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Amend A Return

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Amend A Return

Amend a return Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Amend a return Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Amend a return Laundering means converting “dirty” or illegally-gained money to “clean” money. Amend a return The government can often trace this laundered money through the payments you report. Amend a return Laws passed by Congress require you to report these payments. Amend a return Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Amend a return The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Amend a return Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Amend a return For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Amend a return Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Amend a return However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Amend a return For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Amend a return Transaction defined. Amend a return    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Amend a return Person defined. Amend a return   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Amend a return   Exempt organizations, including employee plans, are also “persons. Amend a return ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Amend a return Foreign transactions. Amend a return   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Amend a return However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Amend a return Bail received by court clerks. Amend a return   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Amend a return For more information about the rules that apply to court clerks, see Section 1. Amend a return 6050I-2 of the Income Tax Regulations. Amend a return What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Amend a return What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Amend a return Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Amend a return ” Cash does not include a check drawn on an individual's personal account. Amend a return A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Amend a return These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Amend a return Example 1. Amend a return You are a coin dealer. Amend a return Bob Green buys gold coins from you for $13,200. Amend a return He pays for them with $6,200 in U. Amend a return S. Amend a return currency and a cashier's check having a face amount of $7,000. Amend a return The cashier's check is treated as cash. Amend a return You have received more than $10,000 cash and must file Form 8300 for this transaction. Amend a return Example 2. Amend a return You are a retail jeweler. Amend a return Mary North buys an item of jewelry from you for $12,000. Amend a return She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Amend a return Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Amend a return You do not have to file Form 8300. Amend a return Example 3. Amend a return You are a boat dealer. Amend a return Emily Jones buys a boat from you for $16,500. Amend a return She pays for it with a cashier's check payable to you in the amount of $16,500. Amend a return The cashier's check is not treated as cash because its face amount is more than $10,000. Amend a return You do not have to file Form 8300 for this transaction. Amend a return Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Amend a return A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Amend a return For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Amend a return The car is a consumer durable even if you sell it to a buyer who will use it in a business. Amend a return A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Amend a return Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Amend a return To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Amend a return Example. Amend a return You are a travel agent. Amend a return Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Amend a return He also asks you to book hotel rooms and admission tickets for the group. Amend a return In payment, he gives you two money orders, each for $6,000. Amend a return You have received more than $10,000 cash in this designated reporting transaction. Amend a return You must file Form 8300. Amend a return Retail sale. Amend a return   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Amend a return   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Amend a return This includes any sales of items that will be resold. Amend a return Broker or intermediary. Amend a return   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Amend a return Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Amend a return Exception for certain bank loans. Amend a return   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Amend a return As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Amend a return Example. Amend a return You are a car dealer. Amend a return Mandy White buys a new car from you for $11,500. Amend a return She pays you with $2,000 of U. Amend a return S. Amend a return currency and a cashier's check for $9,500 payable to you and her. Amend a return You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Amend a return For this reason, the cashier's check is not treated as cash. Amend a return You do not have to file Form 8300 for the transaction. Amend a return Exception for certain installment sales. Amend a return   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Amend a return However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Amend a return Exception for certain down payment plans. Amend a return   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Amend a return You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Amend a return You receive it more than 60 days before the date of sale. Amend a return You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Amend a return Exception for travel and entertainment. Amend a return   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Amend a return You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Amend a return You receive it more than 60 days before the date on which the final payment is due. Amend a return You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Amend a return Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Amend a return If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Amend a return If you do not know a person's TIN, you have to ask for it. Amend a return You may be subject to penalties for an incorrect or missing TIN. Amend a return There are three types of TINs. Amend a return The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Amend a return The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Amend a return An ITIN has nine digits, similar to an SSN. Amend a return The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Amend a return Exception. Amend a return   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Amend a return S. Amend a return trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Amend a return 1441-1(e)(2) or (3) or 1. Amend a return 