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Instructions For Form 1040x

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Instructions For Form 1040x

Instructions for form 1040x Publication 926 - Main Content Table of Contents Do You Have a Household Employee? Can Your Employee Legally Work in the United States? Do You Need To Pay Employment Taxes?Social Security and Medicare Taxes Federal Unemployment (FUTA) Tax Do You Need To Withhold Federal Income Tax? What Do You Need To Know About the Earned Income Credit? How Do You Make Tax Payments? What Forms Must You File?Employee who leaves during the year. Instructions for form 1040x Filing options when no return is required. Instructions for form 1040x What Records Must You Keep? Can You Claim a Credit for Child and Dependent Care Expenses? How Can You Correct Schedule H?Adjust the overpayment. Instructions for form 1040x Claim for refund process. Instructions for form 1040x How To Get Tax HelpLow Income Taxpayer Clinics Do You Have a Household Employee? You have a household employee if you hired someone to do household work and that worker is your employee. Instructions for form 1040x The worker is your employee if you can control not only what work is done, but how it is done. Instructions for form 1040x If the worker is your employee, it does not matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. Instructions for form 1040x It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job. Instructions for form 1040x Example. Instructions for form 1040x You pay Betty Shore to babysit your child and do light housework 4 days a week in your home. Instructions for form 1040x Betty follows your specific instructions about household and child care duties. Instructions for form 1040x You provide the household equipment and supplies that Betty needs to do her work. Instructions for form 1040x Betty is your household employee. Instructions for form 1040x Household work. Instructions for form 1040x   Household work is work done in or around your home. Instructions for form 1040x Some examples of workers who do household work are: Babysitters, Caretakers, House cleaning workers, Domestic workers, Drivers, Health aides, Housekeepers, Maids, Nannies, Private nurses, and Yard workers. Instructions for form 1040x Workers who are not your employees. Instructions for form 1040x   If only the worker can control how the work is done, the worker is not your employee but is self-employed. Instructions for form 1040x A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business. Instructions for form 1040x   A worker who performs child care services for you in his or her home generally is not your employee. Instructions for form 1040x   If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee. Instructions for form 1040x Example. Instructions for form 1040x You made an agreement with John Peters to care for your lawn. Instructions for form 1040x John runs a lawn care business and offers his services to the general public. Instructions for form 1040x He provides his own tools and supplies, and he hires and pays any helpers he needs. Instructions for form 1040x Neither John nor his helpers are your household employees. Instructions for form 1040x More information. Instructions for form 1040x   More information about who is an employee is in Publication 15-A, Employer's Supplemental Tax Guide. Instructions for form 1040x Can Your Employee Legally Work in the United States? It is unlawful for you knowingly to hire or continue to employ an alien who cannot legally work in the United States. Instructions for form 1040x When you hire a household employee to work for you on a regular basis, you and the employee must complete the U. Instructions for form 1040x S. Instructions for form 1040x Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Instructions for form 1040x No later than the first day of work, the employee must complete the employee section of the form by providing certain required information and attesting to his or her current work eligibility status in the United States. Instructions for form 1040x You must complete the employer section by examining documents presented by the employee as evidence of his or her identity and employment eligibility. Instructions for form 1040x Acceptable documents to establish identity and employment eligibility are listed on Form I-9. Instructions for form 1040x You should keep the completed Form I-9 in your own records. Instructions for form 1040x Do not submit it to the IRS, the USCIS, or any other government or other entity. Instructions for form 1040x The form must be kept available for review upon notice by an authorized U. Instructions for form 1040x S. Instructions for form 1040x Government official. Instructions for form 1040x Two copies of Form I-9 are contained in the Handbook for Employers (Form M-274) published by the USCIS. Instructions for form 1040x Call the USCIS at 1-800-870-3676 to order the Handbook for Employers; or you may download the handbook at www. Instructions for form 1040x uscis. Instructions for form 1040x gov. Instructions for form 1040x If you have questions about the employment eligibility verification process or other immigration-related employment matters, contact the USCIS Office of Business Liaison at 1-800-357-2099. Instructions for form 1040x You also can visit the USCIS website at www. Instructions for form 1040x uscis. Instructions for form 1040x gov to get Form I-9. Instructions for form 1040x For more information, see Employee's Social Security Number (SSN) in Publication 15 (Circular E), Employer's Tax Guide. Instructions for form 1040x Do You Need To Pay Employment Taxes? If you have a household employee, you may need to withhold and pay social security and Medicare taxes, pay federal unemployment tax, or both. Instructions for form 1040x To find out, read Table 1. Instructions for form 1040x You do not need to withhold federal income tax from your household employee's wages. Instructions for form 1040x But if your employee asks you to withhold it, you can. Instructions for form 1040x See Do You Need To Withhold Federal Income Tax, later. Instructions for form 1040x If you need to pay social security, Medicare, or federal unemployment tax or choose to withhold federal income tax, read Table 2 for an overview of what you may need to do. Instructions for form 1040x If you do not need to pay social security, Medicare, or federal unemployment tax and do not choose to withhold federal income tax, read State employment taxes, next. Instructions for form 1040x The rest of this publication does not apply to you. Instructions for form 1040x State employment taxes. Instructions for form 1040x   You should contact your state unemployment tax agency to find out whether you need to pay state unemployment tax for your household employee. Instructions for form 1040x For a list of state unemployment tax agencies, visit the U. Instructions for form 1040x S. Instructions for form 1040x Department of Labor's website at www. Instructions for form 1040x workforcesecurity. Instructions for form 1040x doleta. Instructions for form 1040x gov/unemploy/agencies. Instructions for form 1040x asp. Instructions for form 1040x You should also determine if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Instructions for form 1040x    Table 1. Instructions for form 1040x Do You Need To Pay Employment Taxes? IF you . Instructions for form 1040x . Instructions for form 1040x . Instructions for form 1040x THEN you need to . Instructions for form 1040x . Instructions for form 1040x . Instructions for form 1040x A– Pay cash wages of $1,900 or more in 2014 to any one household employee. Instructions for form 1040x Withhold and pay social security and Medicare taxes. Instructions for form 1040x The taxes are 15. Instructions for form 1040x 3%1 of cash wages. Instructions for form 1040x Your employee's share is 7. Instructions for form 1040x 65%1. Instructions for form 1040x   (You can choose to pay it yourself and not withhold it. Instructions for form 1040x ) Your share is 7. Instructions for form 1040x 65%. Instructions for form 1040x   Do not count wages you pay to— Your spouse, Your child under the age of 21, Your parent (see Wages not counted, later, for an exception), or Any employee under the age of 18 at any time in 2014 (see Wages not counted, later, for an exception). Instructions for form 1040x B– Pay total cash wages of $1,000 or more in any calendar quarter of 2013 or 2014 to household employees. Instructions for form 1040x Pay federal unemployment tax. Instructions for form 1040x The tax is 6% of cash wages. Instructions for form 1040x Wages over $7,000 a year per employee are not taxed. Instructions for form 1040x You also may owe state unemployment tax. Instructions for form 1040x   Do not count wages you pay to— Your spouse, Your child under the age of 21, or Your parent. Instructions for form 1040x 1In addition to withholding Medicare tax at 1. Instructions for form 1040x 45%, you must withhold a 0. Instructions for form 1040x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Instructions for form 1040x You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Instructions for form 1040x Additional Medicare Tax is only imposed on the employee. Instructions for form 1040x There is no employer share of Additional Medicare Tax. Instructions for form 1040x All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Instructions for form 1040x Note. Instructions for form 1040x If neither A nor B above applies, you do not need to pay any federal employment taxes. Instructions for form 1040x But you may still need to pay state employment taxes. Instructions for form 1040x Table 2. Instructions for form 1040x Household Employer's Checklist You may need to do the following things when you have a household employee. Instructions for form 1040x   When you hire a household employee: □ Find out if the person can legally work in the United States. Instructions for form 1040x  □ Find out if you need to pay state taxes. Instructions for form 1040x When you pay your household employee: □ Withhold social security and Medicare taxes. Instructions for form 1040x  □ Withhold federal income tax. Instructions for form 1040x  □ Decide how you will make tax payments. Instructions for form 1040x  □ Keep records. Instructions for form 1040x By February 2, 2015: □ Get an employer identification number (EIN). Instructions for form 1040x  □ Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement. Instructions for form 1040x By March 2, 2015 (March 31, 2015, if you file Form W-2 electronically): □ Send Copy A of Form W-2 to the Social Security Administration (SSA). Instructions for form 1040x By April 15, 2015: □ File Schedule H (Form 1040), Household Employment Taxes, with your 2014 federal income tax return (Form 1040, 1040NR, 1040-SS, or Form 1041). Instructions for form 1040x  If you do not have to file a return, file Schedule H by itself. Instructions for form 1040x Social Security and Medicare Taxes The social security tax pays for old-age, survivors, and disability benefits for workers and their families. Instructions for form 1040x The Medicare tax pays for hospital insurance. Instructions for form 1040x Both you and your household employee may owe social security and Medicare taxes. Instructions for form 1040x Your share is 7. Instructions for form 1040x 65% (6. Instructions for form 1040x 2% for social security tax and 1. Instructions for form 1040x 45% for Medicare tax) of the employee's social security and Medicare wages. Instructions for form 1040x Your employee's share is also 7. Instructions for form 1040x 65% (6. Instructions for form 1040x 2% for social security tax and 1. Instructions for form 1040x 45% for Medicare tax). Instructions for form 1040x In addition to withholding Medicare tax at 1. Instructions for form 1040x 45%, you must withhold a 0. Instructions for form 1040x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Instructions for form 1040x You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Instructions for form 1040x Additional Medicare Tax is only imposed on the employee. Instructions for form 1040x There is no employer share of Additional Medicare Tax. Instructions for form 1040x All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Instructions for form 1040x For more information on Additional Medicare Tax, visit IRS. Instructions for form 1040x gov and enter “Additional Medicare Tax” in the search box. Instructions for form 1040x Generally, you can use Table 3 to figure the amount of social security and Medicare taxes to withhold from each wage payment. Instructions for form 1040x You are responsible for payment of your employee's share of the taxes as well as your own. Instructions for form 1040x You can either withhold your employee's share from the employee's wages or pay it from your own funds. Instructions for form 1040x If you decide to pay the employee's share from your own funds, see Not withholding the employee's share, later. Instructions for form 1040x Pay the taxes as discussed under How Do You Make Tax Payments, later. Instructions for form 1040x Also, see What Forms Must You File, later. Instructions for form 1040x Social security and Medicare wages. Instructions for form 1040x   You figure social security and Medicare taxes on the social security and Medicare wages you pay your employee. Instructions for form 1040x   If you pay your household employee cash wages of $1,900 or more in 2014, all cash wages you pay to that employee in 2014 (regardless of when the wages were earned) up to $117,000 are social security wages and all cash wages are Medicare wages. Instructions for form 1040x However, any noncash wages you pay do not count as social security and Medicare wages. Instructions for form 1040x   If you pay the employee less than $1,900 in cash wages in 2014, none of the wages you pay the employee are social security or Medicare wages and neither you nor your employee will owe social security or Medicare tax on those wages. Instructions for form 1040x Cash wages. Instructions for form 1040x   Cash wages include wages you pay by check, money order, etc. Instructions for form 1040x Cash wages do not include the value of food, lodging, clothing, and other noncash items you give your household employee. Instructions for form 1040x However, cash you give your employee in place of these items is included in cash wages. Instructions for form 1040x State disability payments treated as wages. Instructions for form 1040x   Certain state disability plan payments that your household employee may receive are treated as social security and Medicare wages. Instructions for form 1040x For more information about these payments, see the Instructions for Schedule H (Form 1040) and the notice issued by the state. Instructions for form 1040x Wages not counted. Instructions for form 1040x   Do not count wages you pay to any of the following individuals as social security or Medicare wages, even if these wages are $1,900 or more during the year. Instructions for form 1040x Your spouse. Instructions for form 1040x Your child who is under the age of 21. Instructions for form 1040x Your parent. Instructions for form 1040x Exception: Count these wages if both the following conditions apply. Instructions for form 1040x Your parent cares for your child who is either of the following. Instructions for form 1040x Under the age of 18, or Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in the calendar quarter services were performed. Instructions for form 1040x Your marital status is one of the following. Instructions for form 1040x You are divorced and have not remarried, You are a widow or widower, or You are living with a spouse whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in the calendar quarter services were performed. Instructions for form 1040x An employee who is under the age of 18 at any time during the year. Instructions for form 1040x Exception: Count these wages if providing household services is the employee's principal occupation. Instructions for form 1040x If the employee is a student, providing household services is not considered to be his or her principal occupation. Instructions for form 1040x Also, if your employee's cash wages reach $117,000 (maximum wages subject to social security tax) in 2014, do not count any wages you pay that employee during the rest of the year as social security wages to figure social security tax. Instructions for form 1040x Continue to count the employee's cash wages as Medicare wages to figure Medicare tax. Instructions for form 1040x If you provide your employee transit passes to commute to your home, do not count the value of the transit passes (up to $130 per month for 2014) as wages. Instructions for form 1040x A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. Instructions for form 1040x If you provide your employee parking at or near your home or at or near a location from which your employee commutes to your home, do not count the value of parking (up to $250 per month for 2014) as wages. Instructions for form 1040x If you reimburse your employee for transit passes or parking, you may be able to exclude the reimbursement amounts. Instructions for form 1040x See Publication 15-B, Employer's Tax Guide to Fringe Benefits, for special requirements for this exclusion. Instructions for form 1040x Withholding the employee's share. Instructions for form 1040x   You should withhold the employee's share of social security and Medicare taxes if you expect to pay your household employee cash wages of $1,900 or more in 2014. Instructions for form 1040x However, if you prefer to pay the employee's share yourself, see Not withholding the employee's share, later. Instructions for form 1040x   You can withhold the employee's share of the taxes even if you are not sure your employee's cash wages will be $1,900 or more in 2014. Instructions for form 1040x If you withhold the taxes but then actually pay the employee less than $1,900 in cash wages for the year, you should repay the employee. Instructions for form 1040x   Withhold 7. Instructions for form 1040x 65% (6. Instructions for form 1040x 2% for social security tax and 1. Instructions for form 1040x 45% for Medicare tax) from each payment of social security and Medicare wages. Instructions for form 1040x Generally, you can use Table 3 to figure the proper amount to withhold. Instructions for form 1040x You will pay the amount withheld to the IRS with your share of the taxes. Instructions for form 1040x Do not withhold any social security tax after your employee's social security wages for the year reach $117,000. Instructions for form 1040x Table 3. Instructions for form 1040x Employee Social Security (6. Instructions for form 1040x 2%) and Medicare (1. Instructions for form 1040x 45%1) Tax Withholding Table (See Publication 15 (Circular E) for income tax withholding tables. Instructions for form 1040x ) Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. Instructions for form 1040x For example, on a wage payment of $180, the employee social security tax is $11. Instructions for form 1040x 16 ($6. Instructions for form 1040x 20 tax on $100 plus $4. Instructions for form 1040x 96 on $80 wages). Instructions for form 1040x The employee Medicare tax is $2. Instructions for form 1040x 61 ($1. Instructions for form 1040x 45 tax on $100 plus $1. Instructions for form 1040x 16 on $80 wages). Instructions for form 1040x If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: If wage payment is: The social security tax to be withheld is: The Medicare tax to be withheld is: $ 1. Instructions for form 1040x 00 . Instructions for form 1040x $ . Instructions for form 1040x 06 $ . Instructions for form 1040x 01 $ 51. Instructions for form 1040x 00 . Instructions for form 1040x $ 3. Instructions for form 1040x 16 $ . Instructions for form 1040x 74 2. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 12 . Instructions for form 1040x 03 52. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 22 . Instructions for form 1040x 75 3. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 19 . Instructions for form 1040x 04 53. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 29 . Instructions for form 1040x 77 4. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 25 . Instructions for form 1040x 06 54. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 35 . Instructions for form 1040x 78 5. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 31 . Instructions for form 1040x 07 55. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 41 . Instructions for form 1040x 80 6. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 37 . Instructions for form 1040x 09 56. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 47 . Instructions for form 1040x 81 7. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 43 . Instructions for form 1040x 10 57. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 53 . Instructions for form 1040x 83 8. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 50 . Instructions for form 1040x 12 58. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 60 . Instructions for form 1040x 84 9. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 56 . Instructions for form 1040x 13 59. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 66 . Instructions for form 1040x 86 10. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 62 . Instructions for form 1040x 15 60. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 72 . Instructions for form 1040x 87 11. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 68 . Instructions for form 1040x 16 61. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 78 . Instructions for form 1040x 88 12. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 74 . Instructions for form 1040x 17 62. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 84 . Instructions for form 1040x 90 13. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 81 . Instructions for form 1040x 19 63. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 91 . Instructions for form 1040x 91 14. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 87 . Instructions for form 1040x 20 64. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 97 . Instructions for form 1040x 93 15. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 93 . Instructions for form 1040x 22 65. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 03 . Instructions for form 1040x 94 16. Instructions for form 1040x 00 . Instructions for form 1040x . Instructions for form 1040x 99 . Instructions for form 1040x 23 66. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 09 . Instructions for form 1040x 96 17. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 05 . Instructions for form 1040x 25 67. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 15 . Instructions for form 1040x 97 18. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 12 . Instructions for form 1040x 26 68. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 22 . Instructions for form 1040x 99 19. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 18 . Instructions for form 1040x 28 69. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 28 1. Instructions for form 1040x 00 20. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 24 . Instructions for form 1040x 29 70. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 34 1. Instructions for form 1040x 02 21. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 30 . Instructions for form 1040x 30 71. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 40 1. Instructions for form 1040x 03 22. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 36 . Instructions for form 1040x 32 72. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 46 1. Instructions for form 1040x 04 23. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 43 . Instructions for form 1040x 33 73. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 53 1. Instructions for form 1040x 06 24. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 49 . Instructions for form 1040x 35 74. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 59 1. Instructions for form 1040x 07 25. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 55 . Instructions for form 1040x 36 75. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 65 1. Instructions for form 1040x 09 26. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 61 . Instructions for form 1040x 38 76. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 71 1. Instructions for form 1040x 10 27. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 67 . Instructions for form 1040x 39 77. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 77 1. Instructions for form 1040x 12 28. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 74 . Instructions for form 1040x 41 78. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 84 1. Instructions for form 1040x 13 29. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 80 . Instructions for form 1040x 42 79. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 90 1. Instructions for form 1040x 15 30. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 86 . Instructions for form 1040x 44 80. Instructions for form 1040x 00 . Instructions for form 1040x 4. Instructions for form 1040x 96 1. Instructions for form 1040x 16 31. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 92 . Instructions for form 1040x 45 81. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 02 1. Instructions for form 1040x 17 32. Instructions for form 1040x 00 . Instructions for form 1040x 1. Instructions for form 1040x 98 . Instructions for form 1040x 46 82. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 08 1. Instructions for form 1040x 19 33. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 05 . Instructions for form 1040x 48 83. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 15 1. Instructions for form 1040x 20 34. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 11 . Instructions for form 1040x 49 84. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 21 1. Instructions for form 1040x 22 35. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 17 . Instructions for form 1040x 51 85. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 27 1. Instructions for form 1040x 23 36. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 23 . Instructions for form 1040x 52 86. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 33 1. Instructions for form 1040x 25 37. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 29 . Instructions for form 1040x 54 87. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 39 1. Instructions for form 1040x 26 38. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 36 . Instructions for form 1040x 55 88. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 46 1. Instructions for form 1040x 28 39. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 42 . Instructions for form 1040x 57 89. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 52 1. Instructions for form 1040x 29 40. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 48 . Instructions for form 1040x 58 90. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 58 1. Instructions for form 1040x 31 41. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 54 . Instructions for form 1040x 59 91. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 64 1. Instructions for form 1040x 32 42. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 60 . Instructions for form 1040x 61 92. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 70 1. Instructions for form 1040x 33 43. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 67 . Instructions for form 1040x 62 93. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 77 1. Instructions for form 1040x 35 44. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 73 . Instructions for form 1040x 64 94. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 83 1. Instructions for form 1040x 36 45. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 79 . Instructions for form 1040x 65 95. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 89 1. Instructions for form 1040x 38 46. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 85 . Instructions for form 1040x 67 96. Instructions for form 1040x 00 . Instructions for form 1040x 5. Instructions for form 1040x 95 1. Instructions for form 1040x 39 47. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 91 . Instructions for form 1040x 68 97. Instructions for form 1040x 00 . Instructions for form 1040x 6. Instructions for form 1040x 01 1. Instructions for form 1040x 41 48. Instructions for form 1040x 00 . Instructions for form 1040x 2. Instructions for form 1040x 98 . Instructions for form 1040x 70 98. Instructions for form 1040x 00 . Instructions for form 1040x 6. Instructions for form 1040x 08 1. Instructions for form 1040x 42 49. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 04 . Instructions for form 1040x 71 99. Instructions for form 1040x 00 . Instructions for form 1040x 6. Instructions for form 1040x 14 1. Instructions for form 1040x 44 50. Instructions for form 1040x 00 . Instructions for form 1040x 3. Instructions for form 1040x 10 . Instructions for form 1040x 73 100. Instructions for form 1040x 00 . Instructions for form 1040x 6. Instructions for form 1040x 20 1. Instructions for form 1040x 45 1In addition to withholding Medicare tax at 1. Instructions for form 1040x 45%, you must withhold a 0. Instructions for form 1040x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Instructions for form 1040x You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Instructions for form 1040x Additional Medicare Tax is only imposed on the employee. Instructions for form 1040x There is no employer share of Additional Medicare Tax. Instructions for form 1040x All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Instructions for form 1040x   If you make an error by withholding too little, you should withhold additional taxes from a later payment. Instructions for form 1040x If you withhold too much, you should repay the employee. Instructions for form 1040x    In addition to withholding Medicare tax at 1. Instructions for form 1040x 45%, you must withhold a 0. Instructions for form 1040x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Instructions for form 1040x You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Instructions for form 1040x Additional Medicare Tax is only imposed on the employee. Instructions for form 1040x There is no employer share of Additional Medicare Tax. Instructions for form 1040x All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Instructions for form 1040x For more information on Additional Medicare Tax, visit IRS. Instructions for form 1040x gov and enter “Additional Medicare Tax” in the search box. Instructions for form 1040x Example. Instructions for form 1040x On February 13, 2014, Mary Brown hired Jane R. Instructions for form 1040x Oak (who is an unrelated individual over age 18) to care for her child and agreed to pay cash wages of $50 every Friday. Instructions for form 1040x Jane worked for the remainder of the year (a total of 46 weeks). Instructions for form 1040x Mary did not give Jane a Form W-4 to request federal or state tax withholding. Instructions for form 1040x The following is the information Mary will need to complete Schedule H, Form W-2, and Form W-3. Instructions for form 1040x See the completed examples of Form W-2 and Form W-3 for 2014 at the end of this publication. Instructions for form 1040x Total cash wages paid to Jane $2,300. Instructions for form 1040x 00 ($50 x 46 weeks)       Jane's share of:     Social security tax $142. Instructions for form 1040x 60 ($2,300 x 6. Instructions for form 1040x 2% (. Instructions for form 1040x 062))         Medicare tax $33. Instructions for form 1040x 35       ($2,300 x 1. Instructions for form 1040x 45% (. Instructions for form 1040x 0145)) Mary's share of:     Social security tax $142. Instructions for form 1040x 60  ($2,300 x 6. Instructions for form 1040x 2% (. Instructions for form 1040x 062))           Medicare tax $33. Instructions for form 1040x 35  ($2,300 x 1. Instructions for form 1040x 45% (. Instructions for form 1040x 0145)) Amount reported on Form W-2 and Form W-3:   Box 1:Wages, tips $2,300. Instructions for form 1040x 00   Box 4: Social security tax withheld 142. Instructions for form 1040x 60   Box 6: Medicare tax withheld 33. Instructions for form 1040x 35 For information on withholding and reporting federal income taxes, see Publication 15 (Circular E). Instructions for form 1040x Not withholding the employee's share. Instructions for form 1040x   If you prefer to pay your employee's social security and Medicare taxes from your own funds, do not withhold them from your employee's wages. Instructions for form 1040x The social security and Medicare taxes you pay to cover your employee's share must be included in the employee's wages for income tax purposes. Instructions for form 1040x However, they are not counted as social security and Medicare wages or as federal unemployment (FUTA) wages. Instructions for form 1040x Example. Instructions for form 1040x In 2014 you hire a household employee (who is an unrelated individual over age 18) to care for your child and agree to pay cash wages of $100 every Friday. Instructions for form 1040x You expect to pay your employee $1,900 or more for the year. Instructions for form 1040x You decide to pay your employee's share of social security and Medicare taxes from your own funds. Instructions for form 1040x You pay your employee $100 every Friday without withholding any social security or Medicare taxes. Instructions for form 1040x For social security and Medicare tax purposes, your employee's wages each payday are $100. Instructions for form 1040x For each wage payment, you will pay $15. Instructions for form 1040x 30 when you pay the taxes. Instructions for form 1040x This is $7. Instructions for form 1040x 65 ($6. Instructions for form 1040x 20 for social security tax + $1. Instructions for form 1040x 45 for Medicare tax) to cover your employee's share plus $7. Instructions for form 1040x 65 ($6. Instructions for form 1040x 20 for social security tax + $1. Instructions for form 1040x 45 for Medicare tax) for your share. Instructions for form 1040x For income tax purposes, your employee's wages each payday are $107. Instructions for form 1040x 65 ($100 + the $7. Instructions for form 1040x 65 you will pay to cover your employee's share of social security and Medicare taxes). Instructions for form 1040x Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. Instructions for form 1040x Like most employers, you may owe both the federal unemployment tax (the FUTA tax) and a state unemployment tax. Instructions for form 1040x Or, you may owe only the FUTA tax or only the state unemployment tax. Instructions for form 1040x To find out whether you will owe state unemployment tax, contact your state's unemployment tax agency. Instructions for form 1040x For a list of state unemployment tax agencies, visit the U. Instructions for form 1040x S. Instructions for form 1040x Department of Labor's website at www. Instructions for form 1040x workforcesecurity. Instructions for form 1040x doleta. Instructions for form 1040x gov/unemploy/agencies. Instructions for form 1040x asp. Instructions for form 1040x You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Instructions for form 1040x The FUTA tax is 6. Instructions for form 1040x 0% of your employee's FUTA wages. Instructions for form 1040x However, you may be able to take a credit of up to 5. Instructions for form 1040x 4% against the FUTA tax, resulting in a net tax rate of 0. Instructions for form 1040x 6%. Instructions for form 1040x Your credit for 2014 is limited unless you pay all the required contributions for 2014 to your state unemployment fund by April 15, 2015. Instructions for form 1040x The credit you can take for any contributions for 2014 that you pay after April 15, 2015, is limited to 90% of the credit that would have been allowable if the contributions were paid by April 15, 2015. Instructions for form 1040x (If you did not pay all the required contributions for 2013 by April 15, 2014, see Credit for 2013, later. Instructions for form 1040x ) Note. Instructions for form 1040x   If a due date falls on a Saturday, Sunday, or legal holiday, payments are considered timely if made by the next business day. Instructions for form 1040x The term “legal holiday” means any legal holiday in the District of Columbia. Instructions for form 1040x Pay the tax as discussed under How Do You Make Tax Payments, later. Instructions for form 1040x Also, see What Forms Must You File, later. Instructions for form 1040x Note. Instructions for form 1040x   The 5. Instructions for form 1040x 4% credit is reduced for wages paid in a credit reduction state. Instructions for form 1040x See the Instructions for Schedule H (Form 1040). Instructions for form 1040x Do not withhold the FUTA tax from your employee's wages. Instructions for form 1040x You must pay it from your own funds. Instructions for form 1040x FUTA wages. Instructions for form 1040x   Figure the FUTA tax on