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Irs 1040 X

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Irs 1040 X

Irs 1040 x Publication 561 - Main Contents Table of Contents What Is Fair Market Value (FMV)?Factors. Irs 1040 x Stock. Irs 1040 x Options. Irs 1040 x Determining Fair Market Value Problems in Determining Fair Market Value Valuation of Various Kinds of PropertyHousehold Goods Used Clothing Jewelry and Gems Paintings, Antiques, and Other Objects of Art Collections Cars, Boats, and Aircraft Inventory Patents Stocks and Bonds Real Estate Interest in a Business Annuities, Interests for Life or Terms of Years, Remainders, and Reversions Certain Life Insurance and Annuity Contracts Partial Interest in Property Not in Trust AppraisalsDeductions of More Than $5,000 Deductions of More Than $500,000 Qualified Appraisal Form 8283 Internal Revenue Service Review of Appraisals Penalty How To Get Tax HelpLow income tax clinics (LITCs). Irs 1040 x What Is Fair Market Value (FMV)? To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution. Irs 1040 x Fair market value. Irs 1040 x   Fair market value (FMV) is the price that property would sell for on the open market. Irs 1040 x It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. Irs 1040 x If you put a restriction on the use of property you donate, the FMV must reflect that restriction. Irs 1040 x Example 1. Irs 1040 x If you give used clothing to the Salvation Army, the FMV would be the price that typical buyers actually pay for clothing of this age, condition, style, and use. Irs 1040 x Usually, such items are worth far less than what you paid for them. Irs 1040 x Example 2. Irs 1040 x If you donate land and restrict its use to agricultural purposes, you must value the land at its value for agricultural purposes, even though it would have a higher FMV if it were not restricted. Irs 1040 x Factors. Irs 1040 x   In making and supporting the valuation of property, all factors affecting value are relevant and must be considered. Irs 1040 x These include: The cost or selling price of the item, Sales of comparable properties, Replacement cost, and Opinions of experts. Irs 1040 x   These factors are discussed later. Irs 1040 x Also, see Table 1 for a summary of questions to ask as you consider each factor. Irs 1040 x Date of contribution. Irs 1040 x   Ordinarily, the date of a contribution is the date that the transfer of the property takes place. Irs 1040 x Stock. Irs 1040 x   If you deliver, without any conditions, a properly endorsed stock certificate to a qualified organization or to an agent of the organization, the date of the contribution is the date of delivery. Irs 1040 x If the certificate is mailed and received through the regular mail, it is the date of mailing. Irs 1040 x If you deliver the certificate to a bank or broker acting as your agent or to the issuing corporation or its agent, for transfer into the name of the organization, the date of the contribution is the date the stock is transferred on the books of the corporation. Irs 1040 x Options. Irs 1040 x   If you grant an option to a qualified organization to buy real property, you have not made a charitable contribution until the organization exercises the option. Irs 1040 x The amount of the contribution is the FMV of the property on the date the option is exercised minus the exercise price. Irs 1040 x Example. Irs 1040 x You grant an option to a local university, which is a qualified organization, to buy real property. Irs 1040 x Under the option, the university could buy the property at any time during a 2-year period for $40,000. Irs 1040 x The FMV of the property on the date the option is granted is $50,000. Irs 1040 x In the following tax year, the university exercises the option. Irs 1040 x The FMV of the property on the date the option is exercised is $55,000. Irs 1040 x Therefore, you have made a charitable contribution of $15,000 ($55,000, the FMV, minus $40,000, the exercise price) in the tax year the option is exercised. Irs 1040 x Determining Fair Market Value Determining the value of donated property would be a simple matter if you could rely only on fixed formulas, rules, or methods. Irs 1040 x Usually it is not that simple. Irs 1040 x Using such formulas, etc. Irs 1040 x , seldom results in an acceptable determination of FMV. Irs 1040 x There is no single formula that always applies when determining the value of property. Irs 1040 x This is not to say that a valuation is only guesswork. Irs 1040 x You must consider all the facts and circumstances connected with the property, such as its desirability, use, and scarcity. Irs 1040 x For example, donated furniture should not be evaluated at some fixed rate such as 15% of the cost of new replacement furniture. Irs 1040 x When the furniture is contributed, it may be out of style or in poor condition, therefore having little or no market value. Irs 1040 x On the other hand, it may be an antique, the value of which could not be determined by using any formula. Irs 1040 x Cost or Selling Price of the Donated Property The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. Irs 1040 x However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold reasonably close to the date of contribution. Irs 1040 x The cost or selling price is a good indication of the property's value if: The purchase or sale took place close to the valuation date in an open market, The purchase or sale was at “arm's-length,” The buyer and seller knew all relevant facts, The buyer and seller did not have to act, and The market did not change between the date of purchase or sale and the valuation date. Irs 1040 x Example. Irs 1040 x Tom Morgan, who is not a dealer in gems, bought an assortment of gems for $5,000 from a promoter. Irs 1040 x The promoter claimed that the price was “wholesale” even though he and other dealers made similar sales at similar prices to other persons who were not dealers. Irs 1040 x The promoter said that if Tom kept the gems for more than 1 year and then gave them to charity, Tom could claim a charitable deduction of $15,000, which, according to the promoter, would be the value of the gems at the time of contribution. Irs 1040 x Tom gave the gems to a qualified charity 13 months after buying them. Irs 1040 x The selling price for these gems had not changed from the date of purchase to the date he donated them to charity. Irs 1040 x The best evidence of FMV depends on actual transactions and not on some artificial estimate. Irs 1040 x The $5,000 charged Tom and others is, therefore, the best evidence of the maximum FMV of the gems. Irs 1040 x Terms of the purchase or sale. Irs 1040 x   The terms of the purchase or sale should be considered in determining FMV if they influenced the price. Irs 1040 x These terms include any restrictions, understandings, or covenants limiting the use or disposition of the property. Irs 1040 x Rate of increase or decrease in value. Irs 1040 x   Unless you can show that there were unusual circumstances, it is assumed that the increase or decrease in the value of your donated property from your cost has been at a reasonable rate. Irs 1040 x For time adjustments, an appraiser may consider published price indexes for information on general price trends, building costs, commodity costs, securities, and works of art sold at auction in arm's-length sales. Irs 1040 x Example. Irs 1040 x Bill Brown bought a painting for $10,000. Irs 1040 x Thirteen months later he gave it to an art museum, claiming a charitable deduction of $15,000 on his tax return. Irs 1040 x The appraisal of the painting should include information showing that there were unusual circumstances that justify a 50% increase in value for the 13 months Bill held the property. Irs 1040 x Arm's-length offer. Irs 1040 x   An arm's-length offer to buy the property close to the valuation date may help to prove its value if the person making the offer was willing and able to complete the transaction. Irs 1040 x To rely on an offer, you should be able to show proof of the offer and the specific amount to be paid. Irs 1040 x Offers to buy property other than the donated item will help to determine value if the other property is reasonably similar to the donated property. Irs 1040 x Sales of Comparable Properties The sales prices of properties similar to the donated property are often important in determining the FMV. Irs 1040 x The weight to be given to each sale depends on the following. Irs 1040 x The degree of similarity between the property sold and the donated property. Irs 1040 x The time of the sale—whether it was close to the valuation date. Irs 1040 x The circumstances of the sale—whether it was at arm's-length with a knowledgeable buyer and seller, with neither having to act. Irs 1040 x The conditions of the market in which the sale was made—whether unusually inflated or deflated. Irs 1040 x The comparable sales method of valuing real estate is explained later under Valuation of Various Kinds of Property. Irs 1040 x Example 1. Irs 1040 x Mary Black, who is not a book dealer, paid a promoter $10,000 for 500 copies of a single edition of a modern translation of the Bible. Irs 1040 x The promoter had claimed that the price was considerably less than the “retail” price, and gave her a statement that the books had a total retail value of $30,000. Irs 1040 x The promoter advised her that if she kept the Bibles for more than 1 year and then gave them to a qualified organization, she could claim a charitable deduction for the “retail” price of $30,000. Irs 1040 x Thirteen months later she gave all the Bibles to a church that she selected from a list provided by the promoter. Irs 1040 x At the time of her donation, wholesale dealers were selling similar quantities of Bibles to the general public for $10,000. Irs 1040 x The FMV of the Bibles is $10,000, the price at which similar quantities of Bibles were being sold to others at the time of the contribution. Irs 1040 x Example 2. Irs 1040 x The facts are the same as in Example 1, except that the promoter gave Mary Black a second option. Irs 1040 x The promoter said that if Mary wanted a charitable deduction within 1 year of the purchase, she could buy the 500 Bibles at the “retail” price of $30,000, paying only $10,000 in cash and giving a promissory note for the remaining $20,000. Irs 1040 x The principal and interest on the note would not be due for 12 years. Irs 1040 x According to the promoter, Mary could then, within 1 year of the purchase, give the Bibles to a qualified organization and claim the full $30,000 retail price as a charitable contribution. Irs 1040 x She purchased the Bibles under the second option and, 3 months later, gave them to a church, which will use the books for church purposes. Irs 1040 x At the time of the gift, the promoter was selling similar lots of Bibles for either $10,000 or $30,000. Irs 1040 x The difference between the two prices was solely at the discretion of the buyer. Irs 1040 x The promoter was a willing seller for $10,000. Irs 1040 x Therefore, the value of Mary's contribution of the Bibles is $10,000, the amount at which similar lots of Bibles could be purchased from the promoter by members of the general public. Irs 1040 x Replacement Cost The cost of buying, building, or manufacturing property similar to the donated item should be considered in determining FMV. Irs 1040 x However, there must be a reasonable relationship between the replacement cost and the FMV. Irs 1040 x The replacement cost is the amount it would cost to replace the donated item on the valuation date. Irs 1040 x Often there is no relationship between the replacement cost and the FMV. Irs 1040 x If the supply of the donated property is more or less than the demand for it, the replacement cost becomes less important. Irs 1040 x To determine the replacement cost of the donated property, find the “estimated replacement cost new. Irs 1040 x ” Then subtract from this figure an amount for depreciation due to the physical condition and obsolescence of the donated property. Irs 1040 x You should be able to show the relationship between the depreciated replacement cost and the FMV, as well as how you arrived at the “estimated replacement cost new. Irs 1040 x ” Opinions of Experts Generally, the weight given to an expert's opinion on matters such as the authenticity of a coin or a work of art, or the most profitable and best use of a piece of real estate, depends on the knowledge and competence of the expert and the thoroughness with which the opinion is supported by experience and facts. Irs 1040 x For an expert's opinion to deserve much weight, the facts must support the opinion. Irs 1040 x For additional information, see Appraisals, later. Irs 1040 x Table 1. Irs 1040 x Factors That Affect FMV IF the factor you are considering is. Irs 1040 x . Irs 1040 x . Irs 1040 x THEN you should ask these questions. Irs 1040 x . Irs 1040 x . Irs 1040 x     cost or selling price Was the purchase or sale of the property reasonably close to the date of contribution? Was any increase or decrease in value, as compared to your cost, at a reasonable rate? Do the terms of purchase or sale limit what can be done with the property? Was there an arm's-length offer to buy the property close to the valuation date?     sales of comparable properties How similar is the property sold to the property donated? How close is the date of sale to the valuation date? Was the sale at arm's-length? What was the condition of the market at the time of sale?     replacement cost What would it cost to replace the donated property? Is there a reasonable relationship between replacement cost and FMV? Is the supply of the donated