45 15 4,520 4,560 448 402 357 311 265 220 174 129 83 49 19 4,560 4,600 454 408 363 317 271 226 180 135 89 53 23 4,600 4,640 460 414 369 323 277 232 186 141 95 57 27 4,640 4,680 466 420 375 329 283 238 192 147 101 61 31 4,680 4,720 472 426 381 335 289 244 198 153 107 65 35 4,720 4,760 478 432 387 341 295 250 204 159 113 69 39 4,760 4,800 484 438 393 347 301 256 210 165 119 73 43 4,800 4,840 490 444 399 353 307 262 216 171 125 79 47 4,840 4,880 496 450 405 359 313 268 222 177 131 85 51 4,880 4,920 502 456 411 365 319 274 228 183 137 91 55 4,920 4,960 508 462 417 371 325 280 234 189 143 97 59 4,960 5,000 514 468 423 377 331 286 240 195 149 103 63 5,000 5,040 520 474 429 383 337 292 246 201 155 109 67 5,040 5,080 526 480 435 389 343 298 252 207 161 115 71 5,080 5,120 532 486 441 395 349 304 258 213 167 121 76 5,120 5,160 538 492 447 401 355 310 264 219 173 127 82 5,160 5,200 544 498 453 407 361 316 270 225 179 133 88 5,200 5,240 550 504 459 413 367 322 276 231 185 139 94 5,240 5,280 556 510 465 419 373 328 282 237 191 145 100 5,280 5,320 562 516 471 425 379 334 288 243 197 151 106 5,320 5,360 568 522 477 431 385 340 294 249 203 157 112 5,360 5,400 574 528 483 437 391 346 300 255 209 163 118 5,400 5,440 580 534 489 443 397 352 306 261 215 169 124 5,440 5,480 586 540 495 449 403 358 312 267 221 175 130 5,480 5,520 592 546 501 455 409 364 318 273 227 181 136 5,520 5,560 598 552 507 461 415 370 324 279 233 187 142 5,560 5,600 604 558 513 467 421 376 330 285 239 193 148 5,600 5,640 610 564 519 473 427 382 336 291 245 199 154 5,640 5,680 616 570 525 479 433 388 342 297 251 205 160 5,680 5,720 622 576 531 485 439 394 348 303 257 211 166 5,720 5,760 628 582 537 491 445 400 354 309 263 217 172 5,760 5,800 634 588 543 497 451 406 360 315 269 223 178 5,800 5,840 640 594 549 503 457 412 366 321 275 229 184 5,840 5,880 646 600 555 509 463 418 372 327 281 235 190                           $5,880 and over Use Table 4(b) for a MARRIED person on page 5. Free internet tax filing Also see the instructions on page 3. Free internet tax filing                           SINGLE Persons—DAILY OR MISCELLANEOUS Payroll Period (For Wages Paid Through December 2009) If the wages are– And the number of withholding allowances claimed is— At least But less than 0 1 2 3 4 5 6 7 8 9 10 The amount of income tax to be withheld is— $0 $33 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 33 36 1 0 0 0 0 0 0 0 0 0 0 36 39
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SOI Tax Stats - Tax Stats at a Glance

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2013 Tax Stats Card


Summary of Collections Before Refunds by Type of Return, FY 2012 [1]

 


Type of Return


Number of Returns


Gross Collections
(Millions of $)

Individual income tax

146,243,886

1,371,402

Corporation income tax

2,262,961 [2]

280,965

Employment taxes

29,589,891

784,397

Excise taxes

1,196,789

56,175

Gift tax

249,451

2,110

Estate tax

26,859

12,341


Selected Information from Returns Filed


Corporate Returns (TY 2010) [3]
 

 Number filing with assets $250M or more

 14,584

 Percent of total corporate net income for firms with assets $250M or more

73.2%

 


S Corporation Returns (TY 2010) [3]
 

 Number of returns

 4,127,554

 


Partnership Returns  (TY 2011) [3]
 

 Number of returns

3,285,177

 


Individual Returns

Top 1-percent Adjusted Gross Income (AGI) break (TY 2011) [3]

 $388,799

Top 10-percent AGI break (TY 2011) [3]

  $120,077

Median AGI (TY 2011) [3] 

$34,794

 

Percent that claim standard deductions (TY 2011) [3]

  66.5%

Percent that claim itemized deductions (TY 2011) [3]

  31.8%

Percent e-filed (TY 2012) thru 4/25/2013 [4]  

90.1%

Percent using paid preparers (TY 2011) [3]

  56.0%

 

Number of returns with AGI $1M or more (TY 2011) [4] 

304,118

State with the highest number-California (TY 2011)

45,109

State with the least number- Vermont (TY 2011)  

340

 

Number of individual refunds (TY 2011) (millions) [3] 

  113.5

Individual refund amount (TY 2011) (billions of $) [3]

  $325.8

Average individual refund amount (TY 2011)

  $2,872

 

Earned Income Tax Credit (TY 2011) [3]:

Number of returns with credit (millions)  

27.9

Amount claimed (billions of $)

  $62.9

 

Nonprofit Organizations  (TY 2009) [3,5]

Number of returns (Forms 990 & 990-PF filers)  

413,415

Assets controlled by nonprofits (billions of $)  

$3.2

 

Taxpayer Assistance  (FY 2012) [1]

Number assisted by writing, calling, or by walk-in

96,867,755

 

 



Sources and footnotes:

[FY] Fiscal Year 
[TY] Tax Year
[1] Source: IRS Data Book, publication 55B
[2] Excludes S Corporations.
[3] Source—SOI data.
[4] Source— IRS Masterfile System
[5] Organizations tax-exempt under Section 501(c)(3)
 

Revised: August 2013


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Page Last Reviewed or Updated: 24-Jan-2014

