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1040ez Irs Gov

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1040ez Irs Gov

1040ez irs gov 2. 1040ez irs gov   Employees' Pay Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tests for Deducting PayTest 1—Reasonableness Test 2—For Services Performed Kinds of PayAwards Bonuses Education Expenses Fringe Benefits Loans or Advances Property Reimbursements for Business Expenses Sick and Vacation Pay Introduction You can generally deduct the amount you pay your employees for the services they perform. 1040ez irs gov The pay may be in cash, property, or services. 1040ez irs gov It may include wages, salaries, bonuses, commissions, or other non-cash compensation such as vacation allowances and fringe benefits. 1040ez irs gov For information about deducting employment taxes, see chapter 5. 1040ez irs gov You can claim employment credits, such as the following, if you hire individuals who meet certain requirements. 1040ez irs gov Empowerment zone employment credit (Form 8844). 1040ez irs gov Indian employment credit (Form 8845). 1040ez irs gov Work opportunity credit (Form 5884). 1040ez irs gov Credit for employer differential wage payments (Form 8932). 1040ez irs gov Reduce your deduction for employee wages by the amount of employment credits you claim. 1040ez irs gov For more information about these credits, see the form on which the credit is claimed. 1040ez irs gov Topics - This chapter discusses: Tests for deducting pay Kinds of pay Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits See chapter 12 for information about getting publications and forms. 1040ez irs gov Tests for Deducting Pay To be deductible, your employees' pay must be an ordinary and necessary business expense and you must pay or incur it. 1040ez irs gov These and other requirements that apply to all business expenses are explained in chapter 1. 1040ez irs gov In addition, the pay must meet both of the following tests. 1040ez irs gov Test 1. 1040ez irs gov It must be reasonable. 1040ez irs gov Test 2. 1040ez irs gov It must be for services performed. 1040ez irs gov The form or method of figuring the pay does not affect its deductibility. 1040ez irs gov For example, bonuses and commissions based on sales or earnings, and paid under an agreement made before the services were performed, are both deductible. 1040ez irs gov Test 1—Reasonableness You must be able to prove that the pay is reasonable. 1040ez irs gov Whether the pay is reasonable depends on the circumstances that existed when you contracted for the services, not those that exist when reasonableness is questioned. 1040ez irs gov If the pay is excessive, the excess pay is disallowed as a deduction. 1040ez irs gov Factors to consider. 1040ez irs gov   Determine the reasonableness of pay by the facts and circumstances. 1040ez irs gov Generally, reasonable pay is the amount that a similar business would pay for the same or similar services. 1040ez irs gov   To determine if pay is reasonable, also consider the following items and any other pertinent facts. 1040ez irs gov The duties performed by the employee. 1040ez irs gov The volume of business handled. 1040ez irs gov The character and amount of responsibility. 1040ez irs gov The complexities of your business. 1040ez irs gov The amount of time required. 1040ez irs gov The cost of living in the locality. 1040ez irs gov The ability and achievements of the individual employee performing the service. 1040ez irs gov The pay compared with the gross and net income of the business, as well as with distributions to shareholders if the business is a corporation. 1040ez irs gov Your policy regarding pay for all your employees. 1040ez irs gov The history of pay for each employee. 1040ez irs gov Test 2—For Services Performed You must be able to prove the payment was made for services actually performed. 1040ez irs gov Employee-shareholder salaries. 1040ez irs gov   If a corporation pays an employee who is also a shareholder a salary that is unreasonably high considering the services actually performed, the excessive part of the salary may be treated as a constructive dividend to the employee-shareholder. 1040ez irs gov The excessive part of the salary would not be allowed as a salary deduction by the corporation. 1040ez irs gov For more information on corporate distributions to shareholders, see Publication 542, Corporations. 1040ez irs gov Kinds of Pay Some of the ways you may provide pay to your employees in addition to regular wages or salaries are discussed next. 1040ez irs gov For specialized and detailed information on employees' pay and the employment tax treatment of employees' pay, see Publications 15, 15-A, and 15-B. 1040ez irs gov Awards You can generally deduct amounts you pay to your employees as awards, whether paid in cash or property. 1040ez irs gov If you give property to an employee as an employee achievement award, your deduction may be limited. 1040ez irs gov Achievement awards. 1040ez irs gov   An achievement award is an item of tangible personal property that meets all the following requirements. 1040ez irs gov It is given to an employee for length of service or safety achievement. 1040ez irs gov It is awarded as part of a meaningful presentation. 1040ez irs gov It is awarded under conditions and circumstances that do not create a significant likelihood of disguised pay. 1040ez irs gov Length-of-service award. 1040ez irs gov    An award will qualify as a length-of-service award only if either of the following applies. 1040ez irs gov The employee receives the award after his or her first 5 years of employment. 1040ez irs gov The employee did not receive another length-of-service award (other than one of very small value) during the same year or in any of the prior 4 years. 1040ez irs gov Safety achievement award. 1040ez irs gov    An award for safety achievement will qualify as an achievement award unless one of the following applies. 1040ez irs gov It is given to a manager, administrator, clerical employee, or other professional employee. 