the FUTA wages you pay. Instructions for form 1040x If you pay cash wages to all of your household employees totaling $1,000 or more in any calendar quarter of 2013 or 2014, the first $7,000 of cash wages you pay to each household employee in 2014 is FUTA wages. Instructions for form 1040x (A calendar quarter is January through March, April through June, July through September, or October through December. Instructions for form 1040x ) If your employee's cash wages reach $7,000 during the year, do not figure the FUTA tax on any wages you pay that employee during the rest of the year. Instructions for form 1040x For an explanation of cash wages, see the discussion on Social security and Medicare wages under Social Security and Medicare Taxes, earlier. Instructions for form 1040x Wages not counted. Instructions for form 1040x   Do not count wages you pay to any of the following individuals as FUTA wages. Instructions for form 1040x Your spouse. Instructions for form 1040x Your child who is under the age of 21. Instructions for form 1040x Your parent. Instructions for form 1040x Credit for 2013. Instructions for form 1040x   The credit you can take for any state unemployment fund contributions for 2013 that you pay after April 15, 2014, is limited to 90% of the credit that would have been allowable if the contributions were paid on or before April 15, 2014. Instructions for form 1040x Use Worksheet A to figure the credit for late contributions if you paid any state contributions after the due date for filing  Form 1040. Instructions for form 1040x Worksheet A. Instructions for form 1040x Worksheet for Credit for Late Contributions 1. Instructions for form 1040x Enter the amount from Schedule H, line 22   2. Instructions for form 1040x Enter the amount from Schedule H, line 19   3. Instructions for form 1040x Subtract line 2 from line 1. Instructions for form 1040x If zero or less, enter -0-   4. Instructions for form 1040x Enter total contributions paid to the state(s) after the Form 1040 due date   5. Instructions for form 1040x Enter the smaller of line 3 or line 4   6. Instructions for form 1040x Multiply line 5 by . Instructions for form 1040x 90 (90%)   7. Instructions for form 1040x Add lines 2 and 6   8. Instructions for form 1040x Enter the smaller of the amount on line 1 or line 7 here and on Schedule H, line 23   Do You Need To Withhold Federal Income Tax? You are not required to withhold federal income tax from wages you pay a household employee. Instructions for form 1040x You should withhold federal income tax only if your household employee asks you to withhold it and you agree. Instructions for form 1040x The employee must give you a completed Form W-4, Employee's Withholding Allowance Certificate. Instructions for form 1040x If you and your employee have agreed to withholding, either of you may end the agreement by letting the other know in writing. Instructions for form 1040x If you agree to withhold federal income tax, you are responsible for paying it to the IRS. Instructions for form 1040x Pay the tax as discussed under How Do You Make Tax Payments, later. Instructions for form 1040x Also, see What Forms Must You File, later. Instructions for form 1040x Use the income tax withholding tables in Publication 15 (Circular E) to find out how much to withhold. Instructions for form 1040x Figure federal income tax withholding on wages before you deduct any amounts for other withheld taxes. Instructions for form 1040x Withhold federal income tax from each payment of wages based on the filing status and exemptions shown on your employee's Form W-4. Instructions for form 1040x Publication 15 (Circular E) contains detailed instructions. Instructions for form 1040x Wages. Instructions for form 1040x   Figure federal income tax withholding on both cash and noncash wages you pay. Instructions for form 1040x Measure wages you pay in any form other than cash by the fair market value of the noncash item. Instructions for form 1040x   Do not count as wages any of the following items. Instructions for form 1040x Meals provided to your employee at your home for your convenience. Instructions for form 1040x Lodging provided to your employee at your home for your convenience and as a condition of employment. Instructions for form 1040x Up to $130 per month for 2014 for transit passes you give your employee (or for any cash reimbursement you make for the amount your employee pays for transit passes used to commute to your home if you qualify for this exclusion). Instructions for form 1040x A transit pass includes any pass, token, fare card, voucher, or similar item entitling a person to ride on mass transit, such as a bus or train. Instructions for form 1040x See Publication 15-B for special requirements for this exclusion. Instructions for form 1040x Up to $250 per month for 2014 for the value of parking you provide your employee or for any cash reimbursement you make for the amount your employee pays and substantiates for parking at or near your home or at or near a location from which your employee commutes to your home. Instructions for form 1040x   See Publication 15 (Circular E) for more information on cash and noncash wages. Instructions for form 1040x Paying tax without withholding. Instructions for form 1040x   Any income tax you pay for your employee without withholding it from the employee's wages must be included in the employee's wages for federal income tax purposes. Instructions for form 1040x It also must be included in social security and Medicare wages and in federal unemployment (FUTA) wages. Instructions for form 1040x What Do You Need To Know About the Earned Income Credit? Certain workers can take the earned income credit (EIC) on their federal income tax return. Instructions for form 1040x This credit reduces their tax or allows them to receive a payment from the IRS. Instructions for form 1040x You also may have to give your employee a notice about the EIC. Instructions for form 1040x Notice about the EIC. Instructions for form 1040x   Copy B of the 2014 Form W-2 has a statement about the EIC on the back. Instructions for form 1040x If you give your employee that copy by February 2, 2015 (as discussed under Form W-2 under What Forms Must You File, later), you do not have to give the employee any other notice about the EIC. Instructions for form 1040x   If you do not give your employee Copy B of the Form W-2, your notice about the EIC can be any of the following items. Instructions for form 1040x A substitute Form W-2 with the same EIC information on the back of the employee's copy that is on Copy B of the Form W-2. Instructions for form 1040x Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Instructions for form 1040x Your own written statement with the same wording as in Notice 797. Instructions for form 1040x If a substitute Form W-2 is given on time but does not have the required EIC information, you must notify the employee within one week of the date the substitute Form W-2 is given. Instructions for form 1040x If Form W-2 is required but is not given on time, you must give the employee Notice 797 or your written statement about the 2014 EIC by February 2, 2015. Instructions for form 1040x If Form W-2 is not required, you must notify the employee by February 7, 2015. Instructions for form 1040x   You must give your household employee a notice about the EIC if you agree to withhold federal income tax from the employee's wages (as discussed earlier under Do You Need To Withhold Federal Income Tax?) and the income tax withholding tables show that no tax should be withheld. Instructions for form 1040x Even if not required, you are encouraged to give the employee a notice about the EIC if his or her 2014 wages are less than $46,997 ($52,427 if married filing jointly). Instructions for form 1040x How Do You Make Tax Payments? When you file your 2014 federal income tax return in 2015, attach Schedule H (Form 1040) to your Form 1040, 1040NR, 1040-SS, or 1041. Instructions for form 1040x Use Schedule H to figure your total household employment taxes (social security, Medicare, FUTA, and withheld federal income taxes). Instructions for form 1040x Add these household employment taxes to your income tax. Instructions for form 1040x Pay the amount due by April 15, 2015. Instructions for form 1040x For more information about using Schedule H, see Schedule H under What Forms Must You File, later. Instructions for form 1040x You can avoid owing tax with your return if you pay enough tax during the year to cover your household employment taxes, as well as your income tax. Instructions for form 1040x You can pay the additional tax in any of the following ways. Instructions for form 1040x Ask your employer to withhold more federal income tax from your wages in 2014. Instructions for form 1040x Ask the payer of your pension or annuity to withhold more federal income tax from your benefits. Instructions for form 1040x Make estimated tax payments for 2014 to the IRS. Instructions for form 1040x Increase your payments if you already make estimated tax payments. Instructions for form 1040x You may be subject to the estimated tax underpayment penalty if you did not pay enough income and household employment taxes during the year. Instructions for form 1040x (See Publication 505, Tax Withholding and Estimated Tax, for information about the underpayment penalty. Instructions for form 1040x ) However, you will not be subject to the penalty if both of the following situations apply to you. Instructions for form 1040x You will not have federal income tax withheld from wages, pensions, or any other payments you receive. Instructions for form 1040x Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes. Instructions for form 1040x Asking for more federal income tax withholding. Instructions for form 1040x   If you are employed and want more federal income tax withheld from your wages to cover your household employment taxes, give your employer a new Form W-4. Instructions for form 1040x Complete it as before, but show the additional amount you want withheld from each paycheck on line 6. Instructions for form 1040x   If you receive a pension or annuity and want more federal income tax withheld to cover household employment taxes, give the payer a new Form W-4P, Withholding Certificate for Pension or Annuity Payments (or a similar form provided by the payer). Instructions for form 1040x Complete it as before, but show the additional amount you want withheld from each benefit payment on line 3. Instructions for form 1040x   See Publication 505 to make sure you will have the right amount withheld. Instructions for form 1040x It will help you compare your total expected withholding for 2014 with the combined income tax and employment taxes that you can expect to figure on your 2014 tax return. Instructions for form 1040x Paying estimated tax. Instructions for form 1040x   If you want to make estimated tax payments to cover household employment taxes, get Form 1040-ES, Estimated Tax for Individuals. Instructions for form 1040x You can use its payment vouchers to make your payments by check or money order. Instructions for form 1040x You may be able to pay by Electronic Funds Withdrawal (EFW) or credit card. Instructions for form 1040x For details, see the form instructions and visit IRS. Instructions for form 1040x gov. Instructions for form 1040x    You can pay all the employment taxes at once or you can pay them in installments. Instructions for form 1040x If you have already made estimated tax payments for 2014, you can increase your remaining payments to cover the employment taxes. Instructions for form 1040x Estimated tax payments for 2014 are due April 15, June 16, and September 15, 2014, and January 15, 2015. Instructions for form 1040x Payment option for business employers. Instructions for form 1040x   If you own a business as a sole proprietor or your home is on a farm operated for profit, you can choose either of two ways to pay your 2014 household employment taxes. Instructions for form 1040x You can pay them with your federal income tax as previously described, or you can include them with your federal employment tax deposits or other payments for your business or farm employees. Instructions for form 1040x For information on depositing employment taxes, see Publication 15 (Circular E). Instructions for form 1040x   If you pay your household employment taxes with your business or farm employment taxes, you must report your household employment taxes with those other employment taxes on Form 941, Employer's QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Instructions for form 1040x See Business employment tax returns, later. Instructions for form 1040x    The deduction that can be taken on Schedules C and F (Form 1040) for wages and employment taxes applies only to wages and taxes paid for business and farm employees. Instructions for form 1040x You cannot deduct the wages and employment taxes paid for your household employees on your Schedule C or F. Instructions for form 1040x More information. Instructions for form 1040x   For more information about paying taxes through federal income tax withholding and estimated tax payments, and figuring the estimated tax penalty, see Publication 505. Instructions for form 1040x What Forms Must You File? You must file certain forms to report your household employee's wages and the federal employment taxes for the employee if you pay any of the following wages to the employee. Instructions for form 1040x Social security and Medicare wages. Instructions for form 1040x FUTA wages. Instructions for form 1040x Wages from which you withhold federal income tax. Instructions for form 1040x For information on ordering employment tax forms, see How To Get Tax Help, later. Instructions for form 1040x Employer identification number (EIN). Instructions for form 1040x   You must include your employer identification number (EIN) on the forms you file for your household employee. Instructions for form 1040x An EIN is a nine-digit number issued by the IRS. Instructions for form 1040x It is not the same as a social security number. Instructions for form 1040x    You ordinarily will have an EIN if you previously paid taxes for employees, either as a household employer or as a sole proprietor of a business you own. Instructions for form 1040x If you already have an EIN, use that number. Instructions for form 1040x   If you do not have an EIN, you may apply for one online. Instructions for form 1040x Go to IRS. Instructions for form 1040x gov and click on the Apply for an EIN Online link under Tools. Instructions for form 1040x You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Instructions for form 1040x Form W-2. Instructions for form 1040x   File a separate 2014 Form W-2, for each household employee to whom you pay either of the following wages during the year. Instructions for form 1040x Social security and Medicare wages of $1,900 or more. Instructions for form 1040x Wages from which you withhold federal income tax. Instructions for form 1040x You must complete Form W-2 and give Copies B, C, and 2 to your employee by February 2, 2015. Instructions for form 1040x You must send Copy A of Form W-2 with Form W-3, Transmittal of Wage and Tax Statements, to the SSA by March 2, 2015 (March 31, 2015, if you file your Form W-2 electronically). Instructions for form 1040x Electronic filing is available to all employers and is free, fast, secure, and offers a later filing deadline. Instructions for form 1040x Visit the SSA's Employer W-2 Filing Instructions & Information website at www. Instructions for form 1040x socialsecurity. Instructions for form 1040x gov/employer for guidelines on filing electronically. Instructions for form 1040x Employee who leaves during the year. Instructions for form 1040x   If an employee stops working for you before the end of 2014, you can file Form W-2 and provide copies to your employee immediately after you make your final payment of wages. Instructions for form 1040x You do not need to wait until 2015. Instructions for form 1040x If the employee asks you for Form W-2, give it to him or her within 30 days after the request or the last wage payment, whichever is later. Instructions for form 1040x Schedule H. Instructions for form 1040x   Use Schedule H to report household employment taxes if you pay any of the following wages to the employee. Instructions for form 1040x Social security and Medicare wages of $1,900 or more. Instructions for form 1040x FUTA wages. Instructions for form 1040x Wages from which you withhold federal income tax. Instructions for form 1040x File Schedule H with your 2014 federal income tax return by April 15, 2015. Instructions for form 1040x If you get an extension to file your return, the extension also will apply to your Schedule H. Instructions for form 1040x Filing options when no return is required. Instructions for form 1040x   If you are not required to file a 2014 tax return, you have the following two options. Instructions for form 1040x You can file Schedule H by itself. Instructions for form 1040x See the Schedule H instructions for details. Instructions for form 1040x If, besides your household employee, you have other employees for whom you report employment taxes on Form 941, Form 944, or Form 943 and on Form 940, you can include your taxes for your household employee on those forms. Instructions for form 1040x See Business employment tax returns, next. Instructions for form 1040x   Employers having the options listed above include certain tax-exempt organizations that do not have to file a tax return, such as churches that pay a household worker to take care of a minister's home. Instructions for form 1040x Business employment tax returns. Instructions for form 1040x   Do not use Schedule H if you choose to pay the employment taxes for your household employee with business or farm employment taxes. Instructions for form 1040x (See Payment option for business employers, earlier. Instructions for form 1040x ) Instead, include the social security, Medicare, and withheld federal income taxes for the employee on the Form 941 or Form 944 you file for your business or on the Form 943 you file for your farm. Instructions for form 1040x Include the FUTA tax for the employee on your Form 940. Instructions for form 1040x   If you report the employment taxes for your household employee on Form 941, Form 944, or Form 943, file Form W-2 for that employee with the Forms W-2 and Form W-3 for your business or farm employees. Instructions for form 1040x   For information on filing Form 941 or Form 