The Free Internet Tax Filing

Free internet tax filing 2. Free internet tax filing   Ordinary or Capital Gain or Loss Table of Contents IntroductionSection 1231 transactions. Free internet tax filing Topics - This chapter discusses: Useful Items - You may want to see: Capital Assets Noncapital AssetsCommodities derivative dealer. Free internet tax filing Sales and Exchanges Between Related PersonsGain Is Ordinary Income Nondeductible Loss Other DispositionsSale of a Business Dispositions of Intangible Property Subdivision of Land Timber Precious Metals and Stones, Stamps, and Coins Coal and Iron Ore Conversion Transactions Introduction You must classify your gains and losses as either ordinary or capital (and your capital gains or losses as either short-term or long-term). Free internet tax filing You must do this to figure your net capital gain or loss. Free internet tax filing For individuals, a net capital gain may be taxed at a different tax rate than ordinary income. Free internet tax filing See Capital Gains Tax Rates in chapter 4. Free internet tax filing Your deduction for a net capital loss may be limited. Free internet tax filing See Treatment of Capital Losses in chapter 4. Free internet tax filing Capital gain or loss. Free internet tax filing   Generally, you will have a capital gain or loss if you sell or exchange a capital asset. Free internet tax filing You also may have a capital gain if your section 1231 transactions result in a net gain. Free internet tax filing Section 1231 transactions. Free internet tax filing   Section 1231 transactions are sales and exchanges of property held longer than 1 year and either used in a trade or business or held for the production of rents or royalties. Free internet tax filing They also include certain involuntary conversions of business or investment property, including capital assets. Free internet tax filing See Section 1231 Gains and Losses in chapter 3 for more information. Free internet tax filing Topics - This chapter discusses: Capital assets Noncapital assets Sales and exchanges between  related persons Other dispositions Useful Items - You may want to see: Publication 550 Investment Income and Expenses Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 4797 Sales of Business Property 8594 Asset Acquisition Statement Under Section 1060 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. Free internet tax filing Capital Assets Almost everything you own and use for personal purposes, pleasure, or investment is a capital asset. Free internet tax filing For exceptions, see Noncapital Assets, later. Free internet tax filing The following items are examples of capital assets. Free internet tax filing Stocks and bonds. Free internet tax filing A home owned and occupied by you and your family. Free internet tax filing Timber grown on your home property or investment property, even if you make casual sales of the timber. Free internet tax filing Household furnishings. Free internet tax filing A car used for pleasure or commuting. Free internet tax filing Coin or stamp collections. Free internet tax filing Gems and jewelry. Free internet tax filing Gold, silver, and other metals. Free internet tax filing Personal-use property. Free internet tax filing   Generally, property held for personal use is a capital asset. Free internet tax filing Gain from a sale or exchange of that property is a capital gain. Free internet tax filing Loss from the sale or exchange of that property is not deductible. Free internet tax filing You can deduct a loss relating to personal-use property only if it results from a casualty or theft. Free internet tax filing Investment property. Free internet tax filing   Investment property (such as stocks and bonds) is a capital asset, and a gain or loss from its sale or exchange is a capital gain or loss. Free internet tax filing This treatment does not apply to property used to produce rental income. Free internet tax filing See Business assets, later, under Noncapital Assets. Free internet tax filing Release of restriction on land. Free internet tax filing   Amounts you receive for the release of a restrictive covenant in a deed to land are treated as proceeds from the sale of a capital asset. Free internet tax filing Noncapital Assets A noncapital asset is property that is not a capital asset. Free internet tax filing The following kinds of property are not capital assets. Free internet tax filing Stock in trade, inventory, and other property you hold mainly for sale to customers in your trade or business. Free internet tax filing Inventories are discussed in Publication 538, Accounting Periods and Methods. Free internet tax filing But, see the Tip below. Free internet tax filing Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered or from the sale of any properties described in (1), above. Free internet tax filing Depreciable property used in your trade or business or as rental property (including section 197 intangibles defined later), even if the property is fully depreciated (or amortized). Free internet tax filing Sales of this type of property are discussed in chapter 3. Free internet tax filing Real property used in your trade or business or as rental property, even if the property is fully depreciated. Free internet tax filing A copyright; a literary, musical, or artistic composition; a letter; a memorandum; or similar property (such as drafts of speeches, recordings, transcripts, manuscripts, drawings, or photographs): Created by your personal efforts, Prepared or produced for you (in the case of a letter, memorandum, or similar property), or Received from a person who created the property or for whom the property was prepared under circumstances (for example, by gift) entitling you to the basis of the person who created the property, or for whom it was prepared or produced. Free internet tax filing But, see the Tip below. Free internet tax filing U. Free internet tax filing S. Free internet tax filing Government publications you got from the government for free or for less than the normal sales price or that you acquired under circumstances entitling you to the basis of someone who got the publications for free or for less than the normal sales price. Free internet tax filing Any commodities derivative financial instrument (discussed later) held by a commodities derivatives dealer unless it meets both of the following requirements. Free internet tax filing It is established to the satisfaction of the IRS that the instrument has no connection to the activities of the dealer as a dealer. Free internet tax filing The instrument is clearly identified in the dealer's records as meeting (a) by the end of the day on which it was acquired, originated, or entered into. Free internet tax filing Any hedging transaction (defined later) that is clearly identified as a hedging transaction by the end of the day on which it was acquired, originated, or entered into. Free internet tax filing Supplies of a type you regularly use or consume in the ordinary course of your trade or business. Free internet tax filing You can elect to treat as capital assets certain self-created musical compositions or copyrights you sold or exchanged. Free internet tax filing See chapter 4 of Publication 550 for details. Free internet tax filing Property held mainly for sale to customers. Free internet tax filing   Stock in trade, inventory, and other property you hold mainly for sale to customers in your trade or business are not capital assets. Free internet tax filing Inventories are discussed in Publication 538. Free internet tax filing Business assets. Free internet tax filing   Real property and depreciable property used in your trade or business or as rental property (including section 197 intangibles defined later under Dispositions of Intangible Property) are not capital assets. Free internet tax filing The sale or disposition of business property is discussed in chapter 3. Free internet tax filing Letters and memoranda. Free internet tax filing   Letters, memoranda, and similar property (such as drafts