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Free State Tax E-filing

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Free State Tax E-filing

Free state tax e-filing Publication 926 - Main Content Table of Contents Do You Have a Household Employee? Can Your Employee Legally Work in the United States? Do You Need To Pay Employment Taxes?Social Security and Medicare Taxes Federal Unemployment (FUTA) Tax Do You Need To Withhold Federal Income Tax? What Do You Need To Know About the Earned Income Credit? How Do You Make Tax Payments? What Forms Must You File?Employee who leaves during the year. Free state tax e-filing Filing options when no return is required. Free state tax e-filing What Records Must You Keep? Can You Claim a Credit for Child and Dependent Care Expenses? How Can You Correct Schedule H?Adjust the overpayment. Free state tax e-filing Claim for refund process. Free state tax e-filing How To Get Tax HelpLow Income Taxpayer Clinics Do You Have a Household Employee? You have a household employee if you hired someone to do household work and that worker is your employee. Free state tax e-filing The worker is your employee if you can control not only what work is done, but how it is done. Free state tax e-filing If the worker is your employee, it does not matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. Free state tax e-filing It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job. Free state tax e-filing Example. Free state tax e-filing You pay Betty Shore to babysit your child and do light housework 4 days a week in your home. Free state tax e-filing Betty follows your specific instructions about household and child care duties. Free state tax e-filing You provide the household equipment and supplies that Betty needs to do her work. Free state tax e-filing Betty is your household employee. Free state tax e-filing Household work. Free state tax e-filing   Household work is work done in or around your home. Free state tax e-filing Some examples of workers who do household work are: Babysitters, Caretakers, House cleaning workers, Domestic workers, Drivers, Health aides, Housekeepers, Maids, Nannies, Private nurses, and Yard workers. Free state tax e-filing Workers who are not your employees. Free state tax e-filing   If only the worker can control how the work is done, the worker is not your employee but is self-employed. Free state tax e-filing A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business. Free state tax e-filing   A worker who performs child care services for you in his or her home generally is not your employee. Free state tax e-filing   If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee. Free state tax e-filing Example. Free state tax e-filing You made an agreement with John Peters to care for your lawn. Free state tax e-filing John runs a lawn care business and offers his services to the general public. Free state tax e-filing He provides his own tools and supplies, and he hires and pays any helpers he needs. Free state tax e-filing Neither John nor his helpers are your household employees. Free state tax e-filing More information. Free state tax e-filing   More information about who is an employee is in Publication 15-A, Employer's Supplemental Tax Guide. Free state tax e-filing Can Your Employee Legally Work in the United States? It is unlawful for you knowingly to hire or continue to employ an alien who cannot legally work in the United States. Free state tax e-filing When you hire a household employee to work for you on a regular basis, you and the employee must complete the U. Free state tax e-filing S. Free state tax e-filing Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Free state tax e-filing No later than the first day of work, the employee must complete the employee section of the form by providing certain required information and attesting to his or her current work eligibility status in the United States. Free state tax e-filing You must complete the employer section by examining documents presented by the employee as evidence of his or her identity and employment eligibility. Free state tax e-filing Acceptable documents to establish identity and employment eligibility are listed on Form I-9. Free state tax e-filing You should keep the completed Form I-9 in your own records. Free state tax e-filing Do not submit it to the IRS, the USCIS, or any other government or other entity. Free state tax e-filing The form must be kept available for review upon notice by an authorized U. Free state tax e-filing S. Free state tax e-filing Government official. Free state tax e-filing Two copies of Form I-9 are contained in the Handbook for Employers (Form M-274) published by the USCIS. Free state tax e-filing Call the USCIS at 1-800-870-3676 to order the Handbook for Employers; or you may download the handbook at www. Free state tax e-filing uscis. Free state tax e-filing gov. Free state tax e-filing If you have questions about the employment eligibility verification process or other immigration-related employment matters, contact the USCIS Office of Business Liaison at 1-800-357-2099. Free state tax e-filing You also can visit the USCIS website at www. Free state tax e-filing uscis. Free state tax e-filing gov to get Form I-9. Free state tax e-filing For more information, see Employee's Social Security Number (SSN) in Publication 15 (Circular E), Employer's Tax Guide. Free state tax e-filing Do You Need To Pay Employment Taxes? If you have a household employee, you may need to withhold and pay social security and Medicare taxes, pay federal unemployment tax, or both. Free state tax e-filing To find out, read Table 1. Free state tax e-filing You do not need to withhold federal income tax from your household employee's wages. Free state tax e-filing But if your employee asks you to withhold it, you can. Free state tax e-filing See Do You Need To Withhold Federal Income Tax, later. Free state tax e-filing If you need to pay social security, Medicare, or federal unemployment tax or choose to withhold federal income tax, read Table 2 for an overview of what you may need to do. Free state tax e-filing If you do not need to pay social security, Medicare, or federal unemployment tax and do not choose to withhold federal income tax, read State employment taxes, next. Free state tax e-filing The rest of this publication does not apply to you. Free state tax e-filing State employment taxes. Free state tax e-filing   You should contact your state unemployment tax agency to find out whether you need to pay state unemployment tax for your household employee. Free state tax e-filing For a list of state unemployment tax agencies, visit the U. Free state tax e-filing S. Free state tax e-filing Department of Labor's website at www. Free state tax e-filing workforcesecurity. Free state tax e-filing doleta. Free state tax e-filing gov/unemploy/agencies. Free state tax e-filing asp. Free state tax e-filing You should also determine if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Free state tax e-filing    Table 1. Free state tax e-filing Do You Need To Pay Employment Taxes? IF you . Free state tax e-filing . Free state tax e-filing . Free state tax e-filing THEN you need to . Free state tax e-filing . Free state tax e-filing . Free state tax e-filing A– Pay cash wages of $1,900 or more in 2014 to any one household employee. Free state tax e-filing Withhold and pay social security and Medicare taxes. Free state tax e-filing The taxes are 15. Free state tax e-filing 3%1 of cash wages. Free state tax e-filing Your employee's share is 7. Free state tax e-filing 65%1. Free state tax e-filing   (You can choose to pay it yourself and not withhold it. Free state tax e-filing ) Your share is 7. Free state tax e-filing 65%. Free state tax e-filing   Do not count wages you pay to— Your spouse, Your child under the age of 21, Your parent (see Wages not counted, later, for an exception), or Any employee under the age of 18 at any time in 2014 (see Wages not counted, later, for an exception). Free state tax e-filing B– Pay total cash wages of $1,000 or more in any calendar quarter of 2013 or 2014 to household employees. Free state tax e-filing Pay federal unemployment tax. Free state tax e-filing The tax is 6% of cash wages. Free state tax e-filing Wages over $7,000 a year per employee are not taxed. Free state tax e-filing You also may owe state unemployment tax. Free state tax e-filing   Do not count wages you pay to— Your spouse, Your child under the age of 21, or Your parent. Free state tax e-filing 1In addition to withholding Medicare tax at 1. Free state tax e-filing 45%, you must withhold a 0. Free state tax e-filing 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free state tax e-filing You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free state tax e-filing Additional Medicare Tax is only imposed on the employee. Free state tax e-filing There is no employer share of Additional Medicare Tax. Free state tax e-filing All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Free state tax e-filing Note. Free state tax e-filing If neither A nor B above applies, you do not need to pay any federal employment taxes. Free state tax e-filing But you may still need to pay state employment taxes. Free state tax e-filing Table 2. Free state tax e-filing Household Employer's Checklist You may need to do the following things when you have a household employee. Free state tax e-filing   When you hire a household employee: □ Find out if the person can legally work in the United States. Free state tax e-filing  □ Find out if you need to pay state taxes. Free state tax e-filing When you pay your household employee: □ Withhold social security and Medicare taxes. Free state tax e-filing  □ Withhold federal income tax. Free state tax e-filing  □ Decide how you will make tax payments. Free state tax e-filing  □ Keep records. Free state tax e-filing By February 2, 2015: □ Get an employer identification number (EIN). Free state tax e-filing  □ Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement. Free state tax e-filing By March 2, 2015 (March 31, 2015, if you file Form W-2 electronically): □ Send Copy A of Form W-2 to the Social Security Administration (SSA). Free state tax e-filing By April 15, 2015: □ File Schedule H (Form 1040), Household Employment Taxes, with your 2014 federal income tax return (Form 1040, 1040NR, 1040-SS, or Form 1041). Free state tax e-filing  If you do not have to file a return, file Schedule H by itself. Free state tax e-filing Social Security and Medicare Taxes The social security tax pays for old-age, survivors, and disability benefits for workers and their families. Free state tax e-filing The Medicare tax pays for hospital insurance. Free state tax e-filing Both you and your household employee may owe social security and Medicare taxes. Free state tax e-filing Your share is 7. Free state tax e-filing 65% (6. Free state tax e-filing 2% for social security tax and 1. Free state tax e-filing 45% for Medicare tax) of the employee's social security and Medicare wages. Free state tax e-filing Your employee's share is also 7. Free state tax e-filing 65% (6. Free state tax e-filing 2% for social security tax and 1. Free state tax e-filing 45% for Medicare tax). Free state tax e-filing In addition to withholding Medicare tax at 1. Free state tax e-filing 45%, you must withhold a 0. Free state tax e-filing 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free state tax e-filing You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free state tax e-filing Additional Medicare Tax is only imposed on the employee. Free state tax e-filing There is no employer share of Additional