1040ez irs gov During the tax year, more than 10% of your employees, excluding those listed in (1), have already received a safety achievement award (other than one of very small value). 1040ez irs gov Deduction limit. 1040ez irs gov   Your deduction for the cost of employee achievement awards given to any one employee during the tax year is limited to the following. 1040ez irs gov $400 for awards that are not qualified plan awards. 1040ez irs gov $1,600 for all awards, whether or not qualified plan awards. 1040ez irs gov   A qualified plan award is an achievement award given as part of an established written plan or program that does not favor highly compensated employees as to eligibility or benefits. 1040ez irs gov   A highly compensated employee is an employee who meets either of the following tests. 1040ez irs gov The employee was a 5% owner at any time during the year or the preceding year. 1040ez irs gov The employee received more than $115,000 in pay for the preceding year. 1040ez irs gov You can choose to ignore test (2) if the employee was not also in the top 20% of employees ranked by pay for the preceding year. 1040ez irs gov   An award is not a qualified plan award if the average cost of all the employee achievement awards given during the tax year (that would be qualified plan awards except for this limit) is more than $400. 1040ez irs gov To figure this average cost, ignore awards of nominal value. 1040ez irs gov Deduct achievement awards as a nonwage business expense on your return or business schedule. 1040ez irs gov You may not owe employment taxes on the value of some achievement awards you provide to an employee. 1040ez irs gov See Publication 15-B. 1040ez irs gov Bonuses You can generally deduct a bonus paid to an employee if you intended the bonus as additional pay for services, not as a gift, and the services were performed. 1040ez irs gov However, the total bonuses, salaries, and other pay must be reasonable for the services performed. 1040ez irs gov If the bonus is paid in property, see Property , later. 1040ez irs gov Gifts of nominal value. 1040ez irs gov    If, to promote employee goodwill, you distribute food or merchandise of nominal value to your employees at holidays, you can deduct the cost of these items as a nonwage business expense. 1040ez irs gov Your deduction for de minimis gifts of food or drink are not subject to the 50% deduction limit that generally applies to meals. 1040ez irs gov For more information on this deduction limit, see Meals and lodging , later. 1040ez irs gov Education Expenses If you pay or reimburse education expenses for an employee, you can deduct the payments if they are part of a qualified educational assistance program. 1040ez irs gov Deduct them on the “Employee benefit programs” or other appropriate line of your tax return. 1040ez irs gov For information on educational assistance programs, see Educational Assistance in section 2 of Publication 15-B. 1040ez irs gov Fringe Benefits A fringe benefit is a form of pay for the performance of services. 1040ez irs gov You can generally deduct the cost of fringe benefits. 1040ez irs gov You may be able to exclude all or part of the value of some fringe benefits from your employees' pay. 1040ez irs gov You also may not owe employment taxes on the value of the fringe benefits. 1040ez irs gov See Table 2-1, Special Rules for Various Types of Fringe Benefits, in Publication 15-B for details. 1040ez irs gov Your deduction for the cost of fringe benefits for activities generally considered entertainment, amusement, or recreation, or for a facility used in connection with such an activity (for example, a company aircraft) for certain officers, directors, and more-than-10% shareholders is limited. 1040ez irs gov Certain fringe benefits are discussed next. 1040ez irs gov See Publication 15-B for more details on these and other fringe benefits. 1040ez irs gov Meals and lodging. 1040ez irs gov   You can usually deduct the cost of furnishing meals and lodging to your employees. 1040ez irs gov Deduct the cost in whatever category the expense falls. 1040ez irs gov For example, if you operate a restaurant, deduct the cost of the meals you furnish to employees as part of the cost of goods sold. 1040ez irs gov If you operate a nursing home, motel, or rental property, deduct the cost of furnishing lodging to an employee as expenses for utilities, linen service, salaries, depreciation, etc. 1040ez irs gov Deduction limit on meals. 1040ez irs gov   You can generally deduct only 50% of the cost of furnishing meals to your employees. 1040ez irs gov However, you can deduct the full cost of the following meals. 1040ez irs gov Meals whose value you include in an employee's wages. 1040ez irs gov Meals that qualify as a de minimis fringe benefit as discussed in section 2 of Publication 15-B. 1040ez irs gov This generally includes meals you furnish to employees at your place of business if more than half of these employees are provided the meals for your convenience. 1040ez irs gov Meals you furnish to your employees at the work site when you operate a restaurant or catering service. 1040ez irs gov Meals you furnish to your employees as part of the expense of providing recreational or social activities, such as a company picnic. 1040ez irs gov Meals you are required by federal law to furnish to crew members of certain commercial vessels (or would be required to furnish if the vessels were operated at sea). 1040ez irs gov This does not include meals you furnish on vessels primarily providing luxury water transportation. 1040ez irs gov Meals you furnish on an oil or gas platform or drilling rig located offshore or in Alaska. 1040ez irs gov This includes meals you furnish at a support camp that is near and integral to an oil or gas drilling rig located in Alaska. 1040ez irs gov Employee benefit programs. 1040ez irs gov   Employee benefit programs include the following. 1040ez irs gov Accident and health plans. 1040ez irs gov Adoption assistance. 1040ez irs gov Cafeteria plans. 1040ez irs gov Dependent care assistance. 1040ez irs gov Education assistance. 1040ez irs gov Life insurance coverage. 