property more or less than the demand for it?     opinions of experts Is the expert knowledgeable and competent? Is the opinion thorough and supported by facts and experience? Problems in Determining Fair Market Value There are a number of problems in determining the FMV of donated property. Irs 1040 x Unusual Market Conditions The sale price of the property itself in an arm's-length transaction in an open market is often the best evidence of its value. Irs 1040 x When you rely on sales of comparable property, the sales must have been made in an open market. Irs 1040 x If those sales were made in a market that was artificially supported or stimulated so as not to be truly representative, the prices at which the sales were made will not indicate the FMV. Irs 1040 x For example, liquidation sale prices usually do not indicate the FMV. Irs 1040 x Also, sales of stock under unusual circumstances, such as sales of small lots, forced sales, and sales in a restricted market, may not represent the FMV. Irs 1040 x Selection of Comparable Sales Using sales of comparable property is an important method for determining the FMV of donated property. Irs 1040 x However, the amount of weight given to a sale depends on the degree of similarity between the comparable and the donated properties. Irs 1040 x The degree of similarity must be close enough so that this selling price would have been given consideration by reasonably well-informed buyers or sellers of the property. Irs 1040 x Example. Irs 1040 x You give a rare, old book to your former college. Irs 1040 x The book is a third edition and is in poor condition because of a missing back cover. Irs 1040 x You discover that there was a sale for $300, near the valuation date, of a first edition of the book that was in good condition. Irs 1040 x Although the contents are the same, the books are not at all similar because of the different editions and their physical condition. Irs 1040 x Little consideration would be given to the selling price of the $300 property by knowledgeable buyers or sellers. Irs 1040 x Future Events You may not consider unexpected events happening after your donation of property in making the valuation. Irs 1040 x You may consider only the facts known at the time of the gift, and those that could be reasonably expected at the time of the gift. Irs 1040 x Example. Irs 1040 x You give farmland to a qualified charity. Irs 1040 x The transfer provides that your mother will have the right to all income and full use of the property for her life. Irs 1040 x Even though your mother dies 1 week after the transfer, the value of the property on the date it is given is its present value, subject to the life interest as estimated from actuarial tables. Irs 1040 x You may not take a higher deduction because the charity received full use and possession of the land only 1 week after the transfer. Irs 1040 x Using Past Events to Predict the Future A common error is to rely too much on past events that do not fairly reflect the probable future earnings and FMV. Irs 1040 x Example. Irs 1040 x You give all your rights in a successful patent to your favorite charity. Irs 1040 x Your records show that before the valuation date there were three stages in the patent's history of earnings. Irs 1040 x First, there was rapid growth in earnings when the invention was introduced. Irs 1040 x Then, there was a period of high earnings when the invention was being exploited. Irs 1040 x Finally, there was a decline in earnings when competing inventions were introduced. Irs 1040 x The entire history of earnings may be relevant in estimating the future earnings. Irs 1040 x However, the appraiser must not rely too much on the stage of rapid growth in earnings, or of high earnings. Irs 1040 x The market conditions at those times do not represent the condition of the market at the valuation date. Irs 1040 x What is most significant is the trend of decline in earnings up to the valuation date. Irs 1040 x For more information about donations of patents, see Patents, later. Irs 1040 x Valuation of Various Kinds of Property This section contains information on determining the FMV of ordinary kinds of donated property. Irs 1040 x For information on appraisals, see Appraisals, later. Irs 1040 x Household Goods The FMV of used household goods, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Irs 1040 x Such used property may have little or no market value because of its worn condition. Irs 1040 x It may be out of style or no longer useful. Irs 1040 x You cannot take a deduction for household goods donated after August 17, 2006, unless they are in good used condition or better. Irs 1040 x A household good that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. Irs 1040 x See Deduction over $500 for certain clothing or household items, later. Irs 1040 x If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art. Irs 1040 x Used Clothing Used clothing and other personal items are usually worth far less than the price you paid for them. Irs 1040 x Valuation of items of clothing does not lend itself to fixed formulas or methods. Irs 1040 x The price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value. Irs 1040 x You cannot take a deduction for clothing donated after August 17, 2006, unless it is in good used condition or better. Irs 1040 x An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. Irs 1040 x See Deduction over $500 for certain clothing or household items, later. Irs 1040 x For valuable furs or very expensive gowns, a Form 8283 may have to be sent with your tax return. Irs 1040 x Jewelry and Gems Jewelry and gems are of such a specialized nature that it is almost always necessary to get an appraisal by a specialized jewelry appraiser. Irs 1040 x The appraisal should describe, among other things, the style of the jewelry, the cut and setting of the gem, and whether it is now in fashion. Irs 1040 x If not in fashion, the possibility of having the property redesigned, recut, or reset should be reported in the appraisal. Irs 1040 x The stone's coloring, weight, cut, brilliance, and flaws should be reported and analyzed. Irs 1040 x Sentimental personal value has no effect on FMV. Irs 1040 x But if the jewelry was owned by a famous person, its value might increase. Irs 1040 x Paintings, Antiques, and Other Objects of Art Your deduction for contributions of paintings, antiques, and other objects of art, should be supported by a written appraisal from a qualified and reputable source, unless the deduction is $5,000 or less. Irs 1040 x Examples of information that should be included in appraisals of art objects—paintings in particular—are found later under Qualified Appraisal. Irs 1040 x Art valued at $20,000 or more. Irs 1040 x   If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the signed appraisal to your return. Irs 1040 x For individual objects valued at $20,000 or more, a photograph of a size and quality fully showing the object, preferably an 8 x 10 inch color photograph or a color transparency no smaller than 4 x 5 inches, must be provided upon request. Irs 1040 x Art valued at $50,000 or more. Irs 1040 x   If you donate an item of art that has been appraised at $50,000 or more, you can request a Statement of Value for that item from the IRS. Irs 1040 x You must request the statement before filing the tax return that reports the donation. Irs 1040 x Your request must include the following. Irs 1040 x A copy of a qualified appraisal of the item. Irs 1040 x See Qualified Appraisal, later. Irs 1040 x A $2,500 check or money order payable to the Internal Revenue Service for the user fee that applies to your request regarding one, two, or three items of art. Irs 1040 x Add $250 for each item in excess of three. Irs 1040 x A completed Form 8283, Section B. Irs 1040 x The location of the IRS territory that has examination responsibility for your return. Irs 1040 x If your request lacks essential information, you will be notified and given 30 days to provide the missing information. Irs 1040 x   Send your request to: Internal Revenue Service Attention: Art Appraisal (C:AP:ART) P. Irs 1040 x O. Irs 1040 x Box 27720 McPherson Station Washington, DC 20038 Refunds. Irs 1040 x   You can withdraw your request for a Statement of Value at any time before it is issued. Irs 1040 x However, the IRS will not refund the user fee if you do. Irs 1040 x   If the IRS declines to issue a Statement of Value in the interest of efficient tax administration, the IRS will refund the user fee. Irs 1040 x Authenticity. Irs 1040 x   The authenticity of the donated art must be determined by the appraiser. Irs 1040 x Physical condition. Irs 1040 x   Important items in the valuation of antiques and art are physical condition and extent of restoration. Irs 1040 x These have a significant effect on the value and must be fully reported in an appraisal. Irs 1040 x An antique in damaged condition, or lacking the “original brasses,” may be worth much less than a similar piece in excellent condition. Irs 1040 x Art appraisers. Irs 1040 x   More weight will usually be given to an appraisal prepared by an individual specializing in the kind and price range of the art being appraised. Irs 1040 x Certain art dealers or appraisers specialize, for example, in old masters, modern art, bronze sculpture, etc. Irs 1040 x Their opinions on the authenticity and desirability of such art would usually be given more weight than the opinions of more generalized art dealers or appraisers. Irs 1040 x They can report more recent comparable sales to support their opinion. Irs 1040 x   To identify and locate experts on unique, specialized items or collections, you may wish to use the current Official Museum Directory of the American Association of Museums. Irs 1040 x It lists museums both by state and by category. Irs 1040 x   To help you locate a qualified appraiser for your donation, you may wish to ask an art historian at a nearby college or the director or curator of a local museum. Irs 1040 x The Yellow Pages often list specialized art and antique dealers, auctioneers, and art appraisers. Irs 1040 x You may be able to find a qualified appraiser on the Internet. Irs 1040 x You may also contact associations of dealers for guidance. Irs 1040 x Collections Since many kinds of hobby collections may be the subject of a charitable donation, it is not possible to discuss all of the possible collectibles in this publication. Irs 1040 x Most common are rare books, autographs, sports memorabilia, dolls, manuscripts, stamps, coins, guns, phonograph records, and natural history items. Irs 1040 x Many of the elements of valuation that apply to paintings and other objects of art, discussed earlier, also apply to miscellaneous collections. Irs 1040 x Reference material. Irs 1040 x   Publications available to help you determine the value of many kinds of collections include catalogs, dealers' price lists, and specialized hobby periodicals. Irs 1040 x When using one of these price guides, you must use the current edition at the date of contribution. Irs 1040 x However, these sources are not always reliable indicators of FMV and should be supported by other evidence. Irs 1040 x   For example, a dealer may sell an item for much less than is shown on a price list, particularly after the item has remained unsold for a long time. Irs 1040 x The price an item sold for in an auction may have been the result of a rigged sale or a mere bidding duel. Irs 1040 x The appraiser must analyze the reference material, and recognize and make adjustments for misleading entries. Irs 1040 x If you are donating a valuable collection, you should get an appraisal. Irs 1040 x If your donation appears to be of little value, you may be able to make a satisfactory valuation using reference materials available at a state, city, college, or museum library. Irs 1040 x Stamp collections. Irs 1040 x   Most libraries have catalogs or other books that report the publisher's estimate of values. Irs 1040 x Generally, two price levels are shown for each stamp: the price postmarked and the price not postmarked. Irs 1040 x Stamp dealers generally know the value of their merchandise and are able to prepare satisfactory appraisals of valuable collections. Irs 1040 x Coin collections. Irs 1040 x   Many catalogs and other reference materials show the writer's or publisher's opinion of the value of coins on or near the date of the publication. Irs 1040 x Like many other collectors' items, the value of a coin depends on the demand for it, its age, and its rarity. Irs 1040 x Another important factor is the coin's condition. Irs 1040 x For example, there is a great difference in the value of a coin that is in mint condition and a similar coin that is only in good condition. Irs 1040 x   Catalogs usually establish a category for coins, based on their physical condition—mint or uncirculated, extremely fine, very fine, fine, very good, good, fair, or poor—with a different valuation for each category. Irs 1040 x Books. Irs 1040 x   The value of books is usually determined by selecting comparable sales and adjusting the prices according to the differences between the comparable sales and the item being evaluated. Irs 1040 x This is difficult to do and, except for a collection of little value, should be done by a specialized appraiser. Irs 1040 x Within the general category of literary property, there are dealers who specialize in certain areas, such as Americana, foreign imports, Bibles, and scientific books. Irs 1040 x Modest value of collection. Irs 1040 x   If the collection you are donating is of modest value, not requiring a written appraisal, the following information may help you in