Medicare Tax. Free state tax e-filing All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Free state tax e-filing For more information on Additional Medicare Tax, visit IRS. Free state tax e-filing gov and enter “Additional Medicare Tax” in the search box. Free state tax e-filing Generally, you can use Table 3 to figure the amount of social security and Medicare taxes to withhold from each wage payment. Free state tax e-filing You are responsible for payment of your employee's share of the taxes as well as your own. Free state tax e-filing You can either withhold your employee's share from the employee's wages or pay it from your own funds. Free state tax e-filing If you decide to pay the employee's share from your own funds, see Not withholding the employee's share, later. Free state tax e-filing Pay the taxes as discussed under How Do You Make Tax Payments, later. Free state tax e-filing Also, see What Forms Must You File, later. Free state tax e-filing Social security and Medicare wages. Free state tax e-filing   You figure social security and Medicare taxes on the social security and Medicare wages you pay your employee. Free state tax e-filing   If you pay your household employee cash wages of $1,900 or more in 2014, all cash wages you pay to that employee in 2014 (regardless of when the wages were earned) up to $117,000 are social security wages and all cash wages are Medicare wages. Free state tax e-filing However, any noncash wages you pay do not count as social security and Medicare wages. Free state tax e-filing   If you pay the employee less than $1,900 in cash wages in 2014, none of the wages you pay the employee are social security or Medicare wages and neither you nor your employee will owe social security or Medicare tax on those wages. Free state tax e-filing Cash wages. Free state tax e-filing   Cash wages include wages you pay by check, money order, etc. Free state tax e-filing Cash wages do not include the value of food, lodging, clothing, and other noncash items you give your household employee. Free state tax e-filing However, cash you give your employee in place of these items is included in cash wages. Free state tax e-filing State disability payments treated as wages. Free state tax e-filing   Certain state disability plan payments that your household employee may receive are treated as social security and Medicare wages. Free state tax e-filing For more information about these payments, see the Instructions for Schedule H (Form 1040) and the notice issued by the state. Free state tax e-filing Wages not counted. Free state tax e-filing   Do not count wages you pay to any of the following individuals as social security or Medicare wages, even if these wages are $1,900 or more during the year. Free state tax e-filing Your spouse. Free state tax e-filing Your child who is under the age of 21. Free state tax e-filing Your parent. Free state tax e-filing Exception: Count these wages if both the following conditions apply. Free state tax e-filing Your parent cares for your child who is either of the following. Free state tax e-filing Under the age of 18, or Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in the calendar quarter services were performed. Free state tax e-filing Your marital status is one of the following. Free state tax e-filing You are divorced and have not remarried, You are a widow or widower, or You are living with a spouse whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in the calendar quarter services were performed. Free state tax e-filing An employee who is under the age of 18 at any time during the year. Free state tax e-filing Exception: Count these wages if providing household services is the employee's principal occupation. Free state tax e-filing If the employee is a student, providing household services is not considered to be his or her principal occupation. Free state tax e-filing Also, if your employee's cash wages reach $117,000 (maximum wages subject to social security tax) in 2014, do not count any wages you pay that employee during the rest of the year as social security wages to figure social security tax. Free state tax e-filing Continue to count the employee's cash wages as Medicare wages to figure Medicare tax. Free state tax e-filing If you provide your employee transit passes to commute to your home, do not count the value of the transit passes (up to $130 per month for 2014) as wages. Free state tax e-filing A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. Free state tax e-filing If you provide your employee parking at or near your home or at or near a location from which your employee commutes to your home, do not count the value of parking (up to $250 per month for 2014) as wages. Free state tax e-filing If you reimburse your employee for transit passes or parking, you may be able to exclude the reimbursement amounts. Free state tax e-filing See Publication 15-B, Employer's Tax Guide to Fringe Benefits, for special requirements for this exclusion. Free state tax e-filing Withholding the employee's share. Free state tax e-filing   You should withhold the employee's share of social security and Medicare taxes if you expect to pay your household employee cash wages of $1,900 or more in 2014. Free state tax e-filing However, if you prefer to pay the employee's share yourself, see Not withholding the employee's share, later. Free state tax e-filing   You can withhold the employee's share of the taxes even if you are not sure your employee's cash wages will be $1,900 or more in 2014. Free state tax e-filing If you withhold the taxes but then actually pay the employee less than $1,900 in cash wages for the year, you should repay the employee. Free state tax e-filing   Withhold 7. Free state tax e-filing 65% (6. Free state tax e-filing 2% for social security tax and 1. Free state tax e-filing 45% for Medicare tax) from each payment of social security and Medicare wages. Free state tax e-filing Generally, you can use Table 3 to figure the proper amount to withhold. Free state tax e-filing You will pay the amount withheld to the IRS with your share of the taxes. Free state tax e-filing Do not withhold any social security tax after your employee's social security wages for the year reach $117,000. Free state tax e-filing Table 3. Free state tax e-filing Employee Social Security (6. Free state tax e-filing 2%) and Medicare (1. Free state tax e-filing 45%1) Tax Withholding Table (See Publication 15 (Circular E) for income tax withholding tables. Free state tax e-filing ) Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. Free state tax e-filing For example, on a wage payment of $180, the employee social security tax is $11. Free state tax e-filing 16 ($6. Free state tax e-filing 20 tax on $100 plus $4. Free state tax e-filing 96 on $80 wages). Free state tax e-filing The employee Medicare tax is $2. Free state tax e-filing 61 ($1. Free state tax e-filing 45 tax on $100 plus $1. Free state tax e-filing 16 on $80 wages). Free state tax e-filing If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: $ 1. Free state tax e-filing 00 . Free state tax e-filing $ . 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Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 52 1. Free state tax e-filing 29 40. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 48 . Free state tax e-filing 58 90. Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 58 1. Free state tax e-filing 31 41. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 54 . Free state tax e-filing 59 91. Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 64 1. Free state tax e-filing 32 42. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 60 . Free state tax e-filing 61 92. Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 70 1. Free state tax e-filing 33 43. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 67 . Free state tax e-filing 62 93. Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 77 1. Free state tax e-filing 35 44. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 73 . Free state tax e-filing 64 94. Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 83 1. Free state tax e-filing 36 45. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 79 . Free state tax e-filing 65 95. Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 89 1. Free state tax e-filing 38 46. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 85 . Free state tax e-filing 67 96. Free state tax e-filing 00 . Free state tax e-filing 5. Free state tax e-filing 95 1. Free state tax e-filing 39 47. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 91 . Free state tax e-filing 68 97. Free state tax e-filing 00 . Free state tax e-filing 6. Free state tax e-filing 01 1. Free state tax e-filing 41 48. Free state tax e-filing 00 . Free state tax e-filing 2. Free state tax e-filing 98 . Free state tax e-filing 70 98. Free state tax e-filing 00 . Free state tax e-filing 6. Free state tax e-filing 08 1. Free state tax e-filing 42 49. Free state tax e-filing 00 . Free state tax e-filing 3. Free state tax e-filing 04 . Free state tax e-filing 71 99. Free state tax e-filing 00 . Free state tax e-filing 6. Free state tax e-filing 14 1. Free state tax e-filing 44 50. Free state tax e-filing 00 . Free state tax e-filing 3. Free state tax e-filing 10 . Free state tax e-filing 73 100. Free state tax e-filing 00 . Free state tax e-filing 6. Free state tax e-filing 20 1. Free state tax e-filing 45 1In addition to withholding Medicare tax at 1. Free state tax e-filing 45%, you must withhold a 0. Free state tax e-filing 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free state tax e-filing You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free state tax e-filing Additional Medicare Tax is only imposed on the employee. Free state tax e-filing There is no employer share of Additional Medicare Tax. Free state tax e-filing All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Free state tax e-filing   If you make an error by withholding too little, you should withhold additional taxes from a later payment. Free state tax e-filing If you withhold too much, you should repay the employee. Free state tax e-filing    In addition to withholding Medicare tax at 1. Free state tax e-filing 45%, you must withhold a 0. Free state tax e-filing 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free state tax e-filing You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Free state tax e-filing Additional Medicare Tax is only imposed on the employee. Free state tax e-filing There is no employer share of Additional Medicare Tax. Free state tax e-filing All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Free state tax e-filing For more information on Additional Medicare Tax, visit IRS. Free state tax e-filing gov and enter “Additional Medicare Tax” in the search box. Free state tax e-filing Example. Free state tax e-filing On February 13, 2014, Mary Brown hired Jane R. Free state tax e-filing Oak (who is an unrelated individual over age 18) to care for her child and agreed to pay cash wages of $50 every Friday. Free state tax e-filing Jane worked for the remainder of the year (a total of 46 weeks). Free state tax e-filing Mary did not give Jane a Form W-4 to request federal or state tax withholding. Free state tax e-filing The following is the information Mary will need to complete Schedule H, Form W-2, and Form W-3. Free state tax e-filing See the completed examples of Form W-2 and Form W-3 for 2014 at the end of this publication. Free state tax e-filing Total cash wages paid to Jane $2,300. Free state tax e-filing 00 ($50 x 46 weeks)       Jane's share of:     Social security tax $142. Free state tax e-filing 60 ($2,300 x 6. Free state tax e-filing 2% (. Free state tax e-filing 062))         Medicare tax $33. Free state tax e-filing 35       ($2,300 x 1. Free state tax e-filing 45% (. Free state tax e-filing 0145)) Mary's share of:     Social security tax $142. Free state tax e-filing 60  ($2,300 x 6. Free state tax e-filing 2% (. Free state tax e-filing 062))           Medicare tax $33. Free state tax e-filing 35  ($2,300 x 1. Free state tax e-filing 45% (. Free state tax e-filing 0145)) Amount reported on Form W-2 and Form W-3:   Box 1:Wages, tips $2,300. Free state tax e-filing 00   Box 4: Social security tax withheld 142. Free state tax e-filing 60   Box 6: Medicare tax withheld 33. Free state tax e-filing 35 For information on withholding and reporting federal income taxes, see Publication 15 (Circular E). Free state tax e-filing Not withholding the employee's share. Free state tax e-filing   If you prefer to pay your employee's social security and Medicare taxes from your own funds, do not withhold them from your employee's wages. Free state tax e-filing The social security and Medicare taxes you pay to cover your employee's share must be included in the employee's wages for income tax purposes. Free state tax e-filing However, they are not counted as social security and Medicare wages or as federal unemployment (FUTA) wages. Free state tax e-filing Example. Free state tax e-filing In 2014 you hire a household employee (who is an unrelated individual over age 18) to care for your child and agree to pay cash wages of $100 every Friday. Free state tax e-filing You expect to pay your employee $1,900 or more for the year. Free state tax e-filing You decide to pay your employee's share of social security and Medicare taxes from your own funds. Free state tax e-filing You pay your employee $100 every Friday without withholding any social security or Medicare taxes. Free state tax e-filing For social security and Medicare tax purposes, your employee's wages each payday are $100. Free state tax e-filing For each wage payment, you will pay $15. Free state tax e-filing 30 when you pay the taxes. Free state tax e-filing This is $7. Free state tax e-filing 65 ($6. Free state tax e-filing 20 for social security tax + $1. Free state tax e-filing 45 for Medicare tax) to cover your employee's share plus $7. Free state tax e-filing 65 ($6. Free state tax e-filing 20 for social security tax + $1. Free state tax e-filing 45 for Medicare tax) for your share. Free state tax e-filing For income tax purposes, your employee's wages each payday are $107. Free state tax e-filing 65 ($100 + the $7. Free state tax e-filing 65 you will pay to cover your employee's share of social security and Medicare taxes). Free state tax e-filing Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. Free state tax e-filing Like most employers, you may owe both the federal unemployment tax (the FUTA tax) and a state unemployment tax. Free state tax e-filing Or, you may owe only the FUTA tax or only the state unemployment tax. Free state tax e-filing To find out whether you will owe state unemployment tax, contact your state's unemployment tax agency. Free state tax e-filing For a list of state unemployment tax agencies, visit the U. Free state tax e-filing S. Free state tax e-filing Department of Labor's website at www. Free state tax e-filing workforcesecurity. Free state tax e-filing doleta. Free state tax e-filing gov/unemploy/agencies. Free state tax e-filing asp. Free state tax e-filing You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Free state tax e-filing The FUTA tax is 6. Free state tax e-filing 0% of your employee's FUTA wages. Free state tax e-filing However, you may be able to take a credit of up to 5. Free state tax e-filing 4% against the FUTA tax, resulting in a net tax rate of 0. Free state tax e-filing 6%. Free state tax e-filing Your credit for 2014 is limited unless you pay all the required contributions for 2014 to your state unemployment fund by April 15, 2015. Free state tax e-filing The credit you can take for any contributions for 2014 that you pay after April 15, 2015, is limited to 90% of the credit that would have been allowable if the contributions were paid by April 15, 2015. Free state tax e-filing (If you did not pay all the required contributions for 2013 by April 15, 2014, see Credit for 2013, later. Free state tax e-filing ) Note. Free state tax e-filing   If a due date falls on a Saturday, Sunday, or legal holiday, payments are considered timely if made by the next business day. Free state tax e-filing The term “legal holiday” means any legal holiday in the District of Columbia. Free state tax e-filing Pay the tax as discussed under How Do You Make Tax Payments, later. Free state tax e-filing Also, see What Forms Must You File, later. Free state tax e-filing Note. Free state tax e-filing   The 5. Free state tax e-filing 4% credit is reduced for wages paid in a credit reduction state. Free state tax e-filing See the Instructions for Schedule H (Form 1040). Free state tax e-filing Do not withhold the FUTA tax from your employee's wages. Free state tax e-filing You must pay it from your own funds. Free state tax e-filing FUTA wages. Free state tax e-filing   Figure the FUTA tax on the FUTA wages you pay. Free state tax e-filing If you pay cash wages to all of your household employees totaling $1,000 or more in any calendar quarter of 2013 or 2014, the first $7,000 of cash wages you pay to each household employee in 2014 is FUTA wages. Free state tax e-filing (A calendar quarter is January through March, April through June, July through September, or October through December. Free state tax e-filing ) If your employee's cash wages reach $7,000 during the year, do not figure the FUTA tax on any wages you pay that employee during the rest of the year. Free state tax e-filing For an explanation of cash wages, see the discussion on Social security and Medicare wages under Social Security and Medicare Taxes, earlier. Free state tax e-filing Wages not counted. Free state tax e-filing   Do not count wages you pay to any of the following individuals as FUTA wages. Free state tax e-filing Your spouse. Free state tax e-filing Your child who is under the age of 21. Free state tax e-filing Your parent. Free state tax e-filing Credit for 2013. Free state tax e-filing   The credit you can take for any state unemployment fund contributions for 2013 that you pay after April 15, 2014, is limited to 90% of the credit that would have been allowable if the contributions were paid on or before April 15, 2014. Free state tax e-filing Use Worksheet A to figure the credit for late contributions if you paid any state contributions after the due date for filing  Form 1040. Free state tax e-filing Worksheet A. Free state tax e-filing Worksheet for Credit for Late Contributions 1. Free state tax e-filing Enter the amount from Schedule H, line 22   2. Free state tax e-filing Enter the amount from Schedule H, line 19   3. Free state tax e-filing Subtract line 2 from line 1. Free state tax e-filing If zero or less, enter -0-   4. Free state tax e-filing Enter total contributions paid to the state(s) after the Form 1040 due date   5. Free state tax e-filing Enter the smaller of line 3 or line 4   6. Free state tax e-filing Multiply line 5 by . Free state tax e-filing 90 (90%)   7. Free state tax e-filing Add lines 2 and 6   8. Free state tax e-filing Enter the smaller of the amount on line 1 or line 7 here and on Schedule H, line 23   Do You Need To Withhold Federal Income Tax? You are not required to withhold federal income tax from wages you pay a household employee. Free state tax e-filing You should withhold federal income tax only if your household employee asks you to withhold it and you agree. Free state tax e-filing The employee must give you a completed Form W-4, Employee's Withholding Allowance Certificate. Free state tax e-filing If you and your employee have agreed to withholding, either of you may end the agreement by letting the other know in writing. Free state tax e-filing If you agree to withhold federal income tax, you are responsible for paying it to the IRS. Free state tax e-filing Pay the tax as discussed under How Do You Make Tax Payments, later. Free state tax e-filing Also, see What Forms Must You File, later. Free state tax e-filing Use the income tax withholding tables in Publication 15 (Circular E) to find out how much to withhold. Free state tax e-filing Figure federal income tax withholding on wages before you deduct any amounts for other withheld taxes. Free state tax e-filing Withhold federal income tax from each payment of wages based on the filing status and exemptions shown on your employee's Form W-4. Free state tax e-filing Publication 15 (Circular E) contains detailed instructions. Free state tax e-filing Wages. Free state tax e-filing   Figure federal income tax withholding on both cash and noncash wages you pay. Free state tax e-filing Measure wages you pay in any form other than cash by the fair market value of the noncash item. Free state tax e-filing   Do not count as wages any of the following items. Free state tax e-filing Meals provided to your employee at your home for your convenience. Free state tax e-filing Lodging provided to your employee at your home for your convenience and as a condition of employment. Free state tax e-filing Up to $130 per month for 2014 for transit passes you give your employee (or for any cash reimbursement you make for the amount your employee pays for transit passes used to commute to your home if you qualify for this exclusion). Free state tax e-filing A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. Free state tax e-filing See Publication 15-B for special requirements for this exclusion. Free state tax e-filing Up to $250 per month for 2014 for the value of parking you provide your employee or for any cash reimbursement you make for the amount your employee pays and substantiates for parking at or near your home or at or near a location from which your employee commutes to your home. Free state tax e-filing   See Publication 15 (Circular E) for more information on cash and noncash wages. Free state tax e-filing Paying tax without withholding. Free state tax e-filing   Any income tax you pay for your employee without withholding it from the employee's wages must be included in the employee's wages for federal income tax purposes. Free state tax e-filing It also must be included in social security and Medicare wages and in federal unemployment (FUTA) wages. Free state tax e-filing What Do You Need To Know About the Earned Income Credit? Certain workers can take the earned income credit (EIC) on their federal income tax return. Free state tax e-filing This credit reduces their tax or allows them to receive a payment from the IRS. Free state tax e-filing You also may have to give your employee a notice about the EIC. Free state tax e-filing Notice about the EIC. Free state tax e-filing   Copy B of the 2014 Form W-2 has a statement about the EIC on the back. Free state tax e-filing If you give your employee that copy by February 2, 2015 (as discussed under Form W-2 under What Forms Must You File, later), you do not have to give the employee any other notice about the EIC. Free state tax e-filing   If you do not give your employee Copy B of the Form W-2, your notice about the EIC can be any of the following items. Free state tax e-filing A substitute Form W-2 with the same EIC information on the back of the employee's copy that is on Copy B of the Form W-2. Free state tax e-filing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Free state tax e-filing Your own written statement with the same wording