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Amend a return 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Amend a return S. Amend a return citizen or resident. Amend a return What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Amend a return If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Amend a return For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Amend a return Because they total $12,000 (more than $10,000), you must file Form 8300. Amend a return More than 24 hours between transactions. Amend a return   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Amend a return   For example, you are a travel agent. Amend a return A client pays you $8,000 in cash for a trip. Amend a return Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Amend a return These are related transactions, and you must file Form 8300 to report them. Amend a return What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Amend a return A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Amend a return If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Amend a return Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Amend a return When, Where, and What To File The amount you receive and when you receive it determine when you must file. Amend a return Generally, you must file Form 8300 within 15 days after receiving a payment. Amend a return If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Amend a return More than one payment. Amend a return   In some transactions, the buyer may arrange to pay you in cash installment payments. Amend a return If the first payment is more than $10,000, you must file Form 8300 within 15 days. Amend a return If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Amend a return When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Amend a return   After you file Form 8300, you must start a new count of cash payments received from that buyer. Amend a return If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Amend a return You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Amend a return   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Amend a return Example. Amend a return On January 10, you receive a cash payment of $11,000. Amend a return You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Amend a return By January 25, you must file a Form 8300 for the $11,000 payment. Amend a return By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Amend a return Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Amend a return Complete the form in its entirety (Parts I-IV) and include the amended information. Amend a return Do not attach a copy of the original report. Amend a return Where to file. Amend a return   Mail the form to the address given in the Form 8300 instructions. Amend a return Required statement to buyer. Amend a return   You must give a written or electronic statement to each person named on any Form 8300 you must file. Amend a return You can give the statement electronically only if the recipient agrees to receive it in that format. Amend a return The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Amend a return It must state that you are also reporting this information to the IRS. Amend a return   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Amend a return    You must keep a copy of every Form 8300 you file for 5 years. Amend a return Examples Example 1. Amend a return Pat Brown is the sales manager for Small Town Cars. Amend a return On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Amend a return Pat asks for identification from Jane to get the necessary information to complete Form 8300. Amend a return A filled-in form is shown in this publication. Amend a return Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Amend a return He must also send a statement to Jane by January 31, 2010. Amend a return Example 2. Amend a return Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Amend a return Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Amend a return Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Amend a return However, he could report it if he felt it was a suspicious transaction. Amend a return Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Amend a return If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Amend a return There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Amend a return If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Amend a return These dollar amounts are based on Section 3571 of Title 18 of the U. Amend a return S. Amend a return Code. Amend a return The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Amend a return This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Amend a return Structuring means breaking up a large cash transaction into small cash transactions. Amend a return How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Amend a return By selecting the method that is best for you, you will have quick and easy access to tax help. Amend a return Free help with your return. Amend a return   Free help in preparing your return is available nationwide from IRS-certified volunteers. Amend a return The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Amend a return Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Amend a return To find the nearest VITA or TCE site, visit IRS. Amend a return gov or call 1-800-906-9887 or 1-800-829-1040. Amend a return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Amend a return To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Amend a return aarp. Amend a return org/money/taxaide. Amend a return   For more information on these programs, go to IRS. Amend a return gov and enter keyword “VITA” in the upper right-hand corner. Amend a return Internet. Amend a return You can access the IRS website at IRS. Amend a return gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Amend a return Go to IRS. Amend a return gov and click on Where's My Refund. Amend a return Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Amend a return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Amend a return Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Amend a return E-file your return. Amend a return Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Amend a return Download forms, including talking tax forms, instructions, and publications. Amend a return Order IRS products online. Amend a return Research your tax questions online. Amend a return Search publications online by topic or keyword. Amend a return Use the online Internal Revenue Code, regulations, or other official guidance. Amend a return View Internal Revenue Bulletins (IRBs) published in the last few years. Amend a return Figure your withholding allowances using the withholding calculator online at  www. Amend a return irs. Amend a return gov/individuals. Amend a return Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Amend a return irs. Amend a return gov/individuals. Amend a return Sign up to receive local and national tax news by email. Amend a return Get information on starting and operating a small business. Amend a return Phone. Amend a return Many services are available by phone. Amend a return   Ordering forms, instructions, and publications. Amend a return Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Amend a return You should receive your order within 10 days. Amend a return Asking tax questions. Amend a return Call the IRS with your tax questions at 1-800-829-1040. Amend a return Solving problems. Amend a return You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Amend a return An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Amend a return Call your local Taxpayer Assistance Center for an appointment. Amend a return To find the number, go to www. Amend a return irs. Amend a return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Amend a return TTY/TDD equipment. Amend a return If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Amend a return TeleTax topics. Amend a return Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Amend a return Refund information. Amend a return You can check the status of your refund on the new IRS phone app. Amend a return Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Amend a return IRS2Go is a new way to provide you with information and tools. Amend a return To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Amend a return Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Amend a return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Amend a return Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Amend a return If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Amend a return Other refund information. Amend a return To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Amend a return Evaluating the quality of our telephone services. Amend a return To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Amend a return One method is for a second IRS representative to listen in on or record random telephone calls. Amend a return Another is to ask some callers to complete a short survey at the end of the call. Amend a return Walk-in. Amend a return Many products and services are available on a walk-in basis. Amend a return   Products. Amend a return You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Amend a return Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Amend a return Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Amend a return Services. Amend a return You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Amend a return An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Amend a return If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Amend a return No appointment is necessary—just walk in. Amend a return If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Amend a return A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Amend a return If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Amend a return All other issues will be handled without an appointment. Amend a return To find the number of your local office, go to www. Amend a return irs. Amend a return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Amend a return Mail. Amend a return You can send your order for forms, instructions, and publications to the address below. Amend a return You should receive a response within 10 days after your request is received. Amend a return  Internal Revenue Service 1201 N. Amend a return Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Amend a return   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Amend a return Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Amend a return We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Amend a return Remember, the worst thing you can do is nothing at all. Amend a return   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Amend a return You face (or your business is facing) an immediate threat of adverse action. Amend a return You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Amend a return   If you qualify for our help, we’ll do everything we can to get your problem resolved. Amend a return You will be assigned to one advocate who will be with you at every turn. Amend a return We have offices in every state, the District of Columbia, and Puerto Rico. Amend a return Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Amend a return And our services are always free. Amend a return   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Amend a return Our tax toolkit at www. Amend a return TaxpayerAdvocate. Amend a return irs. Amend a return gov can help you understand these rights. Amend a return   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Amend a return irs. Amend a return gov/advocate. Amend a return You can also call our toll-free number at 1-877-777-4778. Amend a return   TAS also handles large-scale or systemic problems that affect many taxpayers. Amend a return If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Amend a return irs. Amend a return gov/advocate. Amend a return Low Income Taxpayer Clinics (LITCs). Amend a return   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Amend a return Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Amend a return These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Amend a return Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Amend a return For more information and to find a clinic near you, see the LITC page on www. Amend a return irs. Amend a return gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Amend a return This publication is also available by calling 1-800-829-3676 or at your local IRS office. Amend a return Free tax services. Amend a return   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Amend a return Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Amend a return The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Amend a return The majority of the information and services listed in this publication are available to you free of charge. Amend a return If there is a fee associated with a resource or service, it is listed in the publication. Amend a return   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Amend a return DVD for tax products. Amend a return You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Amend a return Prior-year forms, instructions, and publications. Amend a return Tax Map: an electronic research tool and finding aid. Amend a return Tax law frequently asked questions. Amend a return Tax Topics from the IRS telephone response system. Amend a return Internal Revenue Code—Title 26 of the U. Amend a return S. Amend a return Code. Amend a return Links to other Internet based Tax Research Materials. Amend a return Fill-in, print, and save features for most tax forms. Amend a return Internal Revenue Bulletins. Amend a return Toll-free and email technical support. Amend a return Two releases during the year. Amend a return  – The first release will ship the beginning of January. Amend a return  – The final release will ship the beginning of March. Amend a return Purchase the DVD from National Technical Information Service (NTIS) at www. Amend a return irs. Amend a return gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Amend a return This image is too large to be displayed in the current screen. Amend a return Please click the link to view the image. Amend a return Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Domestic Private Foundation and Charitable Trust Statistics