1040ez irs gov Welfare benefit funds. 1040ez irs gov   You can generally deduct amounts you spend on employee benefit programs on the applicable line of your tax return. 1040ez irs gov For example, if you provide dependent care by operating a dependent care facility for your employees, deduct your costs in whatever categories they fall (utilities, salaries, etc. 1040ez irs gov ). 1040ez irs gov Life insurance coverage. 1040ez irs gov   You cannot deduct the cost of life insurance coverage for you, an employee, or any person with a financial interest in your business, if you are directly or indirectly the beneficiary of the policy. 1040ez irs gov See Regulations section 1. 1040ez irs gov 264-1 for more information. 1040ez irs gov Welfare benefit funds. 1040ez irs gov   A welfare benefit fund is a funded plan (or a funded arrangement having the effect of a plan) that provides welfare benefits to your employees, independent contractors, or their beneficiaries. 1040ez irs gov Welfare benefits are any benefits other than deferred compensation or transfers of restricted property. 1040ez irs gov   Your deduction for contributions to a welfare benefit fund is limited to the fund's qualified cost for the tax year. 1040ez irs gov If your contributions to the fund are more than its qualified cost, carry the excess over to the next tax year. 1040ez irs gov   Generally, the fund's “qualified cost” is the total of the following amounts, reduced by the after-tax income of the fund. 1040ez irs gov The cost you would have been able to deduct using the cash method of accounting if you had paid for the benefits directly. 1040ez irs gov The contributions added to a reserve account that are needed to fund claims incurred but not paid as of the end of the year. 1040ez irs gov These claims can be for supplemental unemployment benefits, severance pay, or disability, medical, or life insurance benefits. 1040ez irs gov   For more information, see sections 419(c) and 419A of the Internal Revenue Code and the related regulations. 1040ez irs gov Loans or Advances You generally can deduct as wages an advance you make to an employee for services performed if you do not expect the employee to repay the advance. 1040ez irs gov However, if the employee performs no services, treat the amount you advanced as a loan. 1040ez irs gov If the employee does not repay the loan, treat it as income to the employee. 1040ez irs gov Below-market interest rate loans. 1040ez irs gov   On certain loans you make to an employee or shareholder, you are treated as having received interest income and as having paid compensation or dividends equal to that interest. 1040ez irs gov See Below-Market Loans in chapter 4. 1040ez irs gov Property If you transfer property (including your company's stock) to an employee as payment for services, you can generally deduct it as wages. 1040ez irs gov The amount you can deduct is the property's fair market value on the date of the transfer less any amount the employee paid for the property. 1040ez irs gov You can claim the deduction only for the tax year in which your employee includes the property's value in income. 1040ez irs gov Your employee is deemed to have included the value in income if you report it on Form W-2, Wage and Tax Statement, in a timely manner. 1040ez irs gov You treat the deductible amount as received in exchange for the property, and you must recognize any gain or loss realized on the transfer, unless it is the company's stock transferred as payment for services. 1040ez irs gov Your gain or loss is the difference between the fair market value of the property and its adjusted basis on the date of transfer. 1040ez irs gov These rules also apply to property transferred to an independent contractor for services, generally reported on Form 1099-MISC, Miscellaneous Income. 1040ez irs gov Restricted property. 1040ez irs gov   If the property you transfer for services is subject to restrictions that affect its value, you generally cannot deduct it and do not report gain or loss until it is substantially vested in the recipient. 1040ez irs gov However, if the recipient pays for the property, you must report any gain at the time of the transfer up to the amount paid. 1040ez irs gov    “Substantially vested” means the property is not subject to a substantial risk of forfeiture. 1040ez irs gov This means that the recipient is not likely to have to give up his or her rights in the property in the future. 1040ez irs gov Reimbursements for Business Expenses You can generally deduct the amount you pay or reimburse employees for business expenses incurred for your business. 1040ez irs gov However, your deduction may be limited. 1040ez irs gov If you make the payment under an accountable plan, deduct it in the category of the expense paid. 1040ez irs gov For example, if you pay an employee for travel expenses incurred on your behalf, deduct this payment as a travel expense. 1040ez irs gov If you make the payment under a nonaccountable plan, deduct it as wages and include it in the employee's Form W-2. 1040ez irs gov See Reimbursement of Travel, Meals, and Entertainment in chapter 11 for more information about deducting reimbursements and an explanation of accountable and nonaccountable plans. 1040ez irs gov Sick and Vacation Pay Sick pay. 1040ez irs gov   You can deduct amounts you pay to your employees for sickness and injury, including lump-sum amounts, as wages. 1040ez irs gov However, your deduction is limited to amounts not compensated by insurance or other means. 1040ez irs gov Vacation pay. 1040ez irs gov   Vacation pay is an employee benefit. 1040ez irs gov It includes amounts paid for unused vacation leave. 1040ez irs gov You can deduct vacation pay only in the tax year in which the employee actually receives it. 1040ez irs gov This rule applies regardless of whether you use the cash or accrual method of accounting. 1040ez irs gov Prev  Up  Next   Home   More Online Publications
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Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Annapolis 190 Admiral Cochrane Dr.
Annapolis, MD 21401