determining the FMV. Irs 1040 x   A book that is very old, or very rare, is not necessarily valuable. Irs 1040 x There are many books that are very old or rare, but that have little or no market value. Irs 1040 x Condition of book. Irs 1040 x   The condition of a book may have a great influence on its value. Irs 1040 x Collectors are interested in items that are in fine, or at least good, condition. Irs 1040 x When a book has a missing page, a loose binding, tears, stains, or is otherwise in poor condition, its value is greatly lowered. Irs 1040 x Other factors. Irs 1040 x   Some other factors in the valuation of a book are the kind of binding (leather, cloth, paper), page edges, and illustrations (drawings and photographs). Irs 1040 x Collectors usually want first editions of books. Irs 1040 x However, because of changes or additions, other editions are sometimes worth as much as, or more than, the first edition. Irs 1040 x Manuscripts, autographs, diaries, and similar items. Irs 1040 x   When these items are handwritten, or at least signed by famous people, they are often in demand and are valuable. Irs 1040 x The writings of unknowns also may be of value if they are of unusual historical or literary importance. Irs 1040 x Determining the value of such material is difficult. Irs 1040 x For example, there may be a great difference in value between two diaries that were kept by a famous person—one kept during childhood and the other during a later period in his or her life. Irs 1040 x The appraiser determines a value in these cases by applying knowledge and judgment to such factors as comparable sales and conditions. Irs 1040 x Signatures. Irs 1040 x   Signatures, or sets of signatures, that were cut from letters or other papers usually have little or no value. Irs 1040 x But complete sets of the signatures of U. Irs 1040 x S. Irs 1040 x presidents are in demand. Irs 1040 x Cars, Boats, and Aircraft If you donate a car, a boat, or an aircraft to a charitable organization, its FMV must be determined. Irs 1040 x Certain commercial firms and trade organizations publish monthly or seasonal guides for different regions of the country, containing complete dealer sale prices or dealer average prices for recent model years. Irs 1040 x Prices are reported for each make, model, and year. Irs 1040 x These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Irs 1040 x The prices are not “official,” and these publications are not considered an appraisal of any specific donated property. Irs 1040 x But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Irs 1040 x These publications are sometimes available from public libraries or at a bank, credit union, or finance company. Irs 1040 x You can also find pricing information about used cars on the Internet. Irs 1040 x An acceptable measure of the FMV of a donated car, boat, or airplane is an amount not in excess of the price listed in a used vehicle pricing guide for a private party sale, not the dealer retail value, of a similar vehicle. Irs 1040 x However, the FMV may be less than that amount if the vehicle has engine trouble, body damage, high mileage, or any type of excessive wear. Irs 1040 x The FMV of a donated vehicle is the same as the price listed in a used vehicle pricing guide for a private party sale only if the guide lists a sales price for a vehicle that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated vehicle. Irs 1040 x Example. Irs 1040 x You donate a used car in poor condition to a local high school for use by students studying car repair. Irs 1040 x A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Irs 1040 x However, the guide shows the price for a private party sale of the car is only $750. Irs 1040 x The FMV of the car is considered to be no more than $750. Irs 1040 x Boats. Irs 1040 x   Except for inexpensive small boats, the valuation of boats should be based on an appraisal by a marine surveyor because the physical condition is so critical to the value. Irs 1040 x More information. Irs 1040 x   Your deduction for a donated car, boat, or airplane generally is limited to the gross proceeds from its sale by the qualified organization. Irs 1040 x This rule applies if the claimed value of the donated vehicle is more than $500. Irs 1040 x In certain cases, you can deduct the vehicle's FMV. Irs 1040 x For details, see Publication 526. Irs 1040 x Inventory If you donate any inventory item to a charitable organization, the amount of your deductible contribution generally is the FMV of the item, minus any gain you would have realized if you had sold the item at its FMV on the date of the gift. Irs 1040 x For more information, see Publication 526. Irs 1040 x Patents To determine the FMV of a patent, you must take into account, among other factors: Whether the patented technology has been made obsolete by other technology; Any restrictions on the donee's use of, or ability to transfer, the patented technology; and The length of time remaining before the patent expires. Irs 1040 x However, your deduction for a donation of a patent or other intellectual property is its FMV, minus any gain you would have realized if you had sold the property at its FMV on the date of the gift. Irs 1040 x Generally, this means your deduction is the lesser of the property's FMV or its basis. Irs 1040 x For details, see Publication 526. Irs 1040 x Stocks and Bonds The value of stocks and bonds is the FMV of a share or bond on the valuation date. Irs 1040 x See Date of contribution, earlier, under What Is Fair Market Value (FMV). Irs 1040 x Selling prices on valuation date. Irs 1040 x   If there is an active market for the contributed stocks or bonds on a stock exchange, in an over-the-counter market, or elsewhere, the FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. Irs 1040 x For example, if the highest selling price for a share was $11, and the lowest $9, the average price is $10. Irs 1040 x You get the average price by adding $11 and $9 and dividing the sum by 2. Irs 1040 x No sales on valuation date. Irs 1040 x   If there were no sales on the valuation date, but there were sales within a reasonable period before and after the valuation date, you determine FMV by taking the average price between the highest and lowest sales prices on the nearest date before and on the nearest date after the valuation date. Irs 1040 x Then you weight these averages in inverse order by the respective number of trading days between the selling dates and the valuation date. Irs 1040 x Example. Irs 1040 x   On the day you gave stock to a qualified organization, there were no sales of the stock. Irs 1040 x Sales of the stock nearest the valuation date took place two trading days before the valuation date at an average selling price of $10 and three trading days after the valuation date at an average selling price of $15. Irs 1040 x The FMV on the valuation date was $12, figured as follows: [(3 x $10) + (2 x $15)] ÷ 5 = $12 Listings on more than one stock exchange. Irs 1040 x   Stocks or bonds listed on more than one stock exchange are valued based on the prices of the exchange on which they are principally dealt. Irs 1040 x This applies if these prices are published in a generally available listing or publication of general circulation. Irs 1040 x If this is not applicable, and the stocks or bonds are reported on a composite listing of combined exchanges in a publication of general circulation, use the composite list. Irs 1040 x See also Unavailable prices or closely held corporation, later. Irs 1040 x Bid and asked prices on valuation date. Irs 1040 x   If there were no sales within a reasonable period before and after the valuation date, the FMV is the average price between the bona fide bid and asked prices on the valuation date. Irs 1040 x Example. Irs 1040 x Although there were no sales of Blue Corporation stock on the valuation date, bona fide bid and asked prices were available on that date of $14 and $16, respectively. Irs 1040 x The FMV is $15, the average price between the bid and asked prices. Irs 1040 x No prices on valuation date. Irs 1040 x   If there were no prices available on the valuation date, you determine FMV by taking the average prices between the bona fide bid and asked prices on the closest trading date before and after the valuation date. Irs 1040 x Both dates must be within a reasonable period. Irs 1040 x Then you weight these averages in inverse order by the respective number of trading days between the bid and asked dates and the valuation date. Irs 1040 x Example. Irs 1040 x On the day you gave stock to a qualified organization, no prices were available. Irs 1040 x Bona fide bid and asked prices 3 days before the valuation date were $10 and 2 days after the valuation date were $15. Irs 1040 x The FMV on the valuation date is $13, figured as follows: [(2 x $10) + (3 x $15)] ÷ 5 = $13 Prices only before or after valuation date, but not both. Irs 1040 x   If no selling prices or bona fide bid and asked prices are available on a date within a reasonable period before the valuation date, but are available on a date within a reasonable period after the valuation date, or vice versa, then the average price between the highest and lowest of such available prices may be treated as the value. Irs 1040 x Large blocks of stock. Irs 1040 x   When a large block of stock is put on the market, it may lower the selling price of the stock if the supply is greater than the demand. Irs 1040 x On the other hand, market forces may exist that will afford higher prices for large blocks of stock. Irs 1040 x Because of the many factors to be considered, determining the value of large blocks of stock usually requires the help of experts specializing in underwriting large quantities of securities, or in trading in the securities of the industry of which the particular company is a part. Irs 1040 x Unavailable prices or closely held corporation. Irs 1040 x   If selling prices or bid and asked prices are not available, or if securities of a closely held corporation are involved, determine the FMV by considering the following factors. Irs 1040 x For bonds, the soundness of the security, the interest yield, the date of maturity, and other relevant factors. Irs 1040 x For shares of stock, the company's net worth, prospective earning power and dividend-paying capacity, and other relevant factors. Irs 1040 x Other factors. Irs 1040 x   Other relevant factors include: The nature and history of the business, especially its recent history, The goodwill of the business, The economic outlook in the particular industry, The company's position in the industry, its competitors, and its management, and The value of securities of corporations engaged in the same or similar business. Irs 1040 x For preferred stock, the most important factors are its yield, dividend coverage, and protection of its liquidation preference. Irs 1040 x   You should keep complete financial and other information on which the valuation is based. Irs 1040 x This includes copies of reports of examinations of the company made by accountants, engineers, or any technical experts on or close to the valuation date. Irs 1040 x Restricted securities. Irs 1040 x   Some classes of stock cannot be traded publicly because of restrictions imposed by the Securities and Exchange Commission, or by the corporate charter or a trust agreement. Irs 1040 x These restricted securities usually trade at a discount in relation to freely traded securities. Irs 1040 x   To arrive at the FMV of restricted securities, factors that you must consider include the resale provisions found in the restriction agreements, the relative negotiating strengths of the buyer and seller, and the market experience of freely traded securities of the same class as the restricted securities. Irs 1040 x Real Estate Because each piece of real estate is unique and its valuation is complicated, a detailed appraisal by a professional appraiser is necessary. Irs 1040 x The appraiser must be thoroughly trained in the application of appraisal principles and theory. Irs 1040 x In some instances the opinions of equally qualified appraisers may carry unequal weight, such as when one appraiser has a better knowledge of local conditions. Irs 1040 x The appraisal report must contain a complete description of the property, such as street address, legal description, and lot and block number, as well as physical features, condition, and dimensions. Irs 1040 x The use to which the property is put, zoning and permitted uses, and its potential use for other higher and better uses are also relevant. Irs 1040 x In general, there are three main approaches to the valuation of real estate. Irs 1040 x An appraisal may require the combined use of two or three methods rather than one method only. Irs 1040 x 1. Irs 1040 x Comparable Sales The comparable sales method compares the donated property with several similar properties that have been sold. Irs 1040 x The selling prices, after adjustments for differences in date of sale, size, condition, and location, would then indicate the estimated FMV of the donated property. Irs 1040 x If the comparable sales method is used to determine the value of unimproved real property (land without significant buildings, structures, or any other improvements that add to its value), the appraiser should consider the following factors when comparing the potential comparable property and the donated property: Location, size, and zoning or use restrictions, Accessibility and road frontage, and available utilities and water rights, Riparian rights (right of access to and use of the water by owners of land on the bank of a river) and existing easements, rights-of-way, leases, etc. Irs 