944, see Publication 15 (Circular E). Instructions for form 1040x For information on filing Form 943, see Publication 51 (Circular A), Agricultural Employer's Tax Guide. Instructions for form 1040x Both of these publications also provide information about filing Form 940. Instructions for form 1040x What Records Must You Keep? Keep your copies of Schedule H or other employment tax forms you file and related Forms W-2, W-3, and W-4. Instructions for form 1040x You must also keep records to support the information you enter on the forms you file. Instructions for form 1040x If you must file Form W-2, you will need to keep a record of your employee's name, address, and social security number. Instructions for form 1040x Wage and tax records. Instructions for form 1040x   On each payday, you should record the date and amounts of all the following items. Instructions for form 1040x Your employee's cash and noncash wages. Instructions for form 1040x Any employee social security tax you withhold or agree to pay for your employee. Instructions for form 1040x Any employee Medicare tax you withhold or agree to pay for your employee. Instructions for form 1040x Any federal income tax you withhold. Instructions for form 1040x Any state employment taxes you withhold. Instructions for form 1040x Employee's social security number. Instructions for form 1040x   You must keep a record of your employee's name and social security number exactly as they appear on his or her social security card if you pay the employee either of the following. Instructions for form 1040x Social security and Medicare wages of $1,900 or more. Instructions for form 1040x Wages from which you withhold federal income tax. Instructions for form 1040x You must ask for your employee's social security number no later than the first day on which you pay the wages. Instructions for form 1040x You may wish to ask for it when you hire your employee. Instructions for form 1040x You should ask your employee to show you his or her social security card. Instructions for form 1040x The employee may show the card if it is available. Instructions for form 1040x You may, but are not required to, photocopy the card if the employee provides it. Instructions for form 1040x   An employee who does not have a social security number must apply for one on Form SS-5, Application for a Social Security Card. Instructions for form 1040x An employee who has lost his or her social security card or whose name is not correctly shown on the card may apply for a replacement card. Instructions for form 1040x    Employees can get Form SS-5 from any Social Security Administration office or by calling 1-800-772-1213. Instructions for form 1040x    You also can download Form SS-5 from the Social Security Administration website at  www. Instructions for form 1040x socialsecurity. Instructions for form 1040x gov/online/ss-5. Instructions for form 1040x pdf. Instructions for form 1040x How long to keep records. Instructions for form 1040x   Keep your employment tax records for at least 4 years after the due date of the return on which you report the taxes or the date the taxes were paid, whichever is later. Instructions for form 1040x Can You Claim a Credit for Child and Dependent Care Expenses? If your household employee cares for your dependent who is under age 13 or for your spouse or dependent who is not capable of self-care, you may be able to take an income tax credit against some of your expenses. Instructions for form 1040x To qualify, you must pay these expenses so you can work or look for work. Instructions for form 1040x If you can take the credit, you can include in your qualifying expenses your share of the federal and state employment taxes you pay, as well as the employee's wages. Instructions for form 1040x For information about the credit, see Publication 503, Child and Dependent Care Expenses. Instructions for form 1040x How Can You Correct Schedule H? If you discover that you made an error on a Schedule H (or Anexo H-PR), the forms used to correct the error depend on whether the Schedule H was attached to another form or whether it was filed by itself. Instructions for form 1040x Schedule H attached to another form. Instructions for form 1040x    If you discover an error on a Schedule H that you previously filed with Form 1040, Form 1040NR, or Form 1040-SS, file Form 1040X, Amended U. Instructions for form 1040x S. Instructions for form 1040x Individual Income Tax Return, and attach a corrected Schedule H. Instructions for form 1040x If you filed Formulario 1040-PR, file a Form 1040X and attach a corrected Anexo H-PR. Instructions for form 1040x If you discover an error on a Schedule H that you previously filed with Form 1041, U. Instructions for form 1040x S. Instructions for form 1040x Income Tax Return for Estates and Trusts, file an “amended” Form 1041 and attach a corrected Schedule H. Instructions for form 1040x You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Instructions for form 1040x Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. Instructions for form 1040x In addition, explain the reason for your correction and the date the error was discovered in Part III of Form 1040X or in a statement attached to the amended Form 1041. Instructions for form 1040x Schedule H filed by itself. Instructions for form 1040x   If you discover an error on a Schedule H (or Anexo H-PR) that you filed as a stand-alone return, file another stand-alone Schedule H with the corrected information. Instructions for form 1040x You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Instructions for form 1040x Write “CORRECTED” (or “CORREGIDO”) and the date you discovered the error in the top margin of your corrected Schedule H (or Anexo H-PR), in dark, bold letters. Instructions for form 1040x In addition, explain the reason for your correction and the date the error was discovered in a statement attached to the corrected Schedule H. Instructions for form 1040x If you have an overpayment, also write “ADJUSTED” (or “CORREGIDO”) or “REFUND” (or “REEMBOLSO”) in the top margin, depending on whether you want to adjust your overpayment or claim a refund. Instructions for form 1040x (See Overpayment of tax, later. Instructions for form 1040x ) When to file. Instructions for form 1040x   File a corrected Schedule H when you discover an error on a previously filed Schedule H. Instructions for form 1040x If you are correcting an underpayment, file a corrected Schedule H no later than the due date of your next tax return (generally, April 15 of the following calendar year) after you discover the error. Instructions for form 1040x If you are correcting an overpayment, file a corrected Schedule H within the refund period of limitations (generally 3 years from the date your original form was filed or within 2 years from the date you paid the tax, whichever is later). Instructions for form 1040x Underpayment of tax. Instructions for form 1040x   You must pay any underpayment of social security and Medicare taxes by the time you file the corrected Schedule H. Instructions for form 1040x Generally, by filing on time and paying by the time you file the return, you will not be charged interest (and will not be subject to failure-to-pay or estimated tax penalties) on the balance due. Instructions for form 1040x However, underreported FUTA taxes will be subject to interest. Instructions for form 1040x Overpayment of tax. Instructions for form 1040x    You may either adjust or claim a refund of an overpayment of social security and Medicare taxes on a previously filed Schedule H. Instructions for form 1040x However, if you are correcting an overpayment and are filing the corrected Schedule H within 90 days of the expiration of the period of limitations, you can only claim a refund of the overpayment. Instructions for form 1040x Adjust the overpayment. Instructions for form 1040x   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, adjust your return by indicating on line 22 of the Form 1040X or on line 29a of the Form 1041 that you would like the overpayment applied to your estimated taxes on Form 1040, Form 1040NR, Form 1040-PR, Form 1040-SS, or Form 1041 for the year in which you are filing the corrected Schedule H. Instructions for form 1040x If the corrected Schedule H is filed as a stand-alone return, adjust your return by writing “ADJUSTED” (or “CORREGIDO”) in the top margin (in dark, bold letters). Instructions for form 1040x If you adjust your return, you will not receive interest on your overpayment. Instructions for form 1040x If the corrected Schedule H will be filed within 90 days of the expiration of the refund period of limitations, you may not adjust the return and must claim a refund for the overpayment. Instructions for form 1040x You may not adjust your return to correct overpayments of FUTA tax. Instructions for form 1040x Claim for refund process. Instructions for form 1040x   If the corrected Schedule H is filed with a Form 1040X or an amended Form 1041, claim a refund by indicating that you would like the overpayment refunded to you on line 21 of the Form 1040X or line 29b of the Form 1041. Instructions for form 1040x If the corrected Schedule H is filed as a stand-alone return, claim a refund by writing “REFUND” (or “REEMBOLSO”) in the top margin (in dark, bold letters). Instructions for form 1040x You will receive interest on any overpayment refunded, unless the overpayment is for FUTA tax because you were entitled to increased credits for state contributions. Instructions for form 1040x Required repayment or consent. Instructions for form 1040x   If you previously overreported social security and Medicare taxes, you may adjust your overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection of employee tax. Instructions for form 1040x You reimburse your employees by applying the overwithheld amount against taxes to be withheld on future wages. Instructions for form 1040x You may claim a refund for the overpayment only after you have repaid or reimbursed your employees in the amount of the overcollection or you have obtained consents from your employees to file the claim for refund for the employee tax. Instructions for form 1040x Include a statement that you repaid or reimbursed your employees, or obtained their written consents in the case of a claim for refund, in Part III of Form 1040X or in a statement attached to the amended Form 1041 or the stand-alone corrected Schedule H. Instructions for form 1040x Filing required Forms W-2 or Forms W-2c. Instructions for form 1040x   Whether you previously underreported tax or overreported tax, you will generally be required to file Form W-2, or their territorial equivalents (if none was previously filed), or Form W-2c, Corrected Wage and Tax Statement, to reflect the changes reported on your corrected Schedule H. Instructions for form 1040x Additional Medicare Tax. Instructions for form 1040x   Generally, you may not correct an error in Additional Medicare Tax withholding for wages paid to employees in a prior year unless it is an administrative error. Instructions for form 1040x An administrative error occurs if the amount you entered on Schedule H is not the amount you actually withheld. Instructions for form 1040x For example, if the Additional Medicare Tax actually withheld was incorrectly reported on Schedule H due to a mathematical or transposition error, this would be an administrative error. Instructions for form 1040x   Any underwithheld Additional Medicare Tax must be recovered from employees on or before the last day of the calendar year in which the underwithholding occurred. Instructions for form 1040x Any excess Additional Medicare Tax withholding must be repaid or reimbursed to employees before the end of the calendar year in which it was withheld. Instructions for form 1040x Additional information. Instructions for form 1040x   For more information about correcting errors on a previously filed Schedule H, see page 4 of Form 944-X, Form 944-X: Which process should you use? (substitute “Schedule H” for “Form 944-X”) and the Instructions for Form 944-X (or Formulario 944-X (PR)). Instructions for form 1040x Also, visit IRS. Instructions for form 1040x gov. Instructions for form 1040x How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Instructions for form 1040x Free help with your tax return. Instructions for form 1040x   You can get free help preparing your return nationwide from IRS-certified volunteers. Instructions for form 1040x The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Instructions for form 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Instructions for form 1040x Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Instructions for form 1040x In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Instructions for form 1040x To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Instructions for form 1040x gov, download the IRS2Go app, or call 1-800-906-9887. Instructions for form 1040x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Instructions for form 1040x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Instructions for form 1040x aarp. Instructions for form 1040x org/money/taxaide or call 1-888-227-7669. Instructions for form 1040x For more information on these programs, go to IRS. Instructions for form 1040x gov and enter “VITA” in the search box. Instructions for form 1040x Internet. Instructions for form 1040x    IRS. Instructions for form 1040x gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Instructions for form 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Instructions for form 1040x Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Instructions for form 1040x Check the status of your 2013 refund with the Where's My Refund? application on IRS. Instructions for form 1040x gov or download the IRS2Go app and select the Refund Status option. Instructions for form 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Instructions for form 1040x Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Instructions for form 1040x You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Instructions for form 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Instructions for form 1040x Use the Interactive Tax Assistant (ITA) to research your tax questions. Instructions for form 1040x No need to wait on the phone or stand in line. Instructions for form 1040x The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Instructions for form 1040x When you reach the response screen, you can print the entire interview and the final response for your records. Instructions for form 1040x New subject areas are added on a regular basis. Instructions for form 1040x  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Instructions for form 1040x gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Instructions for form 1040x You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Instructions for form 1040x The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Instructions for form 1040x When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Instructions for form 1040x Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Instructions for form 1040x You can also ask the IRS to mail a return or an account transcript to you. Instructions for form 1040x Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Instructions for form 1040x gov or by calling 1-800-908-9946. Instructions for form 1040x Tax return and tax account transcripts are generally available for the current year and the past three years. Instructions for form 1040x Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Instructions for form 1040x Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Instructions for form 1040x If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Instructions for form 1040x Check the status of your amended return using Where's My Amended Return? Go to IRS. Instructions for form 1040x gov and enter Where's My Amended Return? in the search box. Instructions for form 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Instructions for form 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Instructions for form 1040x Make a payment using one of several safe and convenient electronic payment options available on IRS. Instructions for form 1040x gov. Instructions for form 1040x Select the Payment tab on the front page of IRS. Instructions for form 1040x gov for more information. Instructions for form 1040x Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Instructions for form 1040x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Instructions for form 1040x gov. Instructions for form 1040x Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Instructions for form 1040x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Instructions for form 1040x gov. Instructions for form 1040x Request an Electronic Filing PIN by going to IRS. Instructions for form 1040x gov and entering Electronic Filing PIN in the search box. Instructions for form 1040x Download forms, instructions and publications, including accessible versions for people with disabilities. Instructions for form 1040x Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Instructions for form 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Instructions for form 1040x An employee can answer questions about your tax account or help you set up a payment plan. Instructions for form 1040x Before you visit, check the Office Locator on IRS. Instructions for form 1040x gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Instructions for form 1040x If you have a special need, such as a disability, you can request an appointment. Instructions for form 1040x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Instructions for form 1040x Apply for an Employer Identification Number (EIN). Instructions for form 1040x Go to IRS. Instructions for form 1040x gov and enter Apply for an EIN in the search box. Instructions for form 1040x Read the Internal Revenue Code, regulations, or other official guidance. Instructions for form 1040x Read Internal Revenue Bulletins. Instructions for form 1040x Sign up to receive local and national tax news and more by email. Instructions for form 1040x Just click on “subscriptions” above the search box on IRS. Instructions for form 1040x gov and choose from a variety of options. Instructions for form 1040x Phone. Instructions for form 1040x    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Instructions for form 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Instructions for form 1040x Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Instructions for form 1040x