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Snapshot of Private Foundation Statistics

Private foundations organized for charitable purposes are exempt from income taxes. They are differentiated from tax-exempt public charities by their narrow bases of control and financial support. Statistics on private foundations are compiled from Form 990-PF, an annual information return that includes data on excise tax liability, charitable distributions, administrative expenditures, as well as income statement and balance sheet information. Data are available for the following types of organizations:

  • Operating Foundations—Generally conduct their own charitable activities, e.g., museums
  • Nonoperating Foundations—Generally provide charitable support through grants and other financial means to charitable organizations; the majority of foundations are nonoperating
  • Section 4947(a)(1) Nonexempt Charitable Trusts—Charitable trusts treated as private foundations for tax purposes; may be operating or nonoperating

Statistical Tables   Publications and Papers   Microdata   Other IRS Data
 

For information about selected terms and concepts, a description of the data sources and limitations, and links to recent revisions of Form 990-PF, please visit the Private Foundations Study Metadata page.


Statistical Tables

The following tables are available as Microsoft Excel® files. A free Excel viewer is available for download, if needed.

NOTE: Statistics for the years denoted by an asterisk (*) include information reported by both domestic and foreign foundations and charitable trusts.

Domestic Private Foundations:
     Number and Selected Financial Data
      Classified by: Type of Foundation and Size of End-of-Year Fair Market Value of Total Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992  1991  1990  1989  1988  1987  1986  1985
 
     Income Statements and Balance Sheets
      Classified by: Size of End-of-Year Fair Market Value of Total Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*
    Selected Data Items in Current Dollars
      Classified by: Asset Size
      Tax Years: 1993–2002

 
Domestic Nonoperating Private Foundations:
     Disbursements for Charitable Purposes—in Constant Dollars
      Tax Years: 1985–2010
 
     Disbursements for Charitable Purposes—in Current Dollars
      Tax Years: 1985–2010
 
     Noncharitable-Use Assets and Qualifying Distributions
      Tax Years: 1985–2010
 
     Largest 100 Nonoperating Private Foundations—Selected Financial Data
      Tax Years: Panel Study, 1985–1997
 
     Selected Data Items by Asset Size—in Current Dollars
      Tax Years: 1993–2002

 
Domestic IRC Section 4947(a)(1) Charitable Trusts Treated as Foundations:
     Number and Selected Financial Data
      Classified by: Type of Charitable Trust and Size of End-of-Year Fair Market Value of Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*
 
     Income Statements and Balance Sheets
      Classified by: Size of End-of-Year Fair Market Value of Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*

 
Excise Taxes Reported by Charities, Private Foundations, and Split-Interest Trusts on Form 4720
      Classified by: Type of Excise Tax
      Calendar Years: 2011  2010  2009  2008  2007  2006  2005  2004  2003

 
To make customized tables using these data, please visit the Statistics of Income Tax Stats Table Wizard

 
Historical Table:
Table 16—Nonprofit Charitable Organization and Domestic Private Foundation Information Returns, and Tax-Exempt Organization Business Income Tax Returns: Selected Financial Data, Expanded
      Published as: SOI Bulletin Historical Table 16

 
Projections
For selected tax returns, including the Form 990-PF, IRS's Office of Research produces annual forecasts of the number of returns that will be filed in future years.
     Projections of Returns to be Filed in Future Calendar Years
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Publications and Papers

The following are available as PDF files. A free Adobe® reader is available for download, if needed.

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Other SOI Data on Trusts

Form 5227 is an information return filed by split-interest trusts, those who make distributions to both charitable and noncharitable beneficiaries, while providing tax benefits to their donor. Form 1041 is the income tax return filed by fiduciaries to report income, distributions, and tax liability of estates and trusts.

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Microdata Files

Microdata are individual organization-level data that can be used for research purposes.

The data are contained in XML, ASCII flat files, Microsoft Excel spreadsheets and Adobe Acrobat PDF. Documentation to assist with the files is included. (Free Adobe Acrobat reader, WinZip utility, and Microsoft Excel viewer software is available for download, if needed.)
 

SOI Sample Data Files

This section contains microdata files for all Forms 990-PF sampled for the annual SOI studies of private foundations. The data for each of the annual studies are included in a comprehensive, "harmonized" dataset, with standardized variable names and codes based on the form revision of the latest available Tax Year.

The sample include returns filed by private foundations, exempt under Internal Revenue Code section 501(c)(3), and section 4947(a)(1) nonexempt charitable trusts. The stratified random samples are based on asset size and represent approximately 10 percent of Forms 990-PF filed; sampling rates of 100 percent are applied to large-asset classes. Microdata records contain most financial information from Forms 990-PF, as well as weights (to estimate the population), for each organization.

Available Data:  Tax Years 1985-2010 

Data Element Reference List

Click on one of the following links to access a page with links to data in the desired format.

         ASCII text     XML     

To make customized tables using these data, please visit the Statistics of Income Tax Stats Table Wizard.  
 