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(301) 695-7615
Baltimore 31 Hopkins Plaza
Baltimore, MD 21201

Monday-Friday - 8:30 a.m.- 4:30 p.m.


Services Provided

(410) 962-7969 
Frederick  201 Thomas- Johnson Dr.
Frederick, MD 21702 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.) 

 

Services Provided

(301) 695-7615 
Hagerstown  1260 Maryland Ave.
Hagerstown, MD 21740 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.) 

 

Services Provided

(301) 797-6624 
Landover  8401 Corporate Dr.
Landover, MD 20785 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:30 p.m. - 1:30 p.m.)


Services Provided

(240) 613-7952 
LaVale  14701 National Highway 
LaVale, MD 21502 

Monday-Friday - 8:30 a.m.- 2:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)
 

Services Provided

(301) 729-6397 
Salisbury  212 West Main St.
Salisbury, MD 21801 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 


Services Provided

(410) 677-6718
Wheaton  11510 Georgia Ave.
Wheaton, MD 20902 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 

 

Services Provided

(240) 613-8976 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (443) 853-6000 in Baltimore or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
Fallon Federal Building
31 Hopkins Plaza, Room 1432
Baltimore, MD 21201

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 1040ez Irs Gov

1040ez irs gov 30. 1040ez irs gov   How To Figure Your Tax Table of Contents Introduction Figuring Your Tax Alternative Minimum Tax (AMT) Tax Figured by IRSFiling the Return Introduction After you have figured your income and deductions as explained in Parts One through Five, your next step is to figure your tax. 1040ez irs gov This chapter discusses: The general steps you take to figure your tax, An additional tax you may have to pay called the alternative minimum tax (AMT), and The conditions you must meet if you want the IRS to figure your tax. 1040ez irs gov Figuring Your Tax Your income tax is based on your taxable income. 1040ez irs gov After you figure your income tax and AMT, if any, subtract your tax credits and add any other taxes you may owe. 1040ez irs gov The result is your total tax. 1040ez irs gov Compare your total tax with your total payments to determine whether you are entitled to a refund or if you must make a payment. 1040ez irs gov This section provides a general outline of how to figure your tax. 1040ez irs gov You can find step-by-step directions in the Instructions for Forms 1040EZ, 1040A, and 1040. 1040ez irs gov If you are unsure of which tax form you should file, see Which Form Should I Use? in chapter 1. 1040ez irs gov Tax. 1040ez irs gov   Most taxpayers use either the Tax Table or the Tax Computation Worksheet to figure their income tax. 1040ez irs gov However, there are special methods if your income includes any of the following items. 1040ez irs gov A net capital gain. 1040ez irs gov (See chapter 16. 1040ez irs gov ) Qualified dividends taxed at the same rates as a net capital gain. 1040ez irs gov (See chapters 8 and 16. 1040ez irs gov ) Lump-sum distributions. 1040ez irs gov (See chapter 10. 1040ez irs gov ) Farming or fishing income. 1040ez irs gov (See Schedule J (Form 1040), Income Averaging for Farmers and Fishermen. 1040ez irs gov ) Unearned income over $2,000 for certain children. 1040ez irs gov (See chapter 31. 1040ez irs gov ) Parents' election to report child's interest and dividends. 1040ez irs gov (See chapter 31. 1040ez irs gov ) Foreign earned income exclusion or the housing exclusion. 1040ez irs gov (See Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion, and the Foreign Earned Income Tax Worksheet in the Form 1040 instructions. 1040ez irs gov ) Credits. 1040ez irs gov   After you figure your income tax and any AMT (discussed later), determine if you are eligible for any tax credits. 1040ez irs gov Eligibility information for these tax credits is discussed in chapters 32 through 37 and your form instructions. 1040ez irs gov The following table lists the credits you may be able to subtract from your tax and shows where you can find more information on each credit. 1040ez irs gov CREDITS For information on: See  chapter: Adoption 37 Alternative motor vehicle 37 Alternative fuel vehicle refueling  property 37 Child and dependent care 32 Child tax 34 Credit to holders of tax credit  bonds 37 Education 35 Elderly or disabled 33 Electric vehicle 37 Foreign tax 37 Mortgage interest 37 Prior year minimum tax 37 Residential energy 37 Retirement savings contributions 37   Some credits (such as the earned income credit) are not listed because they are treated as payments. 1040ez irs gov See Payments , later. 1040ez irs gov   There are other credits that are not discussed in this publication. 1040ez irs gov These include the following credits. 1040ez irs gov General business credit, which is made up of several separate business-related credits. 