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H&r Free Federal Tax Filing

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H&r Free Federal Tax Filing

H&r free federal tax filing Index A Abroad, citizens living, filing requirements, U. H&r free federal tax filing S. H&r free federal tax filing Citizens or Resident Aliens Living Abroad Absence, temporary, Temporary absences. H&r free federal tax filing , Temporary absences. H&r free federal tax filing , Temporary absences. H&r free federal tax filing Accounting periods, joint returns, Accounting period. H&r free federal tax filing Adopted child, Exception for adopted child. H&r free federal tax filing , Adopted child. H&r free federal tax filing , Adopted child. H&r free federal tax filing Taxpayer identification number, Taxpayer identification numbers for adoptees. H&r free federal tax filing Age Filing status determination, Age. H&r free federal tax filing Gross income and filing requirements (Table 1), Table 1. H&r free federal tax filing 2013 Filing Requirements Chart for Most Taxpayers Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Test, Age Test Aliens Dual-status (see Dual-status taxpayers) Nonresident (see Nonresident aliens) Alimony, Alimony. H&r free federal tax filing Alternative minimum tax (AMT), effect on filing requirements (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Amended returns, Joint Return After Separate Returns, Changing your mind. H&r free federal tax filing (see also Form 1040X) Change from itemized to standard deduction (or vice versa), Electing to itemize for state tax or other purposes. H&r free federal tax filing American citizens abroad, U. H&r free federal tax filing S. H&r free federal tax filing Citizens or Resident Aliens Living Abroad Annulled marriages, filing status, Annulled marriages. H&r free federal tax filing Armed forces Combat zone, signing return for spouse, Spouse in combat zone. H&r free federal tax filing Dependency allotments, Armed Forces dependency allotments. H&r free federal tax filing GI Bill benefits, Tuition payments and allowances under the GI Bill. H&r free federal tax filing Military quarters allotments, Tax-exempt military quarters allowances. H&r free federal tax filing Assistance (see Tax help) ATINs (Adoption taxpayer identification numbers), Taxpayer identification numbers for adoptees. H&r free federal tax filing B Birth of child, Death or birth. H&r free federal tax filing Blind persons, standard deduction, Higher Standard Deduction for Blindness C Canada, resident of, U. H&r free federal tax filing S. H&r free federal tax filing citizen or resident alien. H&r free federal tax filing , Citizen or Resident Test, Child in Canada or Mexico. H&r free federal tax filing Capital expenses, Capital expenses. H&r free federal tax filing Child born alive, Child born alive. H&r free federal tax filing Child care expenses, Child care expenses. H&r free federal tax filing Child custody, Custodial parent and noncustodial parent. H&r free federal tax filing Child support under pre-1985 agreement, Child support under pre-1985 agreement. H&r free federal tax filing Child tax credit, Child tax credit. H&r free federal tax filing Child, qualifying, Qualifying Child Children Adopted child (see Adoption) Adoption (see Adopted child) Birth of child, Death or birth. H&r free federal tax filing , Death or birth. H&r free federal tax filing Claiming parent, when child is head of household, Special rule for parent. H&r free federal tax filing Custody of, Custodial parent and noncustodial parent. H&r free federal tax filing Death of child, Death or birth. H&r free federal tax filing , Death or birth. H&r free federal tax filing Dividends of, Unearned income. H&r free federal tax filing Filing requirements as dependents (Table 2), Table 2. H&r free federal tax filing 2013 Filing Requirements for Dependents Investment income of child under age 18, Table 2. H&r free federal tax filing 2013 Filing Requirements for Dependents , Unearned income. H&r free federal tax filing Kidnapped, Kidnapped child. H&r free federal tax filing , Kidnapped child. H&r free federal tax filing Social security number, Social Security Numbers for Dependents Stillborn, Stillborn child. H&r free federal tax filing Church employees, filing requirements (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Citizen or resident test, Citizen or Resident Test Citizens outside U. H&r free federal tax filing S. H&r free federal tax filing , filing requirements, U. H&r free federal tax filing S. H&r free federal tax filing Citizens or Resident Aliens Living Abroad Common law marriage, Considered married. H&r free federal tax filing Community property states, Community property states. H&r free federal tax filing Cousin, Cousin. H&r free federal tax filing Custody of child, Custodial parent and noncustodial parent. H&r free federal tax filing D Death Of child, Death or birth of child. H&r free federal tax filing Of dependent, Death or birth. H&r free federal tax filing , Death or birth. H&r free federal tax filing Of spouse, Spouse died during the year. H&r free federal tax filing , Spouse died. H&r free federal tax filing , Spouse died before signing. H&r free federal tax filing , Death of spouse. H&r free federal tax filing Decedents, Spouse died during the year. H&r free federal tax filing , Decedent's final return. H&r free federal tax filing (see also Death of spouse) Filing requirements, Deceased Persons Deductions Personal exemption, Personal Exemptions Standard deduction, Standard Deduction Dependent taxpayer test, Dependent Taxpayer Test Dependents Birth of, Death or birth. H&r free federal tax filing Born and died within year, Born and died in 2013. H&r free federal tax filing Child's earnings, Child's earnings. H&r free federal tax filing Death of, Death or birth. H&r free federal tax filing Earned income, Earned income. H&r free federal tax filing Exemption for, Exemptions for Dependents Filing requirements, Table 2. H&r free federal tax filing 2013 Filing Requirements for Dependents , Dependents Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Not allowed to claim dependents, Dependent Taxpayer Test Qualifying child, Qualifying