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Free State And Federal Tax Returns

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Free State And Federal Tax Returns

Free state and federal tax returns Publication 15-B - Main Content Table of Contents 1. Free state and federal tax returns Fringe Benefit OverviewAre Fringe Benefits Taxable? Cafeteria Plans Simple Cafeteria Plans 2. Free state and federal tax returns Fringe Benefit Exclusion RulesAccident and Health Benefits Achievement Awards Adoption Assistance Athletic Facilities De Minimis (Minimal) Benefits Dependent Care Assistance Educational Assistance Employee Discounts Employee Stock Options Employer-Provided Cell Phones Group-Term Life Insurance Coverage Health Savings Accounts Lodging on Your Business Premises Meals Moving Expense Reimbursements No-Additional-Cost Services Retirement Planning Services Transportation (Commuting) Benefits Tuition Reduction Working Condition Benefits 3. Free state and federal tax returns Fringe Benefit Valuation RulesGeneral Valuation Rule Cents-Per-Mile Rule Commuting Rule Lease Value Rule Unsafe Conditions Commuting Rule 4. Free state and federal tax returns Rules for Withholding, Depositing, and ReportingTransfer of property. Free state and federal tax returns Amount of deposit. Free state and federal tax returns Limitation. Free state and federal tax returns Conformity rules. Free state and federal tax returns Election not to withhold income tax. Free state and federal tax returns How To Get Tax Help 1. Free state and federal tax returns Fringe Benefit Overview A fringe benefit is a form of pay for the performance of services. Free state and federal tax returns For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. Free state and federal tax returns Performance of services. Free state and federal tax returns   A person who performs services for you does not have to be your employee. Free state and federal tax returns A person may perform services for you as an independent contractor, partner, or director. Free state and federal tax returns Also, for fringe benefit purposes, treat a person who agrees not to perform services (such as under a covenant not to compete) as performing services. Free state and federal tax returns Provider of benefit. Free state and federal tax returns   You are the provider of a fringe benefit if it is provided for services performed for you. Free state and federal tax returns You are considered the provider of a fringe benefit even if a third party, such as your client or customer, provides the benefit to your employee for services the employee performs for you. Free state and federal tax returns For example, if, in exchange for goods or services, your customer provides day care services as a fringe benefit to your employees for services they provide for you as their employer, then you are the provider of this fringe benefit even though the customer is actually providing the day care. Free state and federal tax returns Recipient of benefit. Free state and federal tax returns   The person who performs services for you is considered the recipient of a fringe benefit provided for those services. Free state and federal tax returns That person may be considered the recipient even if the benefit is provided to someone who did not perform services for you. Free state and federal tax returns For example, your employee may be the recipient of a fringe benefit you provide to a member of the employee's family. Free state and federal tax returns Are Fringe Benefits Taxable? Any fringe benefit you provide is taxable and must be included in the recipient's pay unless the law specifically excludes it. Free state and federal tax returns Section 2 discusses the exclusions that apply to certain fringe benefits. Free state and federal tax returns Any benefit not excluded under the rules discussed in section 2 is taxable. Free state and federal tax returns Including taxable benefits in pay. Free state and federal tax returns   You must include in a recipient's pay the amount by which the value of a fringe benefit is more than the sum of the following amounts. Free state and federal tax returns Any amount the law excludes from pay. Free state and federal tax returns Any amount the recipient paid for the benefit. Free state and federal tax returns The rules used to determine the value of a fringe benefit are discussed in section 3. Free state and federal tax returns   If the recipient of a taxable fringe benefit is your employee, the benefit is subject to employment taxes and must be reported on Form W-2, Wage and Tax Statement. Free state and federal tax returns However, you can use special rules to withhold, deposit, and report the employment taxes. Free state and federal tax returns These rules are discussed in section 4. Free state and federal tax returns   If the recipient of a taxable fringe benefit is not your employee, the benefit is not subject to employment taxes. Free state and federal tax returns However, you may have to report the benefit on one of the following information returns. Free state and federal tax returns If the recipient receives the benefit as: Use: An independent contractor Form 1099-MISC, Miscellaneous Income A partner Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Free state and federal tax returns For more information, see the instructions for the forms listed above. Free state and federal tax returns Cafeteria Plans A cafeteria plan, including a flexible spending arrangement, is a written plan that allows your employees to choose between receiving cash or taxable benefits instead of certain qualified benefits for which the law provides an exclusion from wages. Free state and federal tax returns If an employee chooses to receive a qualified benefit under the plan, the fact that the employee could have received cash or a taxable benefit instead will not make the qualified benefit taxable. Free state and federal tax returns Generally, a cafeteria plan does not include any plan that offers a benefit that defers pay. Free state and federal tax returns However, a cafeteria plan can include a qualified 401(k) plan as a benefit. Free state and federal tax returns Also, certain life insurance plans maintained by educational institutions can be offered as a benefit even though they defer pay. Free state and federal tax returns Qualified benefits. Free state and federal tax returns   A cafeteria plan can include the following benefits discussed in section 2. Free state and federal tax returns Accident and health benefits (but not Archer medical savings accounts (Archer MSAs) or long-term care insurance). Free state and federal tax returns Adoption assistance. Free state and federal tax returns Dependent care assistance. Free state and federal tax returns Group-term life insurance coverage (including costs that cannot be excluded from wages). Free state and federal tax returns Health savings accounts (HSAs). Free state and federal tax returns Distributions from an HSA may be used to pay eligible long-term care insurance premiums or qualified long-term care services. Free state and federal tax returns Benefits not allowed. Free state and federal tax returns   A cafeteria plan cannot include the following benefits discussed in section 2. Free state and federal tax returns Archer MSAs. Free state and federal tax returns See Accident and Health Benefits in section 2. Free state and federal tax returns Athletic facilities. Free state and federal tax returns De minimis (minimal) benefits. Free state and federal tax returns Educational assistance. Free state and federal tax returns Employee discounts. Free state and federal tax returns Employer-provided cell phones. Free state and federal tax returns Lodging on your business premises. Free state and federal tax returns Meals. Free state and federal tax returns Moving expense reimbursements. Free state and federal tax returns No-additional-cost services. Free state and federal tax returns Transportation (commuting) benefits. Free state and federal tax returns Tuition reduction. Free state and federal tax returns Working condition benefits. Free state and federal tax returns It also cannot include scholarships or fellowships (discussed in Publication 970, Tax Benefits for Education). Free state and federal tax returns $2,500 limit on a health flexible spending arrangement (FSA). Free state and federal tax returns   For plan years beginning after December 31, 2012, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,500. Free state and federal tax returns For plan years beginning after December 31, 2013, the limit is unchanged at $2,500. Free state and federal tax returns   A cafeteria plan offering a health FSA must be amended to specify the $2,500 limit (or any lower limit set by the employer). Free state and federal tax returns While cafeteria plans generally must be amended on a prospective basis, an amendment that is adopted on or before December 31, 2014, may be made effective retroactively, provided that in operation the cafeteria plan meets the limit for plan years beginning after December 31, 2012. Free state and federal tax returns A cafeteria plan that does not limit health FSA contributions to the dollar limit is not a cafeteria plan and all benefits offered under the plan are includible in the employee's gross income. Free state and federal tax returns   For more information, see Notice 2012-40, 2012-26 I. Free state and federal tax returns R. Free state and federal tax returns B. Free state and federal tax returns 1046, available at www. Free state and federal tax returns irs. Free state and federal tax returns gov/irb/2012-26_IRB/ar09. Free state and federal tax returns html. Free state and federal tax returns Employee. Free state and federal tax returns   For these plans, treat the following individuals as employees. Free state and federal tax returns A current common-law employee. Free state and federal tax returns See section 2 in Publication 15 (Circular E) for more information. Free state and federal tax returns A full-time life insurance agent who is a current statutory employee. Free state and federal tax returns A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Free state and federal tax returns Exception for S corporation shareholders. Free state and federal tax returns   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Free state and federal tax returns A 2% shareholder for this purpose is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Free state and federal tax returns Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Free state and federal tax returns Plans that favor highly compensated employees. Free state and federal tax returns   If your plan favors highly compensated employees as to eligibility to participate, contributions, or benefits, you must include in their wages the value of taxable benefits they could have selected. Free state and federal tax returns A plan you maintain under a collective bargaining agreement does not favor highly compensated employees. Free state and federal tax returns   A highly compensated employee for this purpose is any of the following employees. Free state and federal tax returns An officer. Free state and federal tax returns A shareholder who owns more than 5% of the voting power or value of all classes of the employer's stock. Free state and federal tax returns An employee who is highly compensated based on the facts and circumstances. Free state and federal tax returns A spouse or dependent of a person described in (1), (2), or (3). Free state and federal tax returns Plans that favor key employees. Free state and federal tax returns   If your plan favors key employees, you must include in their wages the value of taxable benefits they could have