of speeches, recordings, transcripts, manuscripts, drawings, or photographs) are not treated as capital assets (as discussed earlier) if your personal efforts created them or if they were prepared or produced for you. Free internet tax filing Nor is this property a capital asset if your basis in it is determined by reference to the person who created it or the person for whom it was prepared. Free internet tax filing For this purpose, letters and memoranda addressed to you are considered prepared for you. Free internet tax filing If letters or memoranda are prepared by persons under your administrative control, they are considered prepared for you whether or not you review them. Free internet tax filing Commodities derivative financial instrument. Free internet tax filing   A commodities derivative financial instrument is a commodities contract or other financial instrument for commodities (other than a share of corporate stock, a beneficial interest in a partnership or trust, a note, bond, debenture, or other evidence of indebtedness, or a section 1256 contract) the value or settlement price of which is calculated or determined by reference to a specified index (as defined in section 1221(b) of the Internal Revenue Code). Free internet tax filing Commodities derivative dealer. Free internet tax filing   A commodities derivative dealer is a person who regularly offers to enter into, assume, offset, assign, or terminate positions in commodities derivative financial instruments with customers in the ordinary course of a trade or business. Free internet tax filing Hedging transaction. Free internet tax filing   A hedging transaction is any transaction you enter into in the normal course of your trade or business primarily to manage any of the following. Free internet tax filing Risk of price changes or currency fluctuations involving ordinary property you hold or will hold. Free internet tax filing Risk of interest rate or price changes or currency fluctuations for borrowings you make or will make, or ordinary obligations you incur or will incur. Free internet tax filing Sales and Exchanges Between Related Persons This section discusses the rules that may apply to the sale or exchange of property between related persons. Free internet tax filing If these rules apply, gains may be treated as ordinary income and losses may not be deductible. Free internet tax filing See Transfers to Spouse in chapter 1 for rules that apply to spouses. Free internet tax filing Gain Is Ordinary Income If a gain is recognized on the sale or exchange of property to a related person, the gain may be ordinary income even if the property is a capital asset. Free internet tax filing It is ordinary income if the sale or exchange is a depreciable property transaction or a controlled partnership transaction. Free internet tax filing Depreciable property transaction. Free internet tax filing   Gain on the sale or exchange of property, including a leasehold or a patent application, that is depreciable property in the hands of the person who receives it is ordinary income if the transaction is either directly or indirectly between any of the following pairs of entities. Free internet tax filing A person and the person's controlled entity or entities. Free internet tax filing A taxpayer and any trust in which the taxpayer (or his or her spouse) is a beneficiary unless the beneficiary's interest in the trust is a remote contingent interest; that is, the value of the interest computed actuarially is 5% or less of the value of the trust property. Free internet tax filing An executor and a beneficiary of an estate unless the sale or exchange is in satisfaction of a pecuniary bequest (a bequest for a sum of money). Free internet tax filing An employer (or any person related to the employer under rules (1), (2), or (3)) and a welfare benefit fund (within the meaning of section 419(e) of the Internal Revenue Code) that is controlled directly or indirectly by the employer (or any person related to the employer). Free internet tax filing Controlled entity. Free internet tax filing   A person's controlled entity is either of the following. Free internet tax filing A corporation in which more than 50% of the value of all outstanding stock, or a partnership in which more than 50% of the capital interest or profits interest, is directly or indirectly owned by or for that person. Free internet tax filing An entity whose relationship with that person is one of the following. Free internet tax filing A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership. Free internet tax filing Two corporations that are members of the same controlled group as defined in section 1563(a) of the Internal Revenue Code, except that “more than 50%” is substituted for “at least 80%” in that definition. Free internet tax filing Two S corporations, if the same persons own more than 50% in value of the outstanding stock of each corporation. Free internet tax filing Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Free internet tax filing Controlled partnership transaction. Free internet tax filing   A gain recognized in a controlled partnership transaction may be ordinary income. Free internet tax filing The gain is ordinary income if it results from the sale or exchange of property that, in the hands of the party who receives it, is a noncapital asset such as trade accounts receivable, inventory, stock in trade, or depreciable or real property used in a trade or business. Free internet tax filing   A controlled partnership transaction is a transaction directly or indirectly between either of the following pairs of entities. Free internet tax filing A partnership and a person who directly or indirectly owns more than 50% of the capital interest or profits interest in the partnership. Free internet tax filing Two partnerships, if the same persons directly or indirectly own more than 50% of the capital interests or profits interests in both partnerships. Free internet tax filing Determining ownership. Free internet tax filing   In the transactions under Depreciable property transaction and Controlled partnership transaction, earlier, use the following rules to determine the ownership of stock or a partnership interest. Free internet tax filing Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Free internet tax filing (However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more in value of the stock of the corporation. Free internet tax filing ) An individual is considered as owning the stock or partnership interest directly or indirectly owned by or for his or her family. Free internet tax filing Family includes only brothers, sisters, half-brothers, half-sisters, spouse, ancestors, and lineal descendants. Free internet tax filing For purposes of applying (1) or (2), above, stock or a partnership interest constructively owned by a person under (1) is treated as actually owned by that person. Free internet tax filing But stock or a partnership interest constructively owned by an individual under (2) is not treated as owned by the individual for reapplying (2) to make another person the constructive owner of that stock or partnership interest. Free internet tax filing Nondeductible Loss A loss on the sale or exchange of property between related persons is not deductible. Free internet tax filing This applies to both direct and indirect transactions, but not to distributions of property from a corporation in a complete liquidation. Free internet tax filing For the list of related persons, see Related persons next. Free internet tax filing If a sale or exchange is between any of these related persons and involves the lump-sum sale of a number of blocks of stock or pieces of property, the gain or loss must be figured separately for each block of stock or piece of property. Free internet tax filing The gain on each item is taxable. Free internet tax filing The loss on any item is nondeductible. Free internet tax filing Gains from the sales of any of these items may not be offset by losses on the sales of any of the other items. Free internet