Child Qualifying relative, Qualifying Relative Social security number, Social Security Numbers for Dependents, Taxpayer identification numbers for adoptees. H&r free federal tax filing Standard deduction for, Standard Deduction for Dependents Unearned income, Unearned income. H&r free federal tax filing Disabled Child, Permanently and totally disabled. H&r free federal tax filing Dependent, Disabled dependent working at sheltered workshop. H&r free federal tax filing Divorced parents, Children of divorced or separated parents (or parents who live apart). H&r free federal tax filing Divorced taxpayers Child custody, Custodial parent and noncustodial parent. H&r free federal tax filing Filing status, Divorced persons. H&r free federal tax filing , Divorce and remarriage. H&r free federal tax filing , Divorced persons. H&r free federal tax filing Joint returns, responsibility for, Divorced taxpayer. H&r free federal tax filing Personal exemption, Divorced or separated spouse. H&r free federal tax filing Domestic help, no exemption for, Housekeepers, maids, or servants. H&r free federal tax filing Dual-status taxpayers Exemptions, Dual-status taxpayers. H&r free federal tax filing Joint returns not available, Nonresident alien or dual-status alien. H&r free federal tax filing E Earned income Defined for purposes of standard deduction, Earned income defined. H&r free federal tax filing Dependent filing requirements (Table 2), Table 2. H&r free federal tax filing 2013 Filing Requirements for Dependents Earned income credit Two persons with same qualifying child, Special Rule for Qualifying Child of More Than One Person Elderly persons Home for the aged, Home for the aged. H&r free federal tax filing Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Equitable relief, Innocent spouse, Relief from joint responsibility. H&r free federal tax filing Exemptions, Exemptions, Taxpayer identification numbers for adoptees. H&r free federal tax filing Dependents, Exemptions for Dependents Personal (see Personal exemption) F Fair rental value, Fair rental value defined. H&r free federal tax filing Figures (see Tables and figures) Filing requirements, Who Must File, Filing Status Filing status, Filing Status, Qualifying Widow(er) With Dependent Child Annulled marriages, Annulled marriages. H&r free federal tax filing Change to Joint return after separate returns, Joint Return After Separate Returns Separate returns after joint return, Separate Returns After Joint Return, Kidnapped child. H&r free federal tax filing Determination of, Filing status. H&r free federal tax filing , Filing Status Head of household, Head of household or qualifying widow(er) with dependent child. H&r free federal tax filing , Head of Household Marital status, determination of, Marital Status Married filing jointly (see Joint returns) Married filing separately (see Married filing separately) Unmarried persons (see Single taxpayers) Food benefits, Support provided by the state (welfare, food benefits, housing, etc. H&r free federal tax filing ). H&r free federal tax filing Foreign employment, filing requirements, U. H&r free federal tax filing S. H&r free federal tax filing Citizens or Resident Aliens Living Abroad Foreign students, Foreign students' place of residence. H&r free federal tax filing Form 1040 Personal exemption, Form 1040 filers. H&r free federal tax filing Social security numbers, Social Security Numbers for Dependents Use of, How to file. H&r free federal tax filing , How to file. H&r free federal tax filing , How to file. H&r free federal tax filing Form 1040A Personal exemption, Form 1040A filers. H&r free federal tax filing Social security numbers, Social Security Numbers for Dependents Use of, How to file. H&r free federal tax filing , How to file. H&r free federal tax filing , How to file. H&r free federal tax filing Form 1040EZ Personal exemption, Form 1040EZ filers. H&r free federal tax filing Use of, How to file. H&r free federal tax filing , How to file. H&r free federal tax filing Form 1040X Change of filing status, Joint Return After Separate Returns Itemized deductions, change to standard deduction, Changing your mind. H&r free federal tax filing Standard deduction, change to itemized deductions, Changing your mind. H&r free federal tax filing Form 1099-B, Form 1099-B received. H&r free federal tax filing Form 8814, parents' election to report child's interest and dividends, Election to report child's unearned income on parent's return. H&r free federal tax filing Form 8857, innocent spouse relief, Relief from joint responsibility. H&r free federal tax filing Form SS-5, social security number request, No SSN. H&r free federal tax filing Form W-7, individual taxpayer identification number request, Taxpayer identification numbers for aliens. H&r free federal tax filing Form W-7A, adoption taxpayer identification number request, Taxpayer identification numbers for adoptees. H&r free federal tax filing Foster care payments and expenses, Foster care payments and expenses. H&r free federal tax filing , Foster care. H&r free federal tax filing Foster child, Foster child. H&r free federal tax filing , Foster care payments and expenses. H&r free federal tax filing , Foster child. H&r free federal tax filing , Foster care. H&r free federal tax filing Free tax services, Free help with your tax return. H&r free federal tax filing Funeral expenses, Do Not Include in Total Support G GI Bill benefits, Tuition payments and allowances under the GI Bill. H&r free federal tax filing Gross income Defined, Gross income. H&r free federal tax filing Filing requirements (Table 1), Table 1. H&r free federal tax filing 2013 Filing Requirements Chart for Most Taxpayers Dependent filing requirements (Table 2), Table 2. H&r free federal tax filing 2013 Filing Requirements for Dependents Test, Gross Income Test Group-term life insurance, Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return H Head of household, Head of Household, Kidnapped child. H&r free federal tax filing Exemption for spouse, Head of household. H&r free federal tax filing Filing requirements (Table 1), Table 1. H&r free federal tax filing 2013 Filing Requirements Chart for