as in Notice 797. Free state tax e-filing If a substitute Form W-2 is given on time but does not have the required EIC information, you must notify the employee within one week of the date the substitute Form W-2 is given. Free state tax e-filing If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement about the 2014 EIC by February 2, 2015. Free state tax e-filing If Form W-2 is not required, you must notify the employee by February 7, 2015. Free state tax e-filing   You must give your household employee a notice about the EIC if you agree to withhold federal income tax from the employee's wages (as discussed earlier under Do You Need To Withhold Federal Income Tax?) and the income tax withholding tables show that no tax should be withheld. Free state tax e-filing Even if not required, you are encouraged to give the employee a notice about the EIC if his or her 2014 wages are less than $46,997 ($52,427 if married filing jointly). Free state tax e-filing How Do You Make Tax Payments? When you file your 2014 federal income tax return in 2015, attach Schedule H (Form 1040) to your Form 1040, 1040NR, 1040-SS, or 1041. Free state tax e-filing Use Schedule H to figure your total household employment taxes (social security, Medicare, FUTA, and withheld federal income taxes). Free state tax e-filing Add these household employment taxes to your income tax. Free state tax e-filing Pay the amount due by April 15, 2015. Free state tax e-filing For more information about using Schedule H, see Schedule H under What Forms Must You File, later. Free state tax e-filing You can avoid owing tax with your return if you pay enough tax during the year to cover your household employment taxes, as well as your income tax. Free state tax e-filing You can pay the additional tax in any of the following ways. Free state tax e-filing Ask your employer to withhold more federal income tax from your wages in 2014. Free state tax e-filing Ask the payer of your pension or annuity to withhold more federal income tax from your benefits. Free state tax e-filing Make estimated tax payments for 2014 to the IRS. Free state tax e-filing Increase your payments if you already make estimated tax payments. Free state tax e-filing You may be subject to the estimated tax underpayment penalty if you did not pay enough income and household employment taxes during the year. Free state tax e-filing (See Publication 505, Tax Withholding and Estimated Tax, for information about the underpayment penalty. Free state tax e-filing ) However, you will not be subject to the penalty if both of the following situations apply to you. Free state tax e-filing You will not have federal income tax withheld from wages, pensions, or any other payments you receive. Free state tax e-filing Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes. Free state tax e-filing Asking for more federal income tax withholding. Free state tax e-filing   If you are employed and want more federal income tax withheld from your wages to cover your household employment taxes, give your employer a new Form W-4. Free state tax e-filing Complete it as before, but show the additional amount you want withheld from each paycheck on line 6. Free state tax e-filing   If you receive a pension or annuity and want more federal income tax withheld to cover household employment taxes, give the payer a new Form W-4P, Withholding Certificate for Pension or Annuity Payments (or a similar form provided by the payer). Free state tax e-filing Complete it as before, but show the additional amount you want withheld from each benefit payment on line 3. Free state tax e-filing   See Publication 505 to make sure you will have the right amount withheld. Free state tax e-filing It will help you compare your total expected withholding for 2014 with the combined income tax and employment taxes that you can expect to figure on your 2014 tax return. Free state tax e-filing Paying estimated tax. Free state tax e-filing   If you want to make estimated tax payments to cover household employment taxes, get Form 1040-ES, Estimated Tax for Individuals. Free state tax e-filing You can use its payment vouchers to make your payments by check or money order. Free state tax e-filing You may be able to pay by Electronic Funds Withdrawal (EFW) or credit card. Free state tax e-filing For details, see the form instructions and visit IRS. Free state tax e-filing gov. Free state tax e-filing    You can pay all the employment taxes at once or you can pay them in installments. Free state tax e-filing If you have already made estimated tax payments for 2014, you can increase your remaining payments to cover the employment taxes. Free state tax e-filing Estimated tax payments for 2014 are due April 15, June 16, and September 15, 2014, and January 15, 2015. Free state tax e-filing Payment option for business employers. Free state tax e-filing   If you own a business as a sole proprietor or your home is on a farm operated for profit, you can choose either of two ways to pay your 2014 household employment taxes. Free state tax e-filing You can pay them with your federal income tax as previously described, or you can include them with your federal employment tax deposits or other payments for your business or farm employees. Free state tax e-filing For information on depositing employment taxes, see Publication 15 (Circular E). Free state tax e-filing   If you pay your household employment taxes with your business or farm employment taxes, you must report your household employment taxes with those other employment taxes on Form 941, Employer's QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Free state tax e-filing See Business employment tax returns, later. Free state tax e-filing    The deduction that can be taken on Schedules C and F (Form 1040) for wages and employment taxes applies only to wages and taxes paid for business and farm employees. Free state tax e-filing You cannot deduct the wages and employment taxes paid for your household employees on your Schedule C or F. Free state tax e-filing More information. Free state tax e-filing   For more information about paying taxes through federal income tax withholding and estimated tax payments, and figuring the estimated tax penalty, see Publication 505. Free state tax e-filing What Forms Must You File? You must file certain forms to report your household employee's wages and the federal employment taxes for the employee if you pay any of the following wages to the employee. Free state tax e-filing Social security and Medicare wages. Free state tax e-filing FUTA wages. Free state tax e-filing Wages from which you withhold federal income tax. Free state tax e-filing For information on ordering employment tax forms, see How To Get Tax Help, later. Free state tax e-filing Employer identification number (EIN). Free state tax e-filing   You must include your employer identification number (EIN) on the forms you file for your household employee. Free state tax e-filing An EIN is a nine-digit number issued by the IRS. Free state tax e-filing It is not the same as a social security number. Free state tax e-filing    You ordinarily will have an EIN if you previously paid taxes for employees, either as a household employer or as a sole proprietor of a business you own. Free state tax e-filing If you already have an EIN, use that number. Free state tax e-filing   If you do not have an EIN, you may apply for one online. Free state tax e-filing Go to IRS. Free state tax e-filing gov and click on the Apply for an EIN Online link under Tools. Free state tax e-filing You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Free state tax e-filing Form W-2. Free state tax e-filing   File a separate 2014 Form W-2, for each household employee to whom you pay either of the following wages during the year. Free state tax e-filing Social security and Medicare wages of $1,900 or more. Free state tax e-filing Wages from which you withhold federal income tax. Free state tax e-filing You must complete Form W-2 and give Copies B, C, and 2 to your employee by February 2, 2015. Free state tax e-filing You must send Copy A of Form W-2 with Form W-3, Transmittal of Wage and Tax Statements, to the SSA by March 2, 2015 (March 31, 2015, if you file your Form W-2 electronically). Free state tax e-filing Electronic filing is available to all employers and is free, fast, secure, and offers a later filing deadline. Free state tax e-filing Visit the SSA's Employer W-2 Filing Instructions & Information website at www. Free state tax e-filing socialsecurity. Free state tax e-filing gov/employer for guidelines on filing electronically. Free state tax e-filing Employee who leaves during the year. Free state tax e-filing   If an employee stops working for you before the end of 2014, you can file Form W-2 and provide copies to your employee immediately after you make your final payment of wages. Free state tax e-filing You do not need to wait until 2015. Free state tax e-filing If the employee asks you for Form W-2, give it to him or her within 30 days after the request or the last wage payment, whichever is later. Free state tax e-filing Schedule H. Free state tax e-filing   Use Schedule H to report household employment taxes if you pay any of the following wages to the employee. Free state tax e-filing Social security and Medicare wages of $1,900 or more. Free state tax e-filing FUTA wages. Free state tax e-filing Wages from which you withhold federal income tax. Free state tax e-filing File Schedule H with your 2014 federal income tax return by April 15, 2015. Free state tax e-filing If you get an extension to file your return, the extension also will apply to your Schedule H. Free state tax e-filing Filing options when no return is required. Free state tax e-filing   If you are not required to file a 2014 tax return, you have the following two options. Free state tax e-filing You can file Schedule H by itself. Free state tax e-filing See the Schedule H instructions for details. Free state tax e-filing If, besides your household employee, you have other employees for whom you report employment taxes on Form 941, Form 944, or Form 943 and on Form 940, you can include your taxes for your household employee on those forms. Free state tax e-filing See Business employment tax returns, next. Free state tax e-filing   Employers having the options listed above include certain tax-exempt organizations that do not have to file a tax return, such as churches that pay a household worker to take care of a minister's home. Free state tax e-filing Business employment tax returns. Free state tax e-filing   Do not use Schedule H if you choose to pay the employment taxes for your household employee with business or farm employment taxes. Free state tax e-filing (See Payment option for business employers, earlier. Free state tax e-filing ) Instead, include the social security, Medicare, and withheld federal income taxes for the employee on the Form 941 or Form 944 you file for your business or on the Form 943 you file for your farm. Free state tax e-filing Include the FUTA tax for the employee on your Form 940. Free state tax e-filing   If you report the employment taxes for your household employee on Form 941, Form 944, or Form 943, file Form W-2 for that employee with the Forms W-2 and Form W-3 for your business or farm employees. Free state tax e-filing   For information on filing Form 941 or Form 944, see Publication 15 (Circular E). Free state tax e-filing For information on filing Form 943, see Publication 51 (Circular A), Agricultural Employer's Tax Guide. Free state tax e-filing Both of these publications also provide information about filing Form 940. Free state