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1040ez Tax Form 2010

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1040ez Tax Form 2010

1040ez tax form 2010 18. 1040ez tax form 2010   Alimony Table of Contents IntroductionSpouse or former spouse. 1040ez tax form 2010 Divorce or separation instrument. 1040ez tax form 2010 Useful Items - You may want to see: General RulesMortgage payments. 1040ez tax form 2010 Taxes and insurance. 1040ez tax form 2010 Other payments to a third party. 1040ez tax form 2010 Instruments Executed After 1984Payments to a third party. 1040ez tax form 2010 Exception. 1040ez tax form 2010 Substitute payments. 1040ez tax form 2010 Specifically designated as child support. 1040ez tax form 2010 Contingency relating to your child. 1040ez tax form 2010 Clearly associated with a contingency. 1040ez tax form 2010 How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule Introduction This chapter discusses the rules that apply if you pay or receive alimony. 1040ez tax form 2010 It covers the following topics. 1040ez tax form 2010 What payments are alimony. 1040ez tax form 2010 What payments are not alimony, such as child support. 1040ez tax form 2010 How to deduct alimony you paid. 1040ez tax form 2010 How to report alimony you received as income. 1040ez tax form 2010 Whether you must recapture the tax benefits of alimony. 1040ez tax form 2010 Recapture means adding back in your income all or part of a deduction you took in a prior year. 1040ez tax form 2010 Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. 1040ez tax form 2010 It does not include voluntary payments that are not made under a divorce or separation instrument. 1040ez tax form 2010 Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. 1040ez tax form 2010 Although this chapter is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony. 1040ez tax form 2010 To be alimony, a payment must meet certain requirements. 1040ez tax form 2010 Different requirements generally apply to payments under instruments executed after 1984 and to payments under instruments executed before 1985. 1040ez tax form 2010 This chapter discusses the rules for payments under instruments executed after 1984. 1040ez tax form 2010 If you need the rules for payments under pre-1985 instruments, get and keep a copy of the 2004 version of Publication 504. 1040ez tax form 2010 That was the last year the information on pre-1985 instruments was included in Publication 504. 1040ez tax form 2010 Use Table 18-1 in this chapter as a guide to determine whether certain payments are considered alimony. 1040ez tax form 2010 Definitions. 1040ez tax form 2010   The following definitions apply throughout this chapter. 1040ez tax form 2010 Spouse or former spouse. 1040ez tax form 2010   Unless otherwise stated, the term “spouse” includes former spouse. 1040ez tax form 2010 Divorce or separation instrument. 1040ez tax form 2010   The term “divorce or separation instrument” means: A decree of divorce or separate maintenance or a written instrument incident to that decree, A written separation agreement, or A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. 1040ez tax form 2010 This includes a temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or agreement). 1040ez tax form 2010 Useful Items - You may want to see: Publication 504 Divorced or Separated Individuals General Rules The following rules apply to alimony regardless of when the divorce or separation instrument was executed. 1040ez tax form 2010 Payments not alimony. 1040ez tax form 2010   Not all payments under a divorce or separation instrument are alimony. 1040ez tax form 2010 Alimony does not include: Child support, Noncash property settlements, Payments that are your spouse's part of community income, as explained under Community Property in Publication 504, Payments to keep up the payer's property, or Use of the payer's property. 1040ez tax form 2010 Payments to a third party. 1040ez tax form 2010   Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. 1040ez tax form 2010 These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc. 1040ez tax form 2010 ), taxes, tuition, etc. 1040ez tax form 2010 The payments are treated as received by your spouse and then paid to the third party. 1040ez tax form 2010 Life insurance premiums. 1040ez tax form 2010   Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the policy. 1040ez tax form 2010 Payments for jointly-owned home. 1040ez tax form 2010   If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse, some of your payments may be alimony. 1040ez tax form 2010 Mortgage payments. 1040ez tax form 2010   If you must pay all the mortgage payments (principal and interest) on a jointly-owned home, and they otherwise qualify as alimony, you can deduct one-half of the total payments as alimony. 1040ez tax form 2010 If you itemize deductions and the home is a qualified home, you can claim one-half of the interest in figuring your deductible interest. 1040ez tax form 2010 Your spouse must report one-half of the payments as alimony received. 1040ez tax form 2010 If your spouse itemizes deductions and the home is a qualified home, he or she can claim one-half of the interest on the mortgage in figuring deductible interest. 1040ez tax form 2010 Taxes and insurance. 1040ez tax form 2010   If you must pay all the real estate taxes or insurance on a home held as tenants in common, you can deduct one-half of these payments as alimony. 1040ez tax form 2010 Your spouse must report one-half of these payments as alimony received. 1040ez tax form 2010 If you and your spouse itemize deductions, you can each claim one-half of the real estate taxes and none of the home insurance. 1040ez tax form 2010    If your home is held as tenants by the entirety or joint tenants, none of your payments for taxes or insurance are alimony. 1040ez tax form 2010 But if you itemize deductions, you can claim all of the real estate taxes and none of the home insurance. 1040ez tax form 2010 Other payments to a third party. 1040ez tax form 2010   If you made other third-party payments, see Publication 504 to see whether any part of the payments qualifies as alimony. 1040ez tax form 2010 Instruments Executed After 1984 The following rules for alimony apply to payments under divorce or separation instruments executed after 1984. 1040ez tax form 2010 Exception for instruments executed before 1985. 1040ez tax form 2010   There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985. 1040ez tax form 2010 A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will apply. 1040ez tax form 2010 A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984 that: Changes the amount or period of payment, or Adds or deletes any contingency or condition. 1040ez tax form 2010   For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, get the 2004 version of Publication 504 at www. 1040ez tax form 2010 irs. 1040ez tax form 2010 gov/pub504. 1040ez tax form 2010 Example 1. 1040ez tax form 2010 In November 1984, you and your former spouse executed a written separation agreement. 1040ez tax form 2010 In February 1985, a decree of divorce was substituted for the written separation agreement. 1040ez tax form 2010 The decree of divorce did not change the terms for the alimony you pay your former spouse. 1040ez tax form 2010 The decree of divorce is treated as executed before 1985. 1040ez tax form 2010 Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984. 1040ez tax form 2010 Example 2. 1040ez tax form 2010 Assume the same facts as in Example 1 except that the decree of divorce changed the amount of the alimony. 1040ez tax form 2010 In this example, the decree of divorce is not treated as executed before 1985. 1040ez tax form 2010 The alimony payments are subject to the rules for payments under instruments executed after 1984. 1040ez tax form 2010 Alimony requirements. 1040ez tax form 2010   A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met. 1040ez tax form 2010 The payment is in cash. 1040ez tax form 2010 The instrument does not designate the payment as not alimony. 