Most Taxpayers Health insurance premiums, Medical insurance premiums. H&r free federal tax filing Help (see Tax help) Home Aged, home for, Home for the aged. H&r free federal tax filing Cost of keeping up, Keeping Up a Home Household workers, no exemption for, Housekeepers, maids, or servants. H&r free federal tax filing I Income Gross, Gross Income Test Tax exempt, Tax-exempt income. H&r free federal tax filing Individual retirement arrangements (IRAs) Filing requirements (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Married filing separately, Individual retirement arrangements (IRAs). H&r free federal tax filing Individual taxpayer identification numbers (ITINs), Reminders, Taxpayer identification numbers for aliens. H&r free federal tax filing Innocent spouse relief, Relief from joint responsibility. H&r free federal tax filing Insurance premiums Life, Do Not Include in Total Support Medical, Medical insurance premiums. H&r free federal tax filing IRAs (see Individual retirement arrangements (IRAs)) Itemized deductions Changing from standard to itemized deduction (or vice versa), Changing your mind. H&r free federal tax filing Choosing to itemize, Who Should Itemize Married filing separately, Married persons who filed separate returns. H&r free federal tax filing When to itemize, When to itemize. H&r free federal tax filing ITINs (Individual taxpayer identification numbers), Taxpayer identification numbers for aliens. H&r free federal tax filing J Joint return test, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Joint returns, Married Filing Jointly, Nonresident alien or dual-status alien. H&r free federal tax filing Dependents on, Joint return. H&r free federal tax filing Personal exemption, Joint return. H&r free federal tax filing K Kidnapped children Qualifying child, Kidnapped child. H&r free federal tax filing Qualifying relative, Kidnapped child. H&r free federal tax filing Widow(er) with dependent child, Death or birth. H&r free federal tax filing L Life insurance premiums, Do Not Include in Total Support Local income taxes, itemized deductions, Electing to itemize for state tax or other purposes. H&r free federal tax filing Local law violated, Local law violated. H&r free federal tax filing Lodging, Lodging. H&r free federal tax filing Losses, rental real estate, Rental activity losses. H&r free federal tax filing M Marital status, determination of, Marital Status Married dependents, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Married filing jointly (see Joint returns) Married filing separately, Married Filing Separately Changing method from or to itemized deductions, Changing your mind. H&r free federal tax filing Exemption for spouse, Separate return. H&r free federal tax filing Itemized deductions, Married persons who filed separate returns. H&r free federal tax filing Married taxpayers, Married Filing Jointly (see also Joint returns) Age 65 or older spouse, standard deduction, Higher Standard Deduction for Age (65 or Older), Spouse 65 or Older or Blind Blind spouse, standard deduction, Higher Standard Deduction for Blindness, Spouse 65 or Older or Blind Dual-status alien spouse, Nonresident alien or dual-status alien. H&r free federal tax filing Filing status, Married persons. H&r free federal tax filing Medical insurance premiums, Medical insurance premiums. H&r free federal tax filing Medical savings accounts (MSAs, effect on filing requirements (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Medicare taxes, not support, Do Not Include in Total Support Member of household or relationship test, Member of Household or Relationship Test Mexico, resident of, U. H&r free federal tax filing S. H&r free federal tax filing citizen or resident alien. H&r free federal tax filing , Citizen or Resident Test, Child in Canada or Mexico. H&r free federal tax filing Military (see Armed forces) Missing children, photographs of in IRS publications, Reminders Multiple support agreement, Multiple Support Agreement N National of the United States, U. H&r free federal tax filing S. H&r free federal tax filing national. H&r free federal tax filing Nonresident aliens, Nonresident aliens. H&r free federal tax filing Dependents, Taxpayer identification numbers for aliens. H&r free federal tax filing Exemptions, Nonresident aliens. H&r free federal tax filing Joint return, Nonresident alien or dual-status alien. H&r free federal tax filing Spouse, Nonresident alien spouse. H&r free federal tax filing Taxpayer identification number, Taxpayer identification numbers for aliens. H&r free federal tax filing O Overseas taxpayers, U. H&r free federal tax filing S. H&r free federal tax filing Citizens or Resident Aliens Living Abroad P Parent, claiming head of household for, Special rule for parent. H&r free federal tax filing Parents who never married, Parents who never married. H&r free federal tax filing Parents, divorced or separated, Children of divorced or separated parents (or parents who live apart). H&r free federal tax filing Penalty, failure to file, Who Must File Personal exemption, Personal Exemptions Photographs of missing children in IRS publications, Reminders Publications (see Tax help) Puerto Rico, residents of, Residents of Puerto Rico Q Qualifying Child, Qualifying Child Relative, Qualifying Relative Surviving spouse, Qualifying Widow(er) With Dependent Child Widow/widower, Qualifying Widow(er) With Dependent Child R Recapture taxes, Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Relationship test, Relationship Test, Member of Household or Relationship Test Relative, qualifying, Qualifying Relative Remarriage after divorce, Divorce and remarriage. H&r free federal tax filing Rental losses, Rental activity losses. H&r free federal tax filing Residency test, Residency Test S Same-sex marriage Filing status, Same-sex marriage. H&r free federal tax filing Scholarships, Earned income. H&r free federal tax filing , Scholarships. H&r free federal tax filing , Gross income defined. H&r free federal tax filing , Do Not Include in Total Support , Earned income defined. H&r free federal tax filing Self-employed persons Filing requirements (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Gross