tax e-filing What Records Must You Keep? Keep your copies of Schedule H or other employment tax forms you file and related Forms W-2, W-3, and W-4. Free state tax e-filing You must also keep records to support the information you enter on the forms you file. Free state tax e-filing If you must file Form W-2, you will need to keep a record of your employee's name, address, and social security number. Free state tax e-filing Wage and tax records. Free state tax e-filing   On each payday, you should record the date and amounts of all the following items. Free state tax e-filing Your employee's cash and noncash wages. Free state tax e-filing Any employee social security tax you withhold or agree to pay for your employee. Free state tax e-filing Any employee Medicare tax you withhold or agree to pay for your employee. Free state tax e-filing Any federal income tax you withhold. Free state tax e-filing Any state employment taxes you withhold. Free state tax e-filing Employee's social security number. Free state tax e-filing   You must keep a record of your employee's name and social security number exactly as they appear on his or her social security card if you pay the employee either of the following. Free state tax e-filing Social security and Medicare wages of $1,900 or more. Free state tax e-filing Wages from which you withhold federal income tax. Free state tax e-filing You must ask for your employee's social security number no later than the first day on which you pay the wages. Free state tax e-filing You may wish to ask for it when you hire your employee. Free state tax e-filing You should ask your employee to show you his or her social security card. Free state tax e-filing The employee may show the card if it is available. Free state tax e-filing You may, but are not required to, photocopy the card if the employee provides it. Free state tax e-filing   An employee who does not have a social security number must apply for one on Form SS-5, Application for a Social Security Card. Free state tax e-filing An employee who has lost his or her social security card or whose name is not correctly shown on the card may apply for a replacement card. Free state tax e-filing    Employees can get Form SS-5 from any Social Security Administration office or by calling 1-800-772-1213. Free state tax e-filing    You also can download Form SS-5 from the Social Security Administration website at  www. Free state tax e-filing socialsecurity. Free state tax e-filing gov/online/ss-5. Free state tax e-filing pdf. Free state tax e-filing How long to keep records. Free state tax e-filing   Keep your employment tax records for at least 4 years after the due date of the return on which you report the taxes or the date the taxes were paid, whichever is later. Free state tax e-filing Can You Claim a Credit for Child and Dependent Care Expenses? If your household employee cares for your dependent who is under age 13 or for your spouse or dependent who is not capable of self-care, you may be able to take an income tax credit against some of your expenses. Free state tax e-filing To qualify, you must pay these expenses so you can work or look for work. Free state tax e-filing If you can take the credit, you can include in your qualifying expenses your share of the federal and state employment taxes you pay, as well as the employee's wages. Free state tax e-filing For information about the credit, see Publication 503, Child and Dependent Care Expenses. Free state tax e-filing How Can You Correct Schedule H? If you discover that you made an error on a Schedule H (or Anexo H-PR), the forms used to correct the error depend on whether the Schedule H was attached to another form or whether it was filed by itself. Free state tax e-filing Schedule H attached to another form. Free state tax e-filing    If you discover an error on a Schedule H that you previously filed with Form 1040, Form 1040NR, or Form 1040-SS, file Form 1040X, Amended U. Free state tax e-filing S. Free state tax e-filing Individual Income Tax Return, and attach a corrected Schedule H. Free state tax e-filing If you filed Formulario 1040-PR, file a Form 1040X and attach a corrected Anexo H-PR. Free state tax e-filing If you discover an error on a Schedule H that you previously filed with Form 1041, U. Free state tax e-filing S. Free state tax e-filing Income Tax Return for Estates and Trusts, file an “amended” Form 1041 and attach a corrected Schedule H. Free state tax e-filing You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Free state tax e-filing Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. Free state tax e-filing In addition, explain the reason for your correction and the date the error was discovered in Part III of Form 1040X or in a statement attached to the amended Form 1041. Free state tax e-filing Schedule H filed by itself. Free state tax e-filing   If you discover an error on a Schedule H (or Anexo H-PR) that you filed as a stand-alone return, file another stand-alone Schedule H with the corrected information. Free state tax e-filing You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Free state tax e-filing Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. Free state tax e-filing In addition, explain the reason for your correction and the date the error was discovered in a statement attached to the corrected Schedule H. Free state tax e-filing If you have an overpayment, also write “ADJUSTED” (or “CORREGIDO”) or “REFUND” (or “REEMBOLSO”) in the top margin, depending on whether you want to adjust your overpayment or claim a refund. Free state tax e-filing (See Overpayment of tax, later. Free state tax e-filing ) When to file. Free state tax e-filing   File a corrected Schedule H when you discover an error on a previously filed Schedule H. Free state tax e-filing If you are correcting an underpayment, file a corrected Schedule H no later than the due date of your next tax return (generally, April 15 of the following calendar year) after you discover the error. Free state tax e-filing If you are correcting an overpayment, file a corrected Schedule H within the refund period of limitations (generally 3 years from the date your original form was filed or within 2 years from the date you paid the tax, whichever is later). Free state tax e-filing Underpayment of tax. Free state tax e-filing   You must pay any underpayment of social security and Medicare taxes by the time you file the corrected Schedule H. Free state tax e-filing Generally, by filing on time and paying by the time you file the return, you will not be charged interest (and will not be subject to failure-to-pay or estimated tax penalties) on the balance due. Free state tax e-filing However, underreported FUTA taxes will be subject to interest. Free state tax e-filing Overpayment of tax. Free state tax e-filing    You may either adjust or claim a refund of an overpayment of social security and Medicare taxes on a previously filed Schedule H. Free state tax e-filing However, if you are correcting an overpayment and are filing the corrected Schedule H within 90 days of the expiration of the period of limitations, you can only claim a refund of the overpayment. Free state tax e-filing Adjust the overpayment. Free state tax e-filing   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, adjust your return by indicating on line 22 of the Form 1040X or on line 29a of the Form 1041 that you would like the overpayment applied to your estimated taxes on Form 1040, Form 1040NR, Form 1040-PR, Form 1040-SS, or Form 1041 for the year in which you are filing the corrected Schedule H. Free state tax e-filing If the corrected Schedule H is filed as a stand-alone return, adjust your return by writing “ADJUSTED” (or “CORREGIDO”) in the top margin (in dark, bold letters). Free state tax e-filing If you adjust your return, you will not receive interest on your overpayment. Free state tax e-filing If the corrected Schedule H will be filed within 90 days of the expiration of the refund period of limitations, you may not adjust the return and must claim a refund for the overpayment. Free state tax e-filing You may not adjust your return to correct overpayments of FUTA tax. Free state tax e-filing Claim for refund process. Free state tax e-filing   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, claim a refund by indicating that you would like the overpayment refunded to you on line 21 of the Form 1040X or line 29b of the Form 1041. Free state tax e-filing If the corrected Schedule H is filed as a stand-alone return, claim a refund by writing “REFUND” (or “REEMBOLSO”) in the top margin (in dark, bold letters). Free state tax e-filing You will receive interest on any overpayment refunded, unless the overpayment is for FUTA tax because you were entitled to increased credits for state contributions. Free state tax e-filing Required repayment or consent. Free state tax e-filing   If you previously overreported social security and Medicare taxes, you may adjust your overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection of employee tax. Free state tax e-filing You reimburse your employees by applying the overwithheld amount against taxes to be withheld on future wages. Free state tax e-filing You may claim a refund for the overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection or you have obtained consents from your employees to file the claim for refund for the employee tax. Free state tax e-filing Include a statement that you repaid or reimbursed your employees, or obtained their written consents in the case of a claim for refund, in Part III of Form 1040X or in a statement attached to the amended Form 1041 or the stand-alone corrected Schedule H. Free state tax e-filing Filing required Forms W-2 or Forms W-2c. Free state tax e-filing   Whether you previously underreported tax or overreported tax, you will generally be required to file Form W-2, or their territorial equivalents (if none was previously filed), or Form W-2c, Corrected Wage and Tax Statement, to reflect the changes reported on your corrected Schedule H. Free state tax e-filing Additional Medicare Tax. Free state tax e-filing   Generally, you may not correct an error in Additional Medicare Tax withholding for wages paid to employees in a prior year unless it is an administrative error. Free state tax e-filing An administrative error occurs if the amount you entered on Schedule H is not the amount you actually withheld. Free state tax e-filing For example, if the Additional Medicare Tax actually withheld was incorrectly reported on Schedule H due to a mathematical or transposition error, this would be an administrative error. Free state tax e-filing   Any underwithheld Additional Medicare Tax must be recovered from employees on or before the last day of the calendar year in which the underwithholding occurred. Free state tax e-filing Any excess Additional Medicare Tax withholding must be repaid or reimbursed to employees before the end of the calendar year in which it was withheld. Free state tax e-filing Additional information. Free state tax e-filing   For more information about correcting errors on a previously filed Schedule H, see page 4 of Form 944-X, Form 944-X: Which process should you use? (substitute “Schedule H” for “Form 944-X”) and the Instructions for Form 944-X (or Formulario 944-X (PR)). Free state tax e-filing Also, visit IRS. Free state tax e-filing gov. Free state tax e-filing How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free state tax e-filing Free help with your tax return. Free state tax e-filing   You can get free help preparing your return nationwide from IRS-certified volunteers. Free state tax e-filing