1040ez tax form 2010 Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. 1040ez tax form 2010 There is no liability to make any payment (in cash or property) after the death of the recipient spouse. 1040ez tax form 2010 The payment is not treated as child support. 1040ez tax form 2010 Each of these requirements is discussed below. 1040ez tax form 2010 Cash payment requirement. 1040ez tax form 2010   Only cash payments, including checks and money orders, qualify as alimony. 1040ez tax form 2010 The following do not qualify as alimony. 1040ez tax form 2010 Transfers of services or property (including a debt instrument of a third party or an annuity contract). 1040ez tax form 2010 Execution of a debt instrument by the payer. 1040ez tax form 2010 The use of the payer's property. 1040ez tax form 2010 Payments to a third party. 1040ez tax form 2010   Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. 1040ez tax form 2010 See Payments to a third party under General Rules, earlier. 1040ez tax form 2010   Also, cash payments made to a third party at the written request of your spouse may qualify as alimony if all the following requirements are met. 1040ez tax form 2010 The payments are in lieu of payments of alimony directly to your spouse. 1040ez tax form 2010 The written request states that both spouses intend the payments to be treated as alimony. 1040ez tax form 2010 You receive the written request from your spouse before you file your return for the year you made the payments. 1040ez tax form 2010 Payments designated as not alimony. 1040ez tax form 2010   You and your spouse can designate that otherwise qualifying payments are not alimony. 1040ez tax form 2010 You do this by including a provision in your divorce or separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. 1040ez tax form 2010 For this purpose, any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is treated as a written separation agreement (and therefore a divorce or separation instrument). 1040ez tax form 2010 If you are subject to temporary support orders, the designation must be made in the original or a later temporary support order. 1040ez tax form 2010   Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her return. 1040ez tax form 2010 The copy must be attached each year the designation applies. 1040ez tax form 2010 Spouses cannot be members of the same household. 1040ez tax form 2010    Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. 1040ez tax form 2010 A home you formerly shared is considered one household, even if you physically separate yourselves in the home. 1040ez tax form 2010   You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment. 1040ez tax form 2010 Exception. 1040ez tax form 2010   If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree, or other court order may qualify as alimony even if you are members of the same household when the payment is made. 1040ez tax form 2010 Table 18-1. 1040ez tax form 2010 Alimony Requirements (Instruments Executed After 1984) Payments ARE alimony if all of the following are true: Payments are NOT alimony if any of the following are true: Payments are required by a divorce or separation instrument. 1040ez tax form 2010 Payments are not required by a divorce or separation instrument. 1040ez tax form 2010 Payer and recipient spouse do not file a joint return with each other. 1040ez tax form 2010 Payer and recipient spouse file a joint return with each other. 1040ez tax form 2010 Payment is in cash (including checks or money orders). 1040ez tax form 2010 Payment is: Not in cash, A noncash property settlement, Spouse's part of community income, or To keep up the payer's property. 1040ez tax form 2010 Payment is not designated in the instrument as not alimony. 1040ez tax form 2010 Payment is designated in the instrument as not alimony. 1040ez tax form 2010 Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. 1040ez tax form 2010 Spouses legally separated under a decree of divorce or separate maintenance are members of the same household. 1040ez tax form 2010 Payments are not required after death of the recipient spouse. 1040ez tax form 2010 Payments are required after death of the recipient spouse. 1040ez tax form 2010 Payment is not treated as child support. 1040ez tax form 2010 Payment is treated as child support. 1040ez tax form 2010 These payments are deductible by the payer and includible in income by the recipient. 1040ez tax form 2010 These payments are neither deductible by the payer nor includible in income by the recipient. 1040ez tax form 2010 Liability for payments after death of recipient spouse. 1040ez tax form 2010   If any part of payments you make must continue to be made for any period after your spouse's death, that part of your payments is not alimony, whether made before or after the death. 1040ez tax form 2010 If all of the payments would continue, then none of the payments made before or after the death are alimony. 1040ez tax form 2010   The divorce or separation instrument does not have to expressly state that the payments cease upon the death of your spouse if, for example, the liability for continued payments would end under state law. 1040ez tax form 2010 Example. 1040ez tax form 2010 You must pay your former spouse $10,000 in cash each year for 10 years. 1040ez tax form 2010 Your divorce decree states that the payments will end upon your former spouse's death. 1040ez tax form 2010 You must also pay your former spouse or your former spouse's estate $20,000 in cash each year for 10 years. 1040ez tax form 2010 The death of your spouse would not terminate these payments under state law. 1040ez tax form 2010 The $10,000 annual payments may qualify as alimony. 1040ez tax form 2010 The $20,000 annual payments that do not end upon your former spouse's death are not alimony. 1040ez tax form 2010 Substitute payments. 1040ez tax form 2010   If you must make any payments in cash or property after your spouse's death as a substitute for continuing otherwise qualifying payments before the death, the otherwise qualifying payments are not alimony. 1040ez tax form 2010 To the extent that your payments begin, accelerate, or increase because of the death of your spouse, otherwise qualifying payments you made may be treated as payments that were not alimony. 1040ez tax form 2010 Whether or not such payments will be treated as not alimony depends on all the facts and circumstances. 1040ez tax form 2010 Example 1. 1040ez tax form 2010 Under your divorce decree, you must pay your former spouse $30,000 annually. 1040ez tax form 2010 The payments will stop at the end of 6 years or upon your former spouse's death, if earlier. 1040ez tax form 2010 Your former spouse has custody of your minor children. 1040ez tax form 2010 The decree provides that if any child is still a minor at your spouse's death, you must pay $10,000 annually to a trust until the youngest child reaches the age of majority. 1040ez tax form 2010 The trust income and corpus (principal) are to be used for your children's benefit. 1040ez tax form 2010 These facts indicate that the payments to be made after your former spouse's death are a substitute for $10,000 of the $30,000 annual payments. 1040ez tax form 2010 Of each of the $30,000 annual payments, $10,000 is not alimony. 1040ez tax form 2010 Example 2. 1040ez tax form 2010 Under your divorce decree, you must pay your former spouse $30,000 annually. 1040ez tax form 2010 The payments will stop at the end of 15 years or upon your former spouse's death, if earlier. 1040ez tax form 2010 The decree provides that if your former spouse dies before the end of the 15-year period, you must pay the estate the difference between $450,000 ($30,000 × 15) and the total amount paid up to that time. 1040ez tax form 2010 For example, if your spouse dies at the end of the tenth year, you must pay the estate $150,000 ($450,000 − $300,000). 1040ez tax form 2010 These facts indicate that the lump-sum payment to be made after your former spouse's death is a substitute for the full amount of the $30,000 annual payments. 