income, Self-employed persons. H&r free federal tax filing Separate returns (see Married filing separately) Separated parents, Children of divorced or separated parents (or parents who live apart). H&r free federal tax filing Separated taxpayers Filing status, Considered married. H&r free federal tax filing , Married persons living apart. H&r free federal tax filing Living apart but not legally separated, Considered married. H&r free federal tax filing Personal exemption, Divorced or separated spouse. H&r free federal tax filing Signatures, joint returns, Signing a joint return. H&r free federal tax filing Single taxpayers Filing status, Unmarried persons. H&r free federal tax filing , Single Gross income filing requirements (Table 1), Table 1. H&r free federal tax filing 2013 Filing Requirements Chart for Most Taxpayers How to file and forms, How to file. H&r free federal tax filing Personal exemption, Your Own Exemption Social security and Medicare taxes Reporting of (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Support, not included in, Do Not Include in Total Support Social security benefits, Social security benefits. H&r free federal tax filing Social security numbers (SSNs) for dependents, Social Security Numbers for Dependents Spouse Deceased, Spouse died. H&r free federal tax filing , Spouse died before signing. H&r free federal tax filing , Death of spouse. H&r free federal tax filing Dual-status alien spouse, Nonresident alien or dual-status alien. H&r free federal tax filing Exemption for, Your Spouse's Exemption Innocent spouse relief, Relief from joint responsibility. H&r free federal tax filing Nonresident alien, Nonresident alien spouse. H&r free federal tax filing Signing joint returns, Signing a joint return. H&r free federal tax filing Surviving (see Surviving spouse) SSNs (see Social security numbers (SSNs) for dependents) Standard deduction, What's New, Standard Deduction, Married persons who filed separate returns. H&r free federal tax filing Married filing jointly, Married Filing Jointly State or local income taxes, Electing to itemize for state tax or other purposes. H&r free federal tax filing Stillborn child, Stillborn child. H&r free federal tax filing Students Defined, Student defined. H&r free federal tax filing Foreign, Foreign students' place of residence. H&r free federal tax filing Support test Qualifying child, Support Test (To Be a Qualifying Child) Qualifying relative, Support Test (To Be a Qualifying Relative) Surviving spouse Death of spouse (see Death of spouse) Gross income filing requirements (Table 1), Table 1. H&r free federal tax filing 2013 Filing Requirements Chart for Most Taxpayers Single filing status, Widow(er). H&r free federal tax filing Widow(er) with dependent child, Qualifying Widow(er) With Dependent Child, How to file. H&r free federal tax filing , Death or birth. H&r free federal tax filing T Tables and figures, Keeping Up a Home, Worksheet 2. H&r free federal tax filing Worksheet for Determining Support (see also Worksheets) Filing requirements Dependents (Table 2), Table 2. H&r free federal tax filing 2013 Filing Requirements for Dependents Gross income levels (Table 1), Table 1. H&r free federal tax filing 2013 Filing Requirements Chart for Most Taxpayers Other situations requiring filing (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Tax help, How To Get Tax Help Tax returns Amended (see Form 1040X) Filing of (see Filing requirements) Joint returns (see Joint returns) Who must file, What's New, Who Must File, Filing Requirements for Most Taxpayers, Who Should File Tax-exempt income, Tax-exempt income. H&r free federal tax filing Taxes, not support, Do Not Include in Total Support Temporary absences, Temporary absences. H&r free federal tax filing , Temporary absences. H&r free federal tax filing Tiebreaker rules, Tiebreaker rules. H&r free federal tax filing Tips, reporting of (Table 3), Table 3. H&r free federal tax filing Other Situations When You Must File a 2013 Return Total support, Total Support Tuition, benefits under GI Bill, Tuition payments and allowances under the GI Bill. H&r free federal tax filing U U. H&r free federal tax filing S. H&r free federal tax filing citizen or resident, Citizen or Resident Test U. H&r free federal tax filing S. H&r free federal tax filing citizens filing abroad, filing requirements Filing requirements, U. H&r free federal tax filing S. H&r free federal tax filing Citizens or Resident Aliens Living Abroad U. H&r free federal tax filing S. H&r free federal tax filing national, U. H&r free federal tax filing S. H&r free federal tax filing national. H&r free federal tax filing U. H&r free federal tax filing S. H&r free federal tax filing possessions, income from, Individuals With Income From U. H&r free federal tax filing S. H&r free federal tax filing Possessions Unmarried persons (see Single taxpayers) W Welfare benefits, Support provided by the state (welfare, food benefits, housing, etc. H&r free federal tax filing ). H&r free federal tax filing What's New, What's New Widow/widower (see Surviving spouse) Worksheets Exemption Phaseout, Worksheet 3. H&r free federal tax filing Worksheet for Determining the Deduction for Exemptions Head of household status and cost of keeping up home, Keeping Up a Home Support test, Worksheet 2. H&r free federal tax filing Worksheet for Determining Support Prev  Up     Home   More Online Publications
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Special Identity Theft Enforcement Efforts - 2012

Identity theft perpetrators are hitting credit card companies, banks and other financial institutions. Unfortunately, the tax system isn't immune. This is not something the IRS takes lightly, and we've dramatically stepped up efforts to stop refund fraud as well as identity theft prevention and detection across the entire tax system.

Our goal is to detect these attempts at refund fraud before they occur and prevent them from happening in the first place, including detecting new schemes.

The IRS is utilizing the full capabilities and resources of our Criminal Investigation division to investigate those who steal from American taxpayers through identity theft.