gov, or download the IRS2Go app. Instructions for form 1040x Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Instructions for form 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Instructions for form 1040x Most VITA and TCE sites offer free electronic filing. Instructions for form 1040x Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Instructions for form 1040x Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Instructions for form 1040x Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Instructions for form 1040x If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Instructions for form 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Instructions for form 1040x Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Instructions for form 1040x Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Instructions for form 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Instructions for form 1040x Note, the above information is for our automated hotline. Instructions for form 1040x Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Instructions for form 1040x Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Instructions for form 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Instructions for form 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Instructions for form 1040x Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Instructions for form 1040x You should receive your order within 10 business days. Instructions for form 1040x Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Instructions for form 1040x If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Instructions for form 1040x Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Instructions for form 1040x The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Instructions for form 1040x These individuals can also contact the IRS through relay services such as the Federal Relay Service. Instructions for form 1040x Walk-in. Instructions for form 1040x   You can find a selection of forms, publications and services — in-person. Instructions for form 1040x Products. Instructions for form 1040x You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Instructions for form 1040x Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Instructions for form 1040x Services. Instructions for form 1040x You can walk in to your local TAC for face-to-face tax help. Instructions for form 1040x An employee can answer questions about your tax account or help you set up a payment plan. Instructions for form 1040x Before visiting, use the Office Locator tool on IRS. Instructions for form 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Instructions for form 1040x Mail. Instructions for form 1040x   You can send your order for forms, instructions, and publications to the address below. Instructions for form 1040x You should receive a response within 10 business days after your request is received. Instructions for form 1040x Internal Revenue Service 1201 N. Instructions for form 1040x Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Instructions for form 1040x The Taxpayer Advocate Service (TAS) is your voice at the IRS. Instructions for form 1040x Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Instructions for form 1040x   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Instructions for form 1040x We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Instructions for form 1040x You face (or your business is facing) an immediate threat of adverse action. Instructions for form 1040x You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Instructions for form 1040x   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Instructions for form 1040x Here's why we can help: TAS is an independent organization within the IRS. Instructions for form 1040x Our advocates know how to work with the IRS. Instructions for form 1040x Our services are free and tailored to meet your needs. Instructions for form 1040x We have offices in every state, the District of Columbia, and Puerto Rico. Instructions for form 1040x   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Instructions for form 1040x   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Instructions for form 1040x If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Instructions for form 1040x Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Instructions for form 1040x Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Instructions for form 1040x Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Instructions for form 1040x Sample W-2 Form This image is too large to be displayed in the current screen. Instructions for form 1040x Please click the link to view the image. Instructions for form 1040x Webtitle: Form W-2 Wage and Tax Statement and Form W-3 Transmitttal of Wage and Tax Statemtents Prev  Up  Next   Home   More Online Publications
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The Instructions For Form 1040x

Instructions for form 1040x Publication 939 - Main Content Table of Contents General Information Taxation of Periodic PaymentsInvestment in the Contract Expected Return Computation Under the General Rule How To Use Actuarial TablesUnisex Annuity Tables Special Elections Worksheets for Determining Taxable Annuity Actuarial Tables Requesting a Ruling on Taxation of Annuity How To Get Tax HelpLow Income Taxpayer Clinics General Information Some of the terms used in this publication are defined in the following paragraphs. Instructions for form 1040x A pension is generally a series of payments made to you after you retire from work. Instructions for form 1040x Pension payments are made regularly and are for past services with an employer. Instructions for form 1040x An annuity is a series of payments under a contract. Instructions for form 1040x You can buy the contract alone or you can buy it with the help of your employer. Instructions for form 1040x Annuity payments are made regularly for more than one full year. Instructions for form 1040x Note. Instructions for form 1040x Distributions from pensions and annuities follow the same rules as outlined in this publication unless otherwise noted. Instructions for form 1040x Types of pensions and annuities. Instructions for form 1040x   Particular types of pensions and annuities include: Fixed period annuities. Instructions for form 1040x You receive definite amounts at regular intervals for a definite length of time. Instructions for form 1040x Annuities for a single life. Instructions for form 1040x You receive definite amounts at regular intervals for life. Instructions for form 1040x The payments end at death. Instructions for form 1040x Joint and survivor annuities. Instructions for form 1040x The first annuitant receives a definite amount at regular intervals for life. Instructions for form 1040x After he or she dies, a second annuitant receives a definite amount at regular intervals for life. Instructions for form 1040x The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant. Instructions for form 1040x Variable annuities. Instructions for form 1040x You receive payments that may vary in amount for a definite length of time or for life. Instructions for form 1040x The amounts you receive may depend upon such variables as profits earned by the pension or annuity funds or cost-of-living indexes. Instructions for form 1040x Disability pensions. Instructions for form 1040x You are under minimum retirement age and receive payments because you retired on disability. Instructions for form 1040x If, at the time of your retirement, you were permanently and totally disabled, you may be eligible for the credit for the elderly or the disabled discussed in Publication 524. Instructions for form 1040x If your annuity starting date is after November 18, 1996, the General Rule cannot be used for the following qualified plans. Instructions for form 1040x A qualified employee plan is an employer's stock bonus, pension, or profit-sharing plan that is for the exclusive benefit of employees or their beneficiaries. Instructions for form 1040x This plan must meet Internal Revenue Code requirements. Instructions for form 1040x It qualifies for special tax benefits, including tax deferral for employer contributions and rollover distributions. Instructions for form 1040x However, you must use the General Rule if you were 75 or over and the annuity payments are guaranteed for more than 5 years. Instructions for form 1040x A qualified employee annuity is a retirement annuity purchased by an employer for an employee under a plan that meets Internal Revenue Code requirements. Instructions for form 1040x A tax-sheltered annuity is a special annuity plan or contract purchased for an employee of a public school or tax-exempt organization. Instructions for form 1040x   The General Rule is used to figure the tax treatment of various types of pensions and annuities, including nonqualified employee plans. Instructions for form 1040x A nonqualified employee plan is an employer's plan that does not meet Internal Revenue Code requirements. Instructions for form 1040x It does not qualify for most of the tax benefits of a qualified plan. Instructions for form 1040x Annuity worksheets. Instructions for form 1040x   The worksheets found near the end of the text of this publication may be useful to you in figuring the taxable part of your annuity. Instructions for form 1040x Request for a ruling. Instructions for form 1040x   If you are unable to determine the income tax treatment of your pension or annuity, you may ask the Internal Revenue Service to figure the taxable part of your annuity payments. Instructions for form 1040x This is treated as a request for a ruling. Instructions for form 1040x See Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040x Withholding tax and estimated tax. Instructions for form 1040x   Your pension or annuity is subject to federal income tax withholding unless you choose not to have tax withheld. Instructions for form 1040x If you choose not to have tax withheld from your pension or annuity, or if you do not have enough income tax withheld, you may have to make estimated tax payments. Instructions for form 1040x Taxation of Periodic Payments This section explains how the periodic payments you receive under a pension or annuity plan are taxed under the General Rule. Instructions for form 1040x Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of time greater than one year (such as for 15 years or for life). Instructions for form 1040x These payments are also known as amounts received as an annuity. Instructions for form 1040x If you receive an amount from your plan that is a nonperiodic payment (amount not received as an annuity), see Taxation of Nonperiodic Payments in Publication 575. Instructions for form 1040x In general, you can recover your net cost of the pension or annuity tax free over the period you are to receive the payments. Instructions for form 1040x The amount of each payment that is more than the part that represents your net cost is taxable. Instructions for form 1040x Under the General Rule, the part of each annuity payment that represents your net cost is in the same proportion that your investment in the contract is to your expected return. Instructions for form 1040x These terms are explained in the following discussions. Instructions for form 1040x Investment in the Contract In figuring how much of your pension or annuity is taxable under the General Rule, you must figure your investment in the contract. Instructions for form 1040x First, find your net cost of the contract as of the annuity starting date (defined later). Instructions for form 1040x To find this amount, you must first figure the total premiums, contributions, or other amounts paid. Instructions for form 1040x This includes the amounts your employer contributed if you were required to include these amounts in income. Instructions for form 1040x It also includes amounts you actually contributed (except amounts for health and accident benefits and deductible voluntary employee contributions). Instructions for form 1040x From this total cost you subtract: Any refunded premiums, rebates, dividends, or unrepaid loans (any of which were not included in your income) that you received by the later of the annuity starting date or the date on which you received your first payment. Instructions for form 1040x Any additional premiums paid for double indemnity or disability benefits. Instructions for form 1040x Any other tax-free amounts you received under the contract or plan before the later of the dates in (1). Instructions for form 1040x The annuity starting date   is the later of the first day of the first period for which you receive payment under the contract or the date on which the obligation under the contract becomes fixed. Instructions for form 1040x Example. Instructions for form 1040x On January 1 you completed all your payments required under an annuity contract providing for monthly payments starting on August 1, for the period beginning July 1. Instructions for form 1040x The annuity starting date is July 1. Instructions for form 1040x This is the date you use in figuring your investment in the contract and your expected return (discussed later). Instructions for form 1040x Adjustments If any of the following items apply, adjust (add or subtract) your total cost to find your net cost. Instructions for form 1040x Foreign employment. Instructions for form 1040x   If you worked abroad, your cost may include contributions by your employer to the retirement plan, but only if those contributions would be excludible from your gross income had they been paid directly to you as compensation. Instructions for form 1040x The contributions that apply are: Contributions before 1963 by your employer, Contributions after 1962 by your employer if the contributions would be excludible from your gross income (without regard to the foreign earned income exclusion) had they been paid directly to you, or Contributions after 1996 by your employer on your behalf if you performed the services of a foreign missionary (a duly ordained, commissioned, or licensed minister of a church or a lay person) if the contributions would be excludible from your gross income had they been paid directly to you. Instructions for form 1040x Foreign employment contributions while a nonresident alien. Instructions for form 1040x   In determining your cost, special rules apply if you are a U. Instructions for form 1040x S. Instructions for form 1040x citizen or resident alien who received distributions from a plan to which contributions were made while you were a nonresident alien. Instructions for form 1040x Your contributions and your employer's contributions are not included in your cost if the contributions: Were made based on compensation which was for services performed outside the United States which you were a nonresident alien, and Were not subject to income tax under the laws of the United States or any foreign country, but only if the contribution would have been subject to income tax if they had been paid as cash compensation when the services were performed. Instructions for form 1040x Death benefit exclusion. Instructions for form 1040x   If you are the beneficiary of a deceased employee (or former employee), who died before August 21, 1996, you may qualify for a death benefit exclusion of up to $5,000. Instructions for form 1040x The beneficiary of a deceased employee who died after August 20, 1996, will not qualify for the death benefit exclusion. Instructions for form 1040x How to adjust your total cost. Instructions for form 1040x   If you are eligible, treat the amount of any allowable death benefit exclusion as additional cost paid by the employee. Instructions for form 1040x Add it to the cost or unrecovered cost of the annuity at the annuity starting date. Instructions for form 1040x See Example 3 under Computation Under General Rule for an illustration of the adjustment to the cost of the contract. Instructions for form 1040x Net cost. Instructions for form 1040x   Your total cost plus certain adjustments and minus other amounts already recovered before the annuity starting date is your net cost. Instructions for form 1040x This is the unrecovered investment in the contract as of the annuity starting date. Instructions for form 1040x If your annuity starting date is after 1986, this is the maximum amount that you may recover tax free under the contract. Instructions for form 1040x Refund feature. Instructions for form 1040x   Adjustment for the value of the refund feature is only applicable when you report your pension or annuity under the General Rule. Instructions for form 1040x Your annuity contract has a refund feature if: The expected return ( discussed later) of an annuity depends entirely or partly on the life of one or more individuals, The contract provides that payments will be made to a beneficiary or the estate of an annuitant on or after the death of the annuitant if a stated amount or a stated number of payments has not been paid to the annuitant or annuitants before death, and The payments are a refund of the amount you paid for the annuity contract. Instructions for form 1040x   If your annuity has a refund feature, you must reduce your net cost of the contract by the value of the refund feature (figured using Table III or VII at the end of this publication, also see How To Use Actuarial Tables , later) to find the investment in the contract. Instructions for form 1040x Zero value of refund feature. Instructions for form 1040x   For a joint and survivor annuity, the value of the refund feature is zero if: Both annuitants are age 74 or younger, The payments are guaranteed for less than 2½ years, and The survivor's annuity is at least 50% of the first annuitant's annuity. Instructions for form 1040x   For a single-life annuity without survivor benefit, the value of the refund feature is zero if: The payments are guaranteed for less than 2½ years, and The annuitant is: Age 57 or younger (if using the new (unisex) annuity tables), Age 42 or younger (if male and using the old annuity tables), or Age 47 or younger (if female and using the old annuity tables). Instructions for form 1040x   If you do not meet these requirements, you will have to figure the value of the refund feature, as explained in the following discussion. Instructions for form 1040x Examples. Instructions for form 1040x The first example shows how to figure the value of the refund feature when there is only one beneficiary. Instructions for form 1040x Example 2 shows how to figure the value of the refund feature when the