1040ez tax form 2010 None of the annual payments are alimony. 1040ez tax form 2010 The result would be the same if the payment required at death were to be discounted by an appropriate interest factor to account for the prepayment. 1040ez tax form 2010 Child support. 1040ez tax form 2010   A payment that is specifically designated as child support or treated as specifically designated as child support under your divorce or separation instrument is not alimony. 1040ez tax form 2010 The amount of child support may vary over time. 1040ez tax form 2010 Child support payments are not deductible by the payer and are not taxable to the recipient. 1040ez tax form 2010 Specifically designated as child support. 1040ez tax form 2010   A payment will be treated as specifically designated as child support to the extent that the payment is reduced either: On the happening of a contingency relating to your child, or At a time that can be clearly associated with the contingency. 1040ez tax form 2010 A payment may be treated as specifically designated as child support even if other separate payments are specifically designated as child support. 1040ez tax form 2010 Contingency relating to your child. 1040ez tax form 2010   A contingency relates to your child if it depends on any event relating to that child. 1040ez tax form 2010 It does not matter whether the event is certain or likely to occur. 1040ez tax form 2010 Events relating to your child include the child's: Becoming employed, Dying, Leaving the household, Leaving school, Marrying, or Reaching a specified age or income level. 1040ez tax form 2010 Clearly associated with a contingency. 1040ez tax form 2010   Payments that would otherwise qualify as alimony are presumed to be reduced at a time clearly associated with the happening of a contingency relating to your child only in the following situations. 1040ez tax form 2010 The payments are to be reduced not more than 6 months before or after the date the child will reach 18, 21, or local age of majority. 1040ez tax form 2010 The payments are to be reduced on two or more occasions that occur not more than 1 year before or after a different one of your children reaches a certain age from 18 to 24. 1040ez tax form 2010 This certain age must be the same for each child, but need not be a whole number of years. 1040ez tax form 2010 In all other situations, reductions in payments are not treated as clearly associated with the happening of a contingency relating to your child. 1040ez tax form 2010   Either you or the IRS can overcome the presumption in the two situations above. 1040ez tax form 2010 This is done by showing that the time at which the payments are to be reduced was determined independently of any contingencies relating to your children. 1040ez tax form 2010 For example, if you can show that the period of alimony payments is customary in the local jurisdiction, such as a period equal to one-half of the duration of the marriage, you can overcome the presumption and may be able to treat the amount as alimony. 1040ez tax form 2010 How To Deduct Alimony Paid You can deduct alimony you paid, whether or not you itemize deductions on your return. 1040ez tax form 2010 You must file Form 1040. 1040ez tax form 2010 You cannot use Form 1040A or Form 1040EZ. 1040ez tax form 2010 Enter the amount of alimony you paid on Form 1040, line 31a. 1040ez tax form 2010 In the space provided on line 31b, enter your spouse's social security number (SSN) or individual taxpayer identification number (ITIN). 1040ez tax form 2010 If you paid alimony to more than one person, enter the SSN or ITIN of one of the recipients. 1040ez tax form 2010 Show the SSN or ITIN and amount paid to each other recipient on an attached statement. 1040ez tax form 2010 Enter your total payments on line 31a. 1040ez tax form 2010 You must provide your spouse's SSN or ITIN. 1040ez tax form 2010 If you do not, you may have to pay a $50 penalty and your deduction may be disallowed. 1040ez tax form 2010 For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. 1040ez tax form 2010 How To Report Alimony Received Report alimony you received as income on Form 1040, line 11. 1040ez tax form 2010 You cannot use Form 1040A or Form 1040EZ. 1040ez tax form 2010 You must give the person who paid the alimony your SSN or ITIN. 1040ez tax form 2010 If you do not, you may have to pay a $50 penalty. 1040ez tax form 2010 Recapture Rule If your alimony payments decrease or end during the first 3 calendar years, you may be subject to the recapture rule. 1040ez tax form 2010 If you are subject to this rule, you have to include in income in the third year part of the alimony payments you previously deducted. 1040ez tax form 2010 Your spouse can deduct in the third year part of the alimony payments he or she previously included in income. 1040ez tax form 2010 The 3-year period starts with the first calendar year you make a payment qualifying as alimony under a decree of divorce or separate maintenance or a written separation agreement. 1040ez tax form 2010 Do not include any time in which payments were being made under temporary support orders. 1040ez tax form 2010 The second and third years are the next 2 calendar years, whether or not payments are made during those years. 1040ez tax form 2010 The reasons for a reduction or end of alimony payments that can require a recapture include: A change in your divorce or separation instrument, A failure to make timely payments, A reduction in your ability to provide support, or A reduction in your spouse's support needs. 1040ez tax form 2010 When to apply the recapture rule. 1040ez tax form 2010   You are subject to the recapture rule in the third year if the alimony you pay in the third year decreases by more than $15,000 from the second year or the alimony you pay in the second and third years decreases significantly from the alimony you pay in the first year. 1040ez tax form 2010   When you figure a decrease in alimony, do not include the following amounts. 1040ez tax form 2010 Payments made under a temporary support order. 1040ez tax form 2010 Payments required over a period of at least 3 calendar years that vary because they are a fixed part of your income from a business or property, or from compensation for employment or self-employment. 1040ez tax form 2010 Payments that decrease because of the death of either spouse or the remarriage of the spouse receiving the payments before the end of the third year. 1040ez tax form 2010 Figuring the recapture. 1040ez tax form 2010   You can use Worksheet 1 in Publication 504 to figure recaptured alimony. 1040ez tax form 2010 Including the recapture in income. 1040ez tax form 2010   If you must include a recapture amount in income, show it on Form 1040, line 11 (“Alimony received”). 1040ez tax form 2010 Cross out “received” and enter “recapture. 1040ez tax form 2010 ” On the dotted line next to the amount, enter your spouse's last name and SSN or ITIN. 1040ez tax form 2010 Deducting the recapture. 1040ez tax form 2010   If you can deduct a recapture amount, show it on Form 1040, line 31a (“Alimony paid”). 1040ez tax form 2010 Cross out “paid” and enter “recapture. 1040ez tax form 2010 ” In the space provided, enter your spouse's SSN or ITIN. 1040ez tax form 2010 Prev  Up  Next   Home   More Online Publications
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The 1040ez Tax Form 2010