IRS Population Data

This page contains microdata files for all Forms 990, 990-EZ, and 990-PF returns filed by active organizations.  Data are from the IRS Exempt Organization Master File.

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Other IRS Data and Related Links

For tax administration data on this topic, as well as other types of taxes, choose from the links below.

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Return to Tax Stats home page .

Page Last Reviewed or Updated: 14-Jan-2014

The Amend A Return

Amend a return 12. Amend a return   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. Amend a return Name change. Amend a return Penalty for underpayment of estimated tax. Amend a return Who Must Pay Self-Employment Tax?Limited partner. Amend a return Community property. Amend a return Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. Amend a return  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Amend a return 4% to 12. Amend a return 4%. Amend a return The Medicare part of the tax remains at 2. Amend a return 9%. Amend a return As a result, the self-employment tax is increased from 13. Amend a return 3% to 15. Amend a return 3%. Amend a return Additional Medicare Tax. Amend a return . Amend a return  For tax years beginning in 2013, a 0. Amend a return 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Amend a return Use Form 8959, Additional Medicare Tax, to figure this tax. Amend a return For more information, see the Instructions for Form 8959. Amend a return Maximum net earnings. Amend a return  The maximum net self-employment earnings subject to the social security part (12. Amend a return 4%) of the self-employment tax increased to $113,700 for 2013. Amend a return There is no maximum limit on earnings subject to the Medicare part (2. Amend a return 9%). Amend a return What's New for 2014 Maximum net earnings. Amend a return  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Amend a return Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Amend a return It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Amend a return You usually have to pay SE tax if you are self-employed. Amend a return You are usually self-employed if you operate your own farm on land you either own or rent. Amend a return You have to figure SE tax on Schedule SE (Form 1040). Amend a return Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. Amend a return See chapter 13 for information on employment taxes. Amend a return Self-employment tax rate. Amend a return   For tax years beginning in 2013, the self-employment tax rate is 15. Amend a return 3%. Amend a return The rate consists of two parts: 12. Amend a return 4% for social security (old-age, survivors, and disability insurance) and 2. Amend a return 9% for Medicare (hospital insurance). Amend a return Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. Amend a return S. Amend a return Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. Amend a return S. Amend a return Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Amend a return See chapter 16 for information about getting publications and forms. Amend a return Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. Amend a return Your payments of SE tax contribute to your coverage under the social security system. Amend a return Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Amend a return How to become insured under social security. Amend a return   You must be insured under the social security system before you begin receiving social security benefits. Amend a return You are insured if you have the required number of credits (also called quarters of coverage). Amend a return Earning credits in 2013. Amend a return   You can earn a maximum of four credits per year. Amend a return For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. Amend a return You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. Amend a return It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. Amend a return For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. Amend a return socialsecurity. Amend a return gov. Amend a return Making false statements to get or to increase social security benefits may subject you to penalties. Amend a return The Social Security Administration (SSA) time limit for posting self-employment earnings. Amend a return   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Amend a return    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. Amend a return The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. Amend a return How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). Amend a return This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. Amend a return An ITIN does not entitle you to social security benefits. Amend a return Obtaining an ITIN does not change your immigration or employment status under U. Amend a return S. Amend a return law. Amend a return Obtaining a social security number. Amend a return   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. Amend a return The application is also available in Spanish. Amend a return You can get this form at any Social Security office or by calling 1-800-772-1213. Amend a return    You can also download Form SS-5 from the Social Security Administration website at  www. Amend a return socialsecurity. Amend a return gov. Amend a return   If you have a social security number from the time you were an employee, you must use that number. Amend a return Do not apply for a new one. Amend a return Replacing a lost social security card. Amend a return   If you have a number but lost your card, file Form SS-5. Amend a return You will get a new card showing your original number, not a new number. Amend a return Name change. Amend a return   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. Amend a return Obtaining an individual taxpayer identification number. Amend a return   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. Amend a return To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. Amend a return You can get this form by calling 1-800-829-3676. Amend a return For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. Amend a return Form W-7 and Publication 1915 are also available in Spanish. Amend a return    You can also download Form W-7 from the IRS website at IRS. Amend a return gov. Amend a return Paying estimated tax. Amend a return   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. Amend a return You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. Amend a return Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. Amend a return   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. Amend a return For more information about estimated tax for farmers, see chapter 15. Amend a return Penalty for underpayment of estimated tax. Amend a return   You may have to pay a penalty if you do not pay enough estimated tax by its due date. Amend a return Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. Amend a return The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Amend a return Aliens. Amend a return   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. Amend a return S. Amend a return citizens. Amend a return Nonresident aliens are not subject to self-employment