tax filing Related persons. Free internet tax filing   The following is a list of related persons. Free internet tax filing Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Free internet tax filing ), and lineal descendants (children, grandchildren, etc. Free internet tax filing ). Free internet tax filing An individual and a corporation if the individual directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. Free internet tax filing Two corporations that are members of the same controlled group as defined in section 267(f) of the Internal Revenue Code. Free internet tax filing A trust fiduciary and a corporation if the trust or the grantor of the trust directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. Free internet tax filing A grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Free internet tax filing Fiduciaries of two different trusts, and the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. Free internet tax filing A tax-exempt educational or charitable organization and a person who directly or indirectly controls the organization, or a member of that person's family. Free internet tax filing A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership. Free internet tax filing Two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. Free internet tax filing Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Free internet tax filing An executor and a beneficiary of an estate unless the sale or exchange is in satisfaction of a pecuniary bequest. Free internet tax filing Two partnerships if the same persons directly or indirectly own more than 50% of the capital interests or profits interests in both partnerships. Free internet tax filing A person and a partnership if the person directly or indirectly owns more than 50% of the capital interest or profits interest in the partnership. Free internet tax filing Partnership interests. Free internet tax filing   The nondeductible loss rule does not apply to a sale or exchange of an interest in the partnership between the related persons described in (12) or (13) above. Free internet tax filing Controlled groups. Free internet tax filing   Losses on transactions between members of the same controlled group described in (3) earlier are deferred rather than denied. Free internet tax filing   For more information, see section 267(f) of the Internal Revenue Code. Free internet tax filing Ownership of stock or partnership interests. Free internet tax filing   In determining whether an individual directly or indirectly owns any of the outstanding stock of a corporation or an interest in a partnership for a loss on a sale or exchange, the following rules apply. Free internet tax filing Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Free internet tax filing (However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more in value of the stock of the corporation. Free internet tax filing ) An individual is considered as owning the stock or partnership interest directly or indirectly owned by or for his or her family. Free internet tax filing Family includes only brothers, sisters, half-brothers, half-sisters, spouse, ancestors, and lineal descendants. Free internet tax filing An individual owning (other than by applying (2)) any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. Free internet tax filing For purposes of applying (1), (2), or (3), stock or a partnership interest constructively owned by a person under (1) is treated as actually owned by that person. Free internet tax filing But stock or a partnership interest constructively owned by an individual under (2) or (3) is not treated as owned by the individual for reapplying either (2) or (3) to make another person the constructive owner of that stock or partnership interest. Free internet tax filing Indirect transactions. Free internet tax filing   You cannot deduct your loss on the sale of stock through your broker if under a prearranged plan a related person or entity buys the same stock you had owned. Free internet tax filing This does not apply to a cross-trade between related parties through an exchange that is purely coincidental and is not prearranged. Free internet tax filing Property received from a related person. Free internet tax filing   If, in a purchase or exchange, you received property from a related person who had a loss that was not allowable and you later sell or exchange the property at a gain, you recognize the gain only to the extent it is more than the loss previously disallowed to the related person. Free internet tax filing This rule applies only to the original transferee. Free internet tax filing Example 1. Free internet tax filing Your brother sold stock to you for $7,600. Free internet tax filing His cost basis was $10,000. Free internet tax filing His loss of $2,400 was not deductible. Free internet tax filing You later sell the same stock to an unrelated party for $10,500, realizing a gain of $2,900 ($10,500 − $7,600). Free internet tax filing Your recognized gain is only $500, the gain that is more than the $2,400 loss not allowed to your brother. Free internet tax filing Example 2. Free internet tax filing Assume the same facts as in Example 1, except that you sell the stock for $6,900 instead of $10,500. Free internet tax filing Your recognized loss is only $700 ($7,600 − $6,900). Free internet tax filing You cannot deduct the loss not allowed to your brother. Free internet tax filing Other Dispositions This section discusses rules for determining the treatment of gain or loss from various dispositions of property. Free internet tax filing Sale of a Business The sale of a business usually is not a sale of one asset. Free internet tax filing Instead, all the assets of the business are sold. Free internet tax filing Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. Free internet tax filing A business usually has many assets. Free internet tax filing When sold, these assets must be classified as capital assets, depreciable property used in the business, real property used in the business, or property held for sale to customers, such as inventory or stock in trade. Free internet tax filing The gain or loss on each asset is figured separately. Free internet tax filing The sale of capital assets results in capital gain or loss. Free internet tax filing The sale of real property or depreciable property used in the business and held longer than 1 year results in gain or loss from a section 1231 transaction (discussed in chapter 3). Free internet tax filing The sale of inventory results in ordinary income or loss. Free internet tax filing Partnership interests. Free internet tax filing   An interest in a partnership or joint venture is treated as a capital asset when sold. Free internet tax filing The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary gain or loss. Free internet tax filing For more information, see Disposition of Partner's Interest in Publication 541. Free internet tax filing Corporation interests. Free internet tax filing   Your interest in a corporation is represented by stock certificates. Free internet tax filing When you sell these certificates, you usually realize capital gain or loss. Free internet tax filing For information on the sale of stock, see chapter 4 in Publication 550. Free internet tax filing Corporate liquidations. Free internet tax filing   Corporate liquidations of property generally are treated as a sale or exchange. Free internet tax filing Gain or loss generally is recognized by the corporation on a liquidating sale of its assets. Free internet tax filing Gain or loss generally is recognized also on a liquidating distribution of assets as if the corporation sold the assets to the distributee at fair market value. Free internet tax filing   In certain cases in which the distributee is a corporation in control of the distributing corporation, the distribution may not be taxable. Free internet tax filing For more information, see section 332 of the Internal Revenue Code and the related regulations. Free internet tax filing Allocation of consideration paid