Page Last Reviewed or Updated: 06-Dec-2013

The H&r Free Federal Tax Filing

H&r free federal tax filing 2. H&r free federal tax filing   Simplified Employee Pensions (SEPs) Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Setting Up a SEPWhen not to use Form 5305-SEP. H&r free federal tax filing How Much Can I Contribute?Contribution Limits Deducting ContributionsDeduction Limit for Contributions for Participants Deduction Limit for Self-Employed Individuals Carryover of Excess SEP Contributions When To Deduct Contributions Where To Deduct Contributions Salary Reduction Simplified Employee Pensions (SARSEPs)SARSEP ADP test. H&r free federal tax filing Deferral percentage. H&r free federal tax filing Employee compensation. H&r free federal tax filing Compensation of self-employed individuals. H&r free federal tax filing Choice not to treat deferrals as compensation. H&r free federal tax filing Limit on Elective Deferrals Tax Treatment of Deferrals Distributions (Withdrawals) Additional TaxesEffects on employee. H&r free federal tax filing Reporting and Disclosure Requirements Topics - This chapter discusses: Setting up a SEP How much can I contribute Deducting contributions Salary reduction simplified employee pensions (SARSEPs) Distributions (withdrawals) Additional taxes Reporting and disclosure requirements Useful Items - You may want to see: Publication 590 Individual Retirement Arrangements (IRAs) 3998 Choosing A Retirement Solution for Your Small Business 4285 SEP Checklist 4286 SARSEP Checklist 4333 SEP Retirement Plans for Small Businesses 4336 SARSEP for Small Businesses 4407 SARSEP—Key Issues and Assistance Forms (and Instructions) W-2 Wage and Tax Statement 1040 U. H&r free federal tax filing S. H&r free federal tax filing Individual Income Tax Return 5305-SEP Simplified Employee Pension—Individual Retirement Accounts Contribution Agreement 5305A-SEP Salary Reduction Simplified Employee Pension—Individual Retirement Accounts Contribution Agreement 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs A SEP is a written plan that allows you to make contributions toward your own retirement and your employees' retirement without getting involved in a more complex qualified plan. H&r free federal tax filing Under a SEP, you make contributions to a traditional individual retirement arrangement (called a SEP-IRA) set up by or for each eligible employee. H&r free federal tax filing A SEP-IRA is owned and controlled by the employee, and you make contributions to the financial institution where the SEP-IRA is maintained. H&r free federal tax filing SEP-IRAs are set up for, at a minimum, each eligible employee (defined below). H&r free federal tax filing A SEP-IRA may have to be set up for a leased employee (defined in chapter 1), but does not need to be set up for excludable employees (defined later). H&r free federal tax filing Eligible employee. H&r free federal tax filing   An eligible employee is an individual who meets all the following requirements. H&r free federal tax filing Has reached age 21. H&r free federal tax filing Has worked for you in at least 3 of the last 5 years. H&r free federal tax filing Has received at least $550 in compensation from you in 2013. H&r free federal tax filing This amount remains the same in 2014. H&r free federal tax filing    You can use less restrictive participation requirements than those listed, but not more restrictive ones. H&r free federal tax filing Excludable employees. H&r free federal tax filing   The following employees can be excluded from coverage under a SEP. H&r free federal tax filing Employees covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you. H&r free federal tax filing Nonresident alien employees who have received no U. H&r free federal tax filing S. H&r free federal tax filing source wages, salaries, or other personal services compensation from you. H&r free federal tax filing For more information about nonresident aliens, see Publication 519, U. H&r free federal tax filing S. H&r free federal tax filing Tax Guide for Aliens. H&r free federal tax filing Setting Up a SEP There are three basic steps in setting up a SEP. H&r free federal tax filing You must execute a formal written agreement to provide benefits to all eligible employees. H&r free federal tax filing You must give each eligible employee certain information about the SEP. H&r free federal tax filing A SEP-IRA must be set up by or for each eligible employee. H&r free federal tax filing Many financial institutions will help you set up a SEP. H&r free federal tax filing Formal written agreement. H&r free federal tax filing   You must execute a formal written agreement to provide benefits to all eligible employees under a SEP. H&r free federal tax filing You can satisfy the written agreement requirement by adopting an IRS model SEP using Form 5305-SEP. H&r free federal tax filing However, see When not to use Form 5305-SEP, below. H&r free federal tax filing   If you adopt an IRS model SEP using Form 5305-SEP, no prior IRS approval or determination letter is required. H&r free federal tax filing Keep the original form. H&r free federal tax filing Do not file it with the IRS. H&r free federal tax filing Also, using Form 5305-SEP will usually relieve you from filing annual retirement plan information returns with the IRS and the Department of Labor. H&r free federal tax filing See the Form 5305-SEP instructions for details. H&r free federal tax filing If you choose not to use Form 5305-SEP, you should seek professional advice in adopting a SEP. H&r free federal tax filing When not to use Form 5305-SEP. H&r free federal tax filing   You cannot use Form 5305-SEP if any of the following apply. H&r free federal tax filing You currently maintain any other qualified retirement plan other than another SEP. H&r free federal tax filing You have any eligible employees for whom IRAs have not been set up. H&r free federal tax filing You use the services of leased employees, who are not your common-law employees (as described in chapter 1). H&r free federal tax filing You are a member of any of the following unless all eligible employees of all the members of these groups, trades, or businesses participate under the SEP. H&r free federal tax filing An affiliated service group described in section 414(m). H&r free federal tax filing A controlled group of corporations described in section 414(b). H&r free federal tax filing Trades or businesses under common control described in section 414(c). H&r free federal tax filing You do not pay the cost of the SEP contributions. H&r free federal tax filing Information you must give to employees. H&r free federal tax filing   You must give each eligible employee a copy of Form 5305-SEP, its instructions, and the other information listed in the Form 5305-SEP instructions. H&r free federal tax filing An IRS model SEP is not considered adopted until you give each employee this information. H&r free federal tax filing Setting up the employee's SEP-IRA. H&r free federal tax filing   A SEP-IRA must be set up by or for each eligible employee. H&r free federal tax filing SEP-IRAs can be set up with banks, insurance companies, or other qualified financial institutions. H&r free federal tax filing You send SEP contributions to the financial institution where the SEP-IRA is maintained. H&r free federal tax filing Deadline for setting up a SEP. H&r free federal tax filing   You can set up a SEP for any year as late as the due date (including extensions) of your income