tax. Amend a return However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. Amend a return S. Amend a return residents for self-employment tax purposes. Amend a return For more information on aliens, see Publication 519, U. Amend a return S. Amend a return Tax Guide for Aliens. Amend a return Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. Amend a return A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. Amend a return Share farmer. Amend a return   You are a self-employed farmer under an income-sharing arrangement if both the following apply. Amend a return You produce a crop or raise livestock on land belonging to another person. Amend a return Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. Amend a return Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. Amend a return   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. Amend a return This will depend on whether the landowner has the right to direct or control your performance of services. Amend a return Example. Amend a return A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. Amend a return Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. Amend a return The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. Amend a return The share farmer is provided a house in which to live. Amend a return The landowner and the share farmer decide on a cropping plan. Amend a return The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. Amend a return The tax treatment of the landowner is discussed later under Landlord Participation in Farming. Amend a return Contract farming. Amend a return   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. Amend a return Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. Amend a return 4-H Club or FFA project. Amend a return   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Amend a return Report the net income as “Other income” on line 21 of Form 1040. Amend a return If necessary, attach a statement showing the gross income and expenses. Amend a return The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. Amend a return Such a project is generally not considered a trade or business. Amend a return Partners in a partnership. Amend a return   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. Amend a return Limited partner. Amend a return   If you are a limited partner, your partnership income is generally not subject to SE tax. Amend a return However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). Amend a return Business Owned and Operated by Spouses. Amend a return   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. Amend a return You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. Amend a return Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Amend a return Qualified joint venture. Amend a return   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Amend a return For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. Amend a return   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Amend a return Each of you must file a separate Schedule F and a separate Schedule SE. Amend a return For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). Amend a return Spouse employee. Amend a return   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. Amend a return For more information about employment taxes, see chapter 13. Amend a return Community property. Amend a return   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. Amend a return Do not treat any of your share as self-employment earnings of your spouse. Amend a return Figuring Self-Employment Earnings Farmer. Amend a return   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. Amend a return Partnership income or loss. Amend a return   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). Amend a return Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). Amend a return Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). Amend a return   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. Amend a return   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. Amend a return   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). Amend a return   For general information on partnerships, see Publication 541. Amend a return More than one business. Amend a return   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. Amend a return A loss from one business reduces your profit from another business. Amend a return However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. Amend a return Community property. Amend a return   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. Amend a return Lost income payments. Amend a return   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. Amend a return These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. Amend a return Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). Amend a return A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. Amend a return Gain or loss. Amend a return   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. Amend a return It does not matter whether the disposition is a sale, exchange, or involuntary conversion. Amend a return For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. Amend a return Investment property. Amend a return Depreciable property or other fixed assets used in your trade or business. Amend a return Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. Amend a return Unharvested standing crops sold with land held more than 1 year. Amend a return Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. Amend a return   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. Amend a return For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. Amend a return Wages and salaries. Amend a return   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. Amend a return   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. Amend a return Retired partner. Amend a return   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. Amend a return The retired partner performs no services for the partnership during the year. Amend a return The retired partner is owed only the retirement payments. Amend a return The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. Amend a return The payments to the retired partner are lifelong periodic payments. Amend a return Conservation Reserve Program (CRP) payments. Amend a return   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. Amend a return You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. Amend a return Cost share payments you receive may qualify for the costsharing exclusion. Amend a return See Cost-Sharing Exclusion (Improvements), above. Amend a return CRP payments are reported to you on Form 1099G. Amend a return Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. Amend a return See the instructions for Schedule SE (Form 1040). Amend a return Self-employed health insurance deduction. Amend a return   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). Amend a return Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. Amend a return However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. Amend a return Crop shares. Amend a return   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. Amend a return