for a business. Free internet tax filing   The sale of a trade or business for a lump sum is considered a sale of each individual asset rather than of a single asset. Free internet tax filing Except for assets exchanged under any nontaxable exchange rules, both the buyer and seller of a business must use the residual method (explained later) to allocate the consideration to each business asset transferred. Free internet tax filing This method determines gain or loss from the transfer of each asset and how much of the consideration is for goodwill and certain other intangible property. Free internet tax filing It also determines the buyer's basis in the business assets. Free internet tax filing Consideration. Free internet tax filing   The buyer's consideration is the cost of the assets acquired. Free internet tax filing The seller's consideration is the amount realized (money plus the fair market value of property received) from the sale of assets. Free internet tax filing Residual method. Free internet tax filing   The residual method must be used for any transfer of a group of assets that constitutes a trade or business and for which the buyer's basis is determined only by the amount paid for the assets. Free internet tax filing This applies to both direct and indirect transfers, such as the sale of a business or the sale of a partnership interest in which the basis of the buyer's share of the partnership assets is adjusted for the amount paid under section 743(b) of the Internal Revenue Code. Free internet tax filing Section 743(b) applies if a partnership has an election in effect under section 754 of the Internal Revenue Code. Free internet tax filing   A group of assets constitutes a trade or business if either of the following applies. Free internet tax filing Goodwill or going concern value could, under any circumstances, attach to them. Free internet tax filing The use of the assets would constitute an active trade or business under section 355 of the Internal Revenue Code. Free internet tax filing   The residual method provides for the consideration to be reduced first by the amount of Class I assets (defined below). Free internet tax filing The consideration remaining after this reduction must be allocated among the various business assets in a certain order. Free internet tax filing See Classes of assets next for the complete order. Free internet tax filing Classes of assets. Free internet tax filing   The following definitions are the classifications for deemed or actual asset acquisitions. Free internet tax filing Allocate the consideration among the assets in the following order. Free internet tax filing The amount allocated to an asset, other than a Class VII asset, cannot exceed its fair market value on the purchase date. Free internet tax filing The amount you can allocate to an asset also is subject to any applicable limits under the Internal Revenue Code or general principles of tax law. Free internet tax filing Class I assets are cash and general deposit accounts (including checking and savings accounts but excluding certificates of deposit). Free internet tax filing Class II assets are certificates of deposit, U. Free internet tax filing S. Free internet tax filing Government securities, foreign currency, and actively traded personal property, including stock and securities. Free internet tax filing Class III assets are accounts receivable, other debt instruments, and assets that you mark to market at least annually for federal income tax purposes. Free internet tax filing However, see section 1. Free internet tax filing 338-6(b)(2)(iii) of the regulations for exceptions that apply to debt instruments issued by persons related to a target corporation, contingent debt instruments, and debt instruments convertible into stock or other property. Free internet tax filing Class IV assets are property of a kind that would properly be included in inventory if on hand at the end of the tax year or property held by the taxpayer primarily for sale to customers in the ordinary course of business. Free internet tax filing Class V assets are all assets other than Class I, II, III, IV, VI, and VII assets. Free internet tax filing    Note. Free internet tax filing Furniture and fixtures, buildings, land, vehicles, and equipment, which constitute all or part of a trade or business are generally Class V assets. Free internet tax filing Class VI assets are section 197 intangibles (other than goodwill and going concern value). Free internet tax filing Class VII assets are goodwill and going concern value (whether the goodwill or going concern value qualifies as a section 197 intangible). Free internet tax filing   If an asset described in one of the classifications described above can be included in more than one class, include it in the lower numbered class. Free internet tax filing For example, if an asset is described in both Class II and Class IV, choose Class II. Free internet tax filing Example. Free internet tax filing The total paid in the sale of the assets of Company SKB is $21,000. Free internet tax filing No cash or deposit accounts or similar accounts were sold. Free internet tax filing The company's U. Free internet tax filing S. Free internet tax filing Government securities sold had a fair market value of $3,200. Free internet tax filing The only other asset transferred (other than goodwill and going concern value) was inventory with a fair market value of $15,000. Free internet tax filing Of the $21,000 paid for the assets of Company SKB, $3,200 is allocated to U. Free internet tax filing S. Free internet tax filing Government securities, $15,000 to inventory assets, and the remaining $2,800 to goodwill and going concern value. Free internet tax filing Agreement. Free internet tax filing   The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value of any of the assets. Free internet tax filing This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. Free internet tax filing Reporting requirement. Free internet tax filing   Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. Free internet tax filing Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. Free internet tax filing Generally, the buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. Free internet tax filing See the Instructions for Form 8594. Free internet tax filing Dispositions of Intangible Property Intangible property is any personal property that has value but cannot be seen or touched. Free internet tax filing It includes such items as patents, copyrights, and the goodwill value of a business. Free internet tax filing Gain or loss on the sale or exchange of amortizable or depreciable intangible property held longer than 1 year (other than an amount recaptured as ordinary income) is a section 1231 gain or loss. Free internet tax filing The treatment of section 1231 gain or loss and the recapture of amortization and depreciation as ordinary income are explained in chapter 3. Free internet tax filing See chapter 8 of Publication 535, Business Expenses, for information on amortizable intangible property and chapter 1 of Publication 946, How To Depreciate Property, for information on intangible property that can and cannot be depreciated. Free internet tax filing Gain or loss on dispositions of other intangible property is ordinary or capital depending on whether the property is a capital asset or a noncapital asset. Free internet tax filing The following discussions explain special rules that apply to certain dispositions of intangible property. Free internet tax filing Section 197 Intangibles Section 197 intangibles are certain intangible assets acquired after August 10, 1993 (after July 25, 1991, if chosen), and held in connection with the conduct of a trade or business or an activity entered into for profit whose costs are amortized over 15 years. Free internet tax filing They include the following assets. Free internet tax filing Goodwill. Free internet tax filing Going concern value. Free internet tax filing Workforce in place. Free internet tax filing Business books and