tax return for that year. H&r free federal tax filing Credit for startup costs. H&r free federal tax filing   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP that first became effective in 2013. H&r free federal tax filing For more information, see Credit for startup costs under Reminders, earlier. H&r free federal tax filing How Much Can I Contribute? The SEP rules permit you to contribute a limited amount of money each year to each employee's SEP-IRA. H&r free federal tax filing If you are self-employed, you can contribute to your own SEP-IRA. H&r free federal tax filing Contributions must be in the form of money (cash, check, or money order). H&r free federal tax filing You cannot contribute property. H&r free federal tax filing However, participants may be able to transfer or roll over certain property from one retirement plan to another. H&r free federal tax filing See Publication 590 for more information about rollovers. H&r free federal tax filing You do not have to make contributions every year. H&r free federal tax filing But if you make contributions, they must be based on a written allocation formula and must not discriminate in favor of highly compensated employees (defined in chapter 1). H&r free federal tax filing When you contribute, you must contribute to the SEP-IRAs of all participants who actually performed personal services during the year for which the contributions are made, including employees who die or terminate employment before the contributions are made. H&r free federal tax filing Contributions are deductible within limits, as discussed later, and generally are not taxable to the plan participants. H&r free federal tax filing A SEP-IRA cannot be a Roth IRA. H&r free federal tax filing Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth or traditional IRA. H&r free federal tax filing Unlike regular contributions to a traditional IRA, contributions under a SEP can be made to participants over age 70½. H&r free federal tax filing If you are self-employed, you can also make contributions under the SEP for yourself even if you are over 70½. H&r free federal tax filing Participants age 70½ or over must take required minimum distributions. H&r free federal tax filing Time limit for making contributions. H&r free federal tax filing   To deduct contributions for a year, you must make the contributions by the due date (including extensions) of your tax return for the year. H&r free federal tax filing Contribution Limits Contributions you make for 2013 to a common-law employee's SEP-IRA cannot exceed the lesser of 25% of the employee's compensation or $51,000. H&r free federal tax filing Compensation generally does not include your contributions to the SEP. H&r free federal tax filing The SEP plan document will specify how the employer contribution is determined and how it will be allocated to participants. H&r free federal tax filing Example. H&r free federal tax filing Your employee, Mary Plant, earned $21,000 for 2013. H&r free federal tax filing The maximum contribution you can make to her SEP-IRA is $5,250 (25% x $21,000). H&r free federal tax filing Contributions for yourself. H&r free federal tax filing   The annual limits on your contributions to a common-law employee's SEP-IRA also apply to contributions you make to your own SEP-IRA. H&r free federal tax filing However, special rules apply when figuring your maximum deductible contribution. H&r free federal tax filing See Deduction Limit for Self-Employed Individuals , later. H&r free federal tax filing Annual compensation limit. H&r free federal tax filing   You cannot consider the part of an employee's compensation over $255,000 when figuring your contribution limit for that employee. H&r free federal tax filing However, $51,000 is the maximum contribution for an eligible employee. H&r free federal tax filing These limits are $260,000 and $52,000, respectively, in 2014. H&r free federal tax filing Example. H&r free federal tax filing Your employee, Susan Green, earned $210,000 for 2013. H&r free federal tax filing Because of the maximum contribution limit for 2013, you can only contribute $51,000 to her SEP-IRA. H&r free federal tax filing More than one plan. H&r free federal tax filing   If you contribute to a defined contribution plan (defined in chapter 4), annual additions to an account are limited to the lesser of $51,000 or 100% of the participant's compensation. H&r free federal tax filing When you figure this limit, you must add your contributions to all defined contribution plans maintained by you. H&r free federal tax filing Because a SEP is considered a defined contribution plan for this limit, your contributions to a SEP must be added to your contributions to other defined contribution plans you maintain. H&r free federal tax filing Tax treatment of excess contributions. H&r free federal tax filing   Excess contributions are your contributions to an employee's SEP-IRA (or to your own SEP-IRA) for 2013 that exceed the lesser of the following amounts. H&r free federal tax filing 25% of the employee's compensation (or, for you, 20% of your net earnings from self-employment). H&r free federal tax filing $51,000. H&r free federal tax filing Excess contributions are included in the employee's income for the year and are treated as contributions by the employee to his or her SEP-IRA. H&r free federal tax filing For more information on employee tax treatment of excess contributions, see chapter 1 in Publication 590. H&r free federal tax filing Reporting on Form W-2. H&r free federal tax filing   Do not include SEP contributions on your employee's Form W-2 unless contributions were made under a salary reduction arrangement (discussed later). H&r free federal tax filing Deducting Contributions Generally, you can deduct the contributions you make each year to each employee's SEP-IRA. H&r free federal tax filing If you are self-employed, you can deduct the contributions you make each year to your own SEP-IRA. H&r free federal tax filing Deduction Limit for Contributions for Participants The most you can deduct for your contributions to you or your employee's SEP-IRA is the lesser of the following amounts. H&r free federal tax filing Your contributions (including any excess contributions carryover). H&r free federal tax filing 25% of the compensation (limited to $255,000 per participant) paid to the participants during 2013 from the business that has the plan, not to exceed $51,000 per participant. H&r free federal tax filing In 2014, the amounts in (2) above are $260,000 and $52,000, respectively. H&r free federal tax filing Deduction Limit for Self-Employed Individuals If you contribute to your own SEP-IRA, you must make a special computation to figure your maximum deduction for these contributions. H&r free federal tax filing When figuring the deduction for contributions made to your own SEP-IRA, compensation is your net earnings from self-employment (defined in chapter 1), which takes into account both the following deductions. H&r free federal tax filing The deduction for the deductible part of your self-employment tax. H&r free federal tax filing The deduction for contributions to your own SEP-IRA. H&r free federal tax filing The deduction for contributions to your own SEP-IRA and your net earnings depend on each other. H&r free federal tax filing For this reason, you determine the deduction for contributions to your own SEP-IRA indirectly by reducing the contribution rate called for in your plan. H&r free federal