1040ez tax form 2010 13. 1040ez tax form 2010   Employment Taxes Table of Contents What's New for 2013 What's New for 2014 Reminders Important Dates for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Farm Employment Family Employees Crew Leaders Social Security and Medicare TaxesReligious exemption. 1040ez tax form 2010 Wage limit. 1040ez tax form 2010 Federal Income Tax WithholdingNew Form W-4 for 2014. 1040ez tax form 2010 Required Notice to Employees About Earned Income Credit (EIC) Reporting and Paying Social Security, Medicare, and Withheld Federal Income TaxesElectronic deposit requirement. 1040ez tax form 2010 Federal Unemployment (FUTA) TaxReporting and Paying FUTA Tax What's New for 2013 Social security and Medicare tax for 2013. 1040ez tax form 2010  The employee tax rate for social security is 6. 1040ez tax form 2010 2%. 1040ez tax form 2010 Previously, the employee tax rate for social security was 4. 1040ez tax form 2010 2%. 1040ez tax form 2010 The employer tax rate for social security remains unchanged at 6. 1040ez tax form 2010 2%. 1040ez tax form 2010 The social security wage base limit is $113,700. 1040ez tax form 2010 The Medicare tax rate is 1. 1040ez tax form 2010 45% each for the employee and employer, unchanged from 2012. 1040ez tax form 2010 There is no wage base limit for Medicare tax. 1040ez tax form 2010 Additional Medicare Tax. 1040ez tax form 2010  In addition to withholding Medicare tax at 1. 1040ez tax form 2010 45%, you must withhold a 0. 1040ez tax form 2010 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez tax form 2010 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. 1040ez tax form 2010 Additional Medicare Tax is only imposed on the employee. 1040ez tax form 2010 There is no employer share of Additional Medicare Tax. 1040ez tax form 2010 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. 1040ez tax form 2010 For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. 1040ez tax form 2010 For more information on Additional Medicare Tax, visit IRS. 1040ez tax form 2010 gov and enter “Additional Medicare Tax” in the search box. 1040ez tax form 2010 Leave-based donation programs to aid victims of Hurricane Sandy. 1040ez tax form 2010  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. 1040ez tax form 2010 The donated leave will not be included in the income or wages of the employee. 1040ez tax form 2010 The employer may deduct the cash payments as business expenses or charitable contributions. 1040ez tax form 2010 For more information, see Notice 2012-69, 2012-51 I. 1040ez tax form 2010 R. 1040ez tax form 2010 B. 1040ez tax form 2010 712, available at www. 1040ez tax form 2010 irs. 1040ez tax form 2010 gov/irb/2012-51_IRB/ar09. 1040ez tax form 2010 html. 1040ez tax form 2010 Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. 1040ez tax form 2010  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. 1040ez tax form 2010 Previously, the credit was available for unemployed veterans who began work on or after November 22, 2011, and before January 1, 2013. 1040ez tax form 2010 Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. 1040ez tax form 2010 For more information, visit IRS. 1040ez tax form 2010 gov and enter “work opportunity credit” in the search box. 1040ez tax form 2010 What's New for 2014 Social security and Medicare tax for 2014. 1040ez tax form 2010  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). 1040ez tax form 2010 The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). 1040ez tax form 2010 There is no limit on the amount of wages subject to Medicare tax. 1040ez tax form 2010 Reminders Additional employment tax information for farmers. 1040ez tax form 2010  See Publication 51 (Circular A) for more detailed guidance on employment taxes. 1040ez tax form 2010 For the latest information about employment tax developments impacting farmers, go to www. 1040ez tax form 2010 irs. 1040ez tax form 2010 gov/pub51. 1040ez tax form 2010 Correcting a previously filed Form 943. 1040ez tax form 2010  If you discover an error on a previously filed Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, make the correction using Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. 1040ez tax form 2010 Form 943-X is filed separately from Form 943. 1040ez tax form 2010 For more information on correcting Form 943, see the Instructions for Form 943-X. 1040ez tax form 2010 Federal tax deposits must be made by electronic funds transfer. 1040ez tax form 2010  You must use electronic funds transfer to make all federal tax deposits. 1040ez tax form 2010 Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). 1040ez tax form 2010 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 1040ez tax form 2010 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 1040ez tax form 2010 EFTPS is a free service provided by the Department of Treasury. 1040ez tax form 2010 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 1040ez tax form 2010 For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). 1040ez tax form 2010 To get more information about EFTPS or to enroll in EFTPS, visit www. 1040ez tax form 2010 eftps. 1040ez tax form 2010 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez tax form 2010 Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. 1040ez tax form 2010 Important Dates for 2014 You should take the action indicated by the dates listed. 1040ez tax form 2010 See By February 15 and On February 16 for Form W-4, Employee's Withholding Allowance Certificate, information. 1040ez tax form 2010 Due dates for deposits of withheld federal income taxes, social security taxes, and Medicare taxes are not listed here. 1040ez tax form 2010 For these dates, see Publication 509, Tax Calendars (For use in 2014). 1040ez tax form 2010 Note. 1040ez tax form 2010  If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. 1040ez tax form 2010 A statewide legal holiday delays a filing or furnishing due date only if the IRS office where you are required to file a return or furnish a form is located in that state. 1040ez tax form 2010 For any due date, you will meet the “file” or “furnish” date requirement if the envelope containing the tax return or form is properly addressed, contains sufficient postage, and is postmarked by the U. 1040ez tax form 2010 S. 1040ez tax form 2010 Postal Service by the due date, or sent by an IRS-designated delivery service by the due date. 1040ez tax form 2010 See Private delivery services in Publication 51 (Circular A). 1040ez tax form 2010 Federal tax deposits can only be made by electronic funds transfer and are governed by legal holidays in the District of Columbia. 1040ez tax form 2010 Statewide holidays no longer apply. 1040ez tax form 2010 For a list of legal holidays that delay the due date of a federal tax deposit, see section 7 of Publication 51 (Circular A). 1040ez tax form 2010 Fiscal year taxpayers. 1040ez tax form 2010  The due dates listed below apply whether you use a calendar or a fiscal year. 1040ez tax form 2010 By January 31. 1040ez tax form 2010   File Form 943 with the IRS. 1040ez tax form 2010 If you deposited all Form 943 taxes when due, you have 10 additional days to file. 1040ez tax form 2010 Furnish each employee with a completed Form W-2, Wage and Tax Statement. 1040ez tax form 2010 Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). 1040ez tax form 2010 File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. 1040ez tax form 2010 If you deposited all the FUTA tax when due, you have 10 additional days to file. 1040ez tax form 2010 File Form 945, Annual Return of Withheld Federal Income Tax, with the IRS to report any nonpayroll income tax withheld during 2013. 1040ez tax form 2010 If you deposited all Form 945 taxes when due, you have 10 additional days to file. 1040ez tax form 2010 By February 15. 1040ez tax form 2010  Ask for a new Form W-4 or Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, from each employee who claimed exemption from federal income tax withholding last year. 1040ez tax form 2010 On February 16. 1040ez tax form 2010  Any Form W-4 claiming exemption from withholding for the previous year has now expired. 1040ez tax form 2010 Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. 1040ez tax form 2010 If the employee does not give you a new Form W-4, withhold taxes based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. 1040ez tax form 2010 If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. 1040ez tax form 2010 By February 28. 1040ez tax form 2010   File paper Forms 1099 and 1096. 1040ez tax form 2010 File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. 