1040 x , Soil characteristics, vegetative cover, and status of mineral rights, and Other factors affecting value. Irs 1040 x For each comparable sale, the appraisal must include the names of the buyer and seller, the deed book and page number, the date of sale and selling price, a property description, the amount and terms of mortgages, property surveys, the assessed value, the tax rate, and the assessor's appraised FMV. Irs 1040 x The comparable selling prices must be adjusted to account for differences between the sale property and the donated property. Irs 1040 x Because differences of opinion may arise between appraisers as to the degree of comparability and the amount of the adjustment considered necessary for comparison purposes, an appraiser should document each item of adjustment. Irs 1040 x Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered as comparable to the donated property. Irs 1040 x 2. Irs 1040 x Capitalization of Income This method capitalizes the net income from the property at a rate that represents a fair return on the particular investment at the particular time, considering the risks involved. Irs 1040 x The key elements are the determination of the income to be capitalized and the rate of capitalization. Irs 1040 x 3. Irs 1040 x Replacement Cost New or Reproduction Cost Minus Observed Depreciation This method, used alone, usually does not result in a determination of FMV. Irs 1040 x Instead, it generally tends to set the upper limit of value, particularly in periods of rising costs, because it is reasonable to assume that an informed buyer will not pay more for the real estate than it would cost to reproduce a similar property. Irs 1040 x Of course, this reasoning does not apply if a similar property cannot be created because of location, unusual construction, or some other reason. Irs 1040 x Generally, this method serves to support the value determined from other methods. Irs 1040 x When the replacement cost method is applied to improved realty, the land and improvements are valued separately. Irs 1040 x The replacement cost of a building is figured by considering the materials, the quality of workmanship, and the number of square feet or cubic feet in the building. Irs 1040 x This cost represents the total cost of labor and material, overhead, and profit. Irs 1040 x After the replacement cost has been figured, consideration must be given to the following factors: Physical deterioration—the wear and tear on the building itself, Functional obsolescence—usually in older buildings with, for example, inadequate lighting, plumbing, or heating, small rooms, or a poor floor plan, and Economic obsolescence—outside forces causing the whole area to become less desirable. Irs 1040 x Interest in a Business The FMV of any interest in a business, whether a sole proprietorship or a partnership, is the amount that a willing buyer would pay for the interest to a willing seller after consideration of all relevant factors. Irs 1040 x The relevant factors to be considered in valuing the business are: The FMV of the assets of the business, The demonstrated earnings capacity of the business, based on a review of past and current earnings, and The other factors used in evaluating corporate stock, if they apply. Irs 1040 x The value of the goodwill of the business should also be taken into consideration. Irs 1040 x You should keep complete financial and other information on which you base the valuation. Irs 1040 x This includes copies of reports of examinations of the business made by accountants, engineers, or any technical experts on or close to the valuation date. Irs 1040 x Annuities, Interests for Life or Terms of Years, Remainders, and Reversions The value of these kinds of property is their present value, except in the case of annuities under contracts issued by companies regularly engaged in their sale. Irs 1040 x The valuation of these commercial annuity contracts and of insurance policies is discussed later under Certain Life Insurance and Annuity Contracts. Irs 1040 x To determine present value, you must know the applicable interest rate and use actuarial tables. Irs 1040 x Interest rate. Irs 1040 x   The applicable interest rate varies. Irs 1040 x It is announced monthly in a news release and published in the Internal Revenue Bulletin as a Revenue Ruling. Irs 1040 x The interest rate to use is under the heading “Rate Under Section 7520” for a given month and year. Irs 1040 x You can call the IRS office at 1-800-829-1040 to obtain this rate. Irs 1040 x Actuarial tables. Irs 1040 x   You need to refer to actuarial tables to determine a qualified interest in the form of an annuity, any interest for life or a term of years, or any remainder interest to a charitable organization. Irs 1040 x   Use the valuation tables set forth in IRS Publications 1457, Actuarial Values (Book Aleph), and 1458, Actuarial Values (Book Beth). Irs 1040 x Both of these publications provide tables containing actuarial factors to be used in determining the present value of an annuity, an interest for life or for a term of years, or a remainder or reversionary interest. Irs 1040 x For qualified charitable transfers, you can use the factor for the month in which you made the contribution or for either of the 2 months preceding that month. Irs 1040 x   Publication 1457 also contains actuarial factors for computing the value of a remainder interest in a charitable remainder annuity trust and a pooled income fund. Irs 1040 x Publication 1458 contains the factors for valuing the remainder interest in a charitable remainder unitrust. Irs 1040 x You can download Publications 1457 and 1458 from www. Irs 1040 x irs. Irs 1040 x gov. Irs 1040 x In addition, they are available for purchase via the website of the U. Irs 1040 x S. Irs 1040 x Government Printing Office, by phone at (202) 512-1800, or by mail from the: Superintendent of Documents P. Irs 1040 x O. Irs 1040 x Box 371954 Pittsburgh, PA 15250-7954 Tables containing actuarial factors for transfers to pooled income funds may also be found in Income Tax Regulation 1. Irs 1040 x 642(c)-6(e)(6), transfers to charitable remainder unitrusts in Regulation 1. Irs 1040 x 664-4(e), and other transfers in Regulation 20. Irs 1040 x 2031-7(d)(6). Irs 1040 x Special factors. Irs 1040 x   If you need a special factor for an actual transaction, you can request a letter ruling. Irs 1040 x Be sure to include the date of birth of each person the duration of whose life may affect the value of the interest. Irs 1040 x Also include copies of the relevant instruments. Irs 1040 x IRS charges a user fee for providing special factors. Irs 1040 x   For more information about requesting a ruling, see Revenue Procedure 2006-1 (or annual update), 2006-1 I. Irs 1040 x R. Irs 1040 x B. Irs 1040 x 1. Irs 1040 x Revenue Procedure 2006-1 is available at www. Irs 1040 x irs. Irs 1040 x gov/irb/2006-01_IRB/ar06. Irs 1040 x html. Irs 1040 x   For information on the circumstances under which a charitable deduction may be allowed for the donation of a partial interest in property not in trust, see Partial Interest in Property Not in Trust, later. Irs 1040 x Certain Life Insurance and Annuity Contracts The value of an annuity contract or a life insurance policy issued by a company regularly engaged in the sale of such contracts or policies is the amount that company would charge for a comparable contract. Irs 1040 x But if the donee of a life insurance policy may reasonably be expected to cash the policy rather than hold it as an investment, then the FMV is the cash surrender value rather than the replacement cost. Irs 1040 x If an annuity is payable under a combination annuity contract and life insurance policy (for example, a retirement income policy with a death benefit) and there was no insurance element when it was transferred to the charity, the policy is treated as an annuity contract. Irs 1040 x Partial Interest in Property Not in Trust Generally, no deduction is allowed for a charitable contribution, not made in trust, of less than your entire interest in property. Irs 1040 x However, this does not apply to a transfer of less than your entire interest if it is a transfer of: A remainder interest in your personal residence or farm, An undivided part of your entire interest in property, or A qualified conservation contribution. Irs 1040 x Remainder Interest in Real Property The amount of the deduction for a donation of a remainder interest in real property is the FMV of the remainder interest at the time of the contribution. Irs 1040 x To determine this value, you must know the FMV of the property on the date of the contribution. Irs 1040 x Multiply this value by the appropriate factor. Irs 1040 x Publications 1457 and 1458 contain these factors. Irs 1040 x You must make an adjustment for depreciation or depletion using the factors shown in Publication 1459, Actuarial Values (Book Gimel). Irs 1040 x You can use the factors for the month in which you made the contribution or for either of the two months preceding that month. Irs 1040 x See the earlier discussion on Annuities, Interests for Life or Terms of Years, Remainders, and Reversions. Irs 1040 x You can download Publication 1459 from www. Irs 1040 x irs. Irs 1040 x gov. Irs 1040 x For this purpose, the term “depreciable property” means any property subject to wear and tear or obsolescence, even if not used in a trade or business or for the production of income. Irs 1040 x If the remainder interest includes both depreciable and nondepreciable property, for example a house and land, the FMV must be allocated between each kind of property at the time of the contribution. Irs 1040 x This rule also applies to a gift of a remainder interest that includes property that is part depletable and part not depletable. Irs 1040 x Take into account depreciation or depletion only for the property that is subject to depreciation or depletion. Irs 1040 x For more information, see section 1. Irs 1040 x 170A-12 of the Income Tax Regulations. Irs 1040 x Undivided Part of Your Entire Interest A contribution of an undivided part of your entire interest in property must consist of a part of each and every substantial interest or right you own in the property. Irs 1040 x It must extend over the entire term of your interest in the property. Irs 1040 x For example, you are entitled to the income from certain property for your life (life estate) and you contribute 20% of that life estate to a qualified organization. Irs 1040 x You can claim a deduction for the contribution if you do not have any other interest in the property. Irs 1040 x To figure the value of a contribution involving a partial interest, see Publication 1457. Irs 1040 x If the only interest you own in real property is a remainder interest and you transfer part of that interest to a qualified organization, see the previous discussion on valuation of a remainder interest in real property. Irs 1040 x Qualified Conservation Contribution A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes. Irs 1040 x Qualified organization. Irs 1040 x   For purposes of a qualified conservation contribution, a qualified organization is: A governmental unit, A publicly supported charitable, religious, scientific, literary, educational, etc. Irs 1040 x , organization, or An organization that is controlled by, and operated for the exclusive benefit of, a governmental unit or a publicly supported charity. Irs 1040 x The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Irs 1040 x Conservation purposes. Irs 1040 x   Your contribution must be made only for one of the following conservation purposes. Irs 1040 x Preserving land areas for outdoor recreation by, or for the education of, the general public. Irs 1040 x Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Irs 1040 x Preserving open space, including farmland and forest land, if it yields a significant public benefit. Irs 1040 x It must be either for the scenic enjoyment of the general public or under a clearly defined federal, state, or local governmental conservation policy. Irs 1040 x Preserving a historically important land area or a certified historic structure. Irs 1040 x There must be some visual public access to the property. Irs 1040 x Factors used in determining the type and amount of public access required include the historical significance of the property, the remoteness or accessibility of the site, and the extent to which intrusions on the privacy of individuals living on the property would be unreasonable. Irs 1040 x Building in registered historic district. Irs 1040 x   A contribution after July 25, 2006, of a qualified real property interest that is an easement or other restriction on the exterior of a building in a registered historic district is deductible only if it meets all of the following three conditions. Irs 1040 x The restriction must preserve the entire exterior of the building and must prohibit any change to the exterior of the building that is inconsistent with its historical character. Irs 1040 x You and the organization receiving the contribution must enter into a written agreement certifying, that the organization is a qualified organization and that it has the resources and commitment to maintain the property as donated. Irs 1040 x If you make the contribution in a tax year beginning after August 17, 2006, you must include with your return: A qualified appraisal, Photographs of the building's entire exterior, and A description of all restrictions on development of the building, such as zoning laws and restrictive covenants. Irs 1040 x   If you make this type of contribution after February 12, 2007, and claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Irs 1040 x See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Irs 1040 x Qualified real property interest. Irs 1040 x   This is any of the following interests in real property. Irs 1040 x Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of access to these minerals). Irs 1040 x A remainder interest. Irs 1040 x A restriction (granted in perpetuity) on the use that may be made of the real property. Irs 1040 x Valuation. Irs 1040 x   A qualified real property interest described in (1) should be valued in a manner that is consistent with the type of interest transferred. Irs 1040 x If you transferred all the interest in the property, the FMV of the property is the amount of the contribution. Irs 1040 x If you do not transfer the mineral interest, the FMV of the surface rights in the property is the amount of the contribution. Irs 1040 x   If you owned only a remainder interest or an income interest (life estate), see Undivided Part of Your Entire Interest, earlier. Irs 1040 x If you owned the entire property but transferred only a remainder interest (item (2)), see Remainder Interest in Real Property, earlier. Irs 1040 x   In determining the value of restrictions, you should take into account the selling price in arm's-length transactions of other properties that have comparable restrictions. Irs 1040 x If there are no comparable sales, the restrictions are valued indirectly as the difference between the FMVs of the property involved before and after the grant of the restriction. Irs 1040 x   The FMV of the property before contribution of the restriction should take into account not only current use but the likelihood that the property, without the restriction, would be developed. Irs 1040 x You should also consider any zoning, conservation, or historical preservation laws that would restrict development. Irs 1040 x Granting an easement may increase, rather than reduce, the value of property, and in such a situation no deduction would be allowed. Irs 1040 x Example. Irs 1040 x   You own 10 acres of farmland. Irs 1040 x Similar land in the area has an FMV of $2,000 an acre. Irs 1040 x However, land in the general area that is restricted solely to farm use has an FMV of $1,500 an acre. Irs 1040 x Your county wants to preserve open space and prevent further development in your area. Irs 1040 x   You grant to the county an enforceable open space easement in perpetuity on 8 of the 10 acres, restricting its use to farmland. Irs 1040 x The value of this easement is $4,000, determined as follows: FMV of the property before granting easement:   $2,000 × 10 acres $20,000 FMV of the property after granting easement:   $1,500 × 8 acres $12,000   $2,000 × 2 acres 4,000 16,000 Value of easement   $4,000   If you later transfer in fee your remaining interest in the 8 acres to another qualified organization, the FMV of your remaining interest is the FMV of the 8 acres reduced by the FMV of the easement granted to the first organization. Irs 1040 x More information. Irs 1040 x   For more information about qualified conservation contributions, see Publication 526. Irs 1040 x Appraisals Appraisals are not necessary for items of property for which you claim a deduction of $5,000 or less. Irs 1040 x (There is one exception, described next, for certain clothing and household items. Irs 1040 x ) However, you generally will need an appraisal for donated property for which you claim a deduction of more than $5,000. Irs 1040 x There are exceptions. Irs 1040 x See Deductions of More Than $5,000, later. Irs 1040 x The weight given an appraisal depends on the completeness of the report, the qualifications of the appraiser, and the appraiser's demonstrated knowledge of the donated property. Irs 1040 x An appraisal must give all the facts on which to base an intelligent judgment of the value of the property. Irs 1040 x The appraisal will not be given much weight if: All the factors that apply are not considered, The opinion is not supported with facts, such as purchase price and comparable sales, or The opinion is not consistent with known facts. Irs 1040 x The appraiser's opinion is never more valid than the facts on which it is based; without these facts it is simply a guess. Irs 1040 x The opinion of a person claiming to be an expert is not binding on the Internal Revenue Service. Irs 1040 x All facts associated with the donation must be considered. Irs 1040 x Deduction over $500 for certain clothing or household items. Irs 1040 x   You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500. Irs 1040 x See Household Goods and Used Clothing, earlier. Irs 1040 x Cost of appraisals. Irs 1040 x   You may not take a charitable contribution deduction for fees you pay for appraisals of your donated property. Irs 1040 x However, these fees may qualify as a miscellaneous deduction, subject to the 2% limit, on Schedule A (Form 1040) if paid to determine the amount allowable as a charitable contribution. Irs 1040 x Deductions of More Than $5,000 Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser, and you must attach Section B of Form 8283 to your tax return. Irs 1040 x There are exceptions, discussed later. Irs 1040 x You should keep the appraiser's report with your written records. Irs 1040 x Records are discussed in Publication 526. Irs 1040 x The phrase “similar items” means property of the same generic category or type (whether or not donated to the same donee), such as stamp collections, coin collections, lithographs, paintings, photographs, books, nonpublicly traded stock, nonpublicly traded securities other than nonpublicly traded stock, land, buildings, clothing, jewelry, furniture, electronic equipment, household appliances, toys, everyday kitchenware, china, crystal, or silver. Irs 1040 x For example, if you give books to three schools and you deduct $2,000, $2,500, and $900, respectively, your claimed deduction is more than $5,000 for these books. Irs 1040 x You must get a qualified appraisal of the books and for each school you must attach a fully completed Form 8283, Section B, to your tax return. Irs 1040 x Exceptions. Irs 1040 x   You do not need an appraisal if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane) for which your deduction is limited to the gross proceeds from its sale, Qualified intellectual property, such as a patent, Certain publicly traded securities described next, Inventory and other property donated by a corporation that are “qualified contributions” for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A) of the Internal Revenue Code, or Stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. Irs 1040 x   Although an appraisal is not required for the types of property just listed, you must provide certain information about a donation of any of these types of property on Form 8283. Irs 1040 x Publicly traded securities. Irs 1040 x   Even if your claimed deduction is more than $5,000, neither a qualified appraisal nor Section B of Form 8283 is required for publicly traded securities that are: Listed on a stock exchange in which quotations are published on a daily basis, Regularly traded in a national or regional over-the-counter market for which published quotations are available, or Shares of an open-end investment company (mutual fund) for which quotations are published on a daily basis in a newspaper of general circulation throughout the United States. Irs 1040 x Publicly traded securities that meet these requirements must be reported on Form 8283, Section A. Irs 1040 x   A qualified appraisal is not required, but Form 8283, Section B, Parts I and IV, must be completed, for an issue of a security that does not meet the requirements just listed but does meet these requirements: The issue is regularly traded during the computation period (defined later) in a market for which there is an “interdealer quotation system” (defined later), The issuer or agent computes the “average trading price” (defined later) for the same issue for the computation period, The average trading price and total volume of the issue during the computation period are published in a newspaper of general circulation throughout the United States, not later than the last day of the month following the end of the calendar quarter in which the computation period ends, The issuer or agent keeps books and records that list for each transaction during the computation period the date of settlement of the transaction, the name and address of the broker or dealer making the market in which the transaction occurred, and the trading price and volume, and The issuer or agent permits the Internal Revenue Service to review the books and records described in item (4) with respect to transactions during the computation period upon receiving reasonable notice. Irs 1040 x   An interdealer quotation system is any system of general circulation to brokers and dealers that regularly disseminates quotations of obligations by two or more identified brokers or dealers who are not related to either the issuer or agent who computes the average trading price of the security. Irs 1040 x A quotation sheet prepared and distributed by a broker or dealer in the regular course of business and containing only quotations of that broker or dealer is not an interdealer quotation system. Irs 1040 x   The average trading price is the average price of all transactions (weighted by volume), other than original issue or redemption transactions, conducted through a United States office of a broker or dealer who maintains a market in the issue of the security during the computation period. Irs 1040 x Bid and asked quotations are not taken into account. Irs 1040 x   The computation period is weekly during October through December and monthly during January through September. Irs 1040 x The weekly computation periods during October through December begin with the first Monday in October and end with the first Sunday following the last Monday in December. Irs 1040 x Nonpublicly traded stock. Irs 1040 x   If you contribute nonpublicly traded stock, for which you claim a deduction of $10,000 or less, a qualified appraisal is not required. Irs 1040 x However, you must attach Form 8283 to your tax return, with Section B, Parts I and IV, completed. Irs 1040 x Deductions of More Than $500,000 If you claim a deduction of more than $500,000 for a donation of property, you must attach a qualified appraisal of the property to your return. Irs 1040 x This does not apply to contributions of cash, inventory, publicly traded stock, or intellectual property. Irs 1040 x If you do not attach the appraisal, you cannot deduct your contribution, unless your failure to attach the appraisal is due to reasonable cause and not to willful neglect. Irs 1040 x Qualified Appraisal Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser. Irs 1040 x You must also complete Form 8283, Section B, and attach it to your tax return. Irs 1040 x See Deductions of More Than $5,000, earlier. Irs 1040 x A qualified appraisal is an appraisal document that: Is made, signed, and dated by a qualified appraiser (defined later) in accordance with generally accepted appraisal standards, Meets the relevant requirements of Regulations section 1. Irs 1040 x 170A-13(c)(3) and Notice 2006-96, 2006-46 I. Irs 1040 x R. Irs 1040 x B. Irs 1040 x 902 (available at www. Irs 1040 x irs. Irs 1040 x gov/irb/2006-46_IRB/ar13. Irs 1040 x html), Relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property, Does not involve a prohibited appraisal fee, and Includes certain information (covered later). Irs 1040 x You must receive the qualified appraisal before the due date, including extensions, of the return on which a charitable contribution deduction is first claimed for the donated property. Irs 1040 x If the deduction is first claimed on an amended return, the qualified appraisal must be received before the date on which the amended return is filed. Irs 1040 x Form 8283, Section B, must be attached to your tax return. Irs 1040 x Generally, you do not need to attach the qualified appraisal itself, but you should keep a copy as long as it may be relevant under the tax law. Irs 1040 x There are four exceptions. Irs 1040 x If you claim a deduction of $20,000 or more for donations of art, you must attach a complete copy of the appraisal. Irs 1040 x See Paintings, Antiques, and Other Objects of Art, earlier. Irs 1040 x If you claim a deduction of more than $500,000 for a donation of property, you must attach the appraisal. Irs 1040 x See Deductions of More Than $500,000, earlier. Irs 1040 x If you claim a deduction of more than $500 for an article of clothing, or a household item, that is not in good used condition or better, that you donated after August 17, 2006, you must attach the appraisal. Irs 1040 x See Deduction over $500 for certain clothing or household items, earlier. Irs 1040 x If you claim a deduction in a tax year beginning after August 17, 2006, for an easement or other restriction on the exterior of a building in a historic district, you must attach the appraisal. Irs 1040 x See Building in registered historic district, earlier. Irs 1040 x Prohibited appraisal fee. Irs 1040 x   Generally, no part of the fee arrangement for a qualified appraisal can be based on a percentage of the appraised value of the property. Irs 1040 x If a fee arrangement is based on what is allowed as a deduction, after Internal Revenue Service examination or otherwise, it is treated as a fee based on a percentage of appraised value. Irs 1040 x However, appraisals are not disqualified when an otherwise prohi
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Letter 3030C Frequently Asked Questions (FAQs)