Feeding such crop shares to livestock is considered using them. Amend a return Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. Amend a return Material participation for landlords. Amend a return   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. Amend a return You do at least three of the following. Amend a return Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. Amend a return Furnish at least half the tools, equipment, and livestock used in the production activities. Amend a return Advise or consult with your tenant. Amend a return Inspect the production activities periodically. Amend a return You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. Amend a return You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. Amend a return You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. Amend a return These tests may be used as general guides for determining whether you are a material participant. Amend a return Example. Amend a return Drew Houston agrees to produce a crop on J. Amend a return Clarke's cotton farm, with each receiving half the proceeds. Amend a return Clarke advises Houston when to plant, spray, and pick the cotton. Amend a return During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. Amend a return Houston furnishes all labor needed to grow and harvest the crop. Amend a return The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. Amend a return The income Clarke receives from his cotton farm is included in his self-employment earnings. Amend a return Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. Amend a return The regular method. Amend a return The farm optional method. Amend a return The nonfarm optional method. Amend a return You must use the regular method unless you are eligible to use one or both of the optional methods. Amend a return See Figure 12-1 , shown later. Amend a return Figure 12-1. Amend a return Can I Use the Optional Methods? Please click here for the text description of the image. Amend a return Figure 12–1. Amend a return Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. Amend a return You want to receive credit for social security benefit coverage. Amend a return You incurred child or dependent care expenses for which you could claim a credit. Amend a return (An optional method may increase your earned income, which could increase your credit. Amend a return ) You are entitled to the earned income credit. Amend a return (An optional method may increase your earned income, which could increase your credit. Amend a return ) You are entitled to the additional child tax credit. Amend a return (An optional method may increase your earned income, which could increase your credit. Amend a return ) Effects of using an optional method. Amend a return   Using an optional method could increase your SE tax. Amend a return Paying more SE tax may result in you getting higher social security disability or retirement benefits. Amend a return   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. Amend a return   The optional methods may be used only to figure your SE tax. Amend a return To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. Amend a return Regular Method Multiply your total self-employment earnings by 92. Amend a return 35% (. Amend a return 9235) to get your net earnings under the regular method. Amend a return See Short Schedule SE, line 4, or Long Schedule SE, line 4a. Amend a return Net earnings figured using the regular method are also called “actual net earnings. Amend a return ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. Amend a return You can use this method if you meet either of the following tests. Amend a return Your gross farm income is $6,960 or less. Amend a return Your net farm profits are less than $5,024. Amend a return Gross farm income. Amend a return   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). Amend a return Net farm profits. Amend a return   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). Amend a return However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. Amend a return For more information, see Partnership income or loss , earlier. Amend a return Figuring farm net earnings. Amend a return   If you meet either of the two tests explained above, use Table 12-1. Amend a return Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. Amend a return Table 12-1. Amend a return Figuring Farm Net Earnings IF your gross farm income  is. Amend a return . Amend a return . Amend a return THEN your net earnings are equal to. Amend a return . Amend a return . Amend a return $6,960 or less Two-thirds of your gross farm income. Amend a return More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. Amend a return   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. Amend a return Your actual net earnings are your net earnings figured using the regular method, explained earlier. Amend a return Example. Amend a return Your gross farm income is $540 and your net farm profit is $460. Amend a return Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. Amend a return 35% of $460). Amend a return You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. Amend a return Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. Amend a return If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. Amend a return You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. Amend a return For more information about the nonfarm optional method, see Publication 334. Amend a return You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. Amend a return Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. Amend a return You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. Amend a return If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. Amend a return Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. Amend a return Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. Amend a return Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. Amend a return However, certain taxpayers must use Section B–Long Schedule SE. Amend a return Use the chart on page 1 of Schedule SE to find out which one to use. Amend a return If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. Amend a return Deduction for employer-equivalent portion of self-employment tax. Amend a return   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Amend a return This deduction only affects your income tax. Amend a return It does not affect either your net earnings from self-employment or your SE tax. Amend a return   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. Amend a return Joint return. Amend a return   Even if you file a joint return, you cannot file a joint Schedule SE. Amend a return This is true whether one spouse or both spouses have self-employment earnings. Amend a return Your spouse is not considered self-employed just because you are. Amend a return If both of you have self-employment earnings, each of you must complete a separate Schedule SE. Amend a return However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. Amend a return Attach both schedules to the joint return. Amend a return If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . Amend a return Prev  Up  Next   Home   More Online Publications