1040ez tax form 2010 S. 1040ez tax form 2010 Information Returns, with the IRS. 1040ez tax form 2010 For electronically filed returns, see By March 31 below. 1040ez tax form 2010 File paper Forms W-2 and W-3. 1040ez tax form 2010 File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). 1040ez tax form 2010 For electronically filed returns, see By March 31 below. 1040ez tax form 2010 By March 31. 1040ez tax form 2010   File electronic Forms W-2 and 1099. 1040ez tax form 2010 File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. 1040ez tax form 2010 For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. 1040ez tax form 2010 socialsecurity. 1040ez tax form 2010 gov/employer. 1040ez tax form 2010 For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. 1040ez tax form 2010 By April 30, July 31, October 31, and January 31. 1040ez tax form 2010   Deposit FUTA taxes. 1040ez tax form 2010 Deposit FUTA tax due if it is more than $500. 1040ez tax form 2010 Before December 1. 1040ez tax form 2010  Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year. 1040ez tax form 2010 Introduction You are generally required to withhold federal income tax from the wages of your employees. 1040ez tax form 2010 You may also be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). 1040ez tax form 2010 You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez tax form 2010 This chapter includes information about these taxes. 1040ez tax form 2010 You must also pay self-employment tax on your net earnings from farming. 1040ez tax form 2010 See chapter 12 for information on self-employment tax. 1040ez tax form 2010 Topics - This chapter discusses: Farm employment, Family employees, Crew leaders, Social security and Medicare taxes, Additional Medicare Tax withholding, Federal income tax withholding, Reporting and paying social security, Medicare, and withheld federal income taxes, and FUTA tax. 1040ez tax form 2010 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 51 (Circular A), Agricultural Employer's Tax Guide 926 Household Employer's Tax Guide Form (and Instructions) W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification 940 Employer's Annual Federal Unemployment (FUTA) Tax Return 943 Employer's Annual Federal Tax Return for Agricultural Employees 943-X Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund See chapter 16 for information about getting publications and forms. 1040ez tax form 2010 Farm Employment In general, you are an employer of farmworkers if your employees do any of the following types of work. 1040ez tax form 2010 Raising or harvesting agricultural or horticultural products on a farm, including raising and feeding of livestock. 1040ez tax form 2010 Operating, managing, conserving, improving, or maintaining your farm and its tools and equipment. 1040ez tax form 2010 Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor). 1040ez tax form 2010 Handling, processing, or packaging any agricultural or horticultural commodity if you produced more than half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity). 1040ez tax form 2010 Work related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. 1040ez tax form 2010 For more information, see Publication 51 (Circular A). 1040ez tax form 2010 Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. 1040ez tax form 2010 This is so even when you give the employee freedom of action. 1040ez tax form 2010 What matters is that you have the right to control the details of how the services are performed. 1040ez tax form 2010 You are responsible for withholding and paying employment taxes for your employees. 1040ez tax form 2010 You are also required to file employment tax returns. 1040ez tax form 2010 These requirements do not apply to amounts that you pay to independent contractors. 1040ez tax form 2010 See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. 1040ez tax form 2010 If you employ a family of workers, each worker subject to your control (not just the head of the family) is an employee. 1040ez tax form 2010 Special rules apply to crew leaders. 1040ez tax form 2010 See Crew Leaders , later. 1040ez tax form 2010 Employer identification number (EIN). 1040ez tax form 2010   If you have employees, you must have an EIN. 1040ez tax form 2010 If you do not have an EIN, you may apply for one online. 1040ez tax form 2010 Go to IRS. 1040ez tax form 2010 gov and click on the Apply for an EIN Online link under Tools. 1040ez tax form 2010 You may also apply for an EIN by calling 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). 1040ez tax form 2010 The hours of operation for both numbers are Monday–Friday form 7:00 a. 1040ez tax form 2010 m. 1040ez tax form 2010 –7:00 p. 1040ez tax form 2010 m. 1040ez tax form 2010 local time (Alaska and Hawaii follow Pacific time). 1040ez tax form 2010 You can also fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. 1040ez tax form 2010 Employee's social security number (SSN). 1040ez tax form 2010   An employee who does not have an SSN should submit Form SS-5, Application for a Social Security Card, to the Social Security Administration (SSA). 1040ez tax form 2010 Form SS-5 is available from any SSA office or by calling 1-800-772-1213 (operates 24 hours per day). 1040ez tax form 2010 It is also available from the SSA's website at www. 1040ez tax form 2010 socialsecurity. 1040ez tax form 2010 gov. 1040ez tax form 2010   The employee must furnish evidence of age, identity, and U. 1040ez tax form 2010 S. 1040ez tax form 2010 citizenship or lawful immigration status permitting employment with the Form SS-5. 1040ez tax form 2010 An employee who is age 18 or older must appear in person with this evidence at an SSA office. 1040ez tax form 2010 Form I-9. 1040ez tax form 2010    You must verify that each new employee is legally eligible to work in the United States. 1040ez tax form 2010 This includes completing the Form I-9, Employment Eligibility Verification. 1040ez tax form 2010 Form I-9 is available from the U. 1040ez tax form 2010 S. 1040ez tax form 2010 Citizenship and Immigration Services (USCIS) offices or by calling the Bureau of Citizenship and Immigration Services Forms Request Line at 1-800-870-3676. 1040ez tax form 2010 Form I-9 is also available from the USCIS website at www. 1040ez tax form 2010 uscis. 1040ez tax form 2010 gov. 1040ez tax form 2010 You can also contact the USCIS at 1-800-375-5283 for more information. 1040ez tax form 2010 New hire reporting. 1040ez tax form 2010   You are required to report any new employee to a designated state new hire registry. 1040ez tax form 2010 Many states accept a copy of Form W-4 with employer information added. 1040ez tax form 2010 Visit the Office of Child Support Enforcement website at www. 1040ez tax form 2010 acf. 1040ez tax form 2010 hhs. 1040ez tax form 2010 gov/programs/cse/newhire for more information. 1040ez tax form 2010 Family Employees Generally, the wages you pay to family members who are your employees are subject to employment taxes. 1040ez tax form 2010 However, certain exemptions may apply to wages paid to your child, spouse, or parent. 1040ez tax form 2010 Exemptions for your child. 1040ez tax form 2010   Payments for the services of your child under age 18 who works for you in your trade or business (including a farm) are not subject to social security and Medicare taxes. 1040ez tax form 2010 However, see Nonexempt services of a child or spouse , later. 1040ez tax form 2010 Payments for the services of your child under age 21 employed by you in other than a trade or business, such as payments for household services in your home, are also not subject to social security or Medicare taxes. 1040ez tax form 2010 Payments for the services of your child under age 21 employed by you, whether or not in your trade or business, are not subject to FUTA tax. 1040ez tax form 2010 Although not subject to social security, Medicare, or FUTA tax, the child's wages still may be subject to federal income tax withholding. 1040ez tax form 2010 Exemptions for your spouse. 