The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Free state tax e-filing The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free state tax e-filing Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free state tax e-filing In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Free state tax e-filing To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Free state tax e-filing gov, download the IRS2Go app, or call 1-800-906-9887. Free state tax e-filing   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free state tax e-filing To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free state tax e-filing aarp. Free state tax e-filing org/money/taxaide or call 1-888-227-7669. Free state tax e-filing For more information on these programs, go to IRS. Free state tax e-filing gov and enter “VITA” in the search box. Free state tax e-filing Internet. Free state tax e-filing    IRS. Free state tax e-filing gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Free state tax e-filing Download the free IRS2Go app from the iTunes app store or from Google Play. Free state tax e-filing Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Free state tax e-filing Check the status of your 2013 refund with the Where's My Refund? application on IRS. Free state tax e-filing gov or download the IRS2Go app and select the Refund Status option. Free state tax e-filing The IRS issues more than 9 out of 10 refunds in less than 21 days. Free state tax e-filing Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Free state tax e-filing You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free state tax e-filing The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free state tax e-filing Use the Interactive Tax Assistant (ITA) to research your tax questions. Free state tax e-filing No need to wait on the phone or stand in line. Free state tax e-filing The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Free state tax e-filing When you reach the response screen, you can print the entire interview and the final response for your records. Free state tax e-filing New subject areas are added on a regular basis. Free state tax e-filing  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Free state tax e-filing gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Free state tax e-filing You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Free state tax e-filing The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Free state tax e-filing When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Free state tax e-filing Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Free state tax e-filing You can also ask the IRS to mail a return or an account transcript to you. Free state tax e-filing Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Free state tax e-filing gov or by calling 1-800-908-9946. Free state tax e-filing Tax return and tax account transcripts are generally available for the current year and the past three years. Free state tax e-filing Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Free state tax e-filing Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Free state tax e-filing If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Free state tax e-filing Check the status of your amended return using Where's My Amended Return? Go to IRS. Free state tax e-filing gov and enter Where's My Amended Return? in the search box. Free state tax e-filing You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free state tax e-filing It can take up to 3 weeks from the date you mailed it to show up in our system. Free state tax e-filing Make a payment using one of several safe and convenient electronic payment options available on IRS. Free state tax e-filing gov. Free state tax e-filing Select the Payment tab on the front page of IRS. Free state tax e-filing gov for more information. Free state tax e-filing Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free state tax e-filing Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free state tax e-filing gov. Free state tax e-filing Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Free state tax e-filing Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free state tax e-filing gov. Free state tax e-filing Request an Electronic Filing PIN by going to IRS. Free state tax e-filing gov and entering Electronic Filing PIN in the search box. Free state tax e-filing Download forms, instructions and publications, including accessible versions for people with disabilities. Free state tax e-filing Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free state tax e-filing gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free state tax e-filing An employee can answer questions about your tax account or help you set up a payment plan. Free state tax e-filing Before you visit, check the Office Locator on IRS. Free state tax e-filing gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Free state tax e-filing If you have a special need, such as a disability, you can request an appointment. Free state tax e-filing Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Free state tax e-filing Apply for an Employer Identification Number (EIN). Free state tax e-filing Go to IRS. Free state tax e-filing gov and enter Apply for an EIN in the search box. Free state tax e-filing Read the Internal Revenue Code, regulations, or other official guidance. Free state tax e-filing Read Internal Revenue Bulletins. Free state tax e-filing Sign up to receive local and national tax news and more by email. Free state tax e-filing Just click on “subscriptions” above the search box on IRS. Free state tax e-filing gov and choose from a variety of options. Free state tax e-filing Phone. Free state tax e-filing    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Free state tax e-filing Download the free IRS2Go app from the iTunes app store or from Google Play. Free state tax e-filing Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Free state tax e-filing gov, or download the IRS2Go app. Free state tax e-filing Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Free state tax e-filing The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free state tax e-filing Most VITA and TCE sites offer free electronic filing. Free state tax e-filing Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Free state tax e-filing Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Free state tax e-filing Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Free state tax e-filing If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Free state tax e-filing The IRS issues more than 9 out of 10 refunds in less than 21 days. Free state tax e-filing Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free state tax e-filing Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Free state tax e-filing The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free state tax e-filing Note, the above information is for our automated hotline. Free state tax e-filing Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Free state tax e-filing Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Free state tax e-filing You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free state tax e-filing It can take up to 3 weeks from the date you mailed it to show up in our system. Free state tax e-filing Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Free state tax e-filing You should receive your order within 10 business days. Free state tax e-filing Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Free state tax e-filing If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Free state tax e-filing Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Free state tax e-filing The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Free state tax e-filing These individuals can also contact the IRS through relay services such as the Federal Relay Service. Free state tax e-filing Walk-in. Free state tax e-filing   You can find a selection of forms, publications and services — in-person. Free state tax e-filing Products. Free state tax e-filing You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free state tax e-filing Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Free state tax e-filing Services. Free state tax e-filing You can walk in to your local TAC for face-to-face tax help. Free state tax e-filing An employee can answer questions about your tax account or help you set up a payment plan. Free state tax e-filing Before visiting, use the Office Locator tool on IRS. Free state tax e-filing gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Free state tax e-filing Mail. Free state tax e-filing   You can send your order for forms, instructions, and publications to the address below. Free state tax e-filing You should receive a response within 10 business days after your request is received. Free state tax e-filing Internal Revenue Service 1201 N. Free state tax e-filing Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Free state tax e-filing The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free state tax e-filing Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Free state tax e-filing   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Free state tax e-filing We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Free state tax e-filing You face (or your business is facing) an immediate threat of adverse action. Free state tax e-filing You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Free state tax e-filing   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Free state tax e-filing Here's why we can help: TAS is an independent organization within the IRS. Free state tax e-filing Our advocates know how to work with the IRS. Free state tax e-filing Our services are free and tailored to meet your needs. Free state tax e-filing We have offices in every state, the District of Columbia, and Puerto Rico. Free state tax e-filing   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Free state tax e-filing   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Free state tax e-filing If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Free state tax e-filing Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Free state tax e-filing Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Free state tax e-filing Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Free state tax e-filing Sample W-2 Form This image is too large to be displayed in the current screen. Free state tax e-filing Please click the link to view the image. Free state tax e-filing Webtitle: Form W-2 Wage and Tax Statement and Form W-3 Transmitttal of Wage and Tax Statemtents Prev  Up  Next   Home   More Online Publications
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The Free State Tax E-filing