tax filing To do this, use the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed, whichever is appropriate for your plan's contribution rate, in chapter 5. H&r free federal tax filing Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. H&r free federal tax filing Carryover of Excess SEP Contributions If you made SEP contributions that are more than the deduction limit (nondeductible contributions), you can carry over and deduct the difference in later years. H&r free federal tax filing However, the carryover, when combined with the contribution for the later year, is subject to the deduction limit for that year. H&r free federal tax filing If you also contributed to a defined benefit plan or defined contribution plan, see Carryover of Excess Contributions under Employer Deduction in chapter 4 for the carryover limit. H&r free federal tax filing Excise tax. H&r free federal tax filing   If you made nondeductible (excess) contributions to a SEP, you may be subject to a 10% excise tax. H&r free federal tax filing For information about the excise tax, see Excise Tax for Nondeductible (Excess) Contributions under Employer Deduction in chapter 4. H&r free federal tax filing When To Deduct Contributions When you can deduct contributions made for a year depends on the tax year on which the SEP is maintained. H&r free federal tax filing If the SEP is maintained on a calendar year basis, you deduct the yearly contributions on your tax return for the year within which the calendar year ends. H&r free federal tax filing If you file your tax return and maintain the SEP using a fiscal year or short tax year, you deduct contributions made for a year on your tax return for that year. H&r free federal tax filing Example. H&r free federal tax filing You are a fiscal year taxpayer whose tax year ends June 30. H&r free federal tax filing You maintain a SEP on a calendar year basis. H&r free federal tax filing You deduct SEP contributions made for calendar year 2013 on your tax return for your tax year ending June 30, 2014. H&r free federal tax filing Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. H&r free federal tax filing For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040), Profit or Loss From Farming; partnerships deduct them on Form 1065, U. H&r free federal tax filing S. H&r free federal tax filing Return of Partnership Income; and corporations deduct them on Form 1120, U. H&r free federal tax filing S. H&r free federal tax filing Corporation Income Tax Return, or Form 1120S, U. H&r free federal tax filing S. H&r free federal tax filing Income Tax Return for an S Corporation. H&r free federal tax filing Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. H&r free federal tax filing (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. H&r free federal tax filing , you receive from the partnership. H&r free federal tax filing ) Remember that sole proprietors and partners can't deduct as a business expense contributions made to a SEP for themselves, only those made for their common-law employees. H&r free federal tax filing Salary Reduction Simplified Employee Pensions (SARSEPs) A SARSEP is a SEP set up before 1997 that includes a salary reduction arrangement. H&r free federal tax filing (See the Caution, next. H&r free federal tax filing ) Under a SARSEP, your employees can choose to have you contribute part of their pay to their SEP-IRAs rather than receive it in cash. H&r free federal tax filing This contribution is called an “elective deferral” because employees choose (elect) to set aside the money, and they defer the tax on the money until it is distributed to them. H&r free federal tax filing You are not allowed to set up a SARSEP after 1996. H&r free federal tax filing However, participants (including employees hired after 1996) in a SARSEP set up before 1997 can continue to have you contribute part of their pay to the plan. H&r free federal tax filing If you are interested in setting up a retirement plan that includes a salary reduction arrangement, see chapter 3. H&r free federal tax filing Who can have a SARSEP?   A SARSEP set up before 1997 is available to you and your eligible employees only if all the following requirements are met. H&r free federal tax filing At least 50% of your employees eligible to participate choose to make elective deferrals. H&r free federal tax filing You have 25 or fewer employees who were eligible to participate in the SEP at any time during the preceding year. H&r free federal tax filing The elective deferrals of your highly compensated employees meet the SARSEP ADP test. H&r free federal tax filing SARSEP ADP test. H&r free federal tax filing   Under the SARSEP ADP test, the amount deferred each year by each eligible highly compensated employee as a percentage of pay (the deferral percentage) cannot be more than 125% of the average deferral percentage (ADP) of all non-highly compensated employees eligible to participate. H&r free federal tax filing A highly compensated employee is defined in chapter 1. H&r free federal tax filing Deferral percentage. H&r free federal tax filing   The deferral percentage for an employee for a year is figured as follows. H&r free federal tax filing   The elective employer contributions (excluding certain catch-up contributions)  paid to the SEP for the employee for the year     The employee's compensation (limited to $255,000 in 2013)   The instructions for Form 5305A-SEP have a worksheet you can use to determine whether the elective deferrals of your highly compensated employees meet the SARSEP ADP test. H&r free federal tax filing Employee compensation. H&r free federal tax filing   For figuring the deferral percentage, compensation is generally the amount you pay to the employee for the year. H&r free federal tax filing Compensation includes the elective deferral and other amounts deferred in certain employee benefit plans. H&r free federal tax filing See Compensation in chapter 1. H&r free federal tax filing Elective deferrals under the SARSEP are included in figuring your employees' deferral percentage even though they are not included in the income of your employees for income tax purposes. H&r free federal tax filing Compensation of self-employed individuals. H&r free federal tax filing   If you are self-employed, compensation is your net earnings from self-employment as defined in chapter 1. H&r free federal tax filing   Compensation does not include tax-free items (or deductions related to them) other than foreign earned income and housing cost amounts. H&r free federal tax filing Choice not to treat deferrals as compensation. H&r free federal tax filing   You can choose not to treat elective deferrals (and other amounts deferred in certain employee benefit plans) for a year as compensation under your SARSEP. H&r free federal tax filing Limit on Elective Deferrals The most a participant can choose to defer for calendar year 2013 is the lesser of the following amounts. H&r free federal tax filing 25% of the participant's compensation (limited to $255,000 of the participant's compensation). H&r free federal tax filing $17,500. H&r free federal tax filing The $17,500 limit applies to the total elective deferrals the employee makes for the year to a SEP and any of the following. H&r free federal tax filing Cash or deferred arrangement (section 401(k) plan). H&r free federal tax filing Salary reduction arrangement under a tax-sheltered annuity plan (section 403(b) plan). H&r free federal tax filing SIMPLE IRA plan. H&r free federal tax filing In 2014, the $255,000 limit increases to $260,000 and the $17,500 limit remains at $17,500. H&r free federal tax filing Catch-up contributions. H&r free federal tax filing   A SARSEP can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. H&r free federal tax filing The catch-up contribution limit for 2013 is $5,500 and remains at $5,500 for 2014. H&r free federal tax filing Elective deferrals are not treated as catch-up contributions for 2013 until they exceed the elective deferral limit (the lesser of 25% of compensation or $17,500), the SARSEP ADP test limit discussed earlier, or the plan limit (if any). H&r free federal tax filing However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. H&r free federal tax filing The catch-up contribution limit. H&r free federal tax filing The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. H&r free federal tax filing   Catch-up contributions are not subject to the elective deferral limit (the lesser of 25% of compensation or $17,500 in 2013 and in 2014). H&r free federal tax filing Overall limit on SEP contributions. H&r free federal tax filing   If you also make nonelective contributions to a SEP-IRA, the total of the nonelective and elective contributions to that SEP-IRA cannot exceed the lesser of 25% of the employee's compensation or $51,000 for 2013 ($52,000 for 2014). H&r free federal tax filing The same rule applies to contributions you make to your own SEP-IRA. H&r free federal tax filing See Contribution Limits , earlier. H&r free federal tax filing Figuring the elective deferral. H&r free federal tax filing   For figuring the 25% limit on elective deferrals, compensation does not include SEP contributions, including elective deferrals or other amounts deferred in certain employee benefit plans. H&r free federal tax filing Tax Treatment of Deferrals Elective deferrals that are not more than the limits discussed earlier under Limit on Elective Deferrals are excluded from your employees' wages subject to federal income tax in the year of deferral. H&r free federal tax filing However, these deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. H&r free federal tax filing Excess deferrals. H&r free federal tax filing   For 2013, excess deferrals are the elective deferrals for the year that are more than the $17,500 limit discussed earlier. H&r free federal tax filing For a participant who is eligible to make catch-up contributions, excess deferrals are the elective deferrals that are more than $23,000. H&r free federal tax filing The treatment of excess deferrals made under a SARSEP is similar to the treatment of excess deferrals made under a qualified plan. H&r free federal tax filing See Treatment of Excess Deferrals under Elective Deferrals (401(k) Plans) in chapter 4. H&r free federal tax filing Excess SEP contributions. H&r free federal tax filing   Excess SEP contributions are elective deferrals of highly compensated employees that are more than the amount permitted under the SARSEP ADP test. H&r free federal tax filing You must notify your highly compensated employees within 2½ months after the end of the plan year of their excess SEP contributions. H&r free federal tax filing If you do not notify them within this time period, you must pay a 10% tax on the excess. H&r free federal tax filing For an explanation of the notification requirements, see Rev. H&r free federal tax filing Proc. H&r free federal tax filing 91-44, 1991-2 C. H&r free federal tax filing B. H&r free federal tax filing 733. H&r free federal tax filing If you adopted a SARSEP using Form 5305A-SEP, the notification requirements are explained in the instructions for that form. H&r free federal tax filing Reporting on Form W-2. H&r free federal tax filing   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. H&r free federal tax filing You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. H&r free federal tax filing You must also include them in box 12. H&r free federal tax filing Mark the “Retirement plan” checkbox in box 13. H&r free federal tax filing For more information, see the Form W-2 instructions. H&r free federal tax filing Distributions (Withdrawals) As an employer, you cannot prohibit distributions from a SEP-IRA. H&r free federal tax filing Also, you cannot make your contributions on the condition that any part of them must be kept in the account after you have made your contributions to the employee's accounts. H&r free federal tax filing Distributions are subject to IRA rules. H&r free federal tax filing Generally, you or your employee must begin to receive distributions from a SEP-IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 70½. H&r free federal tax filing For more information about IRA rules, including the tax treatment of distributions, rollovers, required distributions, and income tax withholding, see Publication 590. H&r free federal tax filing Additional Taxes The tax advantages of using SEP-IRAs for retirement savings can be offset by additional taxes that may be imposed for all the following actions. H&r free federal tax filing Making excess contributions. H&r free federal tax filing Making early withdrawals. H&r free federal tax filing Not making required withdrawals. H&r free federal tax filing For information about these taxes, see chapter 1 in Publication 590. H&r free federal tax filing Also, a SEP-IRA may be disqualified, or an excise tax may apply, if the account is involved in a prohibited transaction, discussed next. H&r free federal tax filing Prohibited transaction. H&r free federal tax filing   If an employee improperly uses his or her SEP-IRA, such as by borrowing money from it, the employee has engaged in a prohibited transaction. H&r free federal tax filing In that case, the SEP-IRA will no longer qualify as an IRA. H&r free federal tax filing For a list of prohibited transactions, see Prohibited Transactions in chapter 4. H&r free federal tax filing Effects on employee. H&r free federal tax filing   If a SEP-IRA is disqualified because of a prohibited transaction, the assets in the account will be treated as having been distributed to the employee on the first day of the year in which the transaction occurred. H&r free federal tax filing The employee must include in income the fair market value of the assets (on the first day of the year) that is more than any cost basis in the account. H&r free federal tax filing Also, the employee may have to pay the additional tax for making early withdrawals. H&r free federal tax filing Reporting and Disclosure Requirements If you set up a SEP using Form 5305-SEP, you must give your eligible employees certain information about the SEP when you set it up. H&r free federal tax filing See Setting Up a SEP , earlier. H&r free federal tax filing Also, you must give your eligible employees a statement each year showing any contributions to their SEP-IRAs. H&r free federal tax filing You must also give them notice of any excess contributions. H&r free federal tax filing For details about other information you must give them, see the instructions for Form 5305-SEP or Form 5305A-SEP (for a salary reduction SEP). H&r free federal tax filing Even if you did not use Form 5305-SEP or Form 5305A-SEP to set up your SEP, you must give your employees information similar to that described above. H&r free federal tax filing For more information, see the instructions for either Form 5305-SEP or Form 5305A-SEP. H&r free federal tax filing Prev  Up  Next   Home   More Online Publications