selected. Free state and federal tax returns A plan favors key employees if more than 25% of the total of the nontaxable benefits you provide for all employees under the plan go to key employees. Free state and federal tax returns However, a plan you maintain under a collective bargaining agreement does not favor key employees. Free state and federal tax returns   A key employee during 2014 is generally an employee who is either of the following. Free state and federal tax returns An officer having annual pay of more than $170,000. Free state and federal tax returns An employee who for 2014 is either of the following. Free state and federal tax returns A 5% owner of your business. Free state and federal tax returns A 1% owner of your business whose annual pay was more than $150,000. Free state and federal tax returns Simple Cafeteria Plans Eligible employers meeting contribution requirements and eligibility and participation requirements can establish a simple cafeteria plan. Free state and federal tax returns Simple cafeteria plans are treated as meeting the nondiscrimination requirements of a cafeteria plan and certain benefits under a cafeteria plan. Free state and federal tax returns Eligible employer. Free state and federal tax returns   You are an eligible employer if you employ an average of 100 or fewer employees during either of the 2 preceding years. Free state and federal tax returns If your business was not in existence throughout the preceding year, you are eligible if you reasonably expect to employ an average of 100 or fewer employees in the current year. Free state and federal tax returns If you establish a simple cafeteria plan in a year that you employ an average of 100 or fewer employees, you are considered an eligible employer for any subsequent year as long as you do not employ an average of 200 or more employees in a subsequent year. Free state and federal tax returns Eligibility and participation requirements. Free state and federal tax returns   These requirements are met if all employees who had at least 1,000 hours of service for the preceding plan year are eligible to participate and each employee eligible to participate in the plan may elect any benefit available under the plan. Free state and federal tax returns You may elect to exclude from the plan employees who: Are under age 21 before the close of the plan year, Have less than 1 year of service with you as of any day during the plan year, Are covered under a collective bargaining agreement, or Are nonresident aliens working outside the United States whose income did not come from a U. Free state and federal tax returns S. Free state and federal tax returns source. Free state and federal tax returns Contribution requirements. Free state and federal tax returns   You must make a contribution to provide qualified benefits on behalf of each qualified employee in an amount equal to: A uniform percentage (not less than 2%) of the employee’s compensation for the plan year, or An amount which is at least 6% of the employee’s compensation for the plan year or twice the amount of the salary reduction contributions of each qualified employee, whichever is less. Free state and federal tax returns If the contribution requirements are met using option (2), the rate of contribution to any salary reduction contribution of a highly compensated or key employee can not be greater than the rate of contribution to any other employee. Free state and federal tax returns More information. Free state and federal tax returns   For more information about cafeteria plans, see section 125 of the Internal Revenue Code and its regulations. Free state and federal tax returns 2. Free state and federal tax returns Fringe Benefit Exclusion Rules This section discusses the exclusion rules that apply to fringe benefits. Free state and federal tax returns These rules exclude all or part of the value of certain benefits from the recipient's pay. Free state and federal tax returns The excluded benefits are not subject to federal income tax withholding. Free state and federal tax returns Also, in most cases, they are not subject to social security, Medicare, or federal unemployment (FUTA) tax and are not reported on Form W-2. Free state and federal tax returns This section discusses the exclusion rules for the following fringe benefits. Free state and federal tax returns Accident and health benefits. Free state and federal tax returns Achievement awards. Free state and federal tax returns Adoption assistance. Free state and federal tax returns Athletic facilities. Free state and federal tax returns De minimis (minimal) benefits. Free state and federal tax returns Dependent care assistance. Free state and federal tax returns Educational assistance. Free state and federal tax returns Employee discounts. Free state and federal tax returns Employee stock options. Free state and federal tax returns Employer-provided cell phones. Free state and federal tax returns Group-term life insurance coverage. Free state and federal tax returns Health savings accounts (HSAs). Free state and federal tax returns Lodging on your business premises. Free state and federal tax returns Meals. Free state and federal tax returns Moving expense reimbursements. Free state and federal tax returns No-additional-cost services. Free state and federal tax returns Retirement planning services. Free state and federal tax returns Transportation (commuting) benefits. Free state and federal tax returns Tuition reduction. Free state and federal tax returns Working condition benefits. Free state and federal tax returns See Table 2-1, later, for an overview of the employment tax treatment of these benefits. Free state and federal tax returns Table 2-1. Free state and federal tax returns Special Rules for Various Types of Fringe Benefits (For more information, see the full discussion in this section. Free state and federal tax returns ) Treatment Under Employment Taxes Type of Fringe Benefit Income Tax Withholding Social Security and Medicare (including Additional Medicare Tax when wages are paid in excess of $200,000) Federal Unemployment (FUTA) Accident and health benefits Exempt1,2, except for long-term care benefits provided through a flexible spending or similar arrangement. Free state and federal tax returns Exempt, except for certain payments to S corporation employees who are 2% shareholders. Free state and federal tax returns Exempt Achievement awards Exempt1 up to $1,600 for qualified plan awards ($400 for nonqualified awards). Free state and federal tax returns Adoption assistance Exempt1,3 Taxable Taxable Athletic facilities Exempt if substantially all use during the calendar year is by employees, their spouses, and their dependent children and the facility is operated by the employer on premises owned or leased by the employer. Free state and federal tax returns De minimis (minimal) benefits Exempt Exempt Exempt Dependent care assistance Exempt3 up to certain limits, $5,000 ($2,500 for married employee filing separate return). Free state and federal tax returns Educational assistance Exempt up to $5,250 of benefits each year. Free state and federal tax returns (See Educational Assistance , later in this section. Free state and federal tax returns ) Employee discounts Exempt3 up to certain limits. Free state and federal tax returns (See Employee Discounts , later in this section. Free state and federal tax returns ) Employee stock options See Employee Stock Options , later in this section. Free state and federal tax returns Employer-provided cell phones Exempt if provided primarily for noncompensatory business purposes. Free state and federal tax returns Group-term life insurance coverage Exempt Exempt1,4, 7 up to cost of $50,000 of coverage. Free state and federal tax returns (Special rules apply to former employees. Free state and federal tax returns ) Exempt Health savings accounts (HSAs) Exempt for qualified individuals up to the HSA contribution limits. Free state and federal tax returns (See Health Savings Accounts , later in this section. Free state and federal tax returns ) Lodging on your business premises Exempt1 if furnished for your convenience as a condition of employment. Free state and federal tax returns Meals Exempt if furnished on your business premises for your convenience. Free state and federal tax returns Exempt if de minimis. Free state and federal tax returns Moving expense reimbursements Exempt1 if expenses would be deductible if the employee had paid them. Free state and federal tax returns No-additional-cost services Exempt3 Exempt3 Exempt3 Retirement planning services Exempt5 Exempt5 Exempt5 Transportation (commuting) benefits Exempt1 up to certain limits if for rides in a commuter highway vehicle and/or transit passes ($130), qualified parking ($250), or qualified bicycle commuting reimbursement6 ($20). Free state and federal tax returns (See Transportation (Commuting) Benefits , later in this section. Free state and federal tax returns ) Exempt if de minimis. Free state and federal tax returns Tuition reduction Exempt3 if for undergraduate education (or graduate education if the employee performs teaching or research activities). Free state and federal tax returns Working condition benefits Exempt Exempt Exempt 1 Exemption does not apply to S corporation employees who are 2% shareholders. Free state and federal tax returns 2 Exemption does not apply to certain highly compensated employees under a self-insured plan that favors those employees. Free state and federal tax returns 3 Exemption does not apply to certain highly compensated employees under a program that favors those employees. Free state and federal tax returns 4 Exemption does not apply to certain key employees under a plan that favors those employees. Free state and federal tax returns 5 Exemption does not apply to services for tax preparation, accounting, legal, or brokerage services. Free state and federal tax returns 6 If the employee receives a qualified bicycle commuting reimbursement in a qualified bicycle commuting month, the employee cannot receive commuter highway vehicle, transit pass, or qualified parking benefits in that same month. Free state and federal tax returns 7 You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Free state and federal tax returns Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Free state and federal tax returns Also, show it in box 12 with code “C. Free state and federal tax returns ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Free state and federal tax returns Accident and Health Benefits This exclusion applies to contributions you make to an accident or health plan for an employee, including the following. Free state and federal tax returns Contributions to the cost of accident or health insurance including qualified long-term care insurance. Free state and federal tax returns Contributions to a separate trust or fund that directly or through insurance provides accident or health benefits. Free state and federal tax returns Contributions to Archer MSAs or health savings accounts (discussed in Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans). Free state and federal tax returns This exclusion also applies to payments you directly or indirectly make to an employee under an accident or health plan for employees that are either of the following. Free state and federal tax returns Payments or reimbursements of medical expenses. Free state and federal tax returns Payments for specific injuries or illnesses (such as the loss of the use of an arm or leg). Free state and federal tax returns The payments must be figured without regard to any period of absence from work. Free state and federal tax returns Accident or health plan. Free state and federal tax returns   This is an arrangement that provides benefits for your employees, their spouses, their dependents, and their children (under age 27) in the event of personal injury or sickness. Free state and federal tax returns The plan may be insured or noninsured and does not need to be in writing. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat the following individuals as employees. Free state and federal tax returns A current common-law employee. Free state and federal tax returns A full-time life insurance agent who is a current statutory employee. Free state and federal tax returns A retired employee. Free state and federal tax returns A former employee you maintain coverage for based on the employment relationship. Free state and federal tax returns A widow or widower of an individual who died while an employee. Free state and federal tax returns A widow or widower of a retired employee. Free state and federal tax returns For the exclusion of contributions to an accident or health plan, a leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Free state and federal tax returns Special rule for certain government plans. Free state and federal tax returns   For certain government accident and health plans, payments to a deceased plan participant's beneficiary may qualify for the exclusion from gross income if the other requirements for exclusion are met. Free state and federal tax returns See section 105(j) for details. Free state and federal tax returns Exception for S corporation shareholders. Free state and federal tax returns   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Free state and federal tax returns A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Free state and federal tax returns Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Free state and federal tax returns Exclusion from wages. Free state and federal tax returns   You can generally exclude the value of accident or health benefits you provide to an employee from the employee's wages. Free state and federal tax returns Exception for certain long-term care benefits. Free state and federal tax returns   You cannot exclude contributions to the cost of long-term care insurance from an employee's wages subject to federal income tax withholding if the coverage is provided through a flexible spending or similar arrangement. Free state and federal tax returns This is a benefit program that reimburses specified expenses up to a maximum amount that is reasonably available to the employee and is less than five times the total cost of the insurance. Free state and federal tax returns However, you can exclude these contributions from the employee's wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Free state and federal tax returns S corporation shareholders. Free state and federal tax returns   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the value of accident or health benefits you provide to the employee in the employee's wages subject to federal income tax withholding. Free state and federal tax returns However, you can exclude the value of these benefits (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Free state and federal tax returns Exception for highly compensated employees. Free state and federal tax returns   If your plan is a self-insured medical reimbursement plan that favors highly compensated employees, you must include all or part of the amounts you pay to these employees in their wages subject to federal income tax withholding. Free state and federal tax returns However, you can exclude these amounts (other than payments for specific injuries or illnesses) from the employee's wages subject to social security, Medicare, and FUTA taxes. Free state and federal tax returns   A self-insured plan is a plan that reimburses your employees for medical expenses not covered by an accident or health insurance policy. Free state and federal tax returns   A highly compensated employee for this exception is any of the following individuals. Free state and federal tax returns One of the five highest paid officers. Free state and federal tax returns An employee who owns (directly or indirectly) more than 10% in value of the employer's stock. Free state and federal tax returns An employee who is among the highest paid 25% of all employees (other than those who can be excluded from the plan). Free state and federal tax returns   For more information on this exception, see section 105(h) of the Internal Revenue Code and its regulations. Free state and federal tax returns COBRA premiums. Free state and federal tax returns   The exclusion for accident and health benefits applies to amounts you pay to maintain medical coverage for a current or former employee under the Combined Omnibus Budget Reconciliation Act of 1986 (COBRA). Free state and federal tax returns The exclusion applies regardless of the length of employment, whether you directly pay the premiums or reimburse the former employee for premiums paid, and whether the employee's separation is permanent or temporary. Free state and federal tax returns Achievement Awards This exclusion applies to the value of any tangible personal property you give to an employee as an award for either length of service or safety achievement. Free state and federal tax returns The exclusion does not apply to awards of cash, cash equivalents, gift certificates, or other intangible property such as vacations, meals, lodging, tickets to theater or sporting events, stocks, bonds, and other securities. Free state and federal tax returns The award must meet the requirements for employee achievement awards discussed in chapter 2 of Publication 535, Business Expenses. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat the following individuals as employees. Free state and federal tax returns A current employee. Free state and federal tax returns A former common-law employee you maintain coverage for in consideration of or based on an agreement relating to prior service as an employee. Free state and federal tax returns A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Free state and federal tax returns Exception for S corporation shareholders. Free state and federal tax returns   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Free state and federal tax returns A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Free state and federal tax returns Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Free state and federal tax returns Exclusion from wages. Free state and federal tax returns   You can generally exclude the value of achievement awards you give to an employee from the employee's wages if their cost is not more than the amount you can deduct as a business expense for the year. Free state and federal tax returns The excludable annual amount is $1,600 ($400 for awards that are not “qualified plan awards”). Free state and federal tax returns See chapter 2 of Publication 535 for more information about the limit on deductions for employee achievement awards. Free state and federal tax returns    To determine for 2014 whether an achievement award is a “qualified plan award” under the deduction rules described in Publication 535, treat any employee who received more than $115,000 in pay for 2013 as a highly compensated employee. Free state and federal tax returns   If the cost of awards given to an employee is more than your allowable deduction, include in the employee's wages the larger of the following amounts. Free state and federal tax returns The part of the cost that is more than your allowable deduction (up to the value of the awards). Free state and federal tax returns The amount by which the value of the awards exceeds your allowable deduction. Free state and federal tax returns Exclude the remaining value of the awards from the employee's wages. Free state and federal tax returns Adoption Assistance An adoption assistance program is a separate written plan of an employer that meets all of the following requirements. Free state and federal tax returns It benefits employees who qualify under rules set up by you, which do not favor highly compensated employees or their dependents. Free state and federal tax returns To determine whether your plan meets this test, do not consider employees excluded from your plan who are covered by a collective bargaining agreement, if there is evidence that adoption assistance was a subject of good-faith bargaining. Free state and federal tax returns It does not pay more than 5% of its payments during the year for shareholders or owners (or their spouses or dependents). Free state and federal tax returns A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Free state and federal tax returns You give reasonable notice of the plan to eligible employees. Free state and federal tax returns Employees provide reasonable substantiation that payments or reimbursements are for qualifying expenses. Free state and federal tax returns For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Free state and federal tax returns The employee was a 5% owner at any time during the year or the preceding year. Free state and federal tax returns The employee received more than $115,000 in pay for the preceding year. Free state and federal tax returns You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Free state and federal tax returns You must exclude all payments or reimbursements you make under an adoption assistance program for an employee's qualified adoption expenses from the employee's wages subject to federal income tax withholding. Free state and federal tax returns However, you cannot exclude these payments from wages subject to social security, Medicare, and federal unemployment (FUTA) taxes. Free state and federal tax returns For more information, see the Instructions for Form 8839, Qualified Adoption Expenses. Free state and federal tax returns You must report all qualifying adoption expenses you paid or reimbursed under your adoption assistance program for each employee for the year in box 12 of the employee's Form W-2. Free state and federal tax returns Use code “T” to identify this amount. Free state and federal tax returns Exception for S corporation shareholders. Free state and federal tax returns   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Free state and federal tax returns A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Free state and federal tax returns Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, including using the benefit as a reduction in distributions to the 2% shareholder. Free state and federal tax returns Athletic Facilities You can exclude the value of an employee's use of an on-premises gym or other athletic facility you operate from an employee's wages if substantially all use of the facility during the calendar year is by your employees, their spouses, and their dependent children. Free state and federal tax returns For this purpose, an employee's dependent child is a child or stepchild who is the employee's dependent or who, if both parents are deceased, has not attained the age of 25. Free state and federal tax returns On-premises facility. Free state and federal tax returns   The athletic facility must be located on premises you own or lease. Free state and federal tax returns It does not have to be located on your business premises. Free state and federal tax returns However, the exclusion does not apply to an athletic facility for residential use, such as athletic facilities that are part of a resort. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat the following individuals as employees. Free state and federal tax returns A current employee. Free state and federal tax returns A former employee who retired or left on disability. Free state and federal tax returns A widow or widower of an individual who died while an employee. Free state and federal tax returns A widow or widower of a former employee who retired or left on disability. Free state and federal tax returns A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Free state and federal tax returns A partner who performs services for a partnership. Free state and federal tax returns De Minimis (Minimal) Benefits You can exclude the value of a de minimis benefit you provide to an employee from the employee's wages. Free state and federal tax returns A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable. Free state and federal tax returns Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare. Free state and federal tax returns Examples of de minimis benefits include the following. Free state and federal tax returns Personal use of an employer-provided cell phone provided primarily for noncompensatory business purposes. Free state and federal tax returns See Employer-Provided Cell Phones , later in this section, for details. Free state and federal tax returns Occasional personal use of a company copying machine if you sufficiently control its use so that at least 85% of its use is for business purposes. Free state and federal tax returns Holiday gifts, other than cash, with a low fair market value. Free state and federal tax returns Group-term life insurance payable on the death of an employee's spouse or dependent if the face amount is not more than $2,000. Free state and federal tax returns Meals. Free state and federal tax returns See Meals , later in this section, for details. Free state and federal tax returns Occasional parties or picnics for employees and their guests. Free state and federal tax returns Occasional tickets for theater or sporting events. Free state and federal tax returns Transportation fare. Free state and federal tax returns See Transportation (Commuting) Benefits , later in this section, for details. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat any recipient of a de minimis benefit as an employee. Free state and federal tax returns Dependent Care Assistance This exclusion applies to household and dependent care services you directly or indirectly pay for or provide to an employee under a dependent care assistance program that covers only your employees. Free state and federal tax returns The services must be for a qualifying person's care and must be provided to allow the employee to work. Free state and federal tax returns These requirements are basically the same as the tests the employee would have to meet to claim the dependent care credit if the employee paid for the services. Free state and federal tax returns For more information, see Qualifying Person Test and Work-Related Expense Test in Publication 503, Child and Dependent Care Expenses. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat the following individuals as employees. Free state and federal tax returns A current employee. Free state and federal tax returns A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Free state and federal tax returns Yourself (if you are a sole proprietor). Free state and federal tax returns A partner who performs services for a partnership. Free state and federal tax returns Exclusion from wages. Free state and federal tax returns   You can exclude the value of benefits you provide to an employee under a dependent care assistance program from the employee's wages if you reasonably believe that the employee can exclude the benefits from gross income. Free state and federal tax returns   An employee can generally exclude from gross income up to $5,000 of benefits received under a dependent care assistance program each year. Free state and federal tax returns This limit is reduced to $2,500 for married employees filing separate returns. Free state and federal tax returns   However, the exclusion cannot be more than the smaller of the earned income of either the employee or employee's spouse. Free state and federal tax returns Special rules apply to determine the earned income of a spouse who is either a student or not able to care for himself or herself. Free state and federal tax returns For more information on the earned income limit, see Publication 503. Free state and federal tax returns Exception for highly compensated employees. Free state and federal tax returns   You cannot exclude dependent care assistance from the wages of a highly compensated employee unless the benefits provided under the program do not favor highly compensated employees and the program meets the requirements described in section 129(d) of the Internal Revenue Code. Free state and federal tax returns   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Free state and federal tax returns The employee was a 5% owner at any time during the year or the preceding year. Free state and federal tax returns The employee received more than $115,000 in pay for the preceding year. Free state and federal tax returns You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Free state and federal tax returns Form W-2. Free state and federal tax returns   Report the value of all dependent care assistance you provide to an employee under a dependent care assistance program in box 10 of the employee's Form W-2. Free state and federal tax returns Include any amounts you cannot exclude from the employee's wages in boxes 1, 3, and 5. Free state and federal tax returns Report both the nontaxable portion of assistance (up to $5,000) and any assistance above the amount that is non-taxable to the employee. Free state and federal tax returns Example. Free state and federal tax returns   Company A provides a dependent care assistance flexible spending arrangement to its employees through a cafeteria plan. Free state and federal tax returns In addition, it provides occasional on-site dependent care to its employees at no cost. Free state and federal tax returns Emily, an employee of company A, had $4,500 deducted from her pay for the dependent care flexible spending arrangement. Free state and federal tax returns In addition, Emily used the on-site dependent care several times. Free state and federal tax returns The fair market value of the on-site care was $700. Free state and federal tax returns Emily's Form W-2 should report $5,200 of dependent care assistance in box 10 ($4,500 flexible spending arrangement plus $700 on-site dependent care). Free state and federal tax returns Boxes 1, 3, and 5 should include $200 (the amount in excess of the nontaxable assistance), and applicable taxes should be withheld on that amount. Free state and federal tax returns Educational Assistance This exclusion applies to educational assistance you provide to employees under an educational assistance program. Free state and federal tax returns The exclusion also applies to graduate level courses. Free state and federal tax returns Educational assistance means amounts you pay or incur for your employees' education expenses. Free state and federal tax returns These expenses generally include the cost of books, equipment, fees, supplies, and tuition. Free state and federal tax returns However, these expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education: Has a reasonable relationship to your business, or Is required as part of a degree program. Free state and federal tax returns Education expenses do not include the cost of tools or supplies (other than textbooks) your employee is allowed to keep at the end of the course. Free state and federal tax returns Nor do they include the cost of lodging, meals, or transportation. Free state and federal tax returns Educational assistance program. Free state and federal tax returns   An educational assistance program is a separate written plan that provides educational assistance only to your employees. Free state and federal tax returns The program qualifies only if all of the following tests are met. Free state and federal tax returns The program benefits employees who qualify under rules set up by you that do not favor highly compensated employees. Free state and federal tax returns To determine whether your program meets this test, do not consider employees excluded from your program who are covered by a collective bargaining agreement if there is evidence that educational assistance was a subject of good-faith bargaining. Free state and federal tax returns The program does not provide more than 5% of its benefits during the year for shareholders or owners. Free state and federal tax returns A shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business. Free state and federal tax returns The program does not allow employees to choose to receive cash or other benefits that must be included in gross income instead of educational assistance. Free state and federal tax returns You give reasonable notice of the program to eligible employees. Free state and federal tax returns Your program can cover former employees if their employment is the reason for the coverage. Free state and federal tax returns   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Free state and federal tax returns The employee was a 5% owner at any time during the year or the preceding year. Free state and federal tax returns The employee received more than $115,000 in pay for the preceding year. Free state and federal tax returns You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat the following individuals as employees. Free state and federal tax returns A current employee. Free state and federal tax returns A former employee who retired, left on disability, or was laid off. Free state and federal tax returns A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Free state and federal tax returns Yourself (if you are a sole proprietor). Free state and federal tax returns A partner who performs services for a partnership. Free state and federal tax returns Exclusion from wages. Free state and federal tax returns   You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year. Free state and federal tax returns Assistance over $5,250. Free state and federal tax returns   If you do not have an educational assistance plan, or you provide an employee with assistance exceeding $5,250, you must include the value of these benefits as wages, unless the benefits are working condition benefits. Free state and federal tax returns Working condition benefits may be excluded from wages. Free state and federal tax returns Property or a service provided is a working condition benefit to the extent that if the employee paid for it, the amount paid would have been deductible as a business or depreciation expense. Free state and federal tax returns See Working Condition Benefits , later, in this section. Free state and federal tax returns Employee Discounts This exclusion applies to a price reduction you give an employee on property or services you offer to customers in the ordinary course of the line of business in which the employee performs substantial services. Free state and federal tax returns However, it does not apply to discounts on real property or discounts on personal property of a kind commonly held for investment (such as stocks or bonds). Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat the following individuals as employees. Free state and federal tax returns A current employee. Free state and federal tax returns A former employee who retired or left on disability. Free state and federal tax returns A widow or widower of an individual who died while an employee. Free state and federal tax returns A widow or widower of an employee who retired or left on disability. Free state and federal tax returns A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction or control. Free state and federal tax returns A partner who performs services for a partnership. Free state and federal tax returns Exclusion from wages. Free state and federal tax returns   You can generally exclude the value of an employee discount you provide an employee from the employee's wages, up to the following limits. Free state and federal tax returns For a discount on services, 20% of the price you charge nonemployee customers for the service. Free state and federal tax returns For a discount on merchandise or other property, your gross profit percentage times the price you charge nonemployee customers for the property. Free state and federal tax returns   Determine your gross profit percentage in the line of business based on all property you offer to customers (including employee customers) and your experience during the tax year immediately before the tax year in which the discount is available. Free state and federal tax returns To figure your gross profit percentage, subtract the total cost of the property from the total sales price of the property and divide the result by the total sales price of the property. Free state and federal tax returns Exception for highly compensated employees. Free state and federal tax returns   You cannot exclude from the wages of a highly compensated employee any part of the value of a discount that is not available on the same terms to one of the following groups. Free state and federal tax returns All of your employees. Free state and federal tax returns A group of employees defined under a reasonable classification you set up that does not favor highly compensated employees. Free state and federal tax returns   For this exclusion, a highly compensated employee for 2014 is an employee who meets either of the following tests. Free state and federal tax returns The employee was a 5% owner at any time during the year or the preceding year. Free state and federal tax returns The employee received more than $115,000 in pay for the preceding year. Free state and federal tax returns You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Free state and federal tax returns Employee Stock Options There are three kinds of stock options—incentive stock options, employee stock purchase plan options, and nonstatutory (nonqualified) stock options. Free state and federal tax returns Wages for social security, Medicare, and federal unemployment (FUTA) taxes do not include remuneration resulting from the exercise, after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or from any disposition of stock acquired by exercising such an option. Free state and federal tax returns The IRS will not apply these taxes to an exercise before October 23, 2004, of an incentive stock option or an employee stock purchase plan option or to a disposition of stock acquired by such exercise. Free state and federal tax returns Additionally, federal income tax withholding is not required on the income resulting from a disqualifying disposition of stock acquired by the exercise after October 22, 2004, of an incentive stock option or under an employee stock purchase plan option, or on income equal to the discount portion of stock acquired by the exercise, after October 22, 2004, of an employee stock purchase plan option resulting from any disposition of the stock. Free state and federal tax returns The IRS will not apply federal income tax withholding upon the disposition of stock acquired by the exercise, before October 23, 2004, of an incentive stock option or an employee stock purchase plan option. Free state and federal tax returns However, the employer must report as income in box 1 of Form W-2, (a) the discount portion of stock acquired by the exercise of an employee stock purchase plan option upon disposition of the stock, and (b) the spread (between the exercise price and the fair market value of the stock at the time of exercise) upon a disqualifying disposition of stock acquired by the exercise of an incentive stock option or an employee stock purchase plan option. Free state and federal tax returns An employer must report the excess of the fair market value of stock received upon exercise of a nonstatutory stock option over the amount paid for the stock option on Form W-2 in boxes 1, 3 (up to the social security wage base), 5, and in box 12 using the code “V. Free state and federal tax returns ” See Regulations section 1. Free state and federal tax returns 83-7. Free state and federal tax returns An employee who transfers his or her interest in nonstatutory stock options to the employee's former spouse incident to a divorce is not required to include an amount in gross income upon the transfer. Free state and federal tax returns The former spouse, rather than the employee, is required to include an amount in gross income when the former spouse exercises the stock options. Free state and federal tax returns See Revenue Ruling 2002-22 and Revenue Ruling 2004-60 for details. Free state and federal tax returns You can find Revenue Ruling 2002-22 on page 849 of Internal Revenue Bulletin 2002-19 at www. Free state and federal tax returns irs. Free state and federal tax returns gov/pub/irs-irbs/irb02-19. Free state and federal tax returns pdf. Free state and federal tax returns See Revenue Ruling 2004-60, 2004-24 I. Free state and federal tax returns R. Free state and federal tax returns B. Free state and federal tax returns 1051, available at www. Free state and federal tax returns irs. Free state and federal tax returns gov/irb/2004-24_IRB/ar13. Free state and federal tax returns html. Free state and federal tax returns For more information about employee stock options, see sections 421, 422, and 423 of the Internal Revenue Code and their related regulations. Free state and federal tax returns Employer-Provided Cell Phones The value of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a working condition fringe benefit. Free state and federal tax returns Personal use of an employer-provided cell phone, provided primarily for noncompensatory business reasons, is excludable from an employee's income as a de minimis fringe benefit. Free state and federal tax returns For the rules relating to these types of benefits, see De Minimis (Minimal) Benefits , earlier in this section, and Working Condition Benefits , later in this section. Free state and federal tax returns Noncompensatory business purposes. Free state and federal tax returns   You provide a cell phone primarily for noncompensatory business purposes if there are substantial business reasons for providing the cell phone. Free state and federal tax returns Examples of substantial business reasons include the employer's: Need to contact the employee at all times for work-related emergencies, Requirement that the employee be available to speak with clients at times when the employee is away from the office, and Need to speak with clients located in other time zones at times outside the employee's normal workday. Free state and federal tax returns Cell phones provided to promote goodwill, boost morale, or attract prospective employees. Free state and federal tax returns   You cannot exclude from an employee's wages the value of a cell phone provided to promote goodwill of an employee, to attract a prospective employee, or as a means of providing additional compensation to an employee. Free state and federal tax returns Additional information. Free state and federal tax returns   For additional information on the tax treatment of employer-provided cell phones, see Notice 2011-72, 2011-38 I. Free state and federal tax returns R. Free state and federal tax returns B. Free state and federal tax returns 407, available at  www. Free state and federal tax returns irs. Free state and federal tax returns gov/irb/2011-38_IRB/ar07. Free state and federal tax returns html. Free state and federal tax returns Group-Term Life Insurance Coverage This exclusion applies to life insurance coverage that meets all the following conditions. Free state and federal tax returns It provides a general death benefit that is not included in income. Free state and federal tax returns You provide it to a group of employees. Free state and federal tax returns See The 10-employee rule , later. Free state and federal tax returns It provides an amount of insurance to each employee based on a formula that prevents individual selection. Free state and federal tax returns This formula must use factors such as the employee's age, years of service, pay, or position. Free state and federal tax returns You provide it under a policy you directly or indirectly carry. Free state and federal tax returns Even if you do not pay any of the policy's cost, you are considered to carry it if you arrange for payment of its cost by your employees and charge at least one employee less than, and at least one other employee more than, the cost of his or her insurance. Free state and federal tax returns Determine the cost of the insurance, for this purpose, as explained under Coverage over the limit , later. Free state and federal tax returns Group-term life insurance does not include the following insurance. Free state and federal tax returns Insurance that does not provide general death benefits, such as travel insurance or a policy providing only accidental death benefits. Free state and federal tax returns Life insurance on the life of your employee's spouse or dependent. Free state and federal tax returns However, you may be able to exclude the cost of this insurance from the employee's wages as a de minimis benefit. Free state and federal tax returns See De Minimis (Minimal) Benefits , earlier in this section. Free state and federal tax returns Insurance provided under a policy that provides a permanent benefit (an economic value that extends beyond 1 policy year, such as paid-up or cash surrender value), unless certain requirements are met. Free state and federal tax returns See Regulations section 1. Free state and federal tax returns 79-1 for details. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat the following individuals as employees. Free state and federal tax returns A current common-law employee. Free state and federal tax returns A full-time life insurance agent who is a current statutory employee. Free state and federal tax returns An individual who was formerly your employee under (1) or (2). Free state and federal tax returns A leased employee who has provided services to you on a substantially full-time basis for at least a year if the services are performed under your primary direction and control. Free state and federal tax returns Exception for S corporation shareholders. Free state and federal tax returns   Do not treat a 2% shareholder of an S corporation as an employee of the corporation for this purpose. Free state and federal tax returns A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Free state and federal tax returns Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Free state and federal tax returns The 10-employee rule. Free state and federal tax returns   Generally, life insurance is not group-term life insurance unless you provide it to at least 10 full-time employees at some time during the year. Free state and federal tax returns   For this rule, count employees who choose not to receive the insurance unless, to receive it, they must contribute to the cost of benefits other than the group-term life insurance. Free state and federal tax returns For example, count an employee who could receive insurance by paying part of the cost, even if that employee chooses not to receive it. Free state and federal tax returns However, do not count an employee who must pay part or all of the cost of permanent benefits to get insurance, unless that employee chooses to receive it. Free state and federal tax returns A permanent