1040ez tax form 2010   Payments for the services of your spouse who works for you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes, but not FUTA tax. 1040ez tax form 2010   Payments for the services of your spouse employed by you in other than a trade or business, such as payments for household services in your home, are not subject to social security, Medicare, or FUTA taxes. 1040ez tax form 2010 Nonexempt services of a child or spouse. 1040ez tax form 2010   Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for any of the following entities. 1040ez tax form 2010 A corporation, even if it is controlled by you. 1040ez tax form 2010 A partnership, even if you are a partner. 1040ez tax form 2010 This does not apply to wages paid to your child if each partner is a parent of the child. 1040ez tax form 2010 An estate or trust, even if it is the estate of a deceased parent. 1040ez tax form 2010 In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you. 1040ez tax form 2010 Exemptions for your parent. 1040ez tax form 2010   Payments for the services of your parent employed by you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes. 1040ez tax form 2010 Social security and Medicare taxes do not apply to wages paid to your parent for services not in your trade or business, but they do apply to payments for household services in your home if both the following conditions are satisfied. 1040ez tax form 2010 You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter. 1040ez tax form 2010 You are a widow or widower; or divorced and not remarried; or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. 1040ez tax form 2010   Wages you pay to your parent are not subject to FUTA tax, regardless of the type of services provided. 1040ez tax form 2010 Qualified joint venture. 1040ez tax form 2010   If spouses elect to be treated as a qualified joint venture instead of a partnership, either spouse may report and pay the employment taxes due on the wages paid to employees using the EIN of that spouse's sole proprietorship. 1040ez tax form 2010 For more information about qualified joint ventures, see chapter 12. 1040ez tax form 2010 Crew Leaders If farmworkers are provided by a crew leader, the crew leader may be the employer of the workers. 1040ez tax form 2010 Social security and Medicare taxes. 1040ez tax form 2010   For social security and Medicare tax purposes, the crew leader is the employer of the workers if both of the following requirements are met. 1040ez tax form 2010 The crew leader pays (either on his or her own behalf or on behalf of the farmer) the workers for their farm labor. 1040ez tax form 2010 The crew leader has not entered into a written agreement with the farmer under which the crew leader is designated as an employee of the farmer. 1040ez tax form 2010 Federal income tax withholding. 1040ez tax form 2010   If the crew leader is the employer for social security and Medicare tax purposes, the crew leader is the employer for federal income tax withholding purposes. 1040ez tax form 2010 Federal unemployment (FUTA) tax. 1040ez tax form 2010   For FUTA tax purposes, the crew leader is the employer of the workers if, in addition to the earlier requirements, either of the following requirements are met. 1040ez tax form 2010 The crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act. 1040ez tax form 2010 Substantially all crew members operate or maintain mechanized equipment provided by the crew leader as part of the service to the farmer. 1040ez tax form 2010   The farmer is the employer of workers furnished by a crew leader in all other situations. 1040ez tax form 2010 In addition, the farmer is the employer of workers furnished by a registered crew leader if the workers are the employees of the farmer under the common-law test. 1040ez tax form 2010 For example, some farmers employ individuals to recruit farmworkers exclusively for them. 1040ez tax form 2010 Although these individuals may be required to register under the Migrant and Seasonal Agricultural Worker Protection Act, the workers are employed directly by the farmer. 1040ez tax form 2010 The farmer is the employer in these cases. 1040ez tax form 2010 For information about common-law employees, see section 1 of Publication 15-A. 1040ez tax form 2010 For information about crew leaders, see the Department of Labor website at www. 1040ez tax form 2010 dol. 1040ez tax form 2010 gov/whd/regs/compliance/whdfs49. 1040ez tax form 2010 htm. 1040ez tax form 2010 Social Security and Medicare Taxes All cash wages you pay to an employee during the year for farmwork are subject to social security and Medicare taxes if you meet either of the following tests. 1040ez tax form 2010 You pay the employee $150 or more in cash wages (count all wages paid on a time, piecework, or other basis) during the year for farmwork (the $150 test). 1040ez tax form 2010 The $150 test applies separately to each farmworker that you employ. 1040ez tax form 2010 If you employ a family of workers, each member is treated separately. 1040ez tax form 2010 Do not count wages paid by other employers. 1040ez tax form 2010 You pay cash and noncash wages of $2,500 or more during the year to all your employees for farmwork (the $2,500 test). 1040ez tax form 2010 If the $2,500 test for the group is not met, the $150 test for an employee still applies. 1040ez tax form 2010 Exceptions. 1040ez tax form 2010   Annual cash wages of less than $150 you pay to a seasonal farmworker are not subject to social security and Medicare taxes, even if you pay $2,500 or more to all your farmworkers. 1040ez tax form 2010 However, these wages count toward the $2,500 test for determining whether other farmworkers' wages are subject to social security and Medicare taxes. 1040ez tax form 2010   A seasonal farmworker is a worker who: Works as a hand-harvest laborer, Is paid piece rates in an operation usually paid on this basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Worked in agriculture less than 13 weeks in the preceding calendar year. 1040ez tax form 2010   See Family Employees , earlier, for certain exemptions from social security and Medicare taxes that apply to your child, spouse, and parent. 1040ez tax form 2010 Religious exemption. 1040ez tax form 2010   An exemption from social security and Medicare taxes is available to members of a recognized religious group or division opposed to public insurance. 1040ez tax form 2010 This exemption is available only if both the employee and the employer are members of the group or division. 1040ez tax form 2010   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 1040ez tax form 2010 Cash wages. 1040ez tax form 2010   Only cash wages paid to farmworkers are subject to social security and Medicare taxes. 1040ez tax form 2010 Cash wages include checks, money orders, and any kind of money or cash. 1040ez tax form 2010   Only cash wages subject to social security and Medicare taxes are credited to your employees for social security benefit purposes. 1040ez tax form 2010 Payments not subject to these taxes, such as commodity wages, do not contribute to your employees' social security coverage. 1040ez tax form 2010 For information about social security benefits, contact the SSA at 1-800-772-1213 or online at www. 1040ez tax form 2010 socialsecurity. 1040ez tax form 2010 gov. 1040ez tax form 2010 Noncash wages. 1040ez tax form 2010    Noncash wages include food, lodging, clothing, transportation passes, and other goods and services. 1040ez tax form 2010 Noncash wages paid to farmworkers, including commodity wages, are not subject to social security and Medicare taxes. 1040ez tax form 2010 However, they are subject to these taxes if the substance of the transaction is a cash payment. 1040ez tax form 2010 For information on lodging provided as a condition of employment, see Publication 15-B. 1040ez tax form 2010   Report the value of noncash wages in box 1 of Form W-2 together with cash wages. 1040ez tax form 2010 Do not show noncash wages in box 3 or in box 5, (unless the substance of the transaction is a cash payment). 