records, operating systems, and other information bases. Free internet tax filing Patents, copyrights, formulas, processes, designs, patterns, know how, formats, and similar items. Free internet tax filing Customer-based intangibles. Free internet tax filing Supplier-based intangibles. Free internet tax filing Licenses, permits, and other rights granted by a governmental unit. Free internet tax filing Covenants not to compete entered into in connection with the acquisition of a business. Free internet tax filing Franchises, trademarks, and trade names. Free internet tax filing See chapter 8 of Publication 535 for a description of each intangible. Free internet tax filing Dispositions. Free internet tax filing   You cannot deduct a loss from the disposition or worthlessness of a section 197 intangible you acquired in the same transaction (or series of related transactions) as another section 197 intangible you still hold. Free internet tax filing Instead, you must increase the adjusted basis of your retained section 197 intangible by the nondeductible loss. Free internet tax filing If you retain more than one section 197 intangible, increase each intangible's adjusted basis. Free internet tax filing Figure the increase by multiplying the nondeductible loss by a fraction, the numerator (top number) of which is the retained intangible's adjusted basis on the date of the loss and the denominator (bottom number) of which is the total adjusted basis of all retained intangibles on the date of the loss. Free internet tax filing   In applying this rule, members of the same controlled group of corporations and commonly controlled businesses are treated as a single entity. Free internet tax filing For example, a corporation cannot deduct a loss on the sale of a section 197 intangible if, after the sale, a member of the same controlled group retains other section 197 intangibles acquired in the same transaction as the intangible sold. Free internet tax filing Covenant not to compete. Free internet tax filing   A covenant not to compete (or similar arrangement) that is a section 197 intangible cannot be treated as disposed of or worthless before you have disposed of your entire interest in the trade or business for which the covenant was entered into. Free internet tax filing Members of the same controlled group of corporations and commonly controlled businesses are treated as a single entity in determining whether a member has disposed of its entire interest in a trade or business. Free internet tax filing Anti-churning rules. Free internet tax filing   Anti-churning rules prevent a taxpayer from converting section 197 intangibles that do not qualify for amortization into property that would qualify for amortization. Free internet tax filing However, these rules do not apply to part of the basis of property acquired by certain related persons if the transferor elects to do both the following. Free internet tax filing Recognize gain on the transfer of the property. Free internet tax filing Pay income tax on the gain at the highest tax rate. Free internet tax filing   If the transferor is a partnership or S corporation, the partnership or S corporation (not the partners or shareholders) can make the election. Free internet tax filing But each partner or shareholder must pay the tax on his or her share of gain. Free internet tax filing   To make the election, you, as the transferor, must attach a statement containing certain information to your income tax return for the year of the transfer. Free internet tax filing You must file the tax return by the due date (including extensions). Free internet tax filing You must also notify the transferee of the election in writing by the due date of the return. Free internet tax filing   If you timely filed your return without making the election, you can make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Free internet tax filing Attach the statement to the amended return and write “Filed pursuant to section 301. Free internet tax filing 9100-2” at the top of the statement. Free internet tax filing File the amended return at the same address the original return was filed. Free internet tax filing For more information about making the election, see Regulations section 1. Free internet tax filing 197-2(h)(9). Free internet tax filing For information about reporting the tax on your income tax return, see the Instructions for Form 4797. Free internet tax filing Patents The transfer of a patent by an individual is treated as a sale or exchange of a capital asset held longer than 1 year. Free internet tax filing This applies even if the payments for the patent are made periodically during the transferee's use or are contingent on the productivity, use, or disposition of the patent. Free internet tax filing For information on the treatment of gain or loss on the transfer of capital assets, see chapter 4. Free internet tax filing This treatment applies to your transfer of a patent if you meet all the following conditions. Free internet tax filing You are the holder of the patent. Free internet tax filing You transfer the patent other than by gift, inheritance, or devise. Free internet tax filing You transfer all substantial rights to the patent or an undivided interest in all such rights. Free internet tax filing You do not transfer the patent to a related person. Free internet tax filing Holder. Free internet tax filing   You are the holder of a patent if you are either of the following. Free internet tax filing The individual whose effort created the patent property and who qualifies as the original and first inventor. Free internet tax filing The individual who bought an interest in the patent from the inventor before the invention was tested and operated successfully under operating conditions and who is neither related to, nor the employer of, the inventor. Free internet tax filing All substantial rights. Free internet tax filing   All substantial rights to patent property are all rights that have value when they are transferred. Free internet tax filing A security interest (such as a lien), or a reservation calling for forfeiture for nonperformance, is not treated as a substantial right for these rules and may be kept by you as the holder of the patent. Free internet tax filing   All substantial rights to a patent are not transferred if any of the following apply to the transfer. Free internet tax filing The rights are limited geographically within a country. Free internet tax filing The rights are limited to a period less than the remaining life of the patent. Free internet tax filing The rights are limited to fields of use within trades or industries and are less than all the rights that exist and have value at the time of the transfer. Free internet tax filing The rights are less than all the claims or inventions covered by the patent that exist and have value at the time of the transfer. Free internet tax filing Related persons. Free internet tax filing   This tax treatment does not apply if the transfer is directly or indirectly between you and a related person as defined earlier in the list under Nondeductible Loss, with the following changes. Free internet tax filing Members of your family include your spouse, ancestors, and lineal descendants, but not your brothers, sisters, half-brothers, or half-sisters. Free internet tax filing Substitute “25% or more” ownership for “more than 50%. Free internet tax filing ”   If you fit within the definition of a related person independent of family status, the brother-sister exception in (1), earlier, does not apply. Free internet tax filing For example, a transfer between a brother and a sister as beneficiary and fiduciary of the same trust is a transfer between related persons. Free internet tax filing The brother-sister exception does not apply because the trust relationship is independent of family status. Free internet tax filing Franchise, Trademark, or Trade Name If you transfer or renew a franchise, trademark, or trade name for a price contingent on its productivity, use, or disposition, the