Free state tax e-filing 3. Free state tax e-filing   Limit on Annual Additions Table of Contents Ministers and church employees. Free state tax e-filing Includible Compensation for Your Most Recent Year of ServiceMost Recent Year of Service Includible Compensation The first component of MAC is the limit on annual additions. Free state tax e-filing This is a limit on the total contributions (elective deferrals, nonelective contributions, and after-tax contributions) that can be made to your 403(b) account. Free state tax e-filing The limit on annual additions generally is the lesser of: $51,000 for 2013 and $52,000 for 2014, or 100% of your includible compensation for your most recent year of service. Free state tax e-filing More than one 403(b) account. Free state tax e-filing If you contributed to more than one 403(b) account, you must combine the contributions made to all 403(b) accounts on your behalf by your employer. Free state tax e-filing Ministers and church employees. Free state tax e-filing   If you are a minister or a church employee, you may be able to increase your limit on annual additions or use different rules when figuring your limit on annual additions. Free state tax e-filing For more information, see chapter 5. Free state tax e-filing Participation in a qualified plan. Free state tax e-filing If you participated in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pensions of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. Free state tax e-filing You can use Part I of Worksheet 1 in chapter 9 to figure your limit on annual additions. Free state tax e-filing Includible Compensation for Your Most Recent Year of Service Definition. Free state tax e-filing   Generally, includible compensation for your most recent year of service is the amount of taxable wages and benefits you received from the employer that maintained a 403(b) account for your benefit during your most recent year of service. Free state tax e-filing When figuring your includible compensation for your most recent year of service, keep in mind that your most recent year of service may not be the same as your employer's most recent annual work period. Free state tax e-filing This can happen if your tax year is not the same as your employer's annual work period. Free state tax e-filing When figuring includible compensation for your most recent year of service, do not mix compensation or service of one employer with compensation or service of another employer. Free state tax e-filing Most Recent Year of Service Your most recent year of service is your last full year of service, ending on the last day of your tax year that you worked for the employer that maintained a 403(b) account on your behalf. Free state tax e-filing Tax year different from employer's annual work period. Free state tax e-filing   If your tax year is not the same as your employer's annual work period, your most recent year of service is made up of parts of at least two of your employer's annual work periods. Free state tax e-filing Example. Free state tax e-filing A professor who reports her income on a calendar-year basis is employed on a full-time basis by a university that operates on an academic year (October through May). Free state tax e-filing To figure her includible compensation for 2013, the professor's most recent year of service is her service from January through May 2013 and from October through December 2013. Free state tax e-filing Figuring Your Most Recent Year of Service To figure your most recent year of service, begin by determining what is a full year of service for your position. Free state tax e-filing A full year of service is equal to full-time employment for your employer's annual work period. Free state tax e-filing After identifying a full year of service, begin counting the service you have provided for your employer starting with the service provided in the current year. Free state tax e-filing Part-time or employed only part of the year. Free state tax e-filing   If you are a part-time or a full-time employee who is employed for only part of the year, your most recent year of service is your service this year and your service for as many previous years as is necessary to total 1 full year of service. Free state tax e-filing To determine your most recent year of service, add the following periods of service: Your service during the year for which you are figuring the limit on annual additions, and Your service during your preceding tax years until the total service equals 1 year of service or you have figured all of your service with the employer. Free state tax e-filing Example. Free state tax e-filing You were employed on a full-time basis from July through December 2011 (1/2 year of service), July through December 2012 (1/2 year of service), and October through December 2013 (1/4 year of service). Free state tax e-filing Your most recent year of service for computing your limit on annual additions for 2013 is the total of your service during 2013 (1/4 year of service), your service during 2012 (1/2 year of service), and your service during the months October through December 2011 (1/4 year of service). Free state tax e-filing Not yet employed for 1 year. Free state tax e-filing   If, at the close of the year, you have not yet worked for your employer for 1 year (including time you worked for the same employer in all earlier years), use the period of time you have worked for the employer as your most recent year of service. Free state tax e-filing Includible Compensation After identifying your most recent year of service, the next step is to identify the includible compensation associated with that full year of service. Free state tax e-filing Includible compensation is not the same as income included on your tax return. Free state tax e-filing Compensation is a combination of income and benefits received in exchange for services provided to your employer. Free state tax e-filing Generally, includible compensation is the amount of income and benefits: Received from the employer who maintains your 403(b) account, and Must be included in your income. Free state tax e-filing Includible compensation includes the following amounts. Free state tax e-filing Elective deferrals (employer's contributions made on your behalf under a salary reduction agreement). Free state tax e-filing Amounts contributed or deferred by your employer under a section 125 cafeteria plan. Free state tax e-filing Amounts contributed or deferred, at the election of the employee, under an eligible section 457 nonqualified deferred compensation plan (state or local government or tax-exempt organization plan). Free state tax e-filing  Note. Free state tax e-filing For information about treating elective deferrals under section 457 plans as Roth contributions, see Publication 575. Free state tax e-filing Wages, salaries, and fees for personal services earned with the employer maintaining your 403(b) account. Free state tax e-filing Income otherwise excluded under the foreign earned income exclusion. Free state tax e-filing Pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan. Free state tax e-filing Includible compensation does not include the following items. Free state tax e-filing Your employer's contributions to your 403(b) account. Free state tax e-filing Compensation earned while your employer was not an eligible employer. Free state tax e-filing Your employer's contributions to a qualified plan that: Are on your behalf, and Are excludable from income. Free state tax e-filing The cost of incidental life insurance. Free state tax e-filing See Cost of Incidental Life Insurance, later. Free state tax e-filing If you are a church employee or a foreign missionary, figure includible compensation using the rules explained in chapter 5. Free state tax e-filing Contributions after retirement. Free state tax e-filing   Nonelective contributions may be made for an employee for up to 5 years after retirement. Free state tax e-filing These contributions would be based on includible compensation for the last year of service before retirement. Free state tax e-filing Cost of Incidental Life Insurance Includible compensation does not include the cost of incidental life insurance. Free state tax e-filing If all of your 403(b) accounts invest only in mutual funds, then you have no incidental life insurance. Free state tax e-filing If you have an annuity contract, a portion of the cost of that contract may be for incidental life insurance. Free state tax e-filing If so, the cost of the insurance is taxable to you in the year contributed and is considered part of your basis when distributed. Free state tax e-filing Your employer will include the cost of your insurance as taxable wages in box 1 of Form W-2. Free state tax e-filing Not all annuity contracts include life insurance. Free state tax e-filing Contact your plan administrator to determine if your contract includes incidental life insurance. Free state tax e-filing If it does, you will need to figure the cost of life insurance each year the policy is in effect. Free state tax e-filing Figuring the cost of incidental life insurance. Free state tax e-filing If you have determined that part of the cost of your annuity contract is for an incidental life insurance premium, you will need to determine the amount of the premium and subtract it from your includible compensation. Free state tax e-filing To determine the amount of the life insurance premiums, you will need to know the following information. Free state tax e-filing The value of your life insurance contract, which is the amount payable upon your death. Free state tax e-filing The cash value of your life insurance contract at the end of the tax year. Free state tax e-filing Your age on your birthday nearest the beginning of the policy year. Free state tax e-filing Your current life insurance protection under an ordinary retirement income life insurance policy, which is the amount payable upon your death minus the cash value of the contract at the end of the year. Free state tax e-filing You can use Worksheet A, in chapter 9, to determine the cost of your incidental life insurance. Free state tax e-filing Example. Free state tax e-filing Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Free state tax e-filing Your cash value in the contract at the end of the first year is zero. Free state tax e-filing Your current life insurance protection for the first year is $10,000 ($10,000 − 0). Free state tax e-filing The cash value in the contract at the end of year two is $1,000, and the current life insurance protection for the second year is $9,000 ($10,000 – $1,000). Free state tax e-filing The 1-year cost of the protection can be calculated by using Figure 3-1, Table of One-Year Term Premiums for $1,000 Life Insurance Protection . Free state tax e-filing The premium rate is determined based on your age on your birthday nearest the beginning of the policy year. Free state tax e-filing Figure 3-1. Free state tax e-filing Table of One-Year Term Premiums for $1,000 Life Insurance Protection Age Cost   Age Cost   Age Cost 0 $0. Free state tax e-filing 70   35 $0. Free state tax e-filing 99   70 $20. Free state tax e-filing 62 1 0. Free state tax e-filing 41   36 1. Free state tax e-filing 01   71 22. Free state tax e-filing 72 2 0. Free state tax e-filing 27   37 1. Free state tax e-filing 04   72 25. Free state tax e-filing 07 3 0. Free state tax e-filing 19   38 1. Free state tax e-filing 06   73 27. Free state tax e-filing 57 4 0. Free state tax e-filing 13   39 1. Free state tax e-filing 07   74 30. Free state tax e-filing 18 5 0. Free state tax e-filing 13   40 1. Free state tax e-filing 10   75 33. Free state tax e-filing 05 6 0. Free state tax e-filing 14   41 1. Free state tax e-filing 13   76 36. Free state tax e-filing 33 7 0. Free state tax e-filing 15   42 1. Free state tax e-filing 20   77 40. Free state tax e-filing 17 8 0. Free state tax e-filing 16   43 1. Free state tax e-filing 29   78 44. Free state tax e-filing 33 9 0. Free state tax e-filing 16   44 1. Free state tax e-filing 40   79 49. Free state tax e-filing 23 10 0. Free state tax e-filing 16   45 1. Free state tax e-filing 53   80 54. Free state tax e-filing 56 11 0. Free state tax e-filing 19   46 1. Free state tax e-filing 67   81 60. Free state tax e-filing 51 12 0. Free state tax e-filing 24   47 1. Free state tax e-filing 83   82 66. Free state tax e-filing 74 13 0. Free state tax e-filing 28   48 1. Free state tax e-filing 98   83 73. Free state tax e-filing 07 14 0. Free state tax e-filing 33   49 2. Free state tax e-filing 13   84 80. Free state tax e-filing 35 15 0. Free state tax e-filing 38   50 2. Free state tax e-filing 30   85 88. Free state tax e-filing 76 16 0. Free state tax e-filing 52   51 2. Free state tax e-filing 52   86 99. Free state tax e-filing 16 17 0. Free state tax e-filing 57   52 2. Free state tax e-filing 81   87 110. Free state tax e-filing 40 18 0. Free state tax e-filing 59   53 3. Free state tax e-filing 20   88 121. Free state tax e-filing 85 19 0. Free state tax e-filing 61   54 3. Free state tax e-filing 65   89 133. Free state tax e-filing 40 20 0. Free state tax e-filing 62   55 4. Free state tax e-filing 15   90 144. Free state tax e-filing 30 21 0. Free state tax e-filing 62   56 4. Free state tax e-filing 68   91 155. Free state tax e-filing 80 22 0. Free state tax e-filing 64   57 5. Free state tax e-filing 20   92 168. Free state tax e-filing 75 23 0. Free state tax e-filing 66   58 5. Free state tax e-filing 66   93 186. Free state tax e-filing 44 24 0. Free state tax e-filing 68   59 6. Free state tax e-filing 06   94 206. Free state tax e-filing 70 25 0. Free state tax e-filing 71   60 6. Free state tax e-filing 51   95 228. Free state tax e-filing 35 26 0. Free state tax e-filing 73   61 7. Free state tax e-filing 11   96 250. Free state tax e-filing 01 27 0. Free state tax e-filing 76   62 7. Free state tax e-filing 96   97 265. Free state tax e-filing 09 28 0. Free state tax e-filing 80   63 9. Free state tax e-filing 08   98 270. Free state tax e-filing 11 29 0. Free state tax e-filing 83   64 10. Free state tax e-filing 41   99 281. Free state tax e-filing 05 30 0. Free state tax e-filing 87   65 11. Free state tax e-filing 90       31 0. Free state tax e-filing 90   66 13. Free state tax e-filing 51       32 0. Free state tax e-filing 93   67 15. Free state tax e-filing 20       33 0. Free state tax e-filing 96   68 16. Free state tax e-filing 92       34 0. Free state tax e-filing 98   69 18. Free state tax e-filing 70                       If the current published premium rates per $1,000 of insurance protection charged by an insurer for individual 1-year term life insurance premiums available to all standard risks are lower than those in the preceding table, you can use the lower rates for figuring the cost of insurance in connection with individual policies issued by the same insurer. Free state tax e-filing Example 1. Free state tax e-filing Lynne Green, age 44, and her employer enter into a 403(b) plan that will provide her with a $500 a month annuity upon retirement at age 65. Free state tax e-filing The agreement also provides that if she should die before retirement, her beneficiary will receive the greater of $20,000 or the cash surrender value in the life insurance contract. Free state tax e-filing Using the facts presented we can determine the cost of Lynne's life insurance protection as shown in Table 3-1. Free state tax e-filing Lynne's employer has included $28 for the cost of the life insurance protection in her current year's income. Free state tax e-filing When figuring her includible compensation for this year, Lynne will subtract $28. Free state tax e-filing Table 3-1. Free state tax e-filing Worksheet A. Free state tax e-filing Cost of Incidental Life Insurance Note. Free state tax e-filing Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Free state tax e-filing This amount will be used to figure includible compensation for your most recent year of service. Free state tax e-filing 1. Free state tax e-filing Enter the value of the contract (amount payable upon your death) 1. Free state tax e-filing $20,000. Free state tax e-filing 00 2. Free state tax e-filing Enter the cash value in the contract at the end of the year 2. Free state tax e-filing 0. Free state tax e-filing 00 3. Free state tax e-filing Subtract line 2 from line 1. Free state tax e-filing This is the value of your current life insurance protection 3. Free state tax e-filing $20,000. Free state tax e-filing 00 4. Free state tax e-filing Enter your age on your birthday nearest the beginning of the policy year 4. Free state tax e-filing 44 5. Free state tax e-filing Enter the 1-year term premium for $1,000 of life insurance based on your age. Free state tax e-filing (From Figure 3-1) 5. Free state tax e-filing $1. Free state tax e-filing 40 6. Free state tax e-filing Divide line 3 by $1,000 6. Free state tax e-filing 20 7. Free state tax e-filing Multiply line 6 by line 5. Free state tax e-filing This is the cost of your incidental life insurance 7. Free state tax e-filing $28. Free state tax e-filing 00 Example 2. Free state tax e-filing Lynne's cash value in the contract at the end of the second year is $1,000. Free state tax e-filing In year two, the cost of Lynne's life insurance is calculated as shown in Table 3-2. Free state tax e-filing In year two, Lynne's employer will include $29. Free state tax e-filing 07 in her current year's income. Free state tax e-filing Lynne will subtract this amount when figuring her includible compensation. Free state tax e-filing Table 3-2. Free state tax e-filing Worksheet A. Free state tax e-filing Cost of Incidental Life Insurance Note. Free state tax e-filing Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Free state tax e-filing This amount will be used to figure includible compensation for your most recent year of service. Free state tax e-filing 1. Free state tax e-filing Enter the value of the contract (amount payable upon your death) 1. Free state tax e-filing $20,000. Free state tax e-filing 00 2. Free state tax e-filing Enter the cash value in the contract at the end of the year 2. Free state tax e-filing $1,000. Free state tax e-filing 00 3. Free state tax e-filing Subtract line 2 from line 1. Free state tax e-filing This is the value of your current life insurance protection 3. Free state tax e-filing $19,000. Free state tax e-filing 00 4. Free state tax e-filing Enter your age on your birthday nearest the beginning of the policy year 4. Free state tax e-filing 45 5. Free state tax e-filing Enter the 1-year term premium for $1,000 of life insurance based on your age. Free state tax e-filing (From Figure 3-1) 5. Free state tax e-filing $1. Free state tax e-filing 53 6. Free state tax e-filing Divide line 3 by $1,000 6. Free state tax e-filing 19 7. Free state tax e-filing Multiply line 6 by line 5. Free state tax e-filing This is the cost of your incidental life insurance 7. Free state tax e-filing $29. Free state tax e-filing 07 Figuring Includible Compensation for Your Most Recent Year of Service You can use Worksheet B in chapter 9 to determine your includible compensation for your most recent year of service. Free state tax e-filing Example. Free state tax e-filing Floyd has been periodically working full-time for a local hospital since September 2011. Free state tax e-filing He needs to figure his limit on annual additions for 2014. Free state tax e-filing The hospital's normal annual work period for employees in Floyd's general type of work runs from January to December. Free state tax e-filing During the periods that Floyd was employed with the hospital, the hospital has always been eligible to provide a 403(b) plan to employees. Free state tax e-filing Additionally, the hospital has never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a cafeteria plan. Free state tax e-filing Floyd has never worked abroad and there is no life insurance provided under the plan. Free state tax e-filing Table 3-3 shows the service Floyd provided to his employer, his compensation for the periods worked, his elective deferrals, and his taxable wages. Free state tax e-filing Table 3-3. Free state tax e-filing Floyd's Compensation Note. Free state tax e-filing This table shows information Floyd will use to figure includible compensation for his most recent year of service. Free state tax e-filing   Year Years of Service Taxable Wages Elective Deferrals 2014 6/12 of  a year $42,000 $2,000 2013 4/12 of  a year $16,000 $1,650 2012 4/12 of  a year $16,000 $1,650 Before Floyd can figure his limit on annual additions, he must figure includible compensation for his most recent year of service. Free state tax e-filing Because Floyd is not planning to work the entire 2014 year, his most recent year of service will include the time he is planning to work in 2014 plus time he worked in the preceding 3 years until the time he worked for the hospital totals 1 year. Free state tax e-filing If the total time he worked is less than 1 year, Floyd will treat it as if it were 1 year. Free state tax e-filing He figures his most recent year of service shown in the following list. Free state tax e-filing Time he will work in 2014 is 6/12 of a year. Free state tax e-filing Time worked in 2013 is 4/12 of a year. Free state tax e-filing All of this time will be used to determine Floyd's most recent year of service. Free state tax e-filing Time worked in 2012 is 4/12 of a year. Free state tax e-filing Floyd only needs 2 months of the 4 months he worked in 2012 to have enough time to total 1 full year. Free state tax e-filing Because he needs only one-half of the actual time he worked, Floyd will use only one-half of his income earned during that period to calculate wages that will be used in figuring his includible compensation. Free state tax e-filing Using the information provided in Table 3-3, wages for Floyd's most recent year of service are $66,000 ($42,000 + $16,000 + $8,000). Free state tax e-filing His includible compensation for his most recent year of service is figured as shown in Table 3-4. Free state tax e-filing After figuring his includible compensation, Floyd determines his limit on annual additions for 2014 to be $52,000, the lesser of his includible compensation, $70,475 (Table 3-4), and the maximum amount of $52,000. Free state tax e-filing Table 3-4. Free state tax e-filing Worksheet B. Free state tax e-filing Includible Compensation for Your Most Recent Year of Service1 Note. Free state tax e-filing Use this worksheet to figure includible compensation for your most recent year of service. Free state tax e-filing 1. Free state tax e-filing Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Free state tax e-filing $66,000 2. Free state tax e-filing Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Free state tax e-filing 4,4753 3. Free state tax e-filing Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Free state tax e-filing -0- 4. Free state tax e-filing Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government, or of a tax-exempt organization) for your most recent year of service 4. Free state tax e-filing -0- 5. Free state tax e-filing Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. Free state tax e-filing -0- 6. Free state tax e-filing Enter your foreign earned income exclusion for your most recent year of service 6. Free state tax e-filing -0- 7. Free state tax e-filing Add lines 1, 2, 3, 4, 5, and 6 7. Free state tax e-filing 70,475 8. Free state tax e-filing Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Free state tax e-filing -0- 9. Free state tax e-filing Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. Free state tax e-filing -0- 10. Free state tax e-filing Add lines 8 and 9 10. Free state tax e-filing -0- 11. Free state tax e-filing Subtract line 10 from line 7. Free state tax e-filing This is your includible compensation for your most recent year of service 11. Free state tax e-filing 70,475 1Use estimated amounts if figuring includible compensation before the end of the year. Free state tax e-filing 2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Free state tax e-filing  3$4,475 ($2,000 + $1,650 + $825). Free state tax e-filing Prev  Up  Next   Home   More Online Publications