contract provides, in addition to a whole life annuity, one or more temporary life annuities for the lives of children. Instructions for form 1040x In both examples, the taxpayer elects to use Tables V through VIII. Instructions for form 1040x If you need the value of the refund feature for a joint and survivor annuity, write to the Internal Revenue Service as explained under Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040x Example 1. Instructions for form 1040x At age 65, Barbara bought for $21,053 an annuity with a refund feature. Instructions for form 1040x She will get $100 a month for life. Instructions for form 1040x Barbara's contract provides that if she does not live long enough to recover the full $21,053, similar payments will be made to her surviving beneficiary until a total of $21,053 has been paid under the contract. Instructions for form 1040x In this case, the contract cost and the total guaranteed return are the same ($21,053). Instructions for form 1040x Barbara's investment in the contract is figured as follows: Net cost $21,053 Amount to be received annually $1,200   Number of years for which payment is guaranteed ($21,053 divided by $1,200) 17. Instructions for form 1040x 54   Rounded to nearest whole number of years 18   Percentage from Actuarial Table VII for age 65 with 18 years of guaranteed payments 15%   Value of the refund feature (rounded to the nearest dollar)—15% of $21,053 3,158 Investment in the contract, adjusted for value of refund feature $17,895       If the total guaranteed return were less than the $21,053 net cost of the contract, Barbara would apply the appropriate percentage from the tables to the lesser amount. Instructions for form 1040x For example, if the contract guaranteed the $100 monthly payments for 17 years to Barbara's estate or beneficiary if she were to die before receiving all the payments for that period, the total guaranteed return would be $20,400 ($100 × 12 × 17 years). Instructions for form 1040x In this case, the value of the refund feature would be $2,856 (14% of $20,400) and Barbara's investment in the contract would be $18,197 ($21,053 minus $2,856) instead of $17,895. Instructions for form 1040x Example 2. Instructions for form 1040x John died while still employed. Instructions for form 1040x His widow, Eleanor, age 48, receives $171 a month for the rest of her life. Instructions for form 1040x John's son, Elmer, age 9, receives $50 a month until he reaches age 18. Instructions for form 1040x John's contributions to the retirement fund totaled $7,559. Instructions for form 1040x 45, with interest on those contributions of $1,602. Instructions for form 1040x 53. Instructions for form 1040x The guarantee or total refund feature of the contract is $9,161. Instructions for form 1040x 98 ($7,559. Instructions for form 1040x 45 plus $1,602. Instructions for form 1040x 53). Instructions for form 1040x The adjustment in the investment in the contract is figured as follows: A) Expected return:*       1) Widow's expected return:         Annual annuity ($171 × 12) $2,052       Multiplied by factor from Table V         (nearest age 48) 34. Instructions for form 1040x 9 $71,614. Instructions for form 1040x 80   2) Child's expected return:         Annual annuity ($50 × 12) $600       Multiplied by factor from         Table VIII (nearest age 9         for term of 9 years) 9. Instructions for form 1040x 0 5,400. Instructions for form 1040x 00   3) Total expected return   $77,014. Instructions for form 1040x 80 B) Adjustment for refund feature:       1) Contributions (net cost) $7,559. Instructions for form 1040x 45   2) Guaranteed amount (contributions of $7,559. Instructions for form 1040x 45 plus interest of $1,602. Instructions for form 1040x 53) $9,161. Instructions for form 1040x 98   3) Minus: Expected return under child's (temporary life) annuity (A(2)) 5,400. Instructions for form 1040x 00   4) Net guaranteed amount $3,761. Instructions for form 1040x 98   5) Multiple from Table VII (nearest age 48 for 2 years duration (recovery of $3,761. Instructions for form 1040x 98 at $171 a month to nearest whole year)) 0%   6) Adjustment required for value of refund feature rounded to the nearest whole dollar  (0% × $3,761. Instructions for form 1040x 98, the smaller of B(3) or B(6)) 0 *Expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Instructions for form 1040x See the discussion of expected return, later in this publication. Instructions for form 1040x Free IRS help. Instructions for form 1040x   If you need to request assistance to figure the value of the refund feature, see Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040x Expected Return Your expected return is the total amount you and other eligible annuitants can expect to receive under the contract. Instructions for form 1040x The following discussions explain how to figure the expected return with each type of annuity. Instructions for form 1040x A person's age, for purposes of figuring the expected return, is the age at the birthday nearest to the annuity starting date. Instructions for form 1040x Fixed period annuity. Instructions for form 1040x   If you will get annuity payments for a fixed number of years, without regard to your life expectancy, you must figure your expected return based on that fixed number of years. Instructions for form 1040x It is the total amount you will get beginning at the annuity starting date. Instructions for form 1040x You will receive specific periodic payments for a definite period of time, such as a fixed number of months (but not less than 13). Instructions for form 1040x To figure your expected return, multiply the fixed number of months for which payments are to be made by the amount of the payment specified for each period. Instructions for form 1040x Single life annuity. Instructions for form 1040x   If you are to get annuity payments for the rest of your life, find your expected return as follows. Instructions for form 1040x You must multiply the amount of the annual payment by a multiple based on your life expectancy as of the annuity starting date. Instructions for form 1040x These multiples are set out in actuarial Tables I and V near the end of this publication (see How To Use Actuarial Tables , later). Instructions for form 1040x   You may need to adjust these multiples if the payments are made quarterly, semiannually, or annually. Instructions for form 1040x See Adjustments to Tables I, II, V, VI, and VIA following Table I. Instructions for form 1040x Example. Instructions for form 1040x Henry bought an annuity contract that will give him an annuity of $500 a month for his life. Instructions for form 1040x If at the annuity starting date Henry's nearest birthday is 66, the expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table V, age 66 × 19. Instructions for form 1040x 2 Expected return $115,200 If the payments were to be made to Henry quarterly and the first payment was made one full month after the annuity starting date, Henry would adjust the 19. Instructions for form 1040x 2 multiple by +. Instructions for form 1040x 1. Instructions for form 1040x His expected return would then be $115,800 ($6,000 × 19. Instructions for form 1040x 3). Instructions for form 1040x Annuity for shorter of life or specified period. Instructions for form 1040x   With this type of annuity, you are to get annuity payments either for the rest of your life or until the end of a specified period, whichever period is shorter. Instructions for form 1040x To figure your expected return, multiply the amount of your annual payment by a multiple in Table IV or VIII for temporary life annuities. Instructions for form 1040x Find the proper multiple based on your sex (if using Table IV), your age at the annuity starting date, and the nearest whole number of years in the specified period. Instructions for form 1040x Example. Instructions for form 1040x Harriet purchased an annuity this year that will pay her $200 each month for five years or until she dies, whichever period is shorter. Instructions for form 1040x She was age 65 at her birthday nearest the annuity starting date. Instructions for form 1040x She figures the expected return as follows: Annual payment ($200 × 12 months) $2,400 Multiple shown in Table VIII, age 65, 5-year term × 4. Instructions for form 1040x 9 Expected return $11,760 She uses Table VIII (not Table IV) because all her contributions were made after June 30, 1986. Instructions for form 1040x See Special Elections, later. Instructions for form 1040x Joint and survivor annuities. Instructions for form 1040x   If you have an annuity that pays you a periodic income for life and after your death provides an identical lifetime periodic income to your spouse (or some other person), you figure the expected return based on your combined life expectancies. Instructions for form 1040x To figure the expected return, multiply the annual payment by a multiple in Table II or VI based on your joint life expectancies. Instructions for form 1040x If your payments are made quarterly, semiannually, or annually, you may need to adjust these multiples. Instructions for form 1040x See Adjustments to Tables I, II, V, VI, and VIA following Table I near the end of this publication. Instructions for form 1040x Example. Instructions for form 1040x John bought a joint and survivor annuity providing payments of $500 a month for his life, and, after his death, $500 a month for the remainder of his wife's life. Instructions for form 1040x At John's annuity starting date, his age at his nearest birthday is 70 and his wife's at her nearest birthday is 67. Instructions for form 1040x The expected return is figured as follows: Annual payment ($500 × 12 months) $6,000 Multiple shown in Table VI, ages 67 and 70 × 22. Instructions for form 1040x 0 Expected return $132,000 Different payments to survivor. Instructions for form 1040x   If your contract provides that payments to a survivor annuitant will be different from the amount you receive, you must use a computation which accounts for both the joint lives of the annuitants and the life of the survivor. Instructions for form 1040x Example 1. Instructions for form 1040x Gerald bought a contract providing for payments to him of $500 a month for life and, after his death, payments to his wife, Mary, of $350 a month for life. Instructions for form 1040x If, at the annuity starting date, Gerald's nearest birthday is 70 and Mary's is 67, the expected return under the contract is figured as follows: Combined multiple for Gerald and Mary, ages 70 and 67 (from Table VI)   22. Instructions for form 1040x 0 Multiple for Gerald, age 70 (from Table V)   16. Instructions for form 1040x 0 Difference: Multiple applicable to Mary   6. Instructions for form 1040x 0 Gerald's annual payment ($500 × 12) $6,000   Gerald's multiple 16. Instructions for form 1040x 0   Gerald's expected return   $96,000 Mary's annual payment ($350 × 12) $4,200   Mary's multiple 6. Instructions for form 1040x 0   Mary's expected return   25,200 Total expected return under the contract   $121,200 Example 2. Instructions for form 1040x Your husband died while still employed. Instructions for form 1040x Under the terms of his employer's retirement plan, you are entitled to get an immediate annuity of $400 a month for the rest of your life or until you remarry. Instructions for form 1040x Your daughters, Marie and Jean, are each entitled to immediate temporary life annuities of $150 a month until they reach age 18. Instructions for form 1040x You were 50 years old at the annuity starting date. Instructions for form 1040x Marie was 16 and Jean was 14. Instructions for form 1040x Using the multiples shown in Tables V and VIII at the end of this publication, the total expected return on the annuity starting date is $169,680, figured as follows: Widow, age 50 (multiple from Table V—33. Instructions for form 1040x 1 × $4,800 annual payment) $158,880 Marie, age 16 for 2 years duration (multiple from Table VIII—2. Instructions for form 1040x 0 × $1,800 annual payment) 3,600 Jean, age 14 for 4 years duration (multiple from Table VIII—4. Instructions for form 1040x 0 × $1,800 annual payment) 7,200 Total expected return $169,680 No computation of expected return is made based on your husband's age at the date of death because he died before the annuity starting date. Instructions for form 1040x Computation Under the General Rule Note. Instructions for form 1040x Variable annuities use a different computation for determining the exclusion amounts. Instructions for form 1040x See Variable annuities later. Instructions for form 1040x Under the General Rule, you figure the taxable part of your annuity by using the following steps: Step 1. Instructions for form 1040x   Figure the amount of your investment in the contract, including any adjustments for the refund feature and the death benefit exclusion, if applicable. Instructions for form 1040x See Death benefit exclusion , earlier. Instructions for form 1040x Step 2. Instructions for form 1040x   Figure your expected return. Instructions for form 1040x Step 3. Instructions for form 1040x   Divide Step 1 by Step 2 and round to three decimal places. Instructions for form 1040x This will give you the exclusion percentage. Instructions for form 1040x Step 4. Instructions for form 1040x   Multiply the exclusion percentage by the first regular periodic payment. Instructions for form 1040x The result is the tax-free part of each pension or annuity payment. Instructions for form 1040x   The tax-free part remains the same even if the total payment increases due to variation in the annuity amount such as cost of living increases, or you outlive the life expectancy factor used. Instructions for form 1040x However, if your annuity starting date is after 1986, the total amount of annuity income that is tax free over the years cannot exceed your net cost. Instructions for form 1040x   Each annuitant applies the same exclusion percentage to his or her initial payment called for in the contract. Instructions for form 1040x Step 5. Instructions for form 1040x   Multiply the tax-free part of each payment (step 4) by the number of payments received during the year. Instructions for form 1040x This will give you the tax-free part of the total payment for the year. Instructions for form 1040x    In the first year of your annuity, your first payment or part of your first payment may be for a fraction of the payment period. Instructions for form 1040x This fractional amount is multiplied by your exclusion percentage to get the tax-free part. Instructions for form 1040x Step 6. Instructions for form 1040x   Subtract the tax-free part from the total payment you received. Instructions for form 1040x The rest is the taxable part of your pension or annuity. Instructions for form 1040x Example 1. Instructions for form 1040x You purchased an annuity with an investment in the contract of $10,800. Instructions for form 1040x Under its terms, the annuity will pay you $100 a month for life. Instructions for form 1040x The multiple for your age (age 65) is 20. Instructions for form 1040x 0 as shown in Table V. Instructions for form 1040x Your expected return is $24,000 (20 × 12 × $100). Instructions for form 1040x Your cost of $10,800, divided by your expected return of $24,000, equals 45. Instructions for form 1040x 0%. Instructions for form 1040x This is the percentage you will not have to include in income. Instructions for form 1040x Each year, until your net cost is recovered, $540 (45% of $1,200) will be tax free and you will include $660 ($1,200 − $540) in your income. Instructions for form 1040x If you had received only six payments of $100 ($600) during the year, your exclusion would have been $270 (45% of $100 × 6 payments). Instructions for form 1040x Example 2. Instructions for form 1040x Gerald bought a joint and survivor annuity. Instructions for form 1040x Gerald's investment in the contract is $62,712 and the expected return is $121,200. Instructions for form 1040x The exclusion percentage is 51. Instructions for form 1040x 7% ($62,712 ÷ $121,200). Instructions for form 1040x Gerald will receive $500 a month ($6,000 a year). Instructions for form 1040x Each year, until his net cost is recovered, $3,102 (51. Instructions for form 1040x 7% of his total payments received of $6,000) will be tax free and $2,898 ($6,000 − $3,102) will be included in his income. Instructions for form 1040x If Gerald dies, his wife will receive $350 a month ($4,200 a year). Instructions for form 1040x If Gerald had not recovered all of his net cost before his death, his wife will use the same exclusion percentage (51. Instructions for form 1040x 7%). Instructions for form 1040x Each year, until the entire net cost is recovered, his wife will receive $2,171. Instructions for form 1040x 40 (51. Instructions for form 1040x 7% of her payments received of $4,200) tax free. Instructions for form 1040x She will include $2,028. Instructions for form 1040x 60 ($4,200 − $2,171. Instructions for form 1040x 40) in her income tax return. Instructions for form 1040x Example 3. Instructions for form 1040x Using the same facts as Example 2 under Different payments to survivor, you are to receive an annual annuity of $4,800 until you die or remarry. Instructions for form 1040x Your two daughters each receive annual annuities of $1,800 until they reach age 18. Instructions for form 1040x Your husband contributed $25,576 to the plan. Instructions for form 1040x You are eligible for the $5,000 death benefit exclusion because your husband died before August 21, 1996. Instructions for form 1040x Adjusted Investment in the Contract Contributions $25,576 Plus: Death benefit exclusion 5,000 Adjusted investment in the contract $30,576 The total expected return, as previously figured (in Example 2 under Different payments to survivor), is $169,680. Instructions for form 1040x The exclusion percentage of 18. Instructions for form 1040x 0% ($30,576 ÷ $169,680) applies to the annuity payments you and each of your daughters receive. Instructions for form 1040x Each full year $864 (18. Instructions for form 1040x 0% × $4,800) will be tax free to you, and you must include $3,936 in your income tax return. Instructions for form 1040x Each year, until age 18, $324 (18. Instructions for form 1040x 0% × $1,800) of each of your daughters' payments will be tax free and each must include the balance, $1,476, as income on her own income tax return. Instructions for form 1040x Part-year payments. Instructions for form 1040x   If you receive payments for only part of a year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments received during the year. Instructions for form 1040x   If you receive amounts during the year that represent 12 payments, one for each month in that year, and an amount that represents payments for months in a prior year, apply the exclusion percentage to the first regular periodic payment, and multiply the result by the number of payments the amounts received represent. Instructions for form 1040x For instance, if you received amounts during the year that represent the 12 payments for that year plus an amount that represents three payments for a prior year, multiply that amount by the 15 (12 + 3) payments received that the year. Instructions for form 1040x   If you received a fractional payment, follow Step 5, discussed earlier. Instructions for form 1040x This gives you the tax-free part of your total payment. Instructions for form 1040x Example. Instructions for form 1040x On September 28, Mary bought an annuity contract for $22,050 that will give her $125 a month for life, beginning October 30. Instructions for form 1040x The applicable multiple from Table V is 23. Instructions for form 1040x 3 (age 61). Instructions for form 1040x Her expected return is $34,950 ($125 × 12 × 23. Instructions for form 1040x 3). Instructions for form 1040x Mary's investment in the contract of $22,050, divided by her expected return of $34,950, equals 63. Instructions for form 1040x 1%. Instructions for form 1040x Each payment received will consist of 63. Instructions for form 1040x 1% return of cost and 36. Instructions for form 1040x 9% taxable income, until her net cost of the contract is fully recovered. Instructions for form 1040x During the first year, Mary received three payments of $125, or $375, of which $236. Instructions for form 1040x 63 (63. Instructions for form 1040x 1% × $375) is a return of cost. Instructions for form 1040x The remaining $138. Instructions for form 1040x 37 is included in income. Instructions for form 1040x Increase in annuity payments. Instructions for form 1040x   The tax-free amount remains the same as the amount figured at the annuity starting date, even if the payment increases. Instructions for form 1040x All increases in the installment payments are fully taxable. Instructions for form 1040x   However, if your annuity payments are scheduled to increase at a definite date in the future you must figure the expected return for that annuity using the method described in section 1. Instructions for form 1040x 72-5(a)(5) of the regulations. Instructions for form 1040x Example. Instructions for form 1040x Joe's wife died while she was still employed and, as her beneficiary, he began receiving an annuity of $147 per month. Instructions for form 1040x In figuring the taxable part, Joe elects to use Tables V through VIII. Instructions for form 1040x The cost of the contract was $7,938, consisting of the sum of his wife's net contributions, adjusted for any refund feature. Instructions for form 1040x His expected return as of the annuity starting date is $35,280 (age 65, multiple of 20. Instructions for form 1040x 0 × $1,764 annual payment). Instructions for form 1040x The exclusion percentage is $7,938 ÷ $35,280, or 22. Instructions for form 1040x 5%. Instructions for form 1040x During the year he received 11 monthly payments of $147, or $1,617. Instructions for form 1040x Of this amount, 22. Instructions for form 1040x 5% × $147 × 11 ($363. Instructions for form 1040x 83) is tax free as a return of cost and the balance of $1,253. Instructions for form 1040x 17 is taxable. Instructions for form 1040x Later, because of a cost-of-living increase, his annuity payment was increased to $166 per month, or $1,992 a year (12 × $166). Instructions for form 1040x The tax-free part is still only 22. Instructions for form 1040x 5% of the annuity payments as of the annuity starting date (22. Instructions for form 1040x 5% × $147 × 12 = $396. Instructions for form 1040x 90 for a full year). Instructions for form 1040x The increase of $228 ($1,992 − $1,764 (12 × $147)) is fully taxable. Instructions for form 1040x Variable annuities. Instructions for form 1040x   For variable annuity payments, figure the amount of each payment that is tax free by dividing your investment in the contract (adjusted for any refund feature) by the total number of periodic payments you expect to get under the contract. Instructions for form 1040x   If the annuity is for a definite period, you determine the total number of payments by multiplying the number of payments to be made each year by the number of years you will receive payments. Instructions for form 1040x If the annuity is for life, you determine the total number of payments by using a multiple from the appropriate actuarial table. Instructions for form 1040x Example. Instructions for form 1040x Frank purchased a variable annuity at age 65. Instructions for form 1040x The total cost of the contract was $12,000. Instructions for form 1040x The annuity starting date is January 1 of the year of purchase. Instructions for form 1040x His annuity will be paid, starting July 1, in variable annual installments for his life. Instructions for form 1040x The tax-free amount of each payment, until he has recovered his cost of his contract, is: Investment in the contract $12,000 Number of expected annual payments (multiple for age 65 from Table V) 20 Tax-free amount of each payment ($12,000 ÷ 20) $600 If Frank's first payment is $920, he includes only $320 ($920 − $600) in his gross income. Instructions for form 1040x   If the tax-free amount for a year is more than the payments you receive in that year, you may choose, when you receive the next payment, to refigure the tax-free part. Instructions for form 1040x Divide the amount of the periodic tax-free part that is more than the payment you received by the remaining number of payments you expect. Instructions for form 1040x The result is added to the previously figured periodic tax-free part. Instructions for form 1040x The sum is the amount of each future payment that will be tax free. Instructions for form 1040x Example. Instructions for form 1040x Using the facts of the previous example about Frank, assume that after Frank's $920 payment, he received $500 in the following year, and $1,200 in the year after that. Instructions for form 1040x Frank does not pay tax on the $500 (second year) payment because $600 of each annual pension payment is tax free. Instructions for form 1040x Since the $500 payment is less than the $600 annual tax-free amount, he may choose to refigure his tax-free part when he receives his $1,200 (third year) payment, as follows: Amount tax free in second year $600. Instructions for form 1040x 00 Amount received in second year 500. Instructions for form 1040x 00 Difference $100. Instructions for form 1040x 00 Number of remaining payments after the first 2 payments (age 67, from Table V) 18. Instructions for form 1040x 4 Amount to be added to previously determined annual tax-free part ($100 ÷ 18. Instructions for form 1040x 4) $5. Instructions for form 1040x 43 Revised annual tax-free part for third and later years ($600 + $5. Instructions for form 1040x 43) $605. Instructions for form 1040x 43 Amount taxable in third year ($1,200 − $605. Instructions for form 1040x 43) $594. Instructions for form 1040x 57 If you choose to refigure your tax-free amount,   you must file a statement with your income tax return stating that you are refiguring the tax-free amount in accordance with the rules of section 1. Instructions for form 1040x 72–4(d)(3) of the Income Tax Regulations. Instructions for form 1040x The statement must also show the following information: The annuity starting date and your age on that date. Instructions for form 1040x The first day of the first period for which you received an annuity payment in the current year. Instructions for form 1040x Your investment in the contract as originally figured. Instructions for form 1040x The total of all amounts received tax free under the annuity from the annuity starting date through the first day of the first period for which you received an annuity payment in the current tax year. Instructions for form 1040x Exclusion Limits Your annuity starting date determines the total amount of annuity income that you can exclude from income over the years. Instructions for form 1040x Exclusion limited to net cost. Instructions for form 1040x   If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a return of your cost cannot exceed your net cost (figured without any reduction for a refund feature). Instructions for form 1040x This is the unrecovered investment in the contract as of the annuity starting date. Instructions for form 1040x   If your annuity starting date is after July 1, 1986, any unrecovered net cost at your (or last annuitant's) death is allowed as a miscellaneous itemized deduction on the final return of the decedent. Instructions for form 1040x This deduction is not subject to the 2%-of-adjusted-gross-income limit. Instructions for form 1040x Example 1. Instructions for form 1040x Your annuity starting date is after 1986. Instructions for form 1040x Your total cost is $12,500, and your net cost is $10,000, taking into account certain adjustments. Instructions for form 1040x There is no refund feature. Instructions for form 1040x Your monthly annuity payment is $833. Instructions for form 1040x 33. Instructions for form 1040x Your exclusion ratio is 12% and you exclude $100 a month. Instructions for form 1040x Your exclusion ends after 100 months, when you have excluded your net cost of $10,000. Instructions for form 1040x Thereafter, your annuity payments are fully taxable. Instructions for form 1040x Example 2. Instructions for form 1040x The facts are the same as in Example 1, except that there is a refund feature, and you die after 5 years with no surviving annuitant. Instructions for form 1040x The adjustment for the refund feature is $1,000, so the investment in the contract is $9,000. Instructions for form 1040x The exclusion ratio is 10. Instructions for form 1040x 8%, and your monthly exclusion is $90. Instructions for form 1040x After 5 years (60 months), you have recovered tax free only $5,400 ($90 x 60). Instructions for form 1040x An itemized deduction for the unrecovered net cost of $4,600 ($10,000 net cost minus $5,400) may be taken on your final income tax return. Instructions for form 1040x Your unrecovered investment is determined without regard to the refund feature adjustment, discussed earlier, under Adjustments. Instructions for form 1040x Exclusion not limited to net cost. Instructions for form 1040x   If your annuity starting date was before 1987, you could continue to take your monthly exclusion for as long as you receive your annuity. Instructions for form 1040x If you choose a joint and survivor annuity, your survivor continues to take the survivor's exclusion figured as of the annuity starting date. Instructions for form 1040x The total exclusion may be more than your investment in the contract. Instructions for form 1040x How To Use Actuarial Tables In figuring, under the General Rule, the taxable part of your annuity payments that you are to get for the rest of your life (rather than for a fixed number of years), you must use one or more of the actuarial tables in this publication. Instructions for form 1040x Unisex Annuity Tables Effective July 1, 1986, the Internal Revenue Service adopted new annuity Tables V through VIII, in which your sex is not considered when determining the applicable factor. Instructions for form 1040x These tables correspond to the old Tables I through IV. Instructions for form 1040x In general, Tables V through VIII must be used if you made contributions to the retirement plan after June 30, 1986. Instructions for form 1040x If you made no contributions to the plan after June 30, 1986, generally you must use only Tables I through IV. Instructions for form 1040x However, if you received an annuity payment after June 30, 1986, you may elect to use Tables V through VIII (see Annuity received after June 30, 1986, later). Instructions for form 1040x Special Elections Although you generally must use Tables V through VIII if you made contributions to the retirement plan after June 30, 1986, and Tables I through IV if you made no contributions after June 30, 1986, you can make the following special elections to select which tables to use. Instructions for form 1040x Contributions made both before July 1986 and after June 1986. Instructions for form 1040x   If you made contributions to the retirement plan both before July 1986 and after June 1986, you may elect to use Tables I through IV for the pre-July 1986 cost of the contract, and Tables V through VIII for the post-June 1986 cost. Instructions for form 1040x (See the examples below. Instructions for form 1040x )    Making the election. Instructions for form 1040x Attach this statement to your income tax return for the first year in which you receive an annuity:    “I elect to apply the provisions of paragraph (d) of section 1. Instructions for form 1040x 72–6 of the Income Tax Regulations. Instructions for form 1040x ”   The statement must also include your name, address, social security number, and the amount of the pre-July 1986 investment in the contract. Instructions for form 1040x   If your investment in the contract includes post-June 1986 contributions to the plan, and you do not make the election to use Tables I through IV and Tables V through VIII, then you can only use Tables V through VIII in figuring the taxable part of your annuity. Instructions for form 1040x You must also use Tables V through VIII if you are unable or do not wish to determine the portions of your contributions which were made before July 1, 1986, and after June 30, 1986. Instructions for form 1040x    Advantages of election. Instructions for form 1040x In general, a lesser amount of each annual annuity payment is taxable if you separately figure your exclusion ratio for pre-July 1986 and post-June 1986 contributions. Instructions for form 1040x    If you intend to make this election, save your records that substantiate your pre-July 1986 and post-June 1986 contributions. Instructions for form 1040x If the death benefit exclusion applies (see discussion, earlier), you do not have to apportion it between the pre-July 1986 and the post-June 1986 investment in the contract. Instructions for form 1040x   The following examples illustrate the separate computations required if you elect to use Tables I through IV for your pre-July 1986 investment in the contract and Tables V through VIII for your post-June 1986 investment in the contract. Instructions for form 1040x Example 1. Instructions for form 1040x Bill, who is single, contributed $42,000 to the retirement plan and will receive an annual annuity of $24,000 for life. Instructions for form 1040x Payment of the $42,000 contribution is guaranteed under a refund feature. Instructions for form 1040x Bill is 55 years old as of the annuity starting date. Instructions for form 1040x For figuring the taxable part of Bill's annuity, he chose to make separate computations for his pre-July 1986 investment in the contract of $41,300, and for his post-June 1986 investment in the contract of $700. Instructions for form 1040x       Pre- July 1986   Post- June 1986 A. Instructions for form 1040x Adjustment for refund feature         1) Net cost $41,300   $700   2) Annual annuity—$24,000  ($41,300/$42,000 × $24,000) $23,600       ($700/$42,000 × $24,000)     $400   3) Guarantee under contract $41,300   $700   4) No. Instructions for form 1040x of years payments  guaranteed (rounded), A(3) ÷ A(2) 2   2   5) Applicable percentage from  Tables III and VII 1%   0%   6) Adjustment for value of refund  feature, A(5) × smaller of A(1)  or A(3) $413   $0 B. Instructions for form 1040x Investment in the contract         1) Net cost $41,300   $700   2) Minus: Amount in A(6) 413   0   3) Investment in the contract $40,887   $700 C. Instructions for form 1040x Expected return         1) Annual annuity receivable $24,000   $24,000   2) Multiples from Tables I and V 21. Instructions for form 1040x 7   28. Instructions for form 1040x 6   3) Expected return, C(1) × C(2) $520,800   $686,400 D. Instructions for form 1040x Tax-free part of annuity         1) Exclusion ratio as decimal,  B(3) ÷ C(3) . Instructions for form 1040x 079   . Instructions for form 1040x 001   2) Tax-free part, C(1) × D(1) $1,896   $24 The tax-free part of Bill's total annuity is $1,920 ($1,896 plus $24). Instructions for form 1040x The taxable part of his annuity is $22,080 ($24,000 minus $1,920). Instructions for form 1040x If the annuity starting date is after 1986, the exclusion over the years cannot exceed the net cost (figured without any reduction for a refund feature). Instructions for form 1040x Example 2. Instructions for form 1040x Al is age 62 at his nearest birthday to the annuity starting date. Instructions for form 1040x Al's wife is age 60 at her nearest birthday to the annuity starting date. Instructions for form 1040x The joint and survivor annuity pays $1,000 per month to Al for life, and $500 per month to Al's surviving wife after his death. Instructions for form 1040x The pre-July 1986 investment in the contract is $53,100 and the post-June 1986 investment in the contract is $7,000. Instructions for form 1040x Al makes the election described in Example 1 . Instructions for form 1040x For purposes of this example, assume the refund feature adjustment is zero. Instructions for form 1040x If an adjustment is required, IRS will figure the amount. Instructions for form 1040x See Requesting a Ruling on Taxation of Annuity near the end of this publication. Instructions for form 1040x       Pre-  July 1986   Post-  June 1986 A. Instructions for form 1040x Adjustment for refund feature         1) Net cost $53,100   $7,000   2) Annual annuity—$12,000  ($53,100/$60,100 × $12,000) $10,602       ($7,000/$60,100 × $12,000)     $1,398   3) Guaranteed under the contract $53,100   $7,000   4) Number of years guaranteed,  rounded, A(3) ÷ A(2) 5   5   5) Applicable percentages 0%   0%   6) Refund feature adjustment, A(5) × smaller of A(1) or A(3) 0   0 B. Instructions for form 1040x Investment in the contract         1) Net cost $53,100   $7,000   2) Refund feature adjustment 0   0   3) Investment in the contract adjusted for refund feature $53,100   $7,000 C. Instructions for form 1040x Expected return         1) Multiple for both annuitants from Tables II and VI 25. Instructions for form 1040x 4   28. Instructions