1040ez tax form 2010 Tax rates and social security wage limit. 1040ez tax form 2010   For 2013, the employer and the employee will pay the following taxes. 1040ez tax form 2010 The employer and employee each pay 6. 1040ez tax form 2010 2% of cash wages for social security tax (old-age, survivors, and disability insurance). 1040ez tax form 2010 The employer and employee each pay 1. 1040ez tax form 2010 45% of cash wages for Medicare tax (hospital insurance). 1040ez tax form 2010 The employee pays 0. 1040ez tax form 2010 9% of cash wages in excess of $200,000 for Additional Medicare Tax. 1040ez tax form 2010 Wage limit. 1040ez tax form 2010   The limit on wages subject to the social security tax for 2013 is $113,700. 1040ez tax form 2010 There is no limit on wages subject to the Medicare tax. 1040ez tax form 2010 All covered wages are subject to the Medicare tax. 1040ez tax form 2010 Additionally, all wages in excess of $200,000 are subject to Additional Medicare Tax withholding. 1040ez tax form 2010 Paying employee's share. 1040ez tax form 2010   If you would rather pay the employee's share of social security and Medicare taxes without deducting it from his or her wages, you may do so. 1040ez tax form 2010 It is additional income to the employee. 1040ez tax form 2010 You must include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages (boxes 3 and 5 on Form W-2) or as wages for federal unemployment (FUTA) tax purposes. 1040ez tax form 2010 Example. 1040ez tax form 2010 Jane operates a small family fruit farm. 1040ez tax form 2010 She employs day laborers in the picking season to enable her to timely get her crop to market. 1040ez tax form 2010 She does not deduct the employees' share of social security and Medicare taxes from their pay; instead, she pays it on their behalf. 1040ez tax form 2010 When her accountant, Susan, prepares the employees' Forms W-2, she adds each employee's share of social security and Medicare taxes paid by Jane to the employee's wage income (box 1 of Form W-2), but does not include it in box 3 (social security wages) or box 5 (Medicare wages and tips). 1040ez tax form 2010 For 2013, Jane paid Mary $1,000 during the year. 1040ez tax form 2010 Susan enters $1,076. 1040ez tax form 2010 50 in box 1 of Mary's Form W-2 ($1,000 wages plus $76. 1040ez tax form 2010 50 social security and Medicare taxes paid for Mary). 1040ez tax form 2010 She enters $1,000 in boxes 3 and 5 of Mary's Form W-2. 1040ez tax form 2010 Additional Medicare Tax. 1040ez tax form 2010   In addition to withholding Medicare tax at 1. 1040ez tax form 2010 45%, you must withhold a 0. 1040ez tax form 2010 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez tax form 2010 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. 1040ez tax form 2010 Additional Medicare Tax is only imposed on the employee. 1040ez tax form 2010 There is no employer share of Additional Medicare Tax. 1040ez tax form 2010 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. 1040ez tax form 2010   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). 1040ez tax form 2010 For more information on Additional Medicare Tax, visit IRS. 1040ez tax form 2010 gov and enter “Additional Medicare Tax” in the search box. 1040ez tax form 2010 Federal Income Tax Withholding If the cash wages you pay to farmworkers are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. 1040ez tax form 2010 Although noncash wages are subject to federal income tax, withhold income tax only if you and the employee agree to do so. 1040ez tax form 2010 The amount to withhold is figured on gross wages without taking out social security and Medicare taxes, union dues, insurance, etc. 1040ez tax form 2010 Form W-4. 1040ez tax form 2010   Generally, the amount of federal income tax you withhold is based on the employee's marital status and withholding allowances claimed on the employee's Form W-4. 1040ez tax form 2010 In general, an employee can claim withholding allowances on Form W-4 equal to the number of exemptions the employee will be entitled to claim on his or her tax return. 1040ez tax form 2010 An employee may also be able to claim a special withholding allowance and allowances for estimated deductions and credits. 1040ez tax form 2010   Do not withhold federal income tax from the wages of an employee who, by filing Form W-4, certifies that he or she had no federal income tax liability last year and anticipates no liability for the current year. 1040ez tax form 2010   You should give each new employee a Form W-4 as soon as you hire the employee. 1040ez tax form 2010 For Spanish-speaking employees, you may use Formulario W-4(SP) which is the Spanish translation of Form W-4. 1040ez tax form 2010 Have the employee complete and return the form to you before the first payday. 1040ez tax form 2010 If the employee does not return the completed form, you must withhold federal income tax as if the employee is single and claims no withholding allowances. 1040ez tax form 2010 New Form W-4 for 2014. 1040ez tax form 2010   You should make the 2014 Form W-4 available to your employees and encourage them to check their income tax withholding for 2014. 1040ez tax form 2010 Those employees who owed a large amount of tax or received a large refund for 2013 may want to submit a new Form W-4. 1040ez tax form 2010 You cannot accept substitute Forms W-4 developed by employees. 1040ez tax form 2010 How to figure withholding. 1040ez tax form 2010   You can use one of several methods to determine the amount to withhold. 1040ez tax form 2010 The methods are described in Publication 51 (Circular A), which contains tables showing the correct amount of federal income tax you should withhold. 1040ez tax form 2010 Publication 51 (Circular A) also contains additional information about federal income tax withholding. 1040ez tax form 2010 Nonemployee compensation. 1040ez tax form 2010   Generally, you do not have to withhold federal income tax on payments for services to individuals who are not your employees. 1040ez tax form 2010 However, you may be required to report these payments on Form 1099-MISC, Miscellaneous Income, and to withhold under the backup withholding rules. 1040ez tax form 2010 For more information, see the Instructions for Form 1099-MISC. 1040ez tax form 2010 Required Notice to Employees About Earned Income Credit (EIC) You must provide notification about EIC to each employee who worked for you at any time during the year and from whom you did not withhold any federal income tax. 1040ez tax form 2010 However, you do not have to notify employees who claim exemption from federal income tax withholding on Form W-4. 1040ez tax form 2010 You meet the notification requirement by giving each employee any of the following. 1040ez tax form 2010 Form W-2, which contains EIC notification on the back of Copy B. 1040ez tax form 2010 A substitute Form W-2 with the exact EIC wording shown on the back of copy B of Form W-2. 1040ez tax form 2010 Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). 1040ez tax form 2010 Your own written statement with the exact wording of Notice 797. 1040ez tax form 2010 For more information, see Publication 51 (Circular A). 1040ez tax form 2010 Reporting and Paying Social Security, Medicare, and Withheld Federal Income Taxes You must withhold federal income, social security, and Medicare taxes required to be withheld from the salaries and wages of your employees. 1040ez tax form 2010 You are liable for the payment of these taxes to the federal government whether or not you collect them from your employees. 1040ez tax form 2010 If, for example, you withhold less than the correct tax from an employee's wages, you are still liable for the full amount. 1040ez tax form 2010 You must also pay the employer's share of social security and Medicare taxes. 1040ez tax form 2010 There is no employer share of Additional Medicare Tax. 1040ez tax form 2010 Form 943. 1040ez tax form 2010   Report withheld federal income tax, social security tax, and Medicare tax on Form 943. 