1040ez irs gov These generally are reported on Form 3800, General Business Credit, and are discussed in chapter 4 of Publication 334, Tax Guide for Small Business. 1040ez irs gov Renewable electricity, refined coal, and Indian coal production credit for electricity and refined coal produced at facilities placed in service after October 22, 2004 (after October 2, 2008, for electricity produced from marine and hydrokinetic renewables), and Indian coal produced at facilities placed in service after August 8, 2005. 1040ez irs gov See Form 8835, Part II. 1040ez irs gov Work opportunity credit. 1040ez irs gov See Form 5884. 1040ez irs gov Credit for employer social security and Medicare taxes paid on certain employee tips. 1040ez irs gov See Form 8846. 1040ez irs gov Other taxes. 1040ez irs gov   After you subtract your tax credits, determine whether there are any other taxes you must pay. 1040ez irs gov This chapter does not explain these other taxes. 1040ez irs gov You can find that information in other chapters of this publication and your form instructions. 1040ez irs gov See the following table for other taxes you may need to add to your income tax. 1040ez irs gov OTHER TAXES For information on: See  chapter: Additional taxes on qualified retirement plans and IRAs 10, 17 Household employment taxes 32 Recapture of an education credit 35 Social security and Medicare tax on wages 5 Social security and Medicare tax on tips 6 Uncollected social security and Medicare tax on tips 6   You also may have to pay AMT (discussed later in this chapter). 1040ez irs gov   There are other taxes that are not discussed in this publication. 1040ez irs gov These include the following items. 1040ez irs gov Self-employment tax. 1040ez irs gov You must figure this tax if either of the following applies to you (or your spouse if you file a joint return). 1040ez irs gov Your net earnings from self-employment from other than church employee income were $400 or more. 1040ez irs gov The term “net earnings from self-employment” may include certain nonemployee compensation and other amounts reported to you on Form 1099-MISC, Miscellaneous Income. 1040ez irs gov If you received a Form 1099-MISC, see the Instructions for Recipient on the back. 1040ez irs gov Also see the Instructions for Schedule SE (Form 1040), Self-Employment Tax; and Publication 334, Tax Guide for Small Business. 1040ez irs gov You had church employee income of $108. 1040ez irs gov 28 or more. 1040ez irs gov Additional Medicare Tax. 1040ez irs gov Beginning in 2013, you may be subject to a 0. 1040ez irs gov 9% Additional Medicare Tax that applies to Medicare wages, Railroad Retirement Act compensation, and self-employment income over a threshold based on your filing status. 1040ez irs gov For more information, see the Instructions for Form 1040, line 60 and Form 8959. 1040ez irs gov Net Investment Income Tax (NIIT). 1040ez irs gov Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). 1040ez irs gov NIIT is a 3. 1040ez irs gov 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. 1040ez irs gov For more information, see the Instructions for Form 1040, line 60 and Form 8960. 1040ez irs gov Recapture taxes. 1040ez irs gov You may have to pay these taxes if you previously claimed an investment credit, a low-income housing credit, a new markets credit, a qualified plug-in electric drive motor vehicle credit, an alternative motor vehicle credit, a credit for employer-provided child care facilities, an Indian employment credit, or other credits listed in the instructions for Form 1040, line 60. 1040ez irs gov For more information, see the instructions for Form 1040, line 60. 1040ez irs gov Section 72(m)(5) excess benefits tax. 1040ez irs gov If you are (or were) a 5% owner of a business and you received a distribution that exceeds the benefits provided for you under the qualified pension or annuity plan formula, you may have to pay this additional tax. 1040ez irs gov See Tax on Excess Benefits in chapter 4 of Publication 560, Retirement Plans for Small Business. 1040ez irs gov Uncollected social security and Medicare tax on group-term life insurance. 1040ez irs gov If your former employer provides you with more than $50,000 of group-term life insurance coverage, you must pay the employee part of social security and Medicare taxes on those premiums. 1040ez irs gov The amount should be shown in box 12 of your Form W-2 with codes M and N. 1040ez irs gov Tax on golden parachute payments. 1040ez irs gov This tax applies if you received an “excess parachute payment” (EPP) due to a change in a corporation's ownership or control. 1040ez irs gov The amount should be shown in box 12 of your Form W-2 with code K. 1040ez irs gov See the instructions for Form 1040, line 60. 1040ez irs gov Tax on accumulation distribution of trusts. 1040ez irs gov This applies if you are the beneficiary of a trust that accumulated its income instead of distributing it currently. 1040ez irs gov See Form 4970 and its instructions. 