benefit is an economic value extending beyond one policy year (for example, a paid-up or cash-surrender value) that is provided under a life insurance policy. Free state and federal tax returns Exceptions. Free state and federal tax returns   Even if you do not meet the 10-employee rule, two exceptions allow you to treat insurance as group-term life insurance. Free state and federal tax returns   Under the first exception, you do not have to meet the 10-employee rule if all the following conditions are met. Free state and federal tax returns If evidence that the employee is insurable is required, it is limited to a medical questionnaire (completed by the employee) that does not require a physical. Free state and federal tax returns You provide the insurance to all your full-time employees or, if the insurer requires the evidence mentioned in (1), to all full-time employees who provide evidence the insurer accepts. Free state and federal tax returns You figure the coverage based on either a uniform percentage of pay or the insurer's coverage brackets that meet certain requirements. Free state and federal tax returns See Regulations section 1. Free state and federal tax returns 79-1 for details. Free state and federal tax returns   Under the second exception, you do not have to meet the 10-employee rule if all the following conditions are met. Free state and federal tax returns You provide the insurance under a common plan covering your employees and the employees of at least one other employer who is not related to you. Free state and federal tax returns The insurance is restricted to, but mandatory for, all your employees who belong to, or are represented by, an organization (such as a union) that carries on substantial activities besides obtaining insurance. Free state and federal tax returns Evidence of whether an employee is insurable does not affect an employee's eligibility for insurance or the amount of insurance that employee gets. Free state and federal tax returns   To apply either exception, do not consider employees who were denied insurance for any of the following reasons. Free state and federal tax returns They were 65 or older. Free state and federal tax returns They customarily work 20 hours or less a week or 5 months or less in a calendar year. Free state and federal tax returns They have not been employed for the waiting period given in the policy. Free state and federal tax returns This waiting period cannot be more than 6 months. Free state and federal tax returns Exclusion from wages. Free state and federal tax returns   You can generally exclude the cost of up to $50,000 of group-term life insurance from the wages of an insured employee. Free state and federal tax returns You can exclude the same amount from the employee's wages when figuring social security and Medicare taxes. Free state and federal tax returns In addition, you do not have to withhold federal income tax or pay FUTA tax on any group-term life insurance you provide to an employee. Free state and federal tax returns Coverage over the limit. Free state and federal tax returns   You must include in your employee's wages the cost of group-term life insurance beyond $50,000 worth of coverage, reduced by the amount the employee paid toward the insurance. Free state and federal tax returns Report it as wages in boxes 1, 3, and 5 of the employee's Form W-2. Free state and federal tax returns Also, show it in box 12 with code “C. Free state and federal tax returns ” The amount is subject to social security and Medicare taxes, and you may, at your option, withhold federal income tax. Free state and federal tax returns   Figure the monthly cost of the insurance to include in the employee's wages by multiplying the number of thousands of dollars of all insurance coverage over $50,000 (figured to the nearest $100) by the cost shown in Table 2-2. Free state and federal tax returns For all coverage provided within the calendar year, use the employee's age on the last day of the employee's tax year. Free state and federal tax returns You must prorate the cost from the table if less than a full month of coverage is involved. Free state and federal tax returns Table 2-2. Free state and federal tax returns Cost Per $1,000 of Protection For 1 Month Age Cost Under 25 $ . Free state and federal tax returns 05 25 through 29 . Free state and federal tax returns 06 30 through 34 . Free state and federal tax returns 08 35 through 39 . Free state and federal tax returns 09 40 through 44 . Free state and federal tax returns 10 45 through 49 . Free state and federal tax returns 15 50 through 54 . Free state and federal tax returns 23 55 through 59 . Free state and federal tax returns 43 60 through 64 . Free state and federal tax returns 66 65 through 69 1. Free state and federal tax returns 27 70 and older 2. Free state and federal tax returns 06 You figure the total cost to include in the employee's wages by multiplying the monthly cost by the number of full months' coverage at that cost. Free state and federal tax returns Example. Free state and federal tax returns Tom's employer provides him with group-term life insurance coverage of $200,000. Free state and federal tax returns Tom is 45 years old, is not a key employee, and pays $100 per year toward the cost of the insurance. Free state and federal tax returns Tom's employer must include $170 in his wages. Free state and federal tax returns The $200,000 of insurance coverage is reduced by $50,000. Free state and federal tax returns The yearly cost of $150,000 of coverage is $270 ($. Free state and federal tax returns 15 x 150 x 12), and is reduced by the $100 Tom pays for the insurance. Free state and federal tax returns The employer includes $170 in boxes 1, 3, and 5 of Tom's Form W-2. Free state and federal tax returns The employer also enters $170 in box 12 with code “C. Free state and federal tax returns ” Coverage for dependents. Free state and federal tax returns   Group-term life insurance coverage paid by the employer for the spouse or dependents of an employee may be excludable from income as a de minimis fringe benefit if the face amount is not more than $2,000. Free state and federal tax returns If the face amount is greater than $2,000, the entire cost of the dependent coverage must be included in income unless the amount over $2,000 is purchased with employee contributions on an after-tax basis. Free state and federal tax returns The cost of the insurance is determined by using Table 2-2. Free state and federal tax returns Former employees. Free state and federal tax returns   When group-term life insurance over $50,000 is provided to an employee (including retirees) after his or her termination, the employee share of social security and Medicare taxes on that period of coverage is paid by the former employee with his or her tax return and is not collected by the employer. Free state and federal tax returns You are not required to collect those taxes. Free state and federal tax returns Use the table above to determine the amount of social security and Medicare taxes owed by the former employee for coverage provided after separation from service. Free state and federal tax returns Report those uncollected amounts separately in box 12 of Form W-2 using codes “M” and “N. Free state and federal tax returns ” See the General Instructions for Forms W-2 and W-3 and the Instructions for Form 941. Free state and federal tax returns Exception for key employees. Free state and federal tax returns   Generally, if your group-term life insurance plan favors key employees as to participation or benefits, you must include the entire cost of the insurance in your key employees' wages. Free state and federal tax returns This exception generally does not apply to church plans. Free state and federal tax returns When figuring social security and Medicare taxes, you must also include the entire cost in the employees' wages. Free state and federal tax returns Include the cost in boxes 1, 3, and 5 of Form W-2. Free state and federal tax returns However, you do not have to withhold federal income tax or pay FUTA tax on the cost of any group-term life insurance you provide to an employee. Free state and federal tax returns   For this purpose, the cost of the insurance is the greater of the following amounts. Free state and federal tax returns The premiums you pay for the employee's insurance. Free state and federal tax returns See Regulations section 1. Free state and federal tax returns 79-4T(Q&A 6) for more information. Free state and federal tax returns The cost you figure using Table 2-2. Free state and federal tax returns   For this exclusion, a key employee during 2014 is an employee or former employee who is one of the following individuals. Free state and federal tax returns See section 416(i) of the Internal Revenue Code for more information. Free state and federal tax returns An officer having annual pay of more than $170,000. Free state and federal tax returns An individual who for 2014 was either of the following. Free state and federal tax returns A 5% owner of your business. Free state and federal tax returns A 1% owner of your business whose annual pay was more than $150,000. Free state and federal tax returns   A former employee who was a key employee upon retirement or separation from service is also a key employee. Free state and federal tax returns   Your plan does not favor key employees as to participation if at least one of the following is true. Free state and federal tax returns It benefits at least 70% of your employees. Free state and federal tax returns At least 85% of the participating employees are not key employees. Free state and federal tax returns It benefits employees who qualify under a set of rules you set up that do not favor key employees. Free state and federal tax returns   Your plan meets this participation test if it is part of a cafeteria plan (discussed in section 1) and it meets the participation test for those plans. Free state and federal tax returns   When applying this test, do not consider employees who: Have not completed 3 years of service, Are part-time or seasonal, Are nonresident aliens who receive no U. Free state and federal tax returns S. Free state and federal tax returns source earned income from you, or Are not included in the plan but are in a unit of employees covered by a collective bargaining agreement, if the benefits provided under the plan were the subject of good-faith bargaining between you and employee representatives. Free state and federal tax returns   Your plan does not favor key employees as to benefits if all benefits available to participating key employees are also available to all other participating employees. Free state and federal tax returns Your plan does not favor key employees just because the amount of insurance you provide to your employees is uniformly related to their pay. Free state and federal tax returns S corporation shareholders. Free state and federal tax returns   Because you cannot treat a 2% shareholder of an S corporation as an employee for this exclusion, you must include the cost of all group-term life insurance coverage you provide the 2% shareholder in his or her wages. Free state and federal tax returns When figuring social security and Medicare taxes, you must also include the cost of this coverage in the 2% shareholder's wages. Free state and federal tax returns Include the cost in boxes 1, 3, and 5 of Form W-2. Free state and federal tax returns However, you do not have to withhold federal income tax or pay federal unemployment tax on the cost of any group-term life insurance coverage you provide to the 2% shareholder. Free state and federal tax returns Health Savings Accounts A Health Savings Account (HSA) is an account owned by a qualified individual who is generally your employee or former employee. Free state and federal tax returns Any contributions that you make to an HSA become the employee's property and cannot be withdrawn by you. Free state and federal tax returns Contributions to the account are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent. Free state and federal tax returns The medical expenses must not be reimbursable by insurance or other sources and their payment from HSA funds (distribution) will not give rise to a medical expense deduction on the individual's federal income tax return. Free state and federal tax returns For more information about HSAs, visit the Department of Treasury's website at www. Free state and federal tax returns treasury. Free state and federal tax returns gov and enter “HSA” in the search box. Free state and federal tax returns Eligibility. Free state and federal tax returns   A qualified individual must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance except for permitted insurance listed under section 223(c)(3) or insurance for accidents, disability, dental care, vision care, or long-term care. Free state and federal tax returns For calendar year 2014, a qualifying HDHP must have a deductible of at least $1,250 for self-only coverage or $2,500 for family coverage and must limit annual out-of-pocket expenses of the beneficiary to $6,350 for self-only coverage and $12,700 for family coverage. Free state and federal tax returns   There are no income limits that restrict an individual's eligibility to contribute to an HSA nor is there a requirement that the account owner have earned income to make a contribution. Free state and federal tax returns Exceptions. Free state and federal tax returns   An individual is not a qualified individual if he or she can be claimed as a dependent on another person's tax return. Free state and federal tax returns Also, an employee's participation in a health flexible spending arrangement (FSA) or health reimbursement arrangement (HRA) generally disqualifies the individual (and employer) from making contributions to his or her HSA. Free state and federal tax returns However, an individual may qualify to participate in an HSA if he or she is participating in only a limited-purpose FSA or HRA or a post-deductible FSA. Free state and federal tax returns For more information, see Other employee health plans in Publication 969. Free state and federal tax returns Employer contributions. Free state and federal tax returns   Up to specified dollar limits, cash contributions to the HSA of a qualified individual (determined monthly) are exempt from federal income tax withholding, social security tax, Medicare tax, and FUTA tax. Free state and federal tax returns For 2014, you can contribute up to $3,300 for self-only coverage or $6,550 for family coverage to a qualified individual's HSA. Free state and federal tax returns   The contribution amounts listed above are increased by $1,000 for a qualified individual who is age 55 or older at any time during the year. Free state and federal tax returns For two qualified individuals who are married to each other and who each are age 55 or older at any time during the year, each spouse's contribution limit is increased by $1,000 provided each spouse has a separate HSA. Free state and federal tax returns No contributions can be made to an individual's HSA after he or she becomes enrolled in Medicare Part A or Part B. Free state and federal tax returns Nondiscrimination rules. Free state and federal tax returns    Your contribution amount to an employee's HSA must be comparable for all employees who have comparable coverage during the same period. Free state and federal tax returns Otherwise, there will be an excise tax equal to 35% of the amount you contributed to all employees' HSAs. Free state and federal tax returns   For guidance on employer comparable contributions to HSAs under section 4980G in instances where an employee has not established an HSA by December 31 and in instances where an employer accelerates contributions for the calendar year for employees who have incurred qualified medical expenses, see Regulations section 54. Free state and federal tax returns 4980G-4. Free state and federal tax returns Exception. Free state and federal tax returns   The Tax Relief and Health Care Act of 2006 allows employers to make larger HSA contributions for a nonhighly compensated employee than for a highly compensated employee. Free state and federal tax returns A highly compensated employee for 2014 is an employee who meets either of the following tests. Free state and federal tax returns The employee was a 5% owner at any time during the year or the preceding year. Free state and federal tax returns The employee received more than $115,000 in pay for the preceding year. Free state and federal tax returns You can choose to ignore test (2) if the employee was not also in the top 20% of employees when ranked by pay for the preceding year. Free state and federal tax returns Partnerships and S corporations. Free state and federal tax returns   Partners and 2% shareholders of an S corporation are not eligible for salary reduction (pre-tax) contributions to an HSA. Free state and federal tax returns Employer contributions to the HSA of a bona fide partner or 2% shareholder are treated as distributions or guaranteed payments as determined by the facts and circumstances. Free state and federal tax returns Cafeteria plans. Free state and federal tax returns   You may contribute to an employee's HSA using a cafeteria plan and your contributions are not subject to the statutory comparability rules. Free state and federal tax returns However, cafeteria plan nondiscrimination rules still apply. Free state and federal tax returns For example, contributions under a cafeteria plan to employee HSAs cannot be greater for higher-paid employees than they are for lower-paid employees. Free state and federal tax returns Contributions that favor lower-paid employees are not prohibited. Free state and federal tax returns Reporting requirements. Free state and federal tax returns   You must report your contributions to an employee's HSA in box 12 of Form W-2 using code “W. Free state and federal tax returns ” The trustee or custodian of the HSA, generally a bank or insurance company, reports distributions from the HSA using Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Free state and federal tax returns Lodging on Your Business Premises You can exclude the value of lodging you furnish to an employee from the employee's wages if it meets the following tests. Free state and federal tax returns It is furnished on your business premises. Free state and federal tax returns It is furnished for your convenience. Free state and federal tax returns The employee must accept it as a condition of employment. Free state and federal tax returns Different tests may apply to lodging furnished by educational institutions. Free state and federal tax returns See section 119(d) of the Internal Revenue Code for details. Free state and federal tax returns The exclusion does not apply if you allow your employee to choose to receive additional pay instead of lodging. Free state and federal tax returns On your business premises. Free state and federal tax returns   For this exclusion, your business premises is generally your employee's place of work. Free state and federal tax returns For special rules that apply to lodging furnished in a camp located in a foreign country, see section 119(c) of the Internal Revenue Code and its regulations. Free state and federal tax returns For your convenience. Free state and federal tax returns   Whether or not you furnish lodging for your convenience as an employer depends on all the facts and circumstances. Free state and federal tax returns You furnish the lodging to your employee for your convenience if you do this for a substantial business reason other than to provide the employee with additional pay. Free state and federal tax returns This is true even if a law or an employment contract provides that the lodging is furnished as pay. Free state and federal tax returns However, a written statement that the lodging is furnished for your convenience is not sufficient. Free state and federal tax returns Condition of employment. Free state and federal tax returns   Lodging meets this test if you require your employees to accept the lodging because they need to live on your business premises to be able to properly perform their duties. Free state and federal tax returns Examples include employees who must be available at all times and employees who could not perform their required duties without being furnished the lodging. Free state and federal tax returns   It does not matter whether you must furnish the lodging as pay under the terms of an employment contract or a law fixing the terms of employment. Free state and federal tax returns Example. Free state and federal tax returns A hospital gives Joan, an employee of the hospital, the choice of living at the hospital free of charge or living elsewhere and receiving a cash allowance in addition to her regular salary. Free state and federal tax returns If Joan chooses to live at the hospital, the hospital cannot exclude the value of the lodging from her wages because she is not required to live at the hospital to properly perform the duties of her employment. Free state and federal tax returns S corporation shareholders. Free state and federal tax returns   For this exclusion, do not treat a 2% shareholder of an S corporation as an employee of the corporation. Free state and federal tax returns A 2% shareholder is someone who directly or indirectly owns (at any time during the year) more than 2% of the corporation's stock or stock with more than 2% of the voting power. Free state and federal tax returns Treat a 2% shareholder as you would a partner in a partnership for fringe benefit purposes, but do not treat the benefit as a reduction in distributions to the 2% shareholder. Free state and federal tax returns Meals This section discusses the exclusion rules that apply to de minimis meals and meals on your business premises. Free state and federal tax returns De Minimis Meals You can exclude any occasional meal or meal money you provide to an employee if it has so little value (taking into account how frequently you provide meals to your employees) that accounting for it would be unreasonable or administratively impracticable. Free state and federal tax returns The exclusion applies, for example, to the following items. Free state and federal tax returns Coffee, doughnuts, or soft drinks. Free state and federal tax returns Occasional meals or meal money provided to enable an employee to work overtime. Free state and federal tax returns However, the exclusion does not apply to meal money figured on the basis of hours worked. Free state and federal tax returns Occasional parties or picnics for employees and their guests. Free state and federal tax returns This exclusion also applies to meals you provide at an employer-operated eating facility for employees if the annual revenue from the facility equals or exceeds the direct costs of the facility. Free state and federal tax returns For this purpose, your revenue from providing a meal is considered equal to the facility's direct operating costs to provide that meal if its value can be excluded from an employee's wages as explained under Meals on Your Business Premises , later. Free state and federal tax returns If food or beverages you furnish to employees qualify as a de minimis benefit, you can deduct their full cost. Free state and federal tax returns The 50% limit on deductions for the cost of meals does not apply. Free state and federal tax returns The deduction limit on meals is discussed in chapter 2 of Publication 535. Free state and federal tax returns Employee. Free state and federal tax returns   For this exclusion, treat any recipient of a de minimis meal as