for form 1040x 8   2) Multiple for first annuitant from Tables I and V 16. Instructions for form 1040x 9   22. Instructions for form 1040x 5   3) Multiple applicable to surviving annuitant, subtract C(2) from C(1) 8. Instructions for form 1040x 5   6. Instructions for form 1040x 3   4) Annual annuity to surviving annuitant $6,000   $6,000   5) Portion of expected return for surviving annuitant, C(4) × C(3) $51,000   $37,800   6) Annual annuity to first annuitant $12,000   $12,000   7) Plus: Portion of expected return for first annuitant, C(6) × C(2) $202,800   $270,000   8) Expected return for both annuitants, C(5) + C(7) $253,800   $307,800 D. Instructions for form 1040x Tax-free part of annuity         1) Exclusion ratio as a decimal, B(3) ÷ C(8) . Instructions for form 1040x 209   . Instructions for form 1040x 023   2) Retiree's tax-free part of annuity, C(6) × D(1) $2,508   $276   3) Survivor's tax-free part of annuity, C(4) × D(1) $1,254   $138 The tax-free part of Al's total annuity is $2,784 ($2,508 + $276). Instructions for form 1040x The taxable part of his annuity is $9,216 ($12,000 − $2,784). Instructions for form 1040x The exclusion over the years cannot exceed the net cost of the contract (figured without any reduction for a refund feature) if the annuity starting date is after 1986. Instructions for form 1040x After Al's death, his widow will apply the same exclusion percentages (20. Instructions for form 1040x 9% and 2. Instructions for form 1040x 3%) to her annual annuity of $6,000 to figure the tax-free part of her annuity. Instructions for form 1040x Annuity received after June 30, 1986. Instructions for form 1040x   If you receive an annuity payment after June 30, 1986, (regardless of your annuity starting date), you may elect to treat the entire cost of the contract as post-June 1986 cost (even if you made no post-June 1986 contributions to the plan) and use Tables V through VIII. Instructions for form 1040x Once made, you cannot revoke the election, which will apply to all payments during the year and in any later year. Instructions for form 1040x    Make the election by attaching the following statement to your income tax return. Instructions for form 1040x    “I elect, under section 1. Instructions for form 1040x 72–9 of the Income Tax Regulations, to treat my entire cost of the contract as a post-June 1986 cost of the plan. Instructions for form 1040x ”   The statement must also include your name, address, and social security number. Instructions for form 1040x   You should also indicate you are making this election if you are unable or do not wish to determine the parts of your contributions which were made before July 1, 1986, and after June 30, 1986. Instructions for form 1040x Disqualifying form of payment or settlement. Instructions for form 1040x   If your annuity starting date is after June 30, 1986, and the contract provides for a disqualifying form of payment or settlement, such as an option to receive a lump sum in full discharge of the obligation under the contract, the entire investment in the contract is treated as post-June 1986 investment in the contract. Instructions for form 1040x See regulations section 1. Instructions for form 1040x 72–6(d)(3) for additional examples of disqualifying forms of payment or settlement. Instructions for form 1040x You can find the Income Tax Regulations in many libraries and at Internal Revenue Service Offices. Instructions for form 1040x Worksheets for Determining Taxable Annuity Worksheets I and II. Instructions for form 1040x   Worksheets I and II follow for determining your taxable annuity under Regulations Section 1. Instructions for form 1040x 72–6(d)(6) Election. Instructions for form 1040x Worksheet I For Determining Taxable Annuity Under Regulations Section 1. Instructions for form 1040x 72-6(d)(6) Election For Single Annuitant With No Survivor Annuity               Pre-July 1986   Post-June 1986 A. Instructions for form 1040x   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Instructions for form 1040x )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)   Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages* from Tables III and VII                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Instructions for form 1040x If not, the IRS will calculate the refund feature percentage. Instructions for form 1040x             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Instructions for form 1040x   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund feature:                   B(1) minus B(2)                             C. Instructions for form 1040x   Expected Return             1)   Annual Annuity:                   12 times monthly annuity**             2)   Expected return multiples from Tables I and V             3)     Expected return:                   C(1) times C(2)                             D. Instructions for form 1040x   Tax-Free Part of Annuity             1)     Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(3)             2)     Tax-free part of annuity:                   C(1) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Instructions for form 1040x     Worksheet II For Determining Taxable Annuity Under Regulations Section 1. Instructions for form 1040x 72-6(d)(6) Election For Joint and Survivor Annuity               Pre-July 1986   Post-June 1986 A. Instructions for form 1040x   Refund Feature Adjustment             1)   Net cost (total cost less returned premiums, dividends, etc. Instructions for form 1040x )             2)   Annual annuity allocation:                   Portion of net cost in A(1) x annual annuity                   Net cost             3)   Guaranteed under the contract             4)     Number of years guaranteed, rounded to whole years:                   A(3) divided by A(2)             5)   Applicable percentages*                   *If your annuity meets the three conditions listed in Zero value of refund feature in Investment in the Contract, earlier, both percentages are 0. Instructions for form 1040x If not, the IRS will calculate the refund feature percentage. Instructions for form 1040x             6)   Refund feature adjustment:                   A(5) times lesser of A(1) or A(3)                             B. Instructions for form 1040x   Investment in the Contract             1)   Net cost:                   A(1)             2)   Refund feature adjustment:                   A(6)             3)   Investment in the contract adjusted for refund future:                   B(1) minus B(2)                             C. Instructions for form 1040x   Expected Return             1)   Multiples for both annuitants, Tables II and VI             2)   Multiple for retiree. Instructions for form 1040x Tables I and VI             3)   Multiple for survivor:                   C(1) minus C(2)             4)   Annual annuity to survivor:                   12 times potential monthly rate for survivor**             5)   Expected return for survivor:                   C(3) times C(4)             6)   Annual annuity to retiree:                   12 times monthly rate for retiree**             7)   Expected return for retiree:                   C(2) times C(6)             8)   Total expected return:                   C(5) plus C(7)                             D. Instructions for form 1040x   Tax-Free Part of Annuity             1)   Exclusion ratio, as a decimal rounded to 3 places:                   B(3) divided by C(8)             2)   Retiree's tax-free part of annuity:                   C(6) times D(1)             3)   Survivor's tax-free part of annuity, if surviving after death of retiree:                   C(4) times D(1)             **If the annuity is not paid monthly, figure the amount to enter by using the total number of periodic payments for the year times the amount of the periodic payment. Instructions for form 1040x   Actuarial Tables Please click here for the text description of the image. Instructions for form 1040x Actuarial Tables Please click here for the text description of the image. Instructions for form 1040x Actuarial Tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. 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Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Please click here for the text description of the image. Instructions for form 1040x Actuarial tables Requesting a Ruling on Taxation of Annuity If you are a retiree, or the survivor of an employee or retiree, you may ask the Internal Revenue Service to help you determine the taxation of your annuity. Instructions for form 1040x If you make this request, you are asking for a ruling. Instructions for form 1040x User fee. Instructions for form 1040x   Under the law in effect at the time this publication went to print, the IRS must charge a user fee for all ruling requests. Instructions for form 1040x You should call the IRS for the proper fee. Instructions for form 1040x A request solely for the value of the refund feature is not treated as a ruling request and requires no fee. Instructions for form 1040x Send your request to:     Internal Revenue Service  Attention: EP Letter Rulings P. Instructions for form 1040x O. Instructions for form 1040x Box 27063 McPherson Station Washington, DC 20038 The user fee is allowed as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit. Instructions for form 1040x When to make the request. Instructions for form 1040x   Please note that requests sent between February 1 and April 15 may experience some delay. Instructions for form 1040x We process requests in the order received, and we will reply to your request as soon as we can process it. Instructions for form 1040x If you do not receive your ruling by the required filing date, you may use Form 4868, Application for Automatic Extension of Time To File U. Instructions for form 1040x S. Instructions for form 1040x Individual Income Tax Return, to get an extension of time to file. Instructions for form 1040x Information you must furnish. Instructions for form 1040x   You must furnish the information listed below so the IRS can comply with your request. Instructions for form 1040x Failure to furnish the information will result in a delay in processing your request. Instructions for form 1040x Please send only copies of the following documents, as the IRS retains all material sent for its records: A letter explaining the question(s) you wish to have resolved or the information you need from the ruling. Instructions for form 1040x Copies of any documents showing distributions, annuity rates, and annuity options available to you. Instructions for form 1040x A copy of any Form 1099–R you received since your annuity began. Instructions for form 1040x A statement indicating whether you have filed your return for the year for which you are making the request. Instructions for form 1040x If you have requested an extension of time to file that return, please indicate the extension date. Instructions for form 1040x Your daytime phone number. Instructions for form 1040x Your current mailing address. Instructions for form 1040x A power of attorney if someone other than you, an attorney, a certified public accountant, or an enrolled agent is signing this request. Instructions for form 1040x Form 2848, Power of Attorney and Declaration of Representative, may be used for this purpose. Instructions for form 1040x A completed Tax Information Sheet (or facsimile) shown on the next page. Instructions for form 1040x Sign and date the Disclosure and Perjury Statement (or facsimile) at the end of the tax information sheet. Instructions for form 1040x This statement must be signed by the retiree or the survivor annuitant. Instructions for form 1040x It cannot be signed by a representative. Instructions for form 1040x Tax Information Sheet Please click here for the text description of the image. Instructions for form 1040x Tax Information Sheet Please click here for the text description of the image. Instructions for form 1040x Tax Information Sheet (continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Instructions for form 1040x Free help with your tax return. Instructions for form 1040x   You can get free help preparing your return nationwide from IRS-certified volunteers. Instructions for form 1040x The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Instructions for form 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Instructions for form 1040x Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Instructions for form 1040x In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Instructions for form 1040x To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Instructions for form 1040x gov, download the IRS2Go app, or call 1-800-906-9887. Instructions for form 1040x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Instructions for form 1040x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Instructions for form 1040x aarp. Instructions for form 1040x org/money/taxaide or call 1-888-227-7669. Instructions for form 1040x For more information on these programs, go to IRS. Instructions for form 1040x gov and enter “VITA” in the search box. Instructions for form 1040x Internet. Instructions for form 1040x    IRS. Instructions for form 1040x gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Instructions for form 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Instructions for form 1040x Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Instructions for form 1040x Check the status of your 2013 refund with the Where's My Refund? application on IRS. Instructions for form 1040x gov or download the IRS2Go app and select the Refund Status option. Instructions for form 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Instructions for form 1040x Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Instructions for form 1040x You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Instructions for form 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Instructions for form 1040x Use the Interactive Tax Assistant (ITA) to research your tax questions. Instructions for form 1040x No need to wait on the phone or stand in line. Instructions for form 1040x The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Instructions for form 1040x When you reach the response screen, you can print the entire interview and the final response for your records. Instructions for form 1040x New subject areas are added on a regular basis. Instructions for form 1040x  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Instructions for form 1040x gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Instructions for form 1040x You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Instructions for form 1040x The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Instructions for form 1040x When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Instructions for form 1040x Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Instructions for form 1040x You can also ask the IRS to mail a return or an account transcript to you. Instructions for form 1040x Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Instructions for form 1040x gov or by calling 1-800-908-9946. Instructions for form 1040x Tax return and tax account transcripts are generally available for the current year and the past three years. Instructions for form 1040x Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Instructions for form 1040x Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Instructions for form 1040x If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Instructions for form 1040x Check the status of your amended return using Where's My Amended Return? Go to IRS. Instructions for form 1040x gov and enter Where's My Amended Return? in the search box. Instructions for form 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Instructions for form 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Instructions for form 1040x Make a payment using one of several safe and convenient electronic payment options available on IRS. Instructions for form 1040x gov. Instructions for form 1040x Select the Payment tab on the front page of IRS. Instructions for form 1040x gov for more information. Instructions for form 1040x Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Instructions for form 1040x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Instructions for form 1040x gov. Instructions for form 1040x Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Instructions for form 1040x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Instructions for form 1040x gov. Instructions for form 1040x Request an Electronic Filing PIN by going to IRS. Instructions for form 1040x gov and entering Electronic Filing PIN in the search box. Instructions for form 1040x Download forms, instructions and publications, including accessible versions for people with disabilities. Instructions for form 1040x Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Instructions for form 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Instructions for form 1040x An employee can answer questions about your tax account or help you set up a payment plan. Instructions for form 1040x Before you visit, check the Office Locator on IRS. Instructions for form 1040x gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Instructions for form 1040x If you have a special need, such as a disability, you can request an appointment. Instructions for form 1040x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Instructions for form 1040x Apply for an Employer Identification Number (EIN). Instructions for form 1040x Go to IRS. Instructions for form 1040x gov and enter Apply for an EIN in the search box. Instructions for form 1040x Read the Internal Revenue Code, regulations, or other official guidance. Instructions for form 1040x Read Internal Revenue Bulletins. Instructions for form 1040x Sign up to receive local and national tax news and more by email. Instructions for form 1040x Just click on “subscriptions” above the search box on IRS. Instructions for form 1040x gov and choose from a variety of options. Instructions for form 1040x    Phone. Instructions for form 1040x You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Instructions for form 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Instructions for form 1040x Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Instructions for form 1040x gov, or download the IRS2Go app. Instructions for form 1040x Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Instructions for form 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Instructions for form 1040x Mos