1040ez irs gov Additional tax on HSAs or MSAs. 1040ez irs gov If amounts contributed to, or distributed from, your health savings account or medical savings account do not meet the rules for these accounts, you may have to pay additional taxes. 1040ez irs gov See Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans; Form 8853, Archer MSAs and Long-Term Care Insurance Contracts; Form 8889, Health Savings Accounts (HSAs); and Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. 1040ez irs gov Additional tax on Coverdell ESAs. 1040ez irs gov This applies if amounts contributed to, or distributed from, your Coverdell ESA do not meet the rules for these accounts. 1040ez irs gov See Publication 970, Tax Benefits for Education, and Form 5329. 1040ez irs gov Additional tax on qualified tuition programs. 1040ez irs gov This applies to amounts distributed from qualified tuition programs that do not meet the rules for these accounts. 1040ez irs gov See Publication 970 and Form 5329. 1040ez irs gov Excise tax on insider stock compensation from an expatriated corporation. 1040ez irs gov You may owe a 15% excise tax on the value of nonstatutory stock options and certain other stock-based compensation held by you or a member of your family from an expatriated corporation or its expanded affiliated group in which you were an officer, director, or more-than-10% owner. 1040ez irs gov For more information, see the instructions for Form 1040, line 60. 1040ez irs gov Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. 1040ez irs gov This income should be shown in Form W-2, box 12, with code Z, or in Form 1099-MISC, box 15b. 1040ez irs gov For more information, see the instructions for Form 1040, line 60. 1040ez irs gov Interest on the tax due on installment income from the sale of certain residential lots and timeshares. 1040ez irs gov For more information, see the instructions for Form 1040, line 60. 1040ez irs gov Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. 1040ez irs gov For more information, see the instructions for Form 1040, line 60. 1040ez irs gov Repayment of first-time homebuyer credit. 1040ez irs gov For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. 1040ez irs gov Also see the instructions for Form 1040, line 59b. 1040ez irs gov Payments. 1040ez irs gov   After you determine your total tax, figure the total payments you have already made for the year. 1040ez irs gov Include credits that are treated as payments. 1040ez irs gov This chapter does not explain these payments and credits. 1040ez irs gov You can find that information in other chapters of this publication and your form instructions. 1040ez irs gov See the following table for amounts you can include in your total payments. 1040ez irs gov PAYMENTS For information on: See  chapter: Child tax credit (additional) 34 Earned income credit 36 Estimated tax paid 4 Excess social security   and RRTA tax withheld 37 Federal income tax withheld 4 Health coverage tax credit 37 Credit for tax on   undistributed capital gain 37 Tax paid with extension 1   Another credit that is treated as a payment is the credit for federal excise tax paid on fuels. 1040ez irs gov This credit is for persons who have a nontaxable use of certain fuels, such as diesel fuel and kerosene. 1040ez irs gov It is claimed on Form 1040, line 70. 1040ez irs gov See Form 4136, Credit for Federal Tax Paid on Fuels. 1040ez irs gov Refund or balance due. 1040ez irs gov   To determine whether you are entitled to a refund or whether you must make a payment, compare your total payments with your total tax. 1040ez irs gov If you are entitled to a refund, see your form instructions for information on having it directly deposited into one or more of your accounts, or to purchase U. 1040ez irs gov S. 1040ez irs gov savings bonds instead of receiving a paper check. 1040ez irs gov Alternative Minimum Tax (AMT) This section briefly discusses an additional tax you may have to pay. 1040ez irs gov The tax law gives special treatment to some kinds of income and allows special deductions and credits for some kinds of expenses. 1040ez irs gov Taxpayers who benefit from this special treatment may have to pay at least a minimum amount of tax through an additional tax called AMT. 1040ez irs gov You may have to pay the AMT if your taxable income for regular tax purposes, combined with certain adjustments and tax preference items, is more than a certain amount. 1040ez irs gov See Form 6251, Alternative Minimum Tax — Individuals. 1040ez irs gov Adjustments and tax preference items. 1040ez irs gov   The more common adjustments and tax preference items include: Addition of personal exemptions, Addition of the standard deduction (if claimed), Addition of itemized deductions claimed for state and local taxes, certain interest, most miscellaneous deductions, and part of medical expenses, Subtraction of any refund of state and local taxes included in gross income, Changes to accelerated depreciation of certain property, Difference between gain or loss on the sale of property reported for regular tax purposes and AMT purposes, Addition of certain income from incentive stock options, Change in certain passive activity loss deductions, Addition of certain depletion that is more than the adjusted basis of the property, Addition of part of the deduction for certain intangible drilling costs, and Addition of tax-exempt interest on certain private activity bonds. 1040ez irs gov More information. 1040ez irs gov   For more information about the AMT, see the instructions for Form 6251. 1040ez irs gov Tax Figured by IRS If you file by April 15, 2014, you can have the IRS figure your tax for you on Form 1040EZ, Form 1040A, or Form 1040. 1040ez irs gov If the IRS figures your tax and you paid too much, you will receive a refund. 1040ez irs gov If you did not pay enough, you will receive a bill for the balance. 1040ez irs gov To avoid interest or the penalty for late payment, you must pay the bill within 30 days of the date of the bill or by the due date for your return, whichever is later. 1040ez irs gov The IRS can also figure the credit for the elderly or the disabled and the earned income credit for you. 1040ez irs gov When the IRS cannot figure your tax. 1040ez irs gov   The IRS cannot figure your tax for you if any of the following apply. 1040ez irs gov You want your refund directly deposited into your accounts. 1040ez irs gov You want any part of your refund applied to your 2014 estimated tax. 1040ez irs gov You had income for the year from sources other than wages, salaries, tips, interest, dividends, taxable social security benefits, unemployment compensation, IRA distributions, pensions, and annuities. 1040ez irs gov Your taxable income is $100,000 or more. 1040ez irs gov You itemize deductions. 1040ez irs gov You file any of the following forms. 1040ez irs gov Form 2555, Foreign Earned Income. 1040ez irs gov Form 2555-EZ, Foreign Earned Income Exclusion. 1040ez irs gov Form 4137, Social Security and Medicare Tax on Unreported Tip Income. 1040ez irs gov Form 4970, Tax on Accumulation Distribution of Trusts. 1040ez irs gov Form 4972, Tax on Lump-Sum Distributions. 1040ez irs gov Form 6198, At-Risk Limitations. 1040ez irs gov Form 6251, Alternative Minimum Tax—Individuals. 1040ez irs gov Form 8606, Nondeductible IRAs. 1040ez irs gov Form 8615, Tax for Certain Children Who Have Unearned Income. 1040ez irs gov Form 8814, Parents' Election To Report Child's Interest and Dividends. 1040ez irs gov Form 8839, Qualified Adoption Expenses. 1040ez irs gov Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. 1040ez irs gov Form 8889, Health Savings Accounts (HSAs). 1040ez irs gov Form 8919, Uncollected Social Security and Medicare Tax on Wages. 1040ez irs gov Filing the Return After you complete the line entries for the tax form you are filing, fill in your name and address. 1040ez irs gov Enter your social security number in the space provided. 1040ez irs gov If you are married, enter the social security numbers of you and your spouse even if you file separately. 1040ez irs gov Sign and date your return and enter your occupation(s). 1040ez irs gov If you are filing a joint return, both you and your spouse must sign it. 1040ez irs gov Enter your daytime phone number in the space provided. 1040ez irs gov This may help speed the processing of your return if we have a question that can be answered over the phone. 1040ez irs gov If you are filing a joint return, you may enter either your or your spouse's daytime phone number. 1040ez irs gov If you want to allow a friend, family member, or any other person you choose to discuss your 2013 tax return with the IRS, check the “Yes” box in the “Third party designee” area on your return. 1040ez irs gov Also enter the designee's name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN). 1040ez irs gov If you check the “Yes” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. 1040ez irs gov Fill in and attach any schedules and forms asked for on the lines you completed to your paper return. 1040ez irs gov Attach a copy of each of your Forms W-2 to your paper return. 1040ez irs gov Also attach to your paper return any Form 1099-R you received that has withholding tax in box 4. 1040ez irs gov Mail your return to the Internal Revenue Service Center for the area where you live. 1040ez irs gov A list of Service Center addresses is in the instructions for your tax return. 1040ez irs gov Form 1040EZ Line Entries Read lines 1 through 8b and fill in the lines that apply to you. 1040ez irs gov Do not complete lines 9 through 12. 1040ez irs gov If you are filing a joint return, use the space to the left of line 6 to separately show your taxable income and your spouse's taxable income. 1040ez irs gov Payments. 1040ez irs gov   Enter any federal income tax withheld on line 7. 1040ez irs gov Federal income tax withheld is shown on Form W-2, box 2, or Form 1099, box 4. 