amount you receive generally is treated as an amount realized from the sale of a noncapital asset. Free internet tax filing A franchise includes an agreement that gives one of the parties the right to distribute, sell, or provide goods, services, or facilities within a specified area. Free internet tax filing Significant power, right, or continuing interest. Free internet tax filing   If you keep any significant power, right, or continuing interest in the subject matter of a franchise, trademark, or trade name that you transfer or renew, the amount you receive is ordinary royalty income rather than an amount realized from a sale or exchange. Free internet tax filing   A significant power, right, or continuing interest in a franchise, trademark, or trade name includes, but is not limited to, the following rights in the transferred interest. Free internet tax filing A right to disapprove any assignment of the interest, or any part of it. Free internet tax filing A right to end the agreement at will. Free internet tax filing A right to set standards of quality for products used or sold, or for services provided, and for the equipment and facilities used to promote such products or services. Free internet tax filing A right to make the recipient sell or advertise only your products or services. Free internet tax filing A right to make the recipient buy most supplies and equipment from you. Free internet tax filing A right to receive payments based on the productivity, use, or disposition of the transferred item of interest if those payments are a substantial part of the transfer agreement. Free internet tax filing Subdivision of Land If you own a tract of land and, to sell or exchange it, you subdivide it into individual lots or parcels, the gain normally is ordinary income. Free internet tax filing However, you may receive capital gain treatment on at least part of the proceeds provided you meet certain requirements. Free internet tax filing See section 1237 of the Internal Revenue Code. Free internet tax filing Timber Standing timber held as investment property is a capital asset. Free internet tax filing Gain or loss from its sale is reported as a capital gain or loss on Form 8949, and Schedule D (Form 1040), as applicable. Free internet tax filing If you held the timber primarily for sale to customers, it is not a capital asset. Free internet tax filing Gain or loss on its sale is ordinary business income or loss. Free internet tax filing It is reported in the gross receipts or sales and cost of goods sold items of your return. Free internet tax filing Farmers who cut timber on their land and sell it as logs, firewood, or pulpwood usually have no cost or other basis for that timber. Free internet tax filing These sales constitute a very minor part of their farm businesses. Free internet tax filing In these cases, amounts realized from such sales, and the expenses of cutting, hauling, etc. Free internet tax filing , are ordinary farm income and expenses reported on Schedule F (Form 1040), Profit or Loss From Farming. Free internet tax filing Different rules apply if you owned the timber longer than 1 year and elect to either: Treat timber cutting as a sale or exchange, or Enter into a cutting contract. Free internet tax filing Timber is considered cut on the date when, in the ordinary course of business, the quantity of felled timber is first definitely determined. Free internet tax filing This is true whether the timber is cut under contract or whether you cut it yourself. Free internet tax filing Under the rules discussed below, disposition of the timber is treated as a section 1231 transaction. Free internet tax filing See chapter 3. Free internet tax filing Gain or loss is reported on Form 4797. Free internet tax filing Christmas trees. Free internet tax filing   Evergreen trees, such as Christmas trees, that are more than 6 years old when severed from their roots and sold for ornamental purposes are included in the term timber. Free internet tax filing They qualify for both rules discussed below. Free internet tax filing Election to treat cutting as a sale or exchange. Free internet tax filing   Under the general rule, the cutting of timber results in no gain or loss. Free internet tax filing It is not until a sale or exchange occurs that gain or loss is realized. Free internet tax filing But if you owned or had a contractual right to cut timber, you can elect to treat the cutting of timber as a section 1231 transaction in the year the timber is cut. Free internet tax filing Even though the cut timber is not actually sold or exchanged, you report your gain or loss on the cutting for the year the timber is cut. Free internet tax filing Any later sale results in ordinary business income or loss. Free internet tax filing See Example, later. Free internet tax filing   To elect this treatment, you must: Own or hold a contractual right to cut the timber for a period of more than 1 year before it is cut, and Cut the timber for sale or for use in your trade or business. Free internet tax filing Making the election. Free internet tax filing   You make the election on your return for the year the cutting takes place by including in income the gain or loss on the cutting and including a computation of the gain or loss. Free internet tax filing You do not have to make the election in the first year you cut timber. Free internet tax filing You can make it in any year to which the election would apply. Free internet tax filing If the timber is partnership property, the election is made on the partnership return. Free internet tax filing This election cannot be made on an amended return. Free internet tax filing   Once you have made the election, it remains in effect for all later years unless you cancel it. Free internet tax filing   If you previously elected to treat the cutting of timber as a sale or exchange, you may revoke this election without the consent of the IRS. Free internet tax filing The prior election (and revocation) is disregarded for purposes of making a subsequent election. Free internet tax filing See Form T (Timber), Forest Activities Schedule, for more information. Free internet tax filing Gain or loss. Free internet tax filing   Your gain or loss on the cutting of standing timber is the difference between its adjusted basis for depletion and its fair market value on the first day of your tax year in which it is cut. Free internet tax filing   Your adjusted basis for depletion of cut timber is based on the number of units (feet board measure, log scale, or other units) of timber cut during the tax year and considered to be sold or exchanged. Free internet tax filing Your adjusted basis for depletion is also based on the depletion unit of timber in the account used for the cut timber, and should be figured in the same manner as shown in section 611 of the Internal Revenue Code and the related regulations. Free internet tax filing   Timber depletion is discussed in chapter 9 of Publication 535. Free internet tax filing Example. Free internet tax filing In April 2013, you had owned 4,000 MBF (1,000 board feet) of standing timber longer than 1 year. Free internet tax filing It had an adjusted basis for depletion of $40 per MBF. Free internet tax filing You are a calendar year taxpayer. Free internet tax filing On January 1, 2013, the timber had a fair market value (FMV) of $350 per MBF. Free internet tax filing It was cut in April for sale. Free internet tax filing On your 2013 tax return, you elect to treat the cutting of the timber as a sale or exchange. Free internet tax filing You report the difference between the fair market value and your adjusted basis for depletion as a gain. Free internet tax filing This amount is reported on Form 4797 along with your other section 1231 gains and losses to figure whether it is treated as capital gain or as ordinary gain. Free internet tax filing You figure your gain as follows. Free internet tax filing FMV of timber January 1, 2013 $1,400,000 Minus: Adjusted basis for depletion 160,000 Section 1231 gain $1,240,000 