1040ez tax form 2010 Your 2013 Form 943 is due by January 31, 2014 (or February 10, 2014, if you made deposits on time in full payment of the taxes due for the year). 1040ez tax form 2010 Deposits. 1040ez tax form 2010   Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld during the year. 1040ez tax form 2010 However, you may make payments with Form 943 instead of depositing them if you accumulate less than a $2,500 tax liability (“Total taxes after adjustments” line on Form 943) during the year and you pay in full with a timely filed return. 1040ez tax form 2010   For more information on deposit rules, see Publication 51 (Circular A). 1040ez tax form 2010 Electronic deposit requirement. 1040ez tax form 2010   You must use electronic funds transfer to make all federal tax deposits. 1040ez tax form 2010 Generally, electronic funds transfers are made using EFTPS. 1040ez tax form 2010 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 1040ez tax form 2010 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 1040ez tax form 2010 EFTPS is a free service provided by the Department of Treasury. 1040ez tax form 2010 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 1040ez tax form 2010   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). 1040ez tax form 2010 To get more information about EFTPS or to enroll in EFTPS, visit www. 1040ez tax form 2010 eftps. 1040ez tax form 2010 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez tax form 2010 Additional information about EFTPS is also available in Publication 966. 1040ez tax form 2010 Form W-2. 1040ez tax form 2010   By January 31, you must furnish each employee a Form W-2 showing total wages for the previous year and total federal income tax, social security tax, and Medicare tax withheld. 1040ez tax form 2010 However, if an employee stops working for you and requests the form earlier, you must give it to the employee within 30 days of the later of the following dates. 1040ez tax form 2010 The date the employee requests the form. 1040ez tax form 2010 The date you make your final payment of wages to the employee. 1040ez tax form 2010 Compensation paid to H-2A visa holders. 1040ez tax form 2010   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2. 1040ez tax form 2010 Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax (line 6) on Form 943, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. 1040ez tax form 2010   An employer is not required to withhold federal income tax from compensation it pays to an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. 1040ez tax form 2010 In this case, the worker must give the employer a completed Form W-4. 1040ez tax form 2010 Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. 1040ez tax form 2010   These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. 1040ez tax form 2010 For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. 1040ez tax form 2010 Trust fund recovery penalty. 1040ez tax form 2010   If you are responsible for withholding, accounting for, depositing, or paying federal withholding taxes and willfully fail to do so, you can be held liable for a penalty equal to the withheld tax not paid. 1040ez tax form 2010 A responsible person can be an officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. 1040ez tax form 2010 A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. 1040ez tax form 2010   Willfully means voluntarily, consciously, and intentionally. 1040ez tax form 2010 Paying other expenses of the business instead of the taxes due is acting willfully. 1040ez tax form 2010 Consequences of treating an employee as an independent contractor. 1040ez tax form 2010   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. 1040ez tax form 2010 See Publication 15-A for more information. 1040ez tax form 2010 Federal Unemployment (FUTA) Tax You must pay FUTA tax if you meet either of the following tests. 1040ez tax form 2010 You paid cash wages of $20,000 or more to farmworkers in any calendar quarter during the current or preceding calendar year. 1040ez tax form 2010 You employed 10 or more farmworkers for some part of at least 1 day during any 20 or more different calendar weeks during the current or preceding calendar year. 1040ez tax form 2010 These rules do not apply to exempt services of your spouse, your parents, or your children under age 21. 1040ez tax form 2010 See Family Employees , earlier. 1040ez tax form 2010 Alien farmworkers. 1040ez tax form 2010   Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as “H-2A visa workers”) are exempt from FUTA tax. 1040ez tax form 2010 However, include your employment of these workers and the wages you paid them to determine whether you meet either of the above tests. 1040ez tax form 2010 Commodity wages. 1040ez tax form 2010   Payments in kind for farm labor are not cash wages. 1040ez tax form 2010 Do not count them to figure whether you are subject to FUTA tax or to figure how much tax you owe. 1040ez tax form 2010 Tax rate and credit. 1040ez tax form 2010   The gross FUTA tax rate is 6. 1040ez tax form 2010 0% of the first $7,000 cash wages you pay to each employee during the year. 1040ez tax form 2010 However, you are given a credit of up to 5. 1040ez tax form 2010 4% of the first $7,000 cash wages you pay to each employee for the state unemployment tax you pay. 1040ez tax form 2010 If your state tax rate (experience rate) is less than 5. 1040ez tax form 2010 4%, you may still be allowed the full 5. 1040ez tax form 2010 4% credit. 1040ez tax form 2010   If you do not pay the state tax, you cannot take the credit. 1040ez tax form 2010 If you are exempt from state unemployment tax for any reason, the full 6. 1040ez tax form 2010 0% rate applies. 1040ez tax form 2010 See the Instructions for Form 940 for additional information. 1040ez tax form 2010 More information. 1040ez tax form 2010   For more information on FUTA tax, see Publication 51 (Circular A). 1040ez tax form 2010 Reporting and Paying FUTA Tax The FUTA tax is imposed on you as the employer. 1040ez tax form 2010 It must not be collected or deducted from the wages of your employees. 1040ez tax form 2010 Form 940. 1040ez tax form 2010   Report FUTA tax on Form 940. 1040ez tax form 2010 The 2013 Form 940 is due January 31, 2014 (or February 10, 2014, if you timely deposited the full amount of your 2013 FUTA tax). 1040ez tax form 2010 Deposits. 1040ez tax form 2010   If at the end of any calendar quarter you owe, but have not yet deposited, more than $500 in FUTA tax for the year, you must make a deposit by the end of the following month. 1040ez tax form 2010 If the undeposited tax is $500 or less at the end of a quarter, you do not have to deposit it. 1040ez tax form 2010 You can add it to the tax for the next quarter. 1040ez tax form 2010 If the total undeposited tax is more than $500 at the end of the next quarter, a deposit will be required. 1040ez tax form 2010 If the total undeposited tax at the end of the 4th quarter is $500 or less, you can either make a deposit or pay it with your return by the January 31, 2014, due date. 1040ez tax form 2010 Electronic deposit requirement. 1040ez tax form 2010   You must use electronic funds transfer to make all federal tax deposits. 1040ez tax form 2010 Generally, electronic funds transfers are made using EFTPS. 1040ez tax form 2010 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 1040ez tax form 2010 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 1040ez tax form 2010 EFTPS is a free service provided by the Department of Treasury. 1040ez tax form 2010 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 1040ez tax form 2010   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). 1040ez tax form 2010 To get more information about EFTPS or to enroll in EFTPS, visit www. 1040ez tax form 2010 eftps. 1040ez tax form 2010 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez tax form 2010 Additional information about EFTPS is also available in Publication 966. 1040ez tax form 2010 Prev  Up  Next   Home   More Online Publications