1040ez irs gov Earned income credit. 1040ez irs gov   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. 1040ez irs gov Enter “EIC” in the space to the left of line 8a. 1040ez irs gov Enter the nontaxable combat pay you elect to include in earned income on line 8b. 1040ez irs gov   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862, Information To Claim Earned Income Credit After Disallowance, with your return. 1040ez irs gov For details, see the Form 1040EZ Instructions. 1040ez irs gov Form 1040A Line Entries Read lines 1 through 27 and fill in the lines that apply to you. 1040ez irs gov If you are filing a joint return, use the space to the left of the entry space for line 27 to separately show your taxable income and your spouse's taxable income. 1040ez irs gov Do not complete line 28. 1040ez irs gov Complete lines 29 through 33 and 36 through 40 if they apply to you. 1040ez irs gov However, do not fill in lines 30 and 38a if you want the IRS to figure the credits shown on those lines. 1040ez irs gov Also, enter any write-in information that applies to you in the space to the left of line 41. 1040ez irs gov Do not complete lines 34, 35, and 42 through 46. 1040ez irs gov Payments. 1040ez irs gov   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 36. 1040ez irs gov Enter any estimated tax payments you made on line 37. 1040ez irs gov Credit for child and dependent care expenses. 1040ez irs gov   If you can take this credit, as discussed in chapter 32, complete Form 2441, Child and Dependent Care Expenses, and attach it to your return. 1040ez irs gov Enter the amount of the credit on line 29. 1040ez irs gov The IRS will not figure this credit. 1040ez irs gov Credit for the elderly or the disabled. 1040ez irs gov   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. 1040ez irs gov Enter “CFE” in the space to the left of line 30 and attach Schedule R (Form 1040A or 1040), Credit for the Elderly or the Disabled, to your paper return. 1040ez irs gov On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. 1040ez irs gov Complete Part II and Part III, lines 11 and 13, if they apply. 1040ez irs gov Earned income credit. 1040ez irs gov   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. 1040ez irs gov Enter “EIC” to the left of the entry space for line 38a. 1040ez irs gov Enter the nontaxable combat pay you elect to include in earned income on line 38b. 1040ez irs gov    If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. 1040ez irs gov If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. 1040ez irs gov   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. 1040ez irs gov For details, see the Form 1040A Instructions. 1040ez irs gov Form 1040 Line Entries Read lines 1 through 43 and fill in the lines that apply to you. 1040ez irs gov Do not complete line 44. 1040ez irs gov If you are filing a joint return, use the space under the words “Adjusted Gross Income” on the front of your return to separately show your taxable income and your spouse's taxable income. 1040ez irs gov Read lines 45 through 71. 1040ez irs gov Fill in the lines that apply to you, but do not fill in lines 54, 61, and 72. 1040ez irs gov Also, do not complete line 55 and lines 73 through 77. 1040ez irs gov Do not fill in line 53, box “c,” if you are completing Schedule R (Form 1040A or 1040), or line 64a if you want the IRS to figure the credits shown on those lines. 1040ez irs gov Payments. 1040ez irs gov   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 62. 1040ez irs gov Enter any estimated tax payments you made on line 63. 1040ez irs gov Credit for child and dependent care expenses. 1040ez irs gov   If you can take this credit, as discussed in chapter 32, complete Form 2441 and attach it to your paper return. 1040ez irs gov Enter the amount of the credit on line 48. 1040ez irs gov The IRS will not figure this credit. 1040ez irs gov Credit for the elderly or the disabled. 1040ez irs gov   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. 1040ez irs gov Enter “CFE” on the line next to line 53, check box “c,” and attach Schedule R (Form 1040A or 1040) to your paper return. 1040ez irs gov On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. 1040ez irs gov Complete Part II and Part III, lines 11 and 13, if they apply. 1040ez irs gov Earned income credit. 1040ez irs gov   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. 1040ez irs gov Enter “EIC” on the dotted line next to Form 1040, line 64a. 1040ez irs gov Enter the nontaxable combat pay you elect to include in earned income on line 64b. 1040ez irs gov   If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. 1040ez irs gov If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. 1040ez irs gov   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. 1040ez irs gov For details, see the Form 1040 Instructions. 1040ez irs gov Prev  Up  Next   Home   More Online Publications