The fair market value becomes your basis in the cut timber and a later sale of the cut timber including any by-product or tree tops will result in ordinary business income or loss. Free internet tax filing Outright sales of timber. Free internet tax filing   Outright sales of timber by landowners qualify for capital gains treatment using rules similar to the rules for certain disposal of timber under a contract with retained economic interest (defined below). Free internet tax filing However, for outright sales, the date of disposal is not deemed to be the date the timber is cut because the landowner can elect to treat the payment date as the date of disposal (see below). Free internet tax filing Cutting contract. Free internet tax filing   You must treat the disposal of standing timber under a cutting contract as a section 1231 transaction if all the following apply to you. Free internet tax filing You are the owner of the timber. Free internet tax filing You held the timber longer than 1 year before its disposal. Free internet tax filing You kept an economic interest in the timber. Free internet tax filing   You have kept an economic interest in standing timber if, under the cutting contract, the expected return on your investment is conditioned on the cutting of the timber. Free internet tax filing   The difference between the amount realized from the disposal of the timber and its adjusted basis for depletion is treated as gain or loss on its sale. Free internet tax filing Include this amount on Form 4797 along with your other section 1231 gains or losses to figure whether it is treated as capital or ordinary gain or loss. Free internet tax filing Date of disposal. Free internet tax filing   The date of disposal is the date the timber is cut. Free internet tax filing However, for outright sales by landowners or if you receive payment under the contract before the timber is cut, you can elect to treat the date of payment as the date of disposal. Free internet tax filing   This election applies only to figure the holding period of the timber. Free internet tax filing It has no effect on the time for reporting gain or loss (generally when the timber is sold or exchanged). Free internet tax filing   To make this election, attach a statement to the tax return filed by the due date (including extensions) for the year payment is received. Free internet tax filing The statement must identify the advance payments subject to the election and the contract under which they were made. Free internet tax filing   If you timely filed your return for the year you received payment without making the election, you still can make the election by filing an amended return within 6 months after the due date for that year's return (excluding extensions). Free internet tax filing Attach the statement to the amended return and write “Filed pursuant to section 301. Free internet tax filing 9100-2” at the top of the statement. Free internet tax filing File the amended return at the same address the original return was filed. Free internet tax filing Owner. Free internet tax filing   The owner of timber is any person who owns an interest in it, including a sublessor and the holder of a contract to cut the timber. Free internet tax filing You own an interest in timber if you have the right to cut it for sale on your own account or for use in your business. Free internet tax filing Tree stumps. Free internet tax filing   Tree stumps are a capital asset if they are on land held by an investor who is not in the timber or stump business as a buyer, seller, or processor. Free internet tax filing Gain from the sale of stumps sold in one lot by such a holder is taxed as a capital gain. Free internet tax filing However, tree stumps held by timber operators after the saleable standing timber was cut and removed from the land are considered by-products. Free internet tax filing Gain from the sale of stumps in lots or tonnage by such operators is taxed as ordinary income. Free internet tax filing   See Form T (Timber) and its separate instructions for more information about dispositions of timber. Free internet tax filing Precious Metals and Stones, Stamps, and Coins Gold, silver, gems, stamps, coins, etc. Free internet tax filing , are capital assets except when they are held for sale by a dealer. Free internet tax filing Any gain or loss from their sale or exchange generally is a capital gain or loss. Free internet tax filing If you are a dealer, the amount received from the sale is ordinary business income. Free internet tax filing Coal and Iron Ore You must treat the disposal of coal (including lignite) or iron ore mined in the United States as a section 1231 transaction if both the following apply to you. Free internet tax filing You owned the coal or iron ore longer than 1 year before its disposal. Free internet tax filing You kept an economic interest in the coal or iron ore. Free internet tax filing For this rule, the date the coal or iron ore is mined is considered the date of its disposal. Free internet tax filing Your gain or loss is the difference between the amount realized from disposal of the coal or iron ore and the adjusted basis you use to figure cost depletion (increased by certain expenses not allowed as deductions for the tax year). Free internet tax filing This amount is included on Form 4797 along with your other section 1231 gains and losses. Free internet tax filing You are considered an owner if you own or sublet an economic interest in the coal or iron ore in place. Free internet tax filing If you own only an option to buy the coal in place, you do not qualify as an owner. Free internet tax filing In addition, this gain or loss treatment does not apply to income realized by an owner who is a co-adventurer, partner, or principal in the mining of coal or iron ore. Free internet tax filing The expenses of making and administering the contract under which the coal or iron ore was disposed of and the expenses of preserving the economic interest kept under the contract are not allowed as deductions in figuring taxable income. Free internet tax filing Rather, their total, along with the adjusted depletion basis, is deducted from the amount received to determine gain. Free internet tax filing If the total of these expenses plus the adjusted depletion basis is more than the amount received, the result is a loss. Free internet tax filing Special rule. Free internet tax filing   The above treatment does not apply if you directly or indirectly dispose of the iron ore or coal to any of the following persons. Free internet tax filing A related person whose relationship to you would result in the disallowance of a loss (see Nondeductible Loss under Sales and Exchanges Between Related Persons, earlier). Free internet tax filing An individual, trust, estate, partnership, association, company, or corporation owned or controlled directly or indirectly by the same interests that own or control your business. Free internet tax filing Conversion Transactions Recognized gain on the disposition or termination of any position held as part of certain conversion transactions is treated as ordinary income. Free internet tax filing This applies if substantially all your expected return is attributable to the time value of your net investment (like interest on a loan) and the transaction is any of the following. Free internet tax filing An applicable straddle (generally, any set of offsetting positions with respect to personal property, including stock). Free internet tax filing A transaction in which you acquire property and, at or about the same time, you contract to sell the same or substantially identical property at a specified price. Free internet tax filing Any other transaction that is marketed and sold as producing capital gain from a transaction in which substantially all of your expected return is due to the time value of your net investment. Free internet tax filing For more information, see chapter 4 of Publication 550. Free internet tax filing Prev  Up  Next   Home   More Online Publications