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The Free State And Federal Tax Returns

Free state and federal tax returns 35. Free state and federal tax returns   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). Free state and federal tax returns Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. Free state and federal tax returns Este capítulo explica en términos generales estos créditos tributarios por estudios. Free state and federal tax returns Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. Free state and federal tax returns ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. Free state and federal tax returns Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. Free state and federal tax returns   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. Free state and federal tax returns   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. Free state and federal tax returns Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. Free state and federal tax returns    Tabla 35-1. Free state and federal tax returns Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. Free state and federal tax returns   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. Free state and federal tax returns   Existen varias diferencias entre estos dos créditos. Free state and federal tax returns Estas diferencias se resumen en la Tabla 35-1, más adelante. Free state and federal tax returns Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. Free state and federal tax returns Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. Free state and federal tax returns Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. Free state and federal tax returns Período académico. Free state and federal tax returns   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. Free state and federal tax returns En el caso de una institución de enseñanza superior que no tenga períodos académicos sino horas de crédito u horas de reloj, cada período de pago se puede considerar período académico. Free state and federal tax returns Institución de enseñanza superior que reúne los requisitos. Free state and federal tax returns   Una “institución de enseñanza superior que reúne los requisitos” es todo colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante administrado por el Departamento de Educación de los Estados Unidos. Free state and federal tax returns Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. Free state and federal tax returns La institución de enseñanza superior debe poder indicarle si reúne los requisitos. Free state and federal tax returns   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. Free state and federal tax returns ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. Free state and federal tax returns Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. Free state and federal tax returns Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. Free state and federal tax returns Gastos pagados por un tercero. Free state and federal tax returns   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Free state and federal tax returns Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. Free state and federal tax returns Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. Free state and federal tax returns Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. Free state and federal tax returns ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. Free state and federal tax returns Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. Free state and federal tax returns Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. Free state and federal tax returns Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Free state and federal tax returns Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Free state and federal tax returns   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. Free state and federal tax returns No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. Free state and federal tax returns Para más detalles, vea la Publicación 970, en inglés. Free state and federal tax returns   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. Free state and federal tax returns    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. Free state and federal tax returns Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. Free state and federal tax returns En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. Free state and federal tax returns Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. Free state and federal tax returns Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. Free state and federal tax returns No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. Free state and federal tax returns Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. Free state and federal tax returns Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. Free state and federal tax returns Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. Free state and federal tax returns Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. Free state and federal tax returns Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. Free state and federal tax returns Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. Free state and federal tax returns Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. Free state and federal tax returns Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). Free state and federal tax returns Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. Free state and federal tax returns Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. Free state and federal tax returns Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Free state and federal tax returns Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. Free state and federal tax returns Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. Free state and federal tax returns Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. Free state and federal tax returns Vea Ajustes a los Gastos de Estudios Calificados , más adelante. Free state and federal tax returns Gastos pagados por adelantado. Free state and federal tax returns   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. Free state and federal tax returns Vea Período académico , anteriormente. Free state and federal tax returns Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). Free state and federal tax returns No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. Free state and federal tax returns Gastos pagados con un préstamo. Free state and federal tax returns   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. Free state and federal tax returns Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. Free state and federal tax returns Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. Free state and federal tax returns Si el estudiante se retira de uno o más cursos. Free state and federal tax returns   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. Free state and federal tax returns No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. Free state and federal tax returns Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. Free state and federal tax returns Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). Free state and federal tax returns Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. Free state and federal tax returns Vea Ajustes a los Gastos de Estudios Calificados, a continuación. Free state and federal tax returns Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. Free state and federal tax returns El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. Free state and federal tax returns Ayuda económica para estudios exenta de impuestos. Free state and federal tax returns   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. Free state and federal tax returns Vea Período académico , anteriormente. Free state and federal tax returns   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. Free state and federal tax returns   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. Free state and federal tax returns Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Free state and federal tax returns Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. Free state and federal tax returns Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. Free state and federal tax returns Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. Free state and federal tax returns Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). Free state and federal tax returns Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Free state and federal tax returns Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. Free state and federal tax returns Reembolsos. Free state and federal tax returns   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. Free state and federal tax returns Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Free state and federal tax returns Vea Ayuda económica para estudios exenta de impuestos, anteriormente. Free state and federal tax returns Reembolsos recibidos en 2013. Free state and federal tax returns   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. Free state and federal tax returns Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Free state and federal tax returns   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Free state and federal tax returns Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Free state and federal tax returns   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. Free state and federal tax returns Vea Recuperar (reintegrar) el crédito, a continuación. Free state and federal tax returns Recuperar (reintegrar) el crédito. Free state and federal tax returns   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. Free state and federal tax returns Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. Free state and federal tax returns Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). Free state and federal tax returns Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. Free state and federal tax returns Ejemplo. Free state and federal tax returns   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. Free state and federal tax returns Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. Free state and federal tax returns 20). Free state and federal tax returns Usted no reclamó otros créditos tributarios. Free state and federal tax returns Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. Free state and federal tax returns Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). Free state and federal tax returns El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. Free state and federal tax returns Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. Free state and federal tax returns Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. Free state and federal tax returns    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. Free state and federal tax returns Cantidades que no reducen los gastos de estudios calificados. Free state and federal tax returns   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Free state and federal tax returns   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. Free state and federal tax returns El uso del dinero no está limitado. Free state and federal tax returns   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. Free state and federal tax returns Please click here for the text description of the image. Free state and federal tax returns Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications