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Free tax filing online state and federal Publication 957 - Main Content Table of Contents 1. Free tax filing online state and federal What is Back Pay?Reporting Back Pay Back Pay Under a Statute Nonstatutory Back Pay Format for Report to the SSA Questions 2. Free tax filing online state and federal Special Wage PaymentsReporting Special Wage Payments Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments Nonqualified Deferred Compensation and Section 457 Plans Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) PlansSpecial rule for box 11 of Form W-2 (distributions and deferral in the same year). Free tax filing online state and federal 1. Free tax filing online state and federal What is Back Pay? Back pay is pay received in a tax year(s) for actual or deemed employment in an earlier tax year(s). Free tax filing online state and federal For social security coverage and benefit purposes, all back pay, whether or not under a statute, is wages if it is payment for covered employment. Free tax filing online state and federal Damages for personal injury, interest, penalties, and legal fees included with back pay awards are not wages. Free tax filing online state and federal Report all back pay. Free tax filing online state and federal However, the tax year(s) for which back pay is credited as wages for social security purposes is different if it is awarded under a statute. Free tax filing online state and federal See Back Pay Under a Statute , later, for more information. Free tax filing online state and federal Reporting Back Pay The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. Free tax filing online state and federal However, for income tax purposes, the IRS treats all back pay as wages in the year paid. Free tax filing online state and federal Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee. Free tax filing online state and federal The SSA no longer accepts reports on tapes, cartridges, and diskettes. Free tax filing online state and federal Example. Free tax filing online state and federal In 2012, Terry Morris earned wages of $50,000. Free tax filing online state and federal In the same year, she received $100,000 in settlement of a back pay case against her employer that covered the periods January 2007 through December 2011. Free tax filing online state and federal Her employer properly reflected social security wages of $110,100 and Medicare wages of $150,000 on her 2012 Form W-2. Free tax filing online state and federal However, if an employer did not include back pay wages on a previously filed Form W-2, magnetic media, or electronically filed wage report, the employer should prepare a wage correction report, Form W-2c, Corrected Wage and Tax Statement, or electronically filed report, to add the back pay award to the wages previously reported. Free tax filing online state and federal Example. Free tax filing online state and federal If, in the above example, Terry Morris' employer had prepared her 2012 Form W-2 reporting social security and Medicare wages of only $50,000 each, the employer would have to correct that report. Free tax filing online state and federal A Form W-2c correcting the 2012 Form W-2 would show previously reported social security and Medicare wages of $50,000 and the correct amount of $110,100 for social security wages and $150,000 for Medicare wages. Free tax filing online state and federal SSA treatment of back pay under a statute. Free tax filing online state and federal   Under the law, the SSA credits back pay awarded under a statute to an individual's earnings record in the period(s) the wages should have been paid. Free tax filing online state and federal This is important because wages not credited to the proper year may result in lower social security benefits or failure to meet the requirements for benefits. Free tax filing online state and federal   However, back pay under statute payments will remain posted to the employee's social security earnings record in the year reported on Form W-2 (or Form W-2c) unless the employer or employee notifies the SSA (in a separate, special report) of the back pay under a statute payment. Free tax filing online state and federal Then, the SSA can allocate the statutory back pay to the appropriate periods. Free tax filing online state and federal   If a back pay award is not made under a statute, the SSA credits back pay as wages in the year paid. Free tax filing online state and federal    If employers do notify the SSA of this payment, they should prepare a special report (with the information noted below) and send it to: Social Security Administration Attn: CPS Back Pay Staff 7-B-15 SWT 1500 Woodlawn Drive Baltimore, MD 21241-0001 Be sure to send this special report to the above address because the SSA handles it separately from other reports. Free tax filing online state and federal    If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. Free tax filing online state and federal No further action is necessary. Free tax filing online state and federal Example. Free tax filing online state and federal In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012. Free tax filing online state and federal Her employer properly reported wages of $32,000 for social security and Medicare on her 2012 Form W-2. Free tax filing online state and federal No further action is necessary. Free tax filing online state and federal Information the SSA needs to properly credit back pay under a statute (special report). Free tax filing online state and federal   After you complete the special report, you or the employee should send it to the SSA when or after you submit the Form W-2 (on paper or electronically) to the SSA for the year you pay the statutory back pay to the employee. Free tax filing online state and federal There is no statute of limitations on the filing of the special report to enable the SSA to allocate the wages. Free tax filing online state and federal The special report must include the following information. Free tax filing online state and federal The employer's name, address, and employer identification number (EIN). Free tax filing online state and federal A signed statement citing the federal or state statute under which the payment was made. Free tax filing online state and federal If the statute is not identified, the SSA will assume the payment was not under a statute and will not allocate to earlier period(s). Free tax filing online state and federal The name and telephone number of a person to contact. Free tax filing online state and federal The SSA may have additional questions concerning the back pay case or the individual employee's information. Free tax filing online state and federal A list of employees receiving the payment and the following information for each employee: The tax year you paid and reported the back pay. Free tax filing online state and federal The employee's social security number (SSN). Free tax filing online state and federal The employee's name (as shown on his or her social security card). Free tax filing online state and federal The amount of the back pay award excluding any amounts specifically designated otherwise, for example, damages for personal injury, interest, penalties, and legal fees. Free tax filing online state and federal The period(s) the back pay award covers (beginning and ending dates—month and year). Free tax filing online state and federal The other wages paid subject to social security and/or Medicare taxes and reported in the same year as the back pay award (if none, show zero)*. Free tax filing online state and federal Do not include the back pay award shown in that wage report. Free tax filing online state and federal If you originally submitted the report under an establishment number, show that number and the amount of money that is to remain under that establishment number. Free tax filing online state and federal The amount to allocate to each reporting period*. Free tax filing online state and federal This includes any amount you want allocated (if applicable) to the tax year of the award payment. Free tax filing online state and federal If you do not give the SSA specific amounts to allocate, the SSA does the allocation by dividing the back pay award by the number of months or years covered by the award. Free tax filing online state and federal *Note. Free tax filing online state and federal   For periods before January 1, 1978 (before January 1, 1981, for state and local government employers covered by a Section 218 agreement), show the wage amounts for each calendar quarter ending March 31, June 30, September 30, and December 31. Free tax filing online state and federal For all tax years, show and identify the social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) separately. Free tax filing online state and federal MQGE is applicable to federal employees beginning in 1983, and for certain state and local government employees beginning in 1986. Free tax filing online state and federal For tax years 1991 and later, list the social security and Medicare wages separately. Free tax filing online state and federal If you originally reported the individual's wages under an establishment or payroll record unit number, show the amount of wages to remain in the award year for that number and furnish that number to the SSA along with the EIN. Free tax filing online state and federal Back Pay Under a Statute Back pay awarded under a statute is a payment by an employer following an award, determination, or agreement approved or sanctioned by a court or government agency responsible for enforcing a federal or state statute that protects an employee's right to employment or wages. Free tax filing online state and federal Examples of pertinent statutes include: Age Discrimination in Employment Act, Americans with Disabilities Act, Equal Pay Act, Fair Labor Standards Act, National Labor Relations Act, State minimum wage laws, and State statutes that protect rights to employment and wages. Free tax filing online state and federal Payments based on laws that have a similar effect to those listed above also may qualify as payments made under a statute. Free tax filing online state and federal Back pay awards, under some of the statutes listed above, may be compensation for personal injury and not pay for employment. Free tax filing online state and federal Such awards are not wages for social security coverage purposes. Free tax filing online state and federal If a court-approved or sanctioned settlement agreement states that the agreement is not an admission of discrimination, liability, or act of wrongdoing, the statement does not change the nature of a back pay award. Free tax filing online state and federal The payments made in such a settlement may still be back pay and wages under the rules discussed here. Free tax filing online state and federal Nonstatutory Back Pay A payment for back wages negotiated between an employer and employee without an award, determination, or agreement approved or sanctioned by a court or government agency, the payment is not made under a statute. Free tax filing online state and federal Delayed wage payments and retroactive pay increases resulting from union negotiation or payments under local ordinances or regulations are back pay and are wages. Free tax filing online state and federal However, they are not payments made under a statute. Free tax filing online state and federal If you are uncertain whether the back pay award was under a qualified statute, you may need to contact your personnel department or legal counsel or the attorney who filed the suit. Free tax filing online state and federal Format for Report to the SSA Use the format shown in Table 1, later, to send the SSA the information needed to properly credit back pay under a statute. Free tax filing online state and federal In a cover letter, include: Name and address of the employer, Statute under which you paid the back pay, Name and telephone number of the employer contact, and Signature of the reporting official. Free tax filing online state and federal Under certain circumstances, back pay may be a special wage payment and excluded from wages counted under the social security earnings test. Free tax filing online state and federal If you pay back pay to an employee age 61 or older, report it to the SSA in accordance with this section. Free tax filing online state and federal Read Special Wage Payments, later, for additional reporting instructions. Free tax filing online state and federal Questions If you have questions concerning back pay under a statute, call the SSA at 1-800-772-6270. Free tax filing online state and federal Exception. Free tax filing online state and federal   If you are a state or local government employer who was covered by an agreement under Section 218 of the Social Security Act before January 1, 1987, and you paid a back pay award before January 1, 1987, which you did not report to the SSA, contact your state Social Security Administrator's office. Free tax filing online state and federal Table 1. Free tax filing online state and federal Format for Report (Under Covering Letter) to Request SSA to Allocate Back Pay Under Statute Wages Employer's EIN: xx-xxxxxxx Tax Year in Which Award Payment Was Paid: 2012 (1) SSN and Employee Name (2)1 Award Amount and Period(s) (3)2,3 Other Soc. Free tax filing online state and federal Sec. Free tax filing online state and federal /Med. Free tax filing online state and federal Wages Paid In Award Year (4)3 Allocation     Soc. Free tax filing online state and federal Sec. Free tax filing online state and federal Med. Free tax filing online state and federal /MQGE Year Soc. Free tax filing online state and federal Sec. Free tax filing online state and federal Med. Free tax filing online state and federal /MQGE xxx-xx-xxxx HELEN T. Free tax filing online state and federal SMITH $100,000 1/2009 - 12/2012 $40,000 $40,000 2009 2010 2011 2012 $20,000 25,000 27,000 28,000 $20,000 25,000 27,000 28,000 xxx-xx-xxxx SAM W. Free tax filing online state and federal EVANS 30,000 7/89-12/91 -0- -0- 1989 1990 1991   6,000 12,000 12,000 xxx-xx-xxxx ROLAND S. Free tax filing online state and federal ADAMS 15,000 7/80-12/81 -0- -0- 9/80 12/80 1981 3,500 3,500 8,000   1Exclude amounts specifically designated as damages, penalties, etc. Free tax filing online state and federal  2Exclude the amount of back pay, if any, included in that amount. Free tax filing online state and federal  3For periods before January 1, 1978 (and for state and local government (Section 218) employers before January 1, 1981), show the wage amounts by calendar quarters. Free tax filing online state and federal The social security and/or Medicare Qualified Government Employment (MQGE) wages (where applicable) must be shown separately FOR ALL YEARS. Free tax filing online state and federal (Wages subject ONLY to MQGE would be shown in the Medicare/MQGE column; no wages would be shown in the Soc. Free tax filing online state and federal Sec. Free tax filing online state and federal column. Free tax filing online state and federal ) For tax years 1991 and later, the social security and Medicare wages must be listed separately. Free tax filing online state and federal Explanation of examples. Free tax filing online state and federal Helen T. Free tax filing online state and federal Smith–The back pay award, excluding interest, was $100,000 for the periods 1/2009-12/2012. Free tax filing online state and federal In 2012, this employee was also paid $40,000 in other wages. Free tax filing online state and federal (Her Form W-2 for 2012 reported $110,100 for social security and $140,000 for Medicare. Free tax filing online state and federal The SSA allocation will result in adjusted posted wages of $68,000 for social security and $68,000 for Medicare for 2012. Free tax filing online state and federal ) Sam W. Free tax filing online state and federal Evans–The back pay award was $30,000 for the periods 7/89-12/91. Free tax filing online state and federal This employee was hired in 1989 and was subject to MQGE only. Free tax filing online state and federal He was no longer employed by this governmental employer in 2012. Free tax filing online state and federal (His Form W-2 for 2012 reported $30,000 for social security and $30,000 for Medicare. Free tax filing online state and federal After the SSA allocation, he will not have any net posted wages for 2012. Free tax filing online state and federal ) Roland S. Free tax filing online state and federal Adams–The back pay award was $15,000 for the periods 7/80-12/81. Free tax filing online state and federal He was no longer employed by this state and local government (Section 218) employer in 2012. Free tax filing online state and federal (His Form W-2 for 2012 reported $15,000 for social security and $15,000 for Medicare; after the SSA allocation, he will not have any net posted wages for 2012. Free tax filing online state and federal ) If the state Social Security Administrator's office needs more information, they can contact the SSA at the following address:   Social Security Administration Office of Income Security Programs Office of Earnings and Program Integrity Policy 6401 Security Boulevard 2506 OPS Baltimore, MD 21235 2. Free tax filing online state and federal Special Wage Payments A special wage payment (SWP) is an amount paid by an employer to an employee (or former employee) for services performed in a prior year. Free tax filing online state and federal Employers should report to the SSA special wage payments made to employees and former employees who are recipients of social security retirement benefits. Free tax filing online state and federal Special wage payments made to a retired employee receiving social security or to an employee who continues to work while receiving social security benefits may reduce the benefits the individual receives if not reported to the SSA. Free tax filing online state and federal Special wage payments may include (but are not limited to): Accumulated sick and vacation pay, Back pay, Bonuses, Deferred compensation, Payments because of retirement, Sales commissions, Severance pay, and Stock options. Free tax filing online state and federal Note. Free tax filing online state and federal Payments made after retirement that are part of the normal payroll cycle should not be routinely reported as special wage payments. Free tax filing online state and federal Earnings Test. Free tax filing online state and federal   Benefits paid to a social security beneficiary under full retirement age may be reduced if the beneficiary continues to work. Free tax filing online state and federal The SSA uses the information in boxes 1, 3, and 5 of Form W-2 to determine the beneficiary's current year earnings. Free tax filing online state and federal Special wage payments, which are for services performed in a prior year, will increase the current year earnings on Form W-2, which also may result in a reduction in the beneficiary's benefits. Free tax filing online state and federal If a benefit is reduced because of a special wage payment, the beneficiary must get documentation from the employer before the SSA can restore the deducted portion. Free tax filing online state and federal Therefore, employer reports of special wage payments help prevent incorrect benefit reductions. Free tax filing online state and federal Reporting Special Wage Payments Employers must report special wage payments for income tax purposes and social security and Medicare taxes in the year received. Free tax filing online state and federal Report income, social security, and/or Medicare taxes for special wage payments on Form W-2. Free tax filing online state and federal See Nonqualified Deferred Compensation and Section 457 Plans, later, for reporting nonqualified deferred compensation plan deferrals and payments on Form W-2. Free tax filing online state and federal In addition, report to the SSA special wage payments made during the reporting year to retired employees and employees who continue to work while receiving social security benefits. Free tax filing online state and federal Submit reports after the close of the tax year. Free tax filing online state and federal To avoid delays in processing, submit reports in time to reach the SSA by April 1. Free tax filing online state and federal Use one of the following reporting methods. Free tax filing online state and federal Electronic reporting. Free tax filing online state and federal   Special wage payment files can be sent electronically by logging onto Business Services Online (BSO) via the socialsecurity. Free tax filing online state and federal gov website. Free tax filing online state and federal BSO enables organizations and authorized individuals to conduct business with and submit confidential information to the Social Security Administration. Free tax filing online state and federal You must register to use this website. Free tax filing online state and federal The web address is www. Free tax filing online state and federal socialsecurity. Free tax filing online state and federal gov/bso/bsowelcome. Free tax filing online state and federal htm. Free tax filing online state and federal   Use the specifications and record layout shown in  Table 2, later. Free tax filing online state and federal Only one file at a time may be submitted. Free tax filing online state and federal If your file is large (>10MB), or you have a slow internet connection, the transmission will be faster if the file is zipped. Free tax filing online state and federal A zipped file contains a file that has been compressed to reduce its file size. Free tax filing online state and federal WinZip and PKZIP are examples of acceptable compression packages. Free tax filing online state and federal   Electronic submissions not meeting the specifications in Table 2 will be rejected. Free tax filing online state and federal Paper listing. Free tax filing online state and federal   A paper listing can be used to report special wage payments to several employees. Free tax filing online state and federal Use the format shown in Table 3, later. Free tax filing online state and federal Submit paper listings to the local SSA office nearest your place of business. Free tax filing online state and federal Visit www. Free tax filing online state and federal socialsecurity. Free tax filing online state and federal gov/locator to find a Social Security office near you. Free tax filing online state and federal Form SSA-131. Free tax filing online state and federal   Use Form SSA-131 to report special wage payments made to an employee. Free tax filing online state and federal Also use this form to report nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in box 11 of Form W-2. Free tax filing online state and federal    This image is too large to be displayed in the current screen. Free tax filing online state and federal Please click the link to view the image. Free tax filing online state and federal Publication 957 Reporting Back Pay to the Social Security Administration Instructions for Form SSA–131   EMPLOYER INSTRUCTIONS FOR COMPLETING SPECIAL WAGE PAYMENT FORM 1. Free tax filing online state and federal Provide the EIN that was used or will be used to report the employee's wages on the Form W-2. Free tax filing online state and federal 2. Free tax filing online state and federal Enter the date the employee retired. Free tax filing online state and federal Enter “Not Retired” if the employee has not retired. Free tax filing online state and federal 3. Free tax filing online state and federal Enter the date that the employee last performed services; was not expected to return to work; and was not subject to recall to render additional services. Free tax filing online state and federal This date should be the same as or earlier than the date in item “2”. Free tax filing online state and federal Enter “Not Retired” if the employee has not retired. Free tax filing online state and federal 4. Free tax filing online state and federal Enter the wages that were paid to the employee in the tax year that were for services that were performed in years prior to the tax year or that were paid on account of retirement. Free tax filing online state and federal  Examples (not all inclusive) of payments to be included: Payments in lieu of vacation that were earned in a year prior to the tax year. Free tax filing online state and federal Accumulated sick payments which were paid in a lump sum based on “retirement” as the sole condition of payment. Free tax filing online state and federal Accumulated sick payments paid at or after the date in item 3, which were earned in a year prior to the tax year. Free tax filing online state and federal Payments “on account of retirement”–dismissal, severance or termination pay paid because of retirement. Free tax filing online state and federal Bonuses which are paid pursuant to a prior contract, agreement or promise causing the employee to expect such payments regularly; or announced to induce the employee to work more steadily, rapidly or efficiently or to remain with the employer. Free tax filing online state and federal Stock Options. Free tax filing online state and federal   Do not include in item “4” payments: For annual, sick, holiday, or vacation pay if used (absence from work) prior to the date of retirement (earlier of items “2” or “3”). Free tax filing online state and federal That were reported or will be reported under “Nonqualified Plans” on the Form W-2. Free tax filing online state and federal That were deducted from the employee's wages and paid to a deferred compensation plan (e. Free tax filing online state and federal g. Free tax filing online state and federal , 401k). Free tax filing online state and federal Employees health and dental plan benefits (non-covered/non-taxable for Social Security Wages). Free tax filing online state and federal Bonuses earned and paid in the tax year. Free tax filing online state and federal 5. Free tax filing online state and federal Check whether payments listed in item 4 will be made for years after the tax year. Free tax filing online state and federal If yes, please show the amounts and years in which these will be paid, if known. Free tax filing online state and federal 6. Free tax filing online state and federal Nonqualified deferred compensation and section 457 plans only. Free tax filing online state and federal If you were unable to report nonqualified deferred compensation or section 457 plan payments and deferrals (contributions) on Form W-2 because both payments and deferrals occurred during the year, show the amount of wages earned by the employee during the tax year. Free tax filing online state and federal Generally, the wages earned will be the compensation reported in block 1 of Form W-2 less payments from a nonqualified deferred compensation (or 457) plan, but including any amounts deferred under the plan during the tax year (See IRS Publication 957). Free tax filing online state and federal Paperwork/Privacy Act Notice: This report is authorized by regulation 20 CFR 404. Free tax filing online state and federal 702. Free tax filing online state and federal The information that you provide will be used in making a determination regarding the amount of Social Security benefits payable to the above named individual. Free tax filing online state and federal While your response is voluntary, if you do not respond we may not be able to make a correct determination regarding the amount of Social Security benefits payable to the above named individual for the year in question. Free tax filing online state and federal We may also use the information you give us when we match records by computer. Free tax filing online state and federal Matching programs compare our records with those of other Federal, State, or local government agencies. Free tax filing online state and federal Many agencies may use matching programs to find or prove that a person qualifies for benefits paid by the Federal Government. Free tax filing online state and federal The law allows us to do this even if you do not agree to it. Free tax filing online state and federal Explanations about these and other reasons why information you provide us may be used or given out are available in Social Security Offices. Free tax filing online state and federal If you want to learn more about this, contact any Social Security Office. Free tax filing online state and federal The Paperwork Reduction Act: This information collection meets the clearance requirements of 44 U. Free tax filing online state and federal S. Free tax filing online state and federal C. Free tax filing online state and federal §3507, as amended by Section 2 of the Paperwork Reduction Act of 1995. Free tax filing online state and federal You are not required to answer these questions unless we display a valid Office of Management and Budget control number. Free tax filing online state and federal We estimate that it will take you about 20 minutes to read the instructions, gather the necessary facts, and answer the questions. Free tax filing online state and federal Form SSA-131 (8-2001) EF (06-2002)   Submit Form SSA-131 to the SSA office nearest your place of business. Free tax filing online state and federal Or, the employee can submit it to the SSA office handling the claim. Free tax filing online state and federal You or the employee must submit this form before the SSA can exclude the special wage payments for purposes of the earnings test. Free tax filing online state and federal If reporting on more than one employee, complete a separate Form SSA-131 for each employee or use the paper listing format (except for reporting nonqualified and section 457 plan deferrals and payments) in Table 3. Free tax filing online state and federal Do not report payments from nonqualified deferred compensation or section 457 plans that were reported in box 11 of Form W-2. Free tax filing online state and federal Use Form SSA-131 if deferrals to and payments from nonqualified or section 457 plans occurred during the tax year. Free tax filing online state and federal Reporting Nonstatutory (Nonqualified) Stock Options as Special Wage Payments A nonstatutory (nonqualified) option to purchase stock which is exercised in a year after the year in which the option was earned is a special wage payment. Free tax filing online state and federal It should not count for the social security earnings test. Free tax filing online state and federal Nonstatutory (nonqualified) options exercised as special wage payments by retired employees or employees who continue to work while receiving social security benefits should be reported by employers using the above reporting methods. Free tax filing online state and federal Nonqualified Deferred Compensation and Section 457 Plans A nonqualified deferred compensation plan is a plan or arrangement established and maintained by an employer for one or more of its employees that provides for the deferral of compensation, but does not meet the requirements for a tax-qualified deferred compensation plan. Free tax filing online state and federal For social security and Medicare purposes, deferred compensation plans for employees of state and local governments (section 457 plans) are treated the same as nonqualified plans. Free tax filing online state and federal Nonqualified and section 457 plans are reported differently than other special wage payments. Free tax filing online state and federal See Reporting Amounts Deferred to Nonqualified and Section 457 Plans below for specific instructions. Free tax filing online state and federal Reporting Amounts Deferred to Nonqualified and Section 457 Plans Generally, when the related services are performed, nonqualified deferred compensation is subject to social security and Medicare tax when deferred. Free tax filing online state and federal However, if nonqualified and section 457 plans contain provisions that delay the employee's right to receive payments from the plan, a period of substantial risk of forfeiture exists. Free tax filing online state and federal The plans' deferrals, or contributions, are not subject to social security and Medicare taxes until the period of substantial risk of forfeiture ends. Free tax filing online state and federal No risk of forfeiture. Free tax filing online state and federal   If there is no risk of forfeiture, report wage amounts deferred to a nonqualified deferred compensation or section 457 plan in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free tax filing online state and federal Example. Free tax filing online state and federal Company X's nonqualified deferred compensation plan allows the deferral of up to $20,000 of employee salaries each year. Free tax filing online state and federal The plan has no risk of forfeiture. Free tax filing online state and federal In 2012, Employee A defers $20,000 to the plan from a total salary of $200,000. Free tax filing online state and federal Form W-2 Completion Amount Box 1 $200,000 Box 3* 110,100 Box 5 200,000 *Wage base maximum for tax year 2012 Risk of forfeiture lapses before retirement. Free tax filing online state and federal   If the substantial risk of forfeiture lapses before the employee retires, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free tax filing online state and federal The accumulated deferrals are reported along with any other social security and Medicare wages earned during the year. Free tax filing online state and federal   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Free tax filing online state and federal If the employee continues working, future deferrals are social security and Medicare wages when they are earned. Free tax filing online state and federal    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free tax filing online state and federal Risk of forfeiture lapses at retirement. Free tax filing online state and federal   When an employee's right to a payment is contingent upon working until retirement, report all past contributions to the plan (or the value of the plan), including accumulated earned interest, as social security and/or Medicare wages in the year of retirement. Free tax filing online state and federal Add the amount to other wages paid in that year, and enter in box 3 (up to the wage base maximum) and/or box 5 of Form W-2. Free tax filing online state and federal   Report in box 11 of Form W-2 the amount of deferrals, including any accumulated interest, that became taxable for social security and Medicare taxes during the year (but were for prior year services) because the deferred amounts were no longer subject to a substantial risk of forfeiture. Free tax filing online state and federal    Do not include in box 11 deferrals that are included in boxes 3 and/or 5 and that are for current year services. Free tax filing online state and federal Example—risk of forfeiture. Free tax filing online state and federal At the end of the risk-of-forfeiture period for Company Y's nonqualified deferred compensation plan, Employee B's accumulated deferrals, plus interest earned by the plan, are $120,000, not including B's $20,000 deferral for this year. Free tax filing online state and federal B's wages, including this year's deferred amount, are $80,000. Free tax filing online state and federal Form W-2 Completion Amount Box 1 $60,000 Box 3* 110,100 Box 5 200,000 Box 11 120,000 *Wage base maximum for tax year 2012 Reporting Payments From Nonqualified and Nongovernmental Section 457 Plans When an employee or former employee retires and begins receiving payments (distributions) from a nonqualified or nongovernmental section 457 plan, report the payments in boxes 1 and 11 of Form W-2. Free tax filing online state and federal Report payments (distributions) from a governmental section 457 plan on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free tax filing online state and federal Example. Free tax filing online state and federal Employee D retired from the XYZ company and began receiving social security benefits. Free tax filing online state and federal XYZ paid D a $12,000 bonus upon retirement for sales made in a prior year, and D received $25,000 in payments from XYZ's nonqualified deferred compensation plan. Free tax filing online state and federal In addition, D agreed to continue performing services for XYZ, but on a part-time basis for wages of $15,000 per year. Free tax filing online state and federal D made no deferrals to the nonqualified plan this year. Free tax filing online state and federal Form W-2 Completion Amount Box 1 $52,000 Box 3 27,000 Box 5 27,000 Box 11 25,000 Report the $12,000 bonus to the SSA using electronic reporting, a paper listing, or Form SSA-131. Free tax filing online state and federal For more information, see Reporting Special Wage Payments , earlier. Free tax filing online state and federal Reporting Payments and Deferrals in the Same Year Do not complete box 11 when payments (distributions) are made from a nonqualified plan and deferrals are reported in boxes 3 and/or 5 of Form W-2 (including current year deferrals). Free tax filing online state and federal Report to the SSA on Form SSA-131 the total amount the employee earned during the tax year. Free tax filing online state and federal Normally, the amount earned is the amount reported in box 1 of Form W-2 less payments from a nonqualified or section 457 plan, but including any amounts deferred under the plan during the tax year. Free tax filing online state and federal See Form SSA-131 and its instructions, earlier. Free tax filing online state and federal Example. Free tax filing online state and federal Employee K retired this year from Company XYZ and began receiving social security benefits. Free tax filing online state and federal During the year he earned wages of $50,000 and deferred $35,000 of the wages into the company's nonqualified deferred compensation plan. Free tax filing online state and federal K also received $75,000 in payments from the company's nonqualified plan. Free tax filing online state and federal Form W-2 Completion Amount Special Wage Payment $75,000 Wages 50,000 Minus: deferral 35,000 Total reported in Box 1 $90,000     Wages including deferral reported in  Boxes 3 and 5 $50,000     Leave Box 11 blank. Free tax filing online state and federal File Form SSA-131 -0-     Form SSA-131 Completion Amount from Box 1 of Form W-2 $90,000 Minus: payments from a nonqualified plan 75,000 Plus: amounts deferred into the plan during the year 35,000 Total wages earned for purposes of Form SSA-131 (item 6) $50,000 Additional Reporting Examples for Nonqualified Deferred Compensation (NQDC) Plans It is not necessary to show amounts deferred during the year under an NQDC plan subject to section 409A. Free tax filing online state and federal If you report section 409A deferrals, show the amount in box 12 of Form W-2 using code Y. Free tax filing online state and federal For more information, see Notice 2008-115, 2008-52 I. Free tax filing online state and federal R. Free tax filing online state and federal B. Free tax filing online state and federal 1367, available at www. Free tax filing online state and federal irs. Free tax filing online state and federal gov/irb/2008-52_IRB/ar10. Free tax filing online state and federal html. Free tax filing online state and federal Special reporting rules apply when an NQDC plan is not compliant with section 409A (when there has been a “plan failure”). Free tax filing online state and federal Income included under section 409A from an NQDC plan is reported in box 1 and box 12 of Form W-2 using code Z. Free tax filing online state and federal See Notice 2008-115. Free tax filing online state and federal The following examples use small dollar amounts for illustrative purposes. Free tax filing online state and federal However, the amount reported in box 3 of Form W-2 is always limited by the social security earnings wage base (for example, $110,100 for 2012). Free tax filing online state and federal The term “vested” in the following examples means that the amount deferred is not subject to a substantial risk of forfeiture. Free tax filing online state and federal Conversely, the term “not vested” means that the amount deferred is subject to a substantial risk of forfeiture. Free tax filing online state and federal The examples assume that the NQDC plan is in compliance with section 409A, and that amounts deferred under the plan are not includible in gross income as they are deferred. Free tax filing online state and federal For purposes of the examples, it is assumed that the regular pay of the employee is remuneration for employment and wages for employment tax purposes except to the extent the deferral of a portion of the regular pay results in a reduction in wages. Free tax filing online state and federal Example 1: Deferral that is immediately vested (no substantial risk of forfeiture) with no distributions and no vesting of prior-year deferrals. Free tax filing online state and federal For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into her employer’s NQDC plan. Free tax filing online state and federal The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested. Free tax filing online state and federal Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 vested deferral) $180 Box 3 ($200 Regular pay plus $10 Employer match, vested) 210 Box 5 ($200 Regular pay plus $10 Employer match, vested) 210 Box 11 -0- Example 2: Deferral with delayed vesting (substantial risk of forfeiture) of employee and employer portions (no distributions and no vesting of prior-year deferrals). Free tax filing online state and federal For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Free tax filing online state and federal The deferral of $20 was not vested upon deferral, and there was an employer match of $10 under the plan, which was also not vested. Free tax filing online state and federal Regular pay = $200; Deferral, not vested = $20; Employer match, not vested = $10. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, not vested) $180 Box 3 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 5 ($200 Regular pay minus $20 Deferral, not vested) 180 Box 11 -0- Example 3: Deferral that is immediately vested with prior-year deferrals and investment earnings on the prior-year deferrals that are now vesting (no distributions). Free tax filing online state and federal For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s nonqualified deferred compensation plan. Free tax filing online state and federal The deferral of $20 was vested upon deferral. Free tax filing online state and federal During the year, $100 of prior-year deferrals and $15 of investment earnings on the $100 of prior-year deferrals became vested. Free tax filing online state and federal Regular pay = $200; Deferral, vested = $20; Vesting of prior-year deferrals = $100; Vesting of investment earnings on $100 of prior-year deferral = $15. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($200 Regular pay minus $20 Deferral, vested) $180 Box 3 ($200 Regular pay plus $100 vested prior-year deferral plus $15 earnings on deferral) 315 Box 5 ($200 Regular pay plus $100 vested prior-year deferral plus $15 vested investment earnings on prior year deferral) 315 Box 11 ($100 vested prior-year deferral plus $15 earnings) 115 Example 4: No deferrals but there are distributions (no vesting of prior-year deferrals). Free tax filing online state and federal For the year, the employee’s regular pay was $100, and the employee deferred no pay into the employer’s NQDC plan. Free tax filing online state and federal There was no vesting of prior-year deferrals under the plan. Free tax filing online state and federal During the year, there were total distributions of $50 from the plan to the employee. Free tax filing online state and federal Regular pay = $100; Distribution = $50. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($100 Regular pay plus $50 Distribution) $150 Box 3 ($100 Regular pay ) 100 Box 5 ($100 Regular pay) 100 Box 11 ($50 Distribution) 50 Special rule for box 11 of Form W-2 (distributions and deferral in the same year). Free tax filing online state and federal   If, in the same year, there are NQDC distributions and there are deferrals that are reportable in boxes 3 and/or 5 (current or prior-year deferrals) of Form W-2, do not complete box 11. Free tax filing online state and federal Instead, report on Form SSA-131 the total amount the employee earned during the year. Free tax filing online state and federal * Submit the SSA-131 to the nearest SSA office or give it to the employee. Free tax filing online state and federal   *Generally, the amount earned by the employee during the tax year for purposes of item 6 of Form SSA-131 is the amount reported in box 1 of Form W-2 plus current-year deferrals that are vested (employee and employer portions) less distributions. Free tax filing online state and federal Do not consider prior-year deferrals that are vesting in the current year. Free tax filing online state and federal If there was a plan failure, the box 1 amount in this calculation should be as if there were no plan failure. Free tax filing online state and federal Example 5: Deferral that is immediately vested and there are distributions (no vesting of prior-year deferrals). Free tax filing online state and federal For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free tax filing online state and federal There was also an employer match of $10. Free tax filing online state and federal The deferral and employer match were vested upon deferral. Free tax filing online state and federal There was no vesting of prior-year deferrals under the plan. Free tax filing online state and federal During the year, there were total distributions of $50 from the plan to the employee. Free tax filing online state and federal Regular pay = $200; Deferral, vested = $20; Employer match, vested = $10; Distribution = $50. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, vested) $230 Boxes 3 and 5 ($200 Regular pay plus $10 vested employer match) 210 Leave Box 11 blank. Free tax filing online state and federal File Form SSA-131 -0-     Form SSA-131 Completion Item 6 - amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $30 vested current year employee deferral and employer match) $210 Example 6: Deferral with delayed vesting and there are distributions (no vesting of prior-year deferrals). Free tax filing online state and federal For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free tax filing online state and federal The deferral was not vested upon deferral. Free tax filing online state and federal There was no vesting of prior-year deferrals under the plan. Free tax filing online state and federal During the year, there were total distributions of $50 from the plan to the employee. Free tax filing online state and federal Regular pay = $200; Deferral, not vested = $20; Distribution = $50. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay minus $20 deferral that is not vested) 180 Box 11 ($50 Distribution). Free tax filing online state and federal 50 Example 7: Deferral that is immediately vested and there are distributions (also vesting of prior-year deferrals and earnings on those prior-year deferrals). Free tax filing online state and federal For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free tax filing online state and federal The deferral was vested upon deferral. Free tax filing online state and federal There was vesting of $100 of prior-year deferrals and $15 of earnings on the $100 prior-year deferral under the plan. Free tax filing online state and federal During the year, there were total distributions of $50 from the plan to the employee. Free tax filing online state and federal Regular pay = $200; Deferral, vested = $20; Distribution = $50; Vesting of prior-year deferrals ($100) and earnings on those prior-year deferrals ($15) = $115. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 Regular pay minus $20 vested deferral $230 Boxes 3 and 5 ($200 Regular pay Plus $115 vested prior deferral (with vested earnings on the deferral)) 315 Leave Box 11 blank. Free tax filing online state and federal File Form SSA-131 -0-     Form SSA-131 Completion Item 6, amount of wages earned by the employee during the tax year ($230 from Box 1 of Form W-2 minus $50 Distribution plus $20 vested current year deferral) $200 Example 8: Deferral with delayed vesting and there are distributions (vesting of prior-year deferrals, including employer matches, and earnings on those deferrals). Free tax filing online state and federal For the year, the employee’s regular pay was $200, and the employee deferred $20 of the pay into the employer’s NQDC plan. Free tax filing online state and federal The deferral was not vested upon deferral. Free tax filing online state and federal There was also vesting of prior-year deferrals and employer matches and earnings on these amounts under the plan ($115). Free tax filing online state and federal During the year, there were total distributions of $50 from the plan to the employee. Free tax filing online state and federal Regular pay = $200; Deferral, not vested = $20; Distribution = $50; Vesting of prior-year deferrals and employer match = $100 plus earnings on that $100 of $15. Free tax filing online state and federal Form W-2 Completion Amount Box 1 ($50 Special Wage Payment (Distribution) plus $200 regular pay minus $20 Deferral, not vested) $230 Boxes 3 and 5 ($200 Regular pay plus $115 vested prior-year deferral and prior year employer match and earning on the prior year amounts minus $20 deferral that is not vested) 295 Leave Box 11 blank. Free tax filing online state and federal File Form SSA-131 -0-     Form SSA-131 Completion Item 6 ($230 Amount from Box 1 of Form W-2 minus $50 Distribution) $180 Table 2. Free tax filing online state and federal Specifications for Electronic Reporting of Special Wage Payments Record Position  Field Size   Description Start End 1 3 3 Record Type—must include only the capital letters “SWP” 4 12 9 SSN—must be numeric and may not be all zeros 13 27 15 Last Name—all capitals and no punctuation; may have blanks on right only 28 38 11 First Name—all capitals and no punctuation; may have blanks on right only 39 39 1 Middle Initial—must be either a capital letter or blank 40 48 9 EIN—must be numeric and may not be all zeros 49 59 11 Payment—must be numeric; may not be all zeros; last two digits on right are assumed to be cents; no period or dollar sign 60 63 4 Payment Year—must be only a four-digit year 64 66 3 SSA Office Code—must be numeric and may be all zeros 67 67 1 Payment Type Code—must be the capital letter “T” 68 117 50 Filler  The record format is a fixed length of 117. Free tax filing online state and federal  The file format is ASCII. Free tax filing online state and federal  Submit only one file at a time. Free tax filing online state and federal   Table 3. Free tax filing online state and federal Sample—Paper Listing for Reporting Special Wage Payments to Several Employees Report of Special Wage PaymentsTax Year: Page of A. Free tax filing online state and federal Employer Name: EIN:   Address: Contact Name:     Phone: ( )   . Free tax filing online state and federal 1) B. Free tax filing online state and federal Employee Name: (Last) (First) (MI)   C. Free tax filing online state and federal SSN: D. Free tax filing online state and federal SWP:$ E. Free tax filing online state and federal Type: Other: 2) B. Free tax filing online state and federal Employee Name: (Last) (First) (MI)   C. Free tax filing online state and federal SSN: D. Free tax filing online state and federal SWP:$ E. Free tax filing online state and federal Type: Other: 3) B. Free tax filing online state and federal Employee Name: (Last) (First) (MI)   C. Free tax filing online state and federal SSN: D. Free tax filing online state and federal SWP:$ E. Free tax filing online state and federal Type: Other: 4) B. Free tax filing online state and federal Employee Name: (Last) (First) (MI)   C. Free tax filing online state and federal SSN: D. Free tax filing online state and federal SWP:$ E. Free tax filing online state and federal Type: Other: 5) B. Free tax filing online state and federal Employee Name: (Last) (First) (MI)   C. Free tax filing online state and federal SSN: D. Free tax filing online state and federal SWP:$ E. Free tax filing online state and federal Type: Other:     INSTRUCTIONS:   Enter tax year and page number. Free tax filing online state and federal   A. Free tax filing online state and federal Employer name, employer identification number (EIN), address, the name of a contact person, and a phone number where the contact person can be reached during normal business hours. Free tax filing online state and federal   B. Free tax filing online state and federal Employee's name. Free tax filing online state and federal   C. Free tax filing online state and federal Employee's social security number (SSN). Free tax filing online state and federal   D. Free tax filing online state and federal Total amount of special wage payments made to the employee. Free tax filing online state and federal   E. Free tax filing online state and federal Type of special wage payment from the following list: (1) Vacation Pay, (2) Sick Pay, (3) Severance Pay,  (4) Bonus, (5) Deferred Compensation, (6) Stock Options, and (7) Other—Please explain. Free tax filing online state and federal   Do not use a paper listing for nonqualified deferred compensation and section 457 plan deferrals and payments that could not be reported in block 11 of Form W-2. Free tax filing online state and federal (Get Form SSA-131. Free tax filing online state and federal )                 Prev  Up  Next   Home   More Online Publications
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Free tax filing online state and federal Publication 596 - Introductory Material Table of Contents Future Developments What is the EIC? Can I Claim the EIC? Do I Need This Publication? Do I Have To Have A Child To Qualify For The EIC? How Do I Figure the Amount of EIC? How Can I Quickly Locate Specific information? Is There Help Online? What's New for 2013 Reminders Future Developments For the latest information about developments related to Publication 596, such as legislation enacted after it was published, go to www. Free tax filing online state and federal irs. Free tax filing online state and federal gov/pub596. Free tax filing online state and federal What is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $51,567. Free tax filing online state and federal A tax credit usually means more money in your pocket. Free tax filing online state and federal It reduces the amount of tax you owe. Free tax filing online state and federal The EIC may also give you a refund. Free tax filing online state and federal Can I Claim the EIC? To claim the EIC, you must meet certain rules. Free tax filing online state and federal These rules are summarized in Table 1. Free tax filing online state and federal Table 1. Free tax filing online state and federal Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Free tax filing online state and federal Second, you must meet all the rules in one of these columns, whichever applies. Free tax filing online state and federal Third, you must meet the rule in this column. Free tax filing online state and federal Chapter 1. Free tax filing online state and federal  Rules for Everyone Chapter 2. Free tax filing online state and federal  Rules If You Have a Qualifying Child Chapter 3. Free tax filing online state and federal  Rules If You Do Not Have a Qualifying Child Chapter 4. Free tax filing online state and federal  Figuring and Claiming the EIC 1. Free tax filing online state and federal Your adjusted gross income (AGI) must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Free tax filing online state and federal 2. Free tax filing online state and federal You must have a valid social security number. Free tax filing online state and federal   3. Free tax filing online state and federal Your filing status cannot be Married filing separately. Free tax filing online state and federal   4. Free tax filing online state and federal You must be a U. Free tax filing online state and federal S. Free tax filing online state and federal citizen or resident alien all year. Free tax filing online state and federal   5. Free tax filing online state and federal You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Free tax filing online state and federal   6. Free tax filing online state and federal Your investment income must be $3,300 or less. Free tax filing online state and federal    7. Free tax filing online state and federal You must have earned income. Free tax filing online state and federal 8. Free tax filing online state and federal Your child must meet the relationship, age, residency, and joint return tests. Free tax filing online state and federal   9. Free tax filing online state and federal Your qualifying child cannot be used by more than one person to claim the EIC. Free tax filing online state and federal   10. Free tax filing online state and federal You cannot be a qualifying child of another person. Free tax filing online state and federal 11. Free tax filing online state and federal You must be at least age 25 but under age 65. Free tax filing online state and federal    12. Free tax filing online state and federal You cannot be the dependent of another person. Free tax filing online state and federal   13. Free tax filing online state and federal You cannot be a qualifying child of another person. Free tax filing online state and federal   14. Free tax filing online state and federal You must have lived in the United States more than half of the year. Free tax filing online state and federal 15. Free tax filing online state and federal Your earned income must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Free tax filing online state and federal Do I Need This Publication? Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. Free tax filing online state and federal You are one of those people if any of the following statements are true for 2013. Free tax filing online state and federal You are filing Schedule E (Form 1040). Free tax filing online state and federal You are reporting income from the rental of personal property not used in a trade or business. Free tax filing online state and federal You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends). Free tax filing online state and federal You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797. Free tax filing online state and federal If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. Free tax filing online state and federal You do not need this publication. Free tax filing online state and federal But you can read it to find out whether you can take the EIC and to learn more about the EIC. Free tax filing online state and federal Do I Have To Have A Child To Qualify For The EIC? No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $14,340 ($19,680 if married filing jointly). Free tax filing online state and federal See chapter 3. Free tax filing online state and federal How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. Free tax filing online state and federal To figure it yourself, you can complete a worksheet in the instructions for the form you file. Free tax filing online state and federal To find out how to have the IRS figure it for you, see chapter 4. Free tax filing online state and federal How Can I Quickly Locate Specific information? You can use the index to look up specific information. Free tax filing online state and federal In most cases, index entries will point you to headings, tables, or a worksheet. Free tax filing online state and federal Is There Help Online? Yes. Free tax filing online state and federal You can use the EITC Assistant at www. Free tax filing online state and federal irs. Free tax filing online state and federal gov/eitc to find out if you may be eligible for the credit. Free tax filing online state and federal The EITC Assistant is available in English and Spanish. Free tax filing online state and federal What's New for 2013 Earned income amount is more. Free tax filing online state and federal The maximum amount of income you can earn and still get the credit has increased. Free tax filing online state and federal You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Free tax filing online state and federal Your adjusted gross income also must be less than the amount in the above list that applies to you. Free tax filing online state and federal For details, see Rules 1 and 15. Free tax filing online state and federal Investment income amount is more. Free tax filing online state and federal The maximum amount of investment income you can have and still get the credit has increased to $3,300. Free tax filing online state and federal See Rule 6—Your Investment Income Must Be $3,300 or Less . Free tax filing online state and federal Reminders Increased EIC on certain joint returns. Free tax filing online state and federal . Free tax filing online state and federal  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Free tax filing online state and federal As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Free tax filing online state and federal When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Free tax filing online state and federal Earned income credit has no effect on certain welfare benefits. Free tax filing online state and federal  Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Free tax filing online state and federal These programs include the following. Free tax filing online state and federal Temporary Assistance for Needy Families (TANF). Free tax filing online state and federal Medicaid. Free tax filing online state and federal Supplemental security income (SSI). Free tax filing online state and federal Supplemental Nutrition Assistance Program (food stamps). Free tax filing online state and federal Low-income housing. Free tax filing online state and federal In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Free tax filing online state and federal Check with your local benefit coordinator to find out if your refund will affect your benefits. Free tax filing online state and federal Do not overlook your state credit. Free tax filing online state and federal  If you can claim the EIC on your federal income tax return, you may be able to take a similar credit on your state or local income tax return. Free tax filing online state and federal For a list of states that offer a state EIC, go to www. Free tax filing online state and federal irs. Free tax filing online state and federal gov/eitc. Free tax filing online state and federal EIC questioned by IRS. Free tax filing online state and federal  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Free tax filing online state and federal We will tell you what documents to send us. Free tax filing online state and federal These may include: birth certificates, school records, etc. Free tax filing online state and federal The process of establishing your eligibility will delay your refund. Free tax filing online state and federal Spanish version of Publication 596. Free tax filing online state and federal  You can order Publicación 596SP, Crédito por Ingreso del Trabajo, from the IRS. Free tax filing online state and federal It is a Spanish translation of Publication 596. Free tax filing online state and federal See How To Get Tax Help to find out how to order this and other IRS forms and publications. Free tax filing online state and federal Photographs of missing children. Free tax filing online state and federal  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free tax filing online state and federal Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free tax filing online state and federal You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free tax filing online state and federal Comments and suggestions. Free tax filing online state and federal  We welcome your comments about this publication and your suggestions for future editions. Free tax filing online state and federal You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch 1111 Constitution Ave. Free tax filing online state and federal NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. Free tax filing online state and federal Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free tax filing online state and federal You can send your comments from www. Free tax filing online state and federal irs. Free tax filing online state and federal gov/formspubs/. Free tax filing online state and federal Click on “More Information” and then on “Comment on Tax Forms and Publications. Free tax filing online state and federal ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free tax filing online state and federal Ordering forms and publications. Free tax filing online state and federal  Visit www. Free tax filing online state and federal irs. Free tax filing online state and federal gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Free tax filing online state and federal  Internal Revenue Service 1201 N. Free tax filing online state and federal Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free tax filing online state and federal  If you have a tax question, check the information available on IRS. Free tax filing online state and federal gov or call 1-800-829-1040. Free tax filing online state and federal We cannot answer tax questions sent to either of the above addresses. Free tax filing online state and federal Prev  Up  Next   Home   More Online Publications