What is the letter telling me?

The letter is providing you an explanation of the tax, penalty and interest still due on your account.

What do I have to do?

Pay the balance due in the letter as soon as possible.

How much time do I have?

The letter provides you the full pay amount to a specified date.

What happens if I don't take any action?

If you do not make arrangements to pay the balance you owe, we can proceed with enforcement action and may file a levy on your wages or bank account or file a lien on your personal property.

Who should I contact?

If you have any questions about this letter, call us at the number printed in the letter. The person who answers the phone will assist you.

What if I don't agree or have already taken corrective action?

If you do not agree with this letter, call us immediately at the number included. We will do our best to help you. If you have called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

Page Last Reviewed or Updated: 30-Jan-2014

The Irs 1040 X

Irs 1040 x 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. Irs 1040 x Filing options when no return is required. Irs 1040 x 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. Irs 1040 x Claim for refund process. Irs 1040 x 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. Irs 1040 x The worker is your employee if you can control not only what work is done, but how it is done. Irs 1040 x 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. Irs 1040 x It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job. Irs 1040 x Example. Irs 1040 x You pay Betty Shore to babysit your child and do light housework 4 days a week in your home. Irs 1040 x Betty follows your specific instructions about household and child care duties. Irs 1040 x You provide the household equipment and supplies that Betty needs to do her work. Irs 1040 x Betty is your household employee. Irs 1040 x Household work. Irs 1040 x   Household work is work done in or around your home. Irs 1040 x 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. Irs 1040 x Workers who are not your employees. Irs 1040 x   If only the worker can control how the work is done, the worker is not your employee but is self-employed. Irs 1040 x A self-employed worker usually provides his or her own tools and offers services to the general public in an independent business. Irs 1040 x   A worker who performs child care services for you in his or her home generally is not your employee. Irs 1040 x   If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee. Irs 1040 x Example. Irs 1040 x You made an agreement with John Peters to care for your lawn. Irs 1040 x John runs a lawn care business and offers his services to the general public. Irs 1040 x He provides his own tools and supplies, and he hires and pays any helpers he needs. Irs 1040 x Neither John nor his helpers are your household employees. Irs 1040 x More information. Irs 1040 x   More information about who is an employee is in Publication 15-A, Employer's Supplemental Tax Guide. Irs 1040 x 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. Irs 1040 x When you hire a household employee to work for you on a regular basis, you and the employee must complete the U. Irs 1040 x S. Irs 1040 x Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Irs 1040 x 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. Irs 1040 x You must complete the employer section by examining documents presented by the employee as evidence of his or her identity and employment eligibility. Irs 1040 x Acceptable documents to establish identity and employment eligibility are listed on Form I-9. Irs 1040 x You should keep the completed Form I-9 in your own records. Irs 1040 x Do not submit it to the IRS, the USCIS, or any other government or other entity. Irs 1040 x The form must be kept available for review upon notice by an authorized U. Irs 1040 x S. Irs 1040 x Government official. Irs 1040 x Two copies of Form I-9 are contained in the Handbook for Employers (Form M-274) published by the USCIS. Irs 1040 x Call the USCIS at 1-800-870-3676 to order the Handbook for Employers; or you may download the handbook at www. Irs 1040 x uscis. Irs 1040 x gov. Irs 1040 x 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. Irs 1040 x You also can visit the USCIS website at www. Irs 1040 x uscis. Irs 1040 x gov to get Form I-9. Irs 1040 x For more information, see Employee's Social Security Number (SSN) in Publication 15 (Circular E), Employer's Tax Guide. Irs 1040 x 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. Irs 1040 x To find out, read Table 1. Irs 1040 x You do not need to withhold federal income tax from your household employee's wages. Irs 1040 x But if your employee asks you to withhold it, you can. Irs 1040 x See Do You Need To Withhold Federal Income Tax, later. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x The rest of this publication does not apply to you. Irs 1040 x State employment taxes. Irs 1040 x   You should contact your state unemployment tax agency to find out whether you need to pay state unemployment tax for your household employee. Irs 1040 x For a list of state unemployment tax agencies, visit the U. Irs 1040 x S. Irs 1040 x Department of Labor's website at www. Irs 1040 x workforcesecurity. Irs 1040 x doleta. Irs 1040 x gov/unemploy/agencies. Irs 1040 x asp. Irs 1040 x You should also determine if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Irs 1040 x    Table 1. Irs 1040 x Do You Need To Pay Employment Taxes? IF you . Irs 1040 x . Irs 1040 x . Irs 1040 x THEN you need to . Irs 1040 x . Irs 1040 x . Irs 1040 x A– Pay cash wages of $1,900 or more in 2014 to any one household employee. Irs 1040 x Withhold and pay social security and Medicare taxes. Irs 1040 x The taxes are 15. Irs 1040 x 3%1 of cash wages. Irs 1040 x Your employee's share is 7. Irs 1040 x 65%1. Irs 1040 x   (You can choose to pay it yourself and not withhold it. Irs 1040 x ) Your share is 7. Irs 1040 x 65%. Irs 1040 x   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). Irs 1040 x B– Pay total cash wages of $1,000 or more in any calendar quarter of 2013 or 2014 to household employees. Irs 1040 x Pay federal unemployment tax. Irs 1040 x The tax is 6% of cash wages. Irs 1040 x Wages over $7,000 a year per employee are not taxed. Irs 1040 x You also may owe state unemployment tax. Irs 1040 x   Do not count wages you pay to— Your spouse, Your child under the age of 21, or Your parent. Irs 1040 x 1In addition to withholding Medicare tax at 1. Irs 1040 x 45%, you must withhold a 0. Irs 1040 x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs 1040 x 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. Irs 1040 x Additional Medicare Tax is only imposed on the employee. Irs 1040 x There is no employer share of Additional Medicare Tax. Irs 1040 x 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. Irs 1040 x Note. Irs 1040 x If neither A nor B above applies, you do not need to pay any federal employment taxes. Irs 1040 x But you may still need to pay state employment taxes. Irs 1040 x Table 2. Irs 1040 x Household Employer's Checklist You may need to do the following things when you have a household employee. Irs 1040 x   When you hire a household employee: □ Find out if the person can legally work in the United States. Irs 1040 x  □ Find out if you need to pay state taxes. Irs 1040 x When you pay your household employee: □ Withhold social security and Medicare taxes. Irs 1040 x  □ Withhold federal income tax. Irs 1040 x  □ Decide how you will make tax payments. Irs 1040 x  □ Keep records. Irs 1040 x By February 2, 2015: □ Get an employer identification number (EIN). Irs 1040 x  □ Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement. Irs 1040 x 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). Irs 1040 x 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). Irs 1040 x  If you do not have to file a return, file Schedule H by itself. Irs 1040 x Social Security and Medicare Taxes The social security tax pays for old-age, survivors, and disability benefits for workers and their families. Irs 1040 x The Medicare tax pays for hospital insurance. Irs 1040 x Both you and your household employee may owe social security and Medicare taxes. Irs 1040 x Your share is 7. Irs 1040 x 65% (6. Irs 1040 x 2% for social security tax and 1. Irs 1040 x 45% for Medicare tax) of the employee's social security and Medicare wages. Irs 1040 x Your employee's share is also 7. Irs 1040 x 65% (6. Irs 1040 x 2% for social security tax and 1. Irs 1040 x 45% for Medicare tax). Irs 1040 x In addition to withholding Medicare tax at 1. Irs 1040 x 45%, you must withhold a 0. Irs 1040 x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs 1040 x 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. Irs 1040 x Additional Medicare Tax is only imposed on the employee. Irs 1040 x There is no employer share of Additional Medicare Tax. Irs 1040 x 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. Irs 1040 x For more information on Additional Medicare Tax, visit IRS. Irs 1040 x gov and enter “Additional Medicare Tax” in the search box. Irs 1040 x Generally, you can use Table 3 to figure the amount of social security and Medicare taxes to withhold from each wage payment. Irs 1040 x You are responsible for payment of your employee's share of the taxes as well as your own. Irs 1040 x You can either withhold your employee's share from the employee's wages or pay it from your own funds. Irs 1040 x If you decide to pay the employee's share from your own funds, see Not withholding the employee's share, later. Irs 1040 x Pay the taxes as discussed under How Do You Make Tax Payments, later. Irs 1040 x Also, see What Forms Must You File, later. Irs 1040 x Social security and Medicare wages. Irs 1040 x   You figure social security and Medicare taxes on the social security and Medicare wages you pay your employee. Irs 1040 x   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. Irs 1040 x However, any noncash wages you pay do not count as social security and Medicare wages. Irs 1040 x   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. Irs 1040 x Cash wages. Irs 1040 x   Cash wages include wages you pay by check, money order, etc. Irs 1040 x Cash wages do not include the value of food, lodging, clothing, and other noncash items you give your household employee. Irs 1040 x However, cash you give your employee in place of these items is included in cash wages. Irs 1040 x State disability payments treated as wages. Irs 1040 x   Certain state disability plan payments that your household employee may receive are treated as social security and Medicare wages. Irs 1040 x For more information about these payments, see the Instructions for Schedule H (Form 1040) and the notice issued by the state. Irs 1040 x Wages not counted. Irs 1040 x   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. Irs 1040 x Your spouse. Irs 1040 x Your child who is under the age of 21. Irs 1040 x Your parent. Irs 1040 x Exception: Count these wages if both the following conditions apply. Irs 1040 x Your parent cares for your child who is either of the following. Irs 1040 x 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. Irs 1040 x Your marital status is one of the following. Irs 1040 x 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. Irs 1040 x An employee who is under the age of 18 at any time during the year. Irs 1040 x Exception: Count these wages if providing household services is the employee's principal occupation. Irs 1040 x If the employee is a student, providing household services is not considered to be his or her principal occupation. Irs 1040 x 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. Irs 1040 x Continue to count the employee's cash wages as Medicare wages to figure Medicare tax. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x If you reimburse your employee for transit passes or parking, you may be able to exclude the reimbursement amounts. Irs 1040 x See Publication 15-B, Employer's Tax Guide to Fringe Benefits, for special requirements for this exclusion. Irs 1040 x Withholding the employee's share. Irs 1040 x   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. Irs 1040 x However, if you prefer to pay the employee's share yourself, see Not withholding the employee's share, later. Irs 1040 x   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. Irs 1040 x 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. Irs 1040 x   Withhold 7. Irs 1040 x 65% (6. Irs 1040 x 2% for social security tax and 1. Irs 1040 x 45% for Medicare tax) from each payment of social security and Medicare wages. Irs 1040 x Generally, you can use Table 3 to figure the proper amount to withhold. Irs 1040 x You will pay the amount withheld to the IRS with your share of the taxes. Irs 1040 x Do not withhold any social security tax after your employee's social security wages for the year reach $117,000. Irs 1040 x Table 3. Irs 1040 x Employee Social Security (6. Irs 1040 x 2%) and Medicare (1. Irs 1040 x 45%1) Tax Withholding Table (See Publication 15 (Circular E) for income tax withholding tables. Irs 1040 x ) Use this table to figure the amount of social security and Medicare taxes to withhold from each wage payment. Irs 1040 x For example, on a wage payment of $180, the employee social security tax is $11. Irs 1040 x 16 ($6. Irs 1040 x 20 tax on $100 plus $4. Irs 1040 x 96 on $80 wages). Irs 1040 x The employee Medicare tax is $2. Irs 1040 x 61 ($1. Irs 1040 x 45 tax on $100 plus $1. Irs 1040 x 16 on $80 wages). Irs 1040 x 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. Irs 1040 x 00 . Irs 1040 x $ . Irs 1040 x 06 $ . Irs 1040 x 01 $ 51. Irs 1040 x 00 . Irs 1040 x $ 3. Irs 1040 x 16 $ . Irs 1040 x 74 2. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 12 . Irs 1040 x 03 52. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 22 . Irs 1040 x 75 3. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 19 . Irs 1040 x 04 53. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 29 . Irs 1040 x 77 4. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 25 . Irs 1040 x 06 54. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 35 . Irs 1040 x 78 5. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 31 . Irs 1040 x 07 55. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 41 . Irs 1040 x 80 6. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 37 . Irs 1040 x 09 56. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 47 . Irs 1040 x 81 7. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 43 . Irs 1040 x 10 57. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 53 . Irs 1040 x 83 8. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 50 . Irs 1040 x 12 58. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 60 . Irs 1040 x 84 9. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 56 . Irs 1040 x 13 59. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 66 . Irs 1040 x 86 10. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 62 . Irs 1040 x 15 60. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 72 . Irs 1040 x 87 11. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 68 . Irs 1040 x 16 61. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 78 . Irs 1040 x 88 12. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 74 . Irs 1040 x 17 62. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 84 . Irs 1040 x 90 13. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 81 . Irs 1040 x 19 63. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 91 . Irs 1040 x 91 14. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 87 . Irs 1040 x 20 64. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 97 . Irs 1040 x 93 15. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 93 . Irs 1040 x 22 65. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 03 . Irs 1040 x 94 16. Irs 1040 x 00 . Irs 1040 x . Irs 1040 x 99 . Irs 1040 x 23 66. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 09 . Irs 1040 x 96 17. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 05 . Irs 1040 x 25 67. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 15 . Irs 1040 x 97 18. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 12 . Irs 1040 x 26 68. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 22 . Irs 1040 x 99 19. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 18 . Irs 1040 x 28 69. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 28 1. Irs 1040 x 00 20. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 24 . Irs 1040 x 29 70. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 34 1. Irs 1040 x 02 21. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 30 . Irs 1040 x 30 71. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 40 1. Irs 1040 x 03 22. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 36 . Irs 1040 x 32 72. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 46 1. Irs 1040 x 04 23. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 43 . Irs 1040 x 33 73. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 53 1. Irs 1040 x 06 24. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 49 . Irs 1040 x 35 74. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 59 1. Irs 1040 x 07 25. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 55 . Irs 1040 x 36 75. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 65 1. Irs 1040 x 09 26. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 61 . Irs 1040 x 38 76. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 71 1. Irs 1040 x 10 27. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 67 . Irs 1040 x 39 77. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 77 1. Irs 1040 x 12 28. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 74 . Irs 1040 x 41 78. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 84 1. Irs 1040 x 13 29. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 80 . Irs 1040 x 42 79. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 90 1. Irs 1040 x 15 30. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 86 . Irs 1040 x 44 80. Irs 1040 x 00 . Irs 1040 x 4. Irs 1040 x 96 1. Irs 1040 x 16 31. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 92 . Irs 1040 x 45 81. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 02 1. Irs 1040 x 17 32. Irs 1040 x 00 . Irs 1040 x 1. Irs 1040 x 98 . Irs 1040 x 46 82. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 08 1. Irs 1040 x 19 33. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 05 . Irs 1040 x 48 83. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 15 1. Irs 1040 x 20 34. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 11 . Irs 1040 x 49 84. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 21 1. Irs 1040 x 22 35. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 17 . Irs 1040 x 51 85. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 27 1. Irs 1040 x 23 36. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 23 . Irs 1040 x 52 86. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 33 1. Irs 1040 x 25 37. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 29 . Irs 1040 x 54 87. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 39 1. Irs 1040 x 26 38. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 36 . Irs 1040 x 55 88. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 46 1. Irs 1040 x 28 39. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 42 . Irs 1040 x 57 89. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 52 1. Irs 1040 x 29 40. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 48 . Irs 1040 x 58 90. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 58 1. Irs 1040 x 31 41. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 54 . Irs 1040 x 59 91. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 64 1. Irs 1040 x 32 42. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 60 . Irs 1040 x 61 92. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 70 1. Irs 1040 x 33 43. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 67 . Irs 1040 x 62 93. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 77 1. Irs 1040 x 35 44. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 73 . Irs 1040 x 64 94. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 83 1. Irs 1040 x 36 45. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 79 . Irs 1040 x 65 95. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 89 1. Irs 1040 x 38 46. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 85 . Irs 1040 x 67 96. Irs 1040 x 00 . Irs 1040 x 5. Irs 1040 x 95 1. Irs 1040 x 39 47. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 91 . Irs 1040 x 68 97. Irs 1040 x 00 . Irs 1040 x 6. Irs 1040 x 01 1. Irs 1040 x 41 48. Irs 1040 x 00 . Irs 1040 x 2. Irs 1040 x 98 . Irs 1040 x 70 98. Irs 1040 x 00 . Irs 1040 x 6. Irs 1040 x 08 1. Irs 1040 x 42 49. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 04 . Irs 1040 x 71 99. Irs 1040 x 00 . Irs 1040 x 6. Irs 1040 x 14 1. Irs 1040 x 44 50. Irs 1040 x 00 . Irs 1040 x 3. Irs 1040 x 10 . Irs 1040 x 73 100. Irs 1040 x 00 . Irs 1040 x 6. Irs 1040 x 20 1. Irs 1040 x 45 1In addition to withholding Medicare tax at 1. Irs 1040 x 45%, you must withhold a 0. Irs 1040 x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs 1040 x 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. Irs 1040 x Additional Medicare Tax is only imposed on the employee. Irs 1040 x There is no employer share of Additional Medicare Tax. Irs 1040 x 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. Irs 1040 x   If you make an error by withholding too little, you should withhold additional taxes from a later payment. Irs 1040 x If you withhold too much, you should repay the employee. Irs 1040 x    In addition to withholding Medicare tax at 1. Irs 1040 x 45%, you must withhold a 0. Irs 1040 x 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs 1040 x 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. Irs 1040 x Additional Medicare Tax is only imposed on the employee. Irs 1040 x There is no employer share of Additional Medicare Tax. Irs 1040 x 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. Irs 1040 x For more information on Additional Medicare Tax, visit IRS. Irs 1040 x gov and enter “Additional Medicare Tax” in the search box. Irs 1040 x Example. Irs 1040 x On February 13, 2014, Mary Brown hired Jane R. Irs 1040 x Oak (who is an unrelated individual over age 18) to care for her child and agreed to pay cash wages of $50 every Friday. Irs 1040 x Jane worked for the remainder of the year (a total of 46 weeks). Irs 1040 x Mary did not give Jane a Form W-4 to request federal or state tax withholding. Irs 1040 x The following is the information Mary will need to complete Schedule H, Form W-2, and Form W-3. Irs 1040 x See the completed examples of Form W-2 and Form W-3 for 2014 at the end of this publication. Irs 1040 x Total cash wages paid to Jane $2,300. Irs 1040 x 00 ($50 x 46 weeks)       Jane's share of:     Social security tax $142. Irs 1040 x 60 ($2,300 x 6. Irs 1040 x 2% (. Irs 1040 x 062))         Medicare tax $33. Irs 1040 x 35       ($2,300 x 1. Irs 1040 x 45% (. Irs 1040 x 0145)) Mary's share of:     Social security tax $142. Irs 1040 x 60  ($2,300 x 6. Irs 1040 x 2% (. Irs 1040 x 062))           Medicare tax $33. Irs 1040 x 35  ($2,300 x 1. Irs 1040 x 45% (. Irs 1040 x 0145)) Amount reported on Form W-2 and Form W-3:   Box 1:Wages, tips $2,300. Irs 1040 x 00   Box 4: Social security tax withheld 142. Irs 1040 x 60   Box 6: Medicare tax withheld 33. Irs 1040 x 35 For information on withholding and reporting federal income taxes, see Publication 15 (Circular E). Irs 1040 x Not withholding the employee's share. Irs 1040 x   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. Irs 1040 x 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. Irs 1040 x However, they are not counted as social security and Medicare wages or as federal unemployment (FUTA) wages. Irs 1040 x Example. Irs 1040 x 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. Irs 1040 x You expect to pay your employee $1,900 or more for the year. Irs 1040 x You decide to pay your employee's share of social security and Medicare taxes from your own funds. Irs 1040 x You pay your employee $100 every Friday without withholding any social security or Medicare taxes. Irs 1040 x For social security and Medicare tax purposes, your employee's wages each payday are $100. Irs 1040 x For each wage payment, you will pay $15. Irs 1040 x 30 when you pay the taxes. Irs 1040 x This is $7. Irs 1040 x 65 ($6. Irs 1040 x 20 for social security tax + $1. Irs 1040 x 45 for Medicare tax) to cover your employee's share plus $7. Irs 1040 x 65 ($6. Irs 1040 x 20 for social security tax + $1. Irs 1040 x 45 for Medicare tax) for your share. Irs 1040 x For income tax purposes, your employee's wages each payday are $107. Irs 1040 x 65 ($100 + the $7. Irs 1040 x 65 you will pay to cover your employee's share of social security and Medicare taxes). Irs 1040 x 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. Irs 1040 x Like most employers, you may owe both the federal unemployment tax (the FUTA tax) and a state unemployment tax. Irs 1040 x Or, you may owe only the FUTA tax or only the state unemployment tax. Irs 1040 x To find out whether you will owe state unemployment tax, contact your state's unemployment tax agency. Irs 1040 x For a list of state unemployment tax agencies, visit the U. Irs 1040 x S. Irs 1040 x Department of Labor's website at www. Irs 1040 x workforcesecurity. Irs 1040 x doleta. Irs 1040 x gov/unemploy/agencies. Irs 1040 x asp. Irs 1040 x You should also find out if you need to pay or collect other state employment taxes or carry workers' compensation insurance. Irs 1040 x The FUTA tax is 6. Irs 1040 x 0% of your employee's FUTA wages. Irs 1040 x However, you may be able to take a credit of up to 5. Irs 1040 x 4% against the FUTA tax, resulting in a net tax rate of 0. Irs 1040 x 6%. Irs 1040 x Your credit for 2014 is limited unless you pay all the required contributions for 2014 to your state unemployment fund by April 15, 2015. Irs 1040 x 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. Irs 1040 x (If you did not pay all the required contributions for 2013 by April 15, 2014, see Credit for 2013, later. Irs 1040 x ) Note. Irs 1040 x   If a due date falls on a Saturday, Sunday, or legal holiday, payments are considered timely if made by the next business day. Irs 1040 x The term “legal holiday” means any legal holiday in the District of Columbia. Irs 1040 x Pay the tax as discussed under How Do You Make Tax Payments, later. Irs 1040 x Also, see What Forms Must You File, later. Irs 1040 x Note. Irs 1040 x   The 5. Irs 1040 x 4% credit is reduced for wages paid in a credit reduction state. Irs 1040 x See the Instructions for Schedule H (Form 1040). Irs 1040 x Do not withhold the FUTA tax from your employee's wages. Irs 1040 x You must pay it from your own funds. Irs 1040 x FUTA wages. Irs 1040 x   Figure the FUTA tax on the FUTA wages you pay. Irs 1040 x 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. Irs 1040 x (A calendar quarter is January through March, April through June, July through September, or October through December. Irs 1040 x ) 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. Irs 1040 x For an explanation of cash wages, see the discussion on Social security and Medicare wages under Social Security and Medicare Taxes, earlier. Irs 1040 x Wages not counted. Irs 1040 x   Do not count wages you pay to any of the following individuals as FUTA wages. Irs 1040 x Your spouse. Irs 1040 x Your child who is under the age of 21. Irs 1040 x Your parent. Irs 1040 x Credit for 2013. Irs 1040 x   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. Irs 1040 x Use Worksheet A to figure the credit for late contributions if you paid any state contributions after the due date for filing  Form 1040. Irs 1040 x Worksheet A. Irs 1040 x Worksheet for Credit for Late Contributions 1. Irs 1040 x Enter the amount from Schedule H, line 22   2. Irs 1040 x Enter the amount from Schedule H, line 19   3. Irs 1040 x Subtract line 2 from line 1. Irs 1040 x If zero or less, enter -0-   4. Irs 1040 x Enter total contributions paid to the state(s) after the Form 1040 due date   5. Irs 1040 x Enter the smaller of line 3 or line 4   6. Irs 1040 x Multiply line 5 by . Irs 1040 x 90 (90%)   7. Irs 1040 x Add lines 2 and 6   8. Irs 1040 x 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. Irs 1040 x You should withhold federal income tax only if your household employee asks you to withhold it and you agree. Irs 1040 x The employee must give you a completed Form W-4, Employee's Withholding Allowance Certificate. Irs 1040 x If you and your employee have agreed to withholding, either of you may end the agreement by letting the other know in writing. Irs 1040 x If you agree to withhold federal income tax, you are responsible for paying it to the IRS. Irs 1040 x Pay the tax as discussed under How Do You Make Tax Payments, later. Irs 1040 x Also, see What Forms Must You File, later. Irs 1040 x Use the income tax withholding tables in Publication 15 (Circular E) to find out how much to withhold. Irs 1040 x Figure federal income tax withholding on wages before you deduct any amounts for other withheld taxes. Irs 1040 x Withhold federal income tax from each payment of wages based on the filing status and exemptions shown on your employee's Form W-4. Irs 1040 x Publication 15 (Circular E) contains detailed instructions. Irs 1040 x Wages. Irs 1040 x   Figure federal income tax withholding on both cash and noncash wages you pay. Irs 1040 x Measure wages you pay in any form other than cash by the fair market value of the noncash item. Irs 1040 x   Do not count as wages any of the following items. Irs 1040 x Meals provided to your employee at your home for your convenience. Irs 1040 x Lodging provided to your employee at your home for your convenience and as a condition of employment. Irs 1040 x 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). Irs 1040 x 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. Irs 1040 x See Publication 15-B for special requirements for this exclusion. Irs 1040 x 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. Irs 1040 x   See Publication 15 (Circular E) for more information on cash and noncash wages. Irs 1040 x Paying tax without withholding. Irs 1040 x   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. Irs 1040 x It also must be included in social security and Medicare wages and in federal unemployment (FUTA) wages. Irs 1040 x 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. Irs 1040 x This credit reduces their tax or allows them to receive a payment from the IRS. Irs 1040 x You also may have to give your employee a notice about the EIC. Irs 1040 x Notice about the EIC. Irs 1040 x   Copy B of the 2014 Form W-2 has a statement about the EIC on the back. Irs 1040 x 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. Irs 1040 x   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. Irs 1040 x 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. Irs 1040 x Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Irs 1040 x Your own written statement with the same wording as in Notice 797. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x If Form W-2 is not required, you must notify the employee by February 7, 2015. Irs 1040 x   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. Irs 1040 x 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). Irs 1040 x 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. Irs 1040 x Use Schedule H to figure your total household employment taxes (social security, Medicare, FUTA, and withheld federal income taxes). Irs 1040 x Add these household employment taxes to your income tax. Irs 1040 x Pay the amount due by April 15, 2015. Irs 1040 x For more information about using Schedule H, see Schedule H under What Forms Must You File, later. Irs 1040 x 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. Irs 1040 x You can pay the additional tax in any of the following ways. Irs 1040 x Ask your employer to withhold more federal income tax from your wages in 2014. Irs 1040 x Ask the payer of your pension or annuity to withhold more federal income tax from your benefits. Irs 1040 x Make estimated tax payments for 2014 to the IRS. Irs 1040 x Increase your payments if you already make estimated tax payments. Irs 1040 x You may be subject to the estimated tax underpayment penalty if you did not pay enough income and household employment taxes during the year. Irs 1040 x (See Publication 505, Tax Withholding and Estimated Tax, for information about the underpayment penalty. Irs 1040 x ) However, you will not be subject to the penalty if both of the following situations apply to you. Irs 1040 x You will not have federal income tax withheld from wages, pensions, or any other payments you receive. Irs 1040 x Your income taxes, excluding your household employment taxes, would not be enough to require payment of estimated taxes. Irs 1040 x Asking for more federal income tax withholding. Irs 1040 x   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. Irs 1040 x Complete it as before, but show the additional amount you want withheld from each paycheck on line 6. Irs 1040 x   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). Irs 1040 x Complete it as before, but show the additional amount you want withheld from each benefit payment on line 3. Irs 1040 x   See Publication 505 to make sure you will have the right amount withheld. Irs 1040 x 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. Irs 1040 x Paying estimated tax. Irs 1040 x   If you want to make estimated tax payments to cover household employment taxes, get Form 1040-ES, Estimated Tax for Individuals. Irs 1040 x You can use its payment vouchers to make your payments by check or money order. Irs 1040 x You may be able to pay by Electronic Funds Withdrawal (EFW) or credit card. Irs 1040 x For details, see the form instructions and visit IRS. Irs 1040 x gov. Irs 1040 x    You can pay all the employment taxes at once or you can pay them in installments. Irs 1040 x If you have already made estimated tax payments for 2014, you can increase your remaining payments to cover the employment taxes. Irs 1040 x Estimated tax payments for 2014 are due April 15, June 16, and September 15, 2014, and January 15, 2015. Irs 1040 x Payment option for business employers. Irs 1040 x   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. Irs 1040 x 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. Irs 1040 x For information on depositing employment taxes, see Publication 15 (Circular E). Irs 1040 x   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. Irs 1040 x See Business employment tax returns, later. Irs 1040 x    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. Irs 1040 x You cannot deduct the wages and employment taxes paid for your household employees on your Schedule C or F. Irs 1040 x More information. Irs 1040 x   For more information about paying taxes through federal income tax withholding and estimated tax payments, and figuring the estimated tax penalty, see Publication 505. Irs 1040 x 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. Irs 1040 x Social security and Medicare wages. Irs 1040 x FUTA wages. Irs 1040 x Wages from which you withhold federal income tax. Irs 1040 x For information on ordering employment tax forms, see How To Get Tax Help, later. Irs 1040 x Employer identification number (EIN). Irs 1040 x   You must include your employer identification number (EIN) on the forms you file for your household employee. Irs 1040 x An EIN is a nine-digit number issued by the IRS. Irs 1040 x It is not the same as a social security number. Irs 1040 x    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. Irs 1040 x If you already have an EIN, use that number. Irs 1040 x   If you do not have an EIN, you may apply for one online. Irs 1040 x Go to IRS. Irs 1040 x gov and click on the Apply for an EIN Online link under Tools. Irs 1040 x 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. Irs 1040 x Form W-2. Irs 1040 x   File a separate 2014 Form W-2, for each household employee to whom you pay either of the following wages during the year. Irs 1040 x Social security and Medicare wages of $1,900 or more. Irs 1040 x Wages from which you withhold federal income tax. Irs 1040 x You must complete Form W-2 and give Copies B, C, and 2 to your employee by February 2, 2015. Irs 1040 x 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). Irs 1040 x Electronic filing is available to all employers and is free, fast, secure, and offers a later filing deadline. Irs 1040 x Visit the SSA's Employer W-2 Filing Instructions & Information website at www. Irs 1040 x socialsecurity. Irs 1040 x gov/employer for guidelines on filing electronically. Irs 1040 x Employee who leaves during the year. Irs 1040 x   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. Irs 1040 x You do not need to wait until 2015. Irs 1040 x 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. Irs 1040 x Schedule H. Irs 1040 x   Use Schedule H to report household employment taxes if you pay any of the following wages to the employee. Irs 1040 x Social security and Medicare wages of $1,900 or more. Irs 1040 x FUTA wages. Irs 1040 x Wages from which you withhold federal income tax. Irs 1040 x File Schedule H with your 2014 federal income tax return by April 15, 2015. Irs 1040 x If you get an extension to file your return, the extension also will apply to your Schedule H. Irs 1040 x Filing options when no return is required. Irs 1040 x   If you are not required to file a 2014 tax return, you have the following two options. Irs 1040 x You can file Schedule H by itself. Irs 1040 x See the Schedule H instructions for details. Irs 1040 x 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. Irs 1040 x See Business employment tax returns, next. Irs 1040 x   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. Irs 1040 x Business employment tax returns. Irs 1040 x   Do not use Schedule H if you choose to pay the employment taxes for your household employee with business or farm employment taxes. Irs 1040 x (See Payment option for business employers, earlier. Irs 1040 x ) 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. Irs 1040 x Include the FUTA tax for the employee on your Form 940. Irs 1040 x   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. Irs 1040 x   For information on filing Form 941 or Form 944, see Publication 15 (Circular E). Irs 1040 x For information on filing Form 943, see Publication 51 (Circular A), Agricultural Employer's Tax Guide. Irs 1040 x Both of these publications also provide information about filing Form 940. Irs 1040 x 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. Irs 1040 x You must also keep records to support the information you enter on the forms you file. Irs 1040 x If you must file Form W-2, you will need to keep a record of your employee's name, address, and social security number. Irs 1040 x Wage and tax records. Irs 1040 x   On each payday, you should record the date and amounts of all the following items. Irs 1040 x Your employee's cash and noncash wages. Irs 1040 x Any employee social security tax you withhold or agree to pay for your employee. Irs 1040 x Any employee Medicare tax you withhold or agree to pay for your employee. Irs 1040 x Any federal income tax you withhold. Irs 1040 x Any state employment taxes you withhold. Irs 1040 x Employee's social security number. Irs 1040 x   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. Irs 1040 x Social security and Medicare wages of $1,900 or more. Irs 1040 x Wages from which you withhold federal income tax. Irs 1040 x You must ask for your employee's social security number no later than the first day on which you pay the wages. Irs 1040 x You may wish to ask for it when you hire your employee. Irs 1040 x You should ask your employee to show you his or her social security card. Irs 1040 x The employee may show the card if it is available. Irs 1040 x You may, but are not required to, photocopy the card if the employee provides it. Irs 1040 x   An employee who does not have a social security number must apply for one on Form SS-5, Application for a Social Security Card. Irs 1040 x 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. Irs 1040 x    Employees can get Form SS-5 from any Social Security Administration office or by calling 1-800-772-1213. Irs 1040 x    You also can download Form SS-5 from the Social Security Administration website at  www. Irs 1040 x socialsecurity. Irs 1040 x gov/online/ss-5. Irs 1040 x pdf. Irs 1040 x How long to keep records. Irs 1040 x   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. Irs 1040 x 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. Irs 1040 x To qualify, you must pay these expenses so you can work or look for work. Irs 1040 x 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. Irs 1040 x For information about the credit, see Publication 503, Child and Dependent Care Expenses. Irs 1040 x 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. Irs 1040 x Schedule H attached to another form. Irs 1040 x    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. Irs 1040 x S. Irs 1040 x Individual Income Tax Return, and attach a corrected Schedule H. Irs 1040 x If you filed Formulario 1040-PR, file a Form 1040X and attach a corrected Anexo H-PR. Irs 1040 x If you discover an error on a Schedule H that you previously filed with Form 1041, U. Irs 1040 x S. Irs 1040 x Income Tax Return for Estates and Trusts, file an “amended” Form 1041 and attach a corrected Schedule H. Irs 1040 x You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x Schedule H filed by itself. Irs 1040 x   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. Irs 1040 x You discovered (that is, ascertained) the error when you had enough information to be able to correct the error. Irs 1040 x 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. Irs 1040 x In addition, explain the reason for your correction and the date the error was discovered in a statement attached to the corrected Schedule H. Irs 1040 x 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. Irs 1040 x (See Overpayment of tax, later. Irs 1040 x ) When to file. Irs 1040 x   File a corrected Schedule H when you discover an error on a previously filed Schedule H. Irs 1040 x 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. Irs 1040 x 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). Irs 1040 x Underpayment of tax. Irs 1040 x   You must pay any underpayment of social security and Medicare taxes by the time you file the corrected Schedule H. Irs 1040 x 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. Irs 1040 x However, underreported FUTA taxes will be subject to interest. Irs 1040 x Overpayment of tax. Irs 1040 x    You may either adjust or claim a refund of an overpayment of social security and Medicare taxes on a previously filed Schedule H. Irs 1040 x 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. Irs 1040 x Adjust the overpayment. Irs 1040 x   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. Irs 1040 x 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). Irs 1040 x If you adjust your return, you will not receive interest on your overpayment. Irs 1040 x 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. Irs 1040 x You may not adjust your return to correct overpayments of FUTA tax. Irs 1040 x Claim for refund process. Irs 1040 x   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. Irs 1040 x 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). Irs 1040 x 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. Irs 1040 x Required repayment or consent. Irs 1040 x   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. Irs 1040 x You reimburse your employees by applying the overwithheld amount against taxes to be withheld on future wages. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x Filing required Forms W-2 or Forms W-2c. Irs 1040 x   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. Irs 1040 x Additional Medicare Tax. Irs 1040 x   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. Irs 1040 x An administrative error occurs if the amount you entered on Schedule H is not the amount you actually withheld. Irs 1040 x 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. Irs 1040 x   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. Irs 1040 x 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. Irs 1040 x Additional information. Irs 1040 x   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)). Irs 1040 x Also, visit IRS. Irs 1040 x gov. Irs 1040 x 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. Irs 1040 x Free help with your tax return. Irs 1040 x   You can get free help preparing your return nationwide from IRS-certified volunteers. Irs 1040 x The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs 1040 x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs 1040 x 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. Irs 1040 x In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs 1040 x To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs 1040 x gov, download the IRS2Go app, or call 1-800-906-9887. Irs 1040 x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs 1040 x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs 1040 x aarp. Irs 1040 x org/money/taxaide or call 1-888-227-7669. Irs 1040 x For more information on these programs, go to IRS. Irs 1040 x gov and enter “VITA” in the search box. Irs 1040 x Internet. Irs 1040 x    IRS. Irs 1040 x gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs 1040 x Download the free IRS2Go app from the iTunes app store or from Google Play. Irs 1040 x 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. Irs 1040 x Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs 1040 x gov or download the IRS2Go app and select the Refund Status option. Irs 1040 x The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs 1040 x 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. Irs 1040 x You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040 x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs 1040 x Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs 1040 x No need to wait on the phone or stand in line. Irs 1040 x 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. Irs 1040 x When you reach the response screen, you can print the entire interview and the final response for your records. Irs 1040 x New subject areas are added on a regular basis. Irs 1040 x  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs 1040 x gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs 1040 x You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Irs 1040 x The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x You can also ask the IRS to mail a return or an account transcript to you. Irs 1040 x Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs 1040 x gov or by calling 1-800-908-9946. Irs 1040 x Tax return and tax account transcripts are generally available for the current year and the past three years. Irs 1040 x Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs 1040 x Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs 1040 x 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. Irs 1040 x Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs 1040 x gov and enter Where's My Amended Return? in the search box. Irs 1040 x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs 1040 x It can take up to 3 weeks from the date you mailed it to show up in our system. Irs 1040 x Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs 1040 x gov. Irs 1040 x Select the Payment tab on the front page of IRS. Irs 1040 x gov for more information. Irs 1040 x Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs 1040 x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs 1040 x gov. Irs 1040 x 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. Irs 1040 x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs 1040 x gov. Irs 1040 x Request an Electronic Filing PIN by going to IRS. Irs 1040 x gov and entering Electronic Filing PIN in the search box. Irs 1040 x Download forms, instructions and publications, including accessible versions for people with disabilities. Irs 1040 x Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs 1040 x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs 1040 x An employee can answer questions about your tax account or help you set up a payment plan. Irs 1040 x Before you visit, check the Office Locator on IRS. Irs 1040 x gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs 1040 x If you have a special need, such as a disability, you can request an appointment. Irs 1040 x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs 1040 x Apply for an Employer Identification Number (EIN). Irs 1040 x Go to IRS. Irs 1040 x gov and enter Apply for an EIN in the search box. Irs 1040 x Read the Internal Revenue Code, regulations, or other official guidance. Irs 1040 x Read Internal Revenue Bulletins. Irs 1040 x Sign up to receive local and national tax news and more by email. Irs 1040 x Just click on “subscriptions” above the search box on IRS. Irs 1040 x gov and choose from a variety of options. Irs 1040 x Phone. Irs 1040 x    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs 1040 x Download the free IRS2Go app from the iTunes app store or from Google Play. Irs 1040 x Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Irs 1040 x gov, or download the IRS2Go app. Irs 1040 x 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. Irs 1040 x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs 1040 x Most VITA and TCE sites offer free electronic filing. Irs 1040 x Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs 1040 x Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs 1040 x 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. Irs 1040 x 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. Irs 1040 x The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs 1040 x Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040 x 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. Irs 1040 x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs 1040 x Note, the above information is for our automated hotline. Irs 1040 x 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. Irs 1040 x Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs 1040 x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs 1040 x It can take up to 3 weeks from the date you mailed it to show up in our system. Irs 1040 x 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). Irs 1040 x You should receive your order within 10 business days. Irs 1040 x Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Irs 1040 x 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. Irs 1040 x Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs 1040 x The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs 1040 x These individuals can also contact the IRS through relay services such as the Federal Relay Service. Irs 1040 x Walk-in. Irs 1040 x   You can find a selection of forms, publications and services — in-person. Irs 1040 x Products. Irs 1040 x You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs 1040 x Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs 1040 x Services. Irs 1040 x You can walk in to your local TAC for face-to-face tax help. Irs 1040 x An employee can answer questions about your tax account or help you set up a payment plan. Irs 1040 x Before visiting, use the Office Locator tool on IRS. Irs 1040 x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Irs 1040 x Mail. Irs 1040 x   You can send your order for forms, instructions, and publications to the address below. Irs 1040 x You should receive a response within 10 business days after your request is received. Irs 1040 x Internal Revenue Service 1201 N. Irs 1040 x Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Irs 1040 x The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs 1040 x Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs 1040 x   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Irs 1040 x 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. Irs 1040 x You face (or your business is facing) an immediate threat of adverse action. Irs 1040 x You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs 1040 x   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. Irs 1040 x Here's why we can help: TAS is an independent organization within the IRS. Irs 1040 x Our advocates know how to work with the IRS. Irs 1040 x Our services are free and tailored to meet your needs. Irs 1040 x We have offices in every state, the District of Columbia, and Puerto Rico. Irs 1040 x   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. Irs 1040 x   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs 1040 x If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Irs 1040 x 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. Irs 1040 x Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Irs 1040 x Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Irs 1040 x Sample W-2 Form This image is too